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SYSCO REPORTS FIRST QUARTER FISCAL 1993 EARNINGS

 SYSCO REPORTS FIRST QUARTER FISCAL 1993 EARNINGS
 HOUSTON, Oct. 21 /PRNewswire/ -- Sysco Corporation (NYSE: SYY) today


reported results for the first quarter of fiscal year 1993 which ended Sept. 26, 1992.
 Sales totaled $2.4 billion, an 11 percent increase over the $2.2 billion achieved in the prior year. Net income reached $44.9 million, or $0.24 per share, up 7 percent as compared to the $42.0 million, or $0.22 per share, attained during the first quarter a year earlier.
 John F. Woodhouse, chairman and chief executive officer of Sysco, commented, "We are pleased that the accelerated sales momentum established in the last two quarters of fiscal 1992 continued into the new year. Clearly, our emphasis during the past two years on recruiting and training additional sales personnel has strengthened customer relationships and increased our share of a market that is currently growing only modestly, at best.
 "We are particularly encouraged by our real sales growth (excluding the impact of acquisitions and deflation) in Sysco's traditional distribution businesses. These companies have achieved double-digit real sales gains for the three consecutive quarters, including nearly 11 percent growth during the period just ended.
 "Food cost deflation, which averaged almost 2 percent in fiscal 1992, gradually lessened in July and August. However, in September fresh produce prices increased significantly and resulted in neutral overall pricing for the quarter.
 "Earnings growth was less than originally anticipated, primarily due to costs incurred in conjunction with a work stoppage at our Cincinnati operation. The company continued to service its customers successfully but, regrettably, it was necessary to hire and train a significant number of new employees. This was a disappointing and unfortunate occurrence. Sysco historically has maintained good relations with those employees represented by unions and, in fact, several Sysco operating companies have negotiated mutually agreeable labor contract extensions during this quarter."
 According to Mr. Woodhouse, the company is fortunate that no significant property damage resulted from Hurricane Andrew, although service to customers was interrupted to some degree in Louisiana and to a greater extent in South Florida. A number of employees, unfortunately, experienced the loss of homes and other personal possessions but continued to perform admirably under the circumstances. Although earnings were negatively impacted by the loss of business and increased bad debt reserves, particularly in Florida, the aggregate is expected to be minimal.
 Capital spending is on target for the year and should approximate $135 million. In addition to ongoing expenditures for fleet and various expansion projects, Sysco's Vancouver, British Columbia operating company recently moved into a new facility, and a distribution complex currently under construction in Harrisonburg, Va., is anticipated to be operating by the close of the fiscal year.
 In conclusion Mr. Woodhouse said, "We are encouraged by our sales growth in recent quarters. As the new fiscal year progresses, we expect to sustain this momentum, broaden our customer relationships and improve productivity -- thereby enhancing efficiency and solidifying our leadership position in the foodservice distribution industry."
 SYSCO CORPORATION
 ($000 omitted)
 13 Week Period Ended 9/26/92 9/28/91
 Sales $2,415,827 $2,177,353
 Cost of sales 1,987,820 1,789,793
 Operating expenses 345,632 309,913
 Interest expense 9,608 10,782
 Other income, net (773) (1,630)
 Total costs and expenses 2,342,287 2,108,858
 Earnings before income taxes 73,540 68,495
 Income taxes 28,681 26,508
 Net earnings 44,859 41,987
 Earnings per share (A) $0.24 $0.22
 (A) Based on 185,866,774 average shares outstanding for the period ended Sept. 26, 1992 and 185,420,392 for the period ended Sept. 28, 1991. All share information has been adjusted for the two-for-one stock split of June 19, 1992.
 Sysco, listed on the New York Stock Exchange, is the nation's largest foodservice marketing and distribution organization. The company provides its products and services to approximately 230,000 customers located across the United States and western Canada. The Sysco distribution network currently covers virtually the entire continental United States, including all of its 150 largest cities.
 -0- 10/21/92
 /CONTACT: E. James Lowrey, executive vice president-finance and administration of Sysco, 713-584-1390/
 (SYY) CO: SYSCO Corporation ST: Texas IN: FOD SU: ERN


LR-PS -- NY044 -- 2843 10/21/92 11:31 EDT
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Date:Oct 21, 1992
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