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SEALRIGHT REPORTS FIRST-QUARTER SALES AND EARNINGS

 OVERLAND PARK, Kan., April 22 /PRNewswire/ -- Sealright Co., Inc., (NASDAQ: SRCO) a manufacturer of packaging and packaging systems for the grocery and dairy industries, said first-quarter sales increased 3.6 percent to a record $68.2 million from $65.9 million in the 1992 quarter.
 Net income was $2.65 million, or 24 cents a share, compared with restated earnings of $490,000, or 5 cents a share, in the 1992 quarter. Before restating net income to show the cumulative effect of accounting for income taxes and non-pension retirement benefits, earnings in the 1992 quarter were $2.91 million, or 26 cents a share.
 In addition to the accounting changes, Sealright said the two quarters are not comparable for other reasons. The 1993 quarter includes revenue from Venture Packaging, a North Carolina flexible - packaging supplier acquired by Sealright at year-end 1992. This new revenue was partly offset, however, by the impact on sales of two fewer business days compared with the 1992 quarter. Sales in last year's record first quarter also benefited from mild weather, large shipments of labels for an Olympic Games promotion, and heavy initial demand for packaging for a new medical product.
 Sealright said that Venture Packaging, one of five units in the company's Flexible Packaging Group, performed as expected. The Venture acquisition had no impact on first-quarter earnings as operating profit was offset by interest and acquisition costs. Venture's 1992 sales were $27 million, including revenue from its Styrotech division, which manufactures sleeve label application equipment.
 In the rigid-container segment of Sealright's business, competitive pressures resulted in lower net sales dollars in the first quarter. While the company expects continued competitive activity, Chairman and Chief Executive Officer Marvin W. Ozley said Sealright is well- positioned to meet the threats present in the marketplace. The rigid- container segment includes paperboard packaging and machinery for packaging systems used by food and dairy processors.
 Selling, general, and administrative expenses declined by 2 percent in the first quarter as a result of ongoing internal controls plus non- recurring expenses in last year's first quarter.
 Sealright is North America's leading supplier of packaging and packaging systems for ice cream and other frozen dairy desserts. The company and its subsidiaries also produce rigid paperboard and plastic containers and flexible packaging and labeling for food and dairy products, beverages, and household and medical supplies.
 SEALRIGHT CO., INC.
 1ST QUARTER COMPARISONS, 1993-1992
 For the period ended March 31, 1993
 (in thousands, except per-share data)
 1993 1992
 Net Sales $68,238 $65,862
 Cost of Sales 53,424 50,761
 Gross Profit 14,814 15,101
 Selling, General & Admin. Expense 8,857 9,015
 Operating Income 5,957 6,086
 Interest Expense 859 783
 Other 502 464
 Income Before Effect of
 Accounting Changes and Income Taxes 4,596 4,839
 Provision for Income Taxes 1,943 1,933
 Income Before Effect of
 Accounting Changes 2,653 2,906
 Accounting Changes 0 (A)2,416
 Net Income $ 2,653 $ 490
 NET INCOME PER SHARE BEFORE
 EFFECT OF ACCOUNTING CHANGES $0.24 $0.26
 NET INCOME PER SHARE AFTER
 EFFECT OF ACCOUNTING CHANGES $0.24 $0.05
 AVERAGE NUMBER OF COMMON AND
 EQUIVALENT SHARES OUTSTANDING 11,087 11,058
 (A) Cumulative effect of accounting for income taxes (SFASNo.109) and post-retirement benefits other than pensions (SFASNo.106)
 SEALRIGHT CO., INC.
 CONSOLIDATED BALANCE SHEET (UNAUDITED)
 (in thousands)
 Comparisons as of March 31, 1993,
 and March 31, 1992
 Assets 1993 1992
 Total Current Assets $ 72,606 $ 58,991
 Property, Plant & Equipment (Net) $201,407 $165,115
 Liabilities & Stockholders' Equity
 Total Current Liabilities $ 32,843 $ 26,291
 Long Term Debt 53,165 38,252
 Other Liabilities 15,478 9,614
 Total Shareholders' Investment 99,921 90,958
 Total Liabilities &
 Shareholders' Investment $201,407 $165,115
 -0- 4/22/93
 /CONTACT: David Burket or Larry Pfautsch, 816-474-9407, both for Sealright/
 (SRCO)


CO: Sealright Co., Inc. ST: Kansas IN: PAP SU: ERN

LR -- NY041 -- 9301 04/22/93 10:27 EDT
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Publication:PR Newswire
Date:Apr 22, 1993
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