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SARA LEE CORPORATION REPORTS RECORD SALES AND EARNINGS FOR FISCAL 1992

SARA LEE CORPORATION REPORTS RECORD SALES AND EARNINGS FOR FISCAL 1992
 CHICAGO, Aug. 6 /PRNewswire/ -- Sara Lee Corporation achieved record sales and earnings for the fourth quarter and fiscal year ended June 27.
 Net income for the year rose 42.2 percent to $760.6 million from $535.0 million reported in 1991. Primary earnings per share increased 43.3 percent to $3.08 from $2.15 a year ago. Net sales for the year increased 7.0 percent to $13.2 billion from $12.4 billion in fiscal 1991. Results for the year include a previously announced non-recurring benefit of $.60 per share that occurred in the first quarter, reflecting the gain from the sale of the corporation's European-based over-the- counter pharmaceutical business, net of restructuring charges. Excluding the non-recurring gain, primary earnings per share for the year increased 15.3 percent to $2.48 per share.
 For the fourth quarter, net income rose 20.6 percent to $170.2 million from $141.1 million a year ago. Primary earnings per share increased 19.3 percent to 68 cents from 57 cents in 1991. Net sales increased 11.8 percent to $3.4 billion.
 "We believe the strength of our fiscal 1992 results is evidence of the success we have had in applying our two strategies -- margin improvement and global expansion," said John H. Bryan, chairman and chief executive officer. "1993 sales and earnings should continue to reflect strong growth both in the U.S. and abroad."
 A performance review for each business segment follows (dollars in millions
 SARA LEE PACKAGED FOODS
 Fourth quarter Percent Fiscal year Percent
 1992 1991 Change 1992 1991 Change
 Sales:
 Packaged meats
 and bakery $1,199.5 $1,278.2 (6.2) $4,702.5 $5,124.2 (8.2)
 Coffee and grocery 498.9 477.0 4.6 1,919.0 1,938.1 (1.0)
 Total 1,698.4 1,755.2 (3.2) 6,621.5 7,062.3 (6.2)
 Operating income:
 Packaged meats
 and bakery 87.4 67.3 29.9 264.1 229.2 15.2
 Coffee and Grocery 60.7 64.9 (6.5) 253.9 244.6 3.8
 Total 148.1 132.2 12.1 518.0 473.8 9.3
 Sales for Packaged Meats and Bakery were down for the fourth quarter and the full year due primarily to lower commodity prices and the divestment of several businesses. The increase in operating income and margins in both periods is attributable to operating efficiencies, lower raw material costs in Packaged Meats, and an improved product mix in Bakery. Packaged Meats unit volume for the fourth quarter rose 5 percent, with particular strength in smoked sausage, breakfast sausage, ham, packaged lunchmeats and bacon. Bakery unit volume rose 2 percent in the quarter. For the full year, Packaged Meats unit volume increased 2 percent and unit volume for Sara Lee Bakery was flat, as strength in international markets and the U.S. bakery/deli segment was offset by lower sales in the U.S. retail market.
 Coffee and Grocery operating income fell in the fourth quarter, while sales rose almost 5 percent due to acquisitions and above-average base business unit growth of 5 percent. For the full year, sales fell slightly, down 1 percent, but profits rose 4 percent, resulting from favorable green coffee prices and a continuing focus on operating efficiencies. Coffee unit volume for the year declined 2 percent, excluding acquisitions.
 SARA LEE PACKAGED CONSUMER PRODUCTS
 Fourth quarter Percent Fiscal year Percent
 1992 1991 Change 1992 1991 Change
 Sales:
 Personal
 products $1,365.2 $ 943.7 44.7 $5,397.6 $4,000.4 34.9
 Household and
 personal care 335.4 340.3 (1.4) 1,227.4 1,318.8 (6.9)
 Total 1,700.6 1,284.0 32.5 6,625.0 5,319.2 24.5
 Operating Income:
 Personal products 149.7 112.1 33.5 582.5 458.9 26.9
 Household and
 personal care 33.1 45.6 (27.4) 106.8 152.5 (30.0)
 Total 182.8 157.7 15.9 689.3 611.4 12.7
 Sales and operating income for Personal Products increased significantly during the fourth quarter and fiscal 1992 due to strength in the base businesses as well as contributions from acquisitions. Sales and earnings rose in each core operating segment -- worldwide hosiery, knit products and foundations -- during both periods.
 During the fourth quarter, worldwide hosiery unit volume rose 3 percent, as strength in U.S. markets more than offset some weakness abroad. Knit products unit sales increased 13 percent, with particular strength in activewear and women's underwear. Foundations unit volume was also strong, up 12 percent as Hanes Her Way sales to mass merchandisers continue to grow. For the full year, worldwide hosiery units grew 2 percent, knit products volume rose 11 percent and foundations unit sales increased 10 percent, with all segments affected by factors similar to those in the fourth quarter. All unit volumes for both periods exclude acquisitions.
 The Household and Personal Care line of business reported a decrease in sales and operating income for the year and for the fourth quarter due primarily to the divestment of the over-the-counter pharmaceutical business in the first quarter of the fiscal year.
 Net interest expense decreased for both the year and the fourth quarter due primarily to lower interest rates. The tax rate in the fiscal year was 35.2 percent versus 35.5 percent in 1991, while the rate for the quarter was 34.8 percent versus 35.5 percent last year.
 Sara Lee Corporation an international food and consumer products company, markets a variety of products under leading brand names, including Hanes, Hanes Her Way, L'eggs, Dim, Bali, Playtex, Kiwi, Hillshire Farm, Ball Park, Jimmy Dean, Douwe Egberts and Sara Lee.
 -0- 8/6/92
 /CONTACT: E. Denise Stovell, 312-558-8691, or (investors) Janet E. Bergman, 312-558-8651, both of Sara Lee Corporation/
 (SLE) CO: Sara Lee Corporation ST: Illinois IN: FOD SU: ERN


LR-TS -- NY014 -- 7473 08/06/92 09:52 EDT
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Date:Aug 6, 1992
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