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SPRINGS INDUSTRIES NEARS COMPLETION OF MAJOR RESTRUCTURING AND MODERNIZATION PROGRAM

 SPRINGS INDUSTRIES NEARS COMPLETION OF
 MAJOR RESTRUCTURING AND MODERNIZATION PROGRAM
 FORT MILL, S.C., April 13 /PRNewswire/ -- Springs Industries (NYSE: SMI) has set ambitious growth targets as the company nears completion of a major restructuring and modernization program, Chairman and Chief Executive Officer Walter Y. Elisha told shareholders at their annual meeting here today.
 Springs' longer-term goals are to increase sales by seven percent annually, attain a return on equity of 15 percent, and accelerate new product development, Elisha said. The chairman said Springs will continue to maintain a strong balance sheet with relatively low debt. "Our objective is to be the Western Hemisphere leader in our consumer products and specialty fabric markets," he said.
 Elisha described "today's Springs: a major marketer and manufacturer of home furnishings, finished fabrics and industrial fabrics, with strong brands to support our market position. Sixty- five percent of our revenues come from businesses in which we hold the Number One or Two market position, and over 50 percent of sales come from businesses we did not own and products we did not make in 1981. And our portfolio includes several development-stage businesses."
 Capital spending will be approximately $90 million in 1992, a decline from the levels of the past five years when the company invested nearly $500 million -- 146 percent of depreciation -- to modernize its manufacturing operations, Elisha reported. He said the massive capital program and restructuring was virtually complete, and described Springs today as primarily a home furnishings company. Since 1986, home furnishings' share of revenues has increased from 42 percent to 58 percent as a result of key acquisitions, capital investments, reallocation of assets as part of the restructuring plan and internal growth, Elisha said. He noted that the finished fabrics segment, while smaller as a result of the plan, has also returned to profitability with a more focused product mix.
 "We believe that our investments in our traditional textile operations now make us the lowest-cost product of most of the items we manufacture," Elisha said. "We have also strengthened Springs by combining new technology with the Springs Quality Process and new management styles that share responsibility and authority with our associates."
 Elisha said the North American Free Trade Agreement now being discussed will offer Springs new opportunities for growth in Canada and Mexico, and ultimately in other parts of the Western Hemisphere.
 Shareowners honored retiring director Arthur W. Schultz, retired chairman of Foote, Cone & Belding Communications, Inc. of Chicago, a board member since 1981. The 12 other directors were re-elected. Shareowners also approved reappointment of Deloitte & Touche as independent auditors for 1992.
 -0- 4/13/92
 /CONTACT: Robert E. Slough, Director of Public Relations, Springs Industries, Inc., 803-547-3738, office, or 803-366-6646, home/
 (SMI) CO: Springs Industries, Inc. ST: South Carolina IN: TEX SU: RCN


DF-CM -- CH006 -- 7698 04/13/92 11:26 EDT
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Publication:PR Newswire
Date:Apr 13, 1992
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