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QUAKER ANTICIPATES HIGHER-THAN-EXPECTED RESULTS FOR THE FIRST QUARTER; COULD PROVIDE MODEST INCREASE FOR FULL YEAR

QUAKER ANTICIPATES HIGHER-THAN-EXPECTED RESULTS FOR THE FIRST QUARTER;
 COULD PROVIDE MODEST INCREASE FOR FULL YEAR
 CHICAGO, Oct. 15 /PRNewswire/ -- The Quaker Oats Company (NYSE: OAT) said today that its first-quarter earnings, to be announced next week, for the period ending Sept. 30, 1992, will be between 80 and 85 cents per share, significantly above Wall Street expectations. Last year, Quaker earned 54 cents per share in the first quarter. Included in the estimate is a previously announced restructuring charge of $38.6 million, or 37 cents per share after-tax, for the consolidation of production facilities at the Kankakee, Ill. pet foods plant.
 Earnings per share estimates by analysts for the first quarter are generally in the 70 to 80 cents range and for the fiscal year in the $3.80 to $4.00 range, excluding the 37 cents restructuring charge.
 William D. Smithburg, chairman, president and CEO, said, "The higher-than-expected results are due to a combination of factors, including strong volumes, improved gross margins and lower operating costs. Nearly all of our major businesses are meeting our expectations. The exception is Gatorade which, like most beverage companies, had lower-than-planned sales due to the cool and rainy summer weather.
 "Some of the positive variances are timing related, such as the change in timing of trade promotions, which is enabling us to recoup the sales and operating profits postponed in the last half of fiscal 1992. In addition, this change is expected to lead to improved operating margins and asset utilization throughout the year," Smithburg said.
 "Other positive contributors to first-quarter results were lower interest expense, a lower tax rate and a reduction of advertising and merchandising expenditures for Gatorade in the quarter, due to the poor weather conditions. Excluding Gatorade, overall marketing expenditures were up in the quarter," he said.
 Smithburg said that while the positive first-quarter results will modestly increase the full-year outlook, the savings in Gatorade marketing expenditures in the first quarter will be offset by higher promotional spending in the second half, due to increased competition in key businesses, continued expansion of Gatorade internationally and new product introductions.
 First-quarter results are expected to be announced Oct. 22, 1992.
 -0- 10/15/92
 /CONTACT: Ronald Bottrell of Quaker Oats, 312-222-7388/
 (OAT) CO: Quaker Oats Company ST: Illinois IN: FOD SU: ERP


SH -- NY030 -- 0289 10/15/92 09:56 EDT
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Date:Oct 15, 1992
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