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SARA LEE CORPORATION REPORTS RECORD FIRST QUARTER SALES NET INCOME UP 15.1 PERCENT, EXCLUDING NONRECURRING GAIN

 SARA LEE CORPORATION REPORTS RECORD FIRST QUARTER SALES
 NET INCOME UP 15.1 PERCENT, EXCLUDING NONRECURRING GAIN
 CHICAGO, Oct. 22 /PRNewswire/ -- Sara Lee Corporation (NYSE: SLE) today announced results for the first quarter ended Sept. 26.
 Excluding a nonrecurring gain in last year's first quarter, net income increased 15.1 percent and earnings per share grew 14.3 percent to $.56 from $.49. In the first quarter of fiscal 1992, reported earnings per share of $1.09 included a nonrecurring earnings per share benefit of $.60, reflecting the gain from the sale of the corporation's European-based over-the-counter pharmaceutical business, net of restructuring charges. Including the fiscal 1992 nonrecurring gain, reported net income declined 46.1 percent to $142.0 million from $263.4 million for the same period last year and primary earnings per share declined 48.6 percent. Net sales for the quarter were $3.6 billion, up 15.3 percent over last year.
 "Each of Sara Lee's core businesses increased unit volumes during the first quarter," said John H. Bryan, chairman and chief executive officer. "Our first quarter results continued to show improved margins in our Packaged Foods businesses, and our Packaged Consumer Products operations benefited from heavy investment spending and global expansion efforts."
 A performance review for each business segment follows (dollars in millions):
 SARA LEE PACKAGED FOODS
 Percent
 Period ended First quarter Change
 1993 1992
 Sales
 Packaged meats and bakery $1,191.0 $1,185.9 0.4
 Coffee and grocery 515.8 433.4 19.0
 Total $1,706.8 $1,619.3 5.4
 Operating income
 Packaged meats and bakery $ 51.6 $ 47.1 9.6
 Coffee and grocery 72.9 53.4 36.4
 Total $ 124.5 $ 100.5 23.9
 While sales for packaged meats and bakery rose only slightly in the quarter, operating income increased almost 10 percent due in part to above average volume growth in the corporation's meat products and core bakery items. Unit volume for Sara Lee Packaged Meats rose 5 percent in the quarter with good growth in hot dogs and luncheon meats. Sara Lee Bakery reported a 9 percent increase in unit volumes, led by strong sales in the United Kingdom and a double-digit increase in core U.S. retail bakery products.
 Sara Lee Coffee and Grocery reported strong sales and operating gains for the quarter, up 19.0 percent and 36.4 percent respectively. Retail coffee volume rose 4 percent. Margins expanded due to good unit sales, improved operating efficiencies and lower green coffee prices. This line of business also was positively affected by the strengthening of foreign currencies relative to the U.S. dollar.
 SARA LEE PACKAGED CONSUMER PRODUCTS
 First quarter Percent
 1993 1992 change
 Sales:
 Personal products $1,540.7 $1,180.4 30.5
 Household & personal care 336.3 307.6 9.3
 Total $1,877.0 $1,488.0 26.1
 Operating income:
 Personal products $ 136.9 $ 124.8 9.7
 Household & personal care 21.0 21.4 (2.1)
 Total $ 157.9 $ 146.2 8.0
 Personal Products sales rose 30.5 percent and operating income rose 9.7 percent in the first quarter. Unit volume for worldwide sheer hosiery, excluding acquisitions, rose 1 percent, with strong U.S. sales partially offset by weak unit volumes overseas. Unit volume for knit products rose 13 percent in the quarter, excluding acquisitions, with the underwear and activewear segments both registering gains. Foundations unit volume grew 6 percent, excluding Playtex, which was acquired in the second quarter of fiscal 1992.
 Sara Lee Household and Personal Care reported a 2.1 percent decline in operating profits on a 9.3 percent sales increase. Results continued to reflect the divestiture of Sara Lee's over-the-counter pharmaceutical business, sold in September 1991. Excluding this divestiture, continuing sales and operating profits both rose more than 10 percent, aided by the effect of a weaker dollar relative to foreign currencies.
 Net interest expense fell in the quarter to $22.5 million from $26.3 million one year ago. The tax rate in the current quarter was 35.3 percent versus 35.9 percent for the first quarter of fiscal 1992.
 Sara Lee Corporation, a global food and consumer products company, markets a wide variety of products under leading brand names, including Hanes, Hanes Her Way, L'eggs, Dim, Bali, Playtex, Champion, Kiwi, Hillshire Farm, Ball Park, Jimmy Dean, Douwe Egberts and Sara Lee.
 -0- 10/22/92
 /CONTACT: E. Denise Stovell, 312-558-8691, or Janet E. Bergman (investors), 312-558-8651, both of Sara Lee Corporation/
 (SLE) CO: Sara Lee Corporation ST: Illinois IN: FOD SU: ERN


SH-OS -- NY024 -- 3377 10/22/92 09:43 EDT
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Date:Oct 22, 1992
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