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ONEIDA LTD. REPORTS THIRD QUARTER EARNINGS, AND ANNOUNCES A ONE-TIME CHARGE DUE TO ACCOUNTING CHANGE

 ONEIDA, N.Y., Nov. 24 ~PRNewswire~ -- Oneida Ltd. (NYSE: OCQ) today announced financial results for the third quarter of 1992, reporting net income of $2,853,000 equal to 28 cents per share on sales of $138,840,000 for the three months ended Oct. 31, 1992. This compares to net income of $4,348,000 equal to 44 cents per share on sales of $124,959,000 for the same period a year ago.
 For the first nine months of its fiscal year, Oneida's net income totaled $6,908,000 equal to 68 cents per share on sales of $369,895,000. The results were nearly equal to the first nine months a year ago, when the company reported net income of $7,093,000 equal to 72 cents per share on sales of $332,475,000.
 Chairman William Matthews said several factors led to the lower third quarter results. An unexpected work stoppage at the Buffalo China subsidiary, stemming from a union contract dispute over health benefits, lasted three weeks until it was settled Oct. 4. Meanwhile, Oneida's inventory reduction program successfully reduced tableware product inventories during the quarter by $12 million, equal to 10 percent, but it had an adverse effect on manufacturing efficiencies and sales margins. In addition, all three business units - consumer tableware, foodservice tableware and industrial wire products - were affected by the sluggish economy. Oneida's management believes that the impact of the inventory reduction program and the soft economy will extend to the company's 1992 fourth quarter results.
 Matthews also announced that Oneida plans to incur a one-time non- cash charge of $55 million, creating an after-tax reduction in net income of $34 million equal to $3.40 per share, as a result of the new Financial Accounting Standard no. 106. The company is considering recording this charge in the 1992 fourth quarter, before the adoption deadline which is in the 1993 first quarter. The standard mandates that public companies must account for the cost of retirees' health care benefits on an accrual basis, similar to the way pension costs are recognized; previously, retiree health care costs had been recognized at the time each claim was paid, on a cash basis.
 ONEIDA LTD.
 AND CONSOLIDATED SUBSIDIARIES
 SUMMARIZED FINANCIAL INFORMATION
 FOR THE THREE MONTHS ENDED
 Oct. 31, Oct. 26,
 (In thousands except per share amounts) 1992 1991
 Net Sales $138,840 $124,959
 Gross Margin 34,658 34,705
 Selling, General & Administrative Expenses 27,318 25,028
 Income from Operations 7,471 9,714
 Interest Expense 2,515 2,617
 Income Before Income Taxes 4,731 6,941
 Provision for Income Taxes 1,878 2,593
 Net Income 2,853 4,348
 Earnings Per Share of Common Stock .28 .44
 Weighted Average Number of Common Shares
 Outstanding 10,111 9,842
 FOR THE NINE MONTHS ENDED
 Oct. 31, Oct. 26,
 (In thousands except per share amounts) 1992 1991
 Net Sales $369,895 $332,475
 Gross Margin 96,310 91,303
 Selling, General & Administrative Expenses 76,834 71,972
 Income from Operations 19,907 19,700
 Interest Expense 7,869 8,042
 Income Before Income Taxes 11,323 11,441
 Provision for Income Taxes 4,416 4,348
 Net Income 6,907 7,093
 Earnings Per Share of Common Stock .68 .72
 Weighted Average Number of Common Shares
 Outstanding 10,027 9,689
 This summary is based on unaudited figures.
 -0- 11~24~92
 ~CONTACT: David A. Gymburch, corporate public relations of Oneida Ltd., 315-361-3271~
 (OCQ)


CO: Oneida Ltd. ST: New York IN: HOU SU: ERN

BM -- CL011 -- 1007 11~24~92 11:11 EST
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Publication:PR Newswire
Date:Nov 24, 1992
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