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SYSCO REPORTS THIRD QUARTER RESULTS

 HOUSTON, April 21 /PRNewswire/ -- Sysco Corporation (NYSE: SYY) today reported results for the third quarter and 39 weeks ended March 27, 1993.
 Third quarter sales increased 10 percent to $2.4 billion from the $2.2 billion achieved in the third quarter of 1992. Net earnings grew to $42.8 million, or $0.23 per share, an 18 percent increase over the $36.1 million, or $0.20 per share, earned during the same quarter a year ago.
 For the nine moths, sales were $7.2 billion, a 10 percent gain above the $6.5 billion recorded during the comparable period last year. Net income reached $136.0 million, or $0.73 per share, an 11.5 percent increase when compared to the $121.9 million, or $0.66 per share, or the first nine months of fiscal 1992.
 John F. Woodhouse, chairman and chief executive officer of Sysco, commented, "We are pleased with Sysco's third quarter performance, Although revenue gains were less than expected, efficiency and productivity improvements were evident in expanded pretax margins, thus improving the quality of our earnings. Sales were partially impacted during the third week of March by unseasonably severe weather conditions. In contrast to the relatively mild winters experienced during the last two years, the storm crippled much of the populous northeastern and southern United States, affecting customers in those areas.
 "While year-over-year sales growth comparisons were somewhat difficult during the third period, Sysco's traditional foodservice companies achieved a gain of 7.3 percent in real terms, after excluding the effects of acquisitions and 1.5 percent inflation. For the nine months, the real growth rate was about 9 percent, and food price inflation registered just under 1 percent."
 Mr. Woodhouse noted that Sysco continues to gain market share, primarily by providing an ever-expanding variety of products to existing accounts, but also by adding new customers. As an example, medical/surgical supplies were added to the product mix of one of the company's operations a few years ago when a long-term healthcare customer requested such service as an accompaniment to the food products already being provided. Today, approximately a dozen Sysco locations supply medical/surgical items to healthcare operators who are utilizing the advantages of the company's highly efficient and dependable distribution services.
 In conclusion, Mr. Woodhouse said, "We are committed to developing and supporting strong customer relationships while building all aspects of our business. Encouraged by margin improvement trends and a record sales week in early April, we are optimistic regarding the remainder of fiscal 1993 and anticipate that fourth quarter results should approach Sysco's historical operating performance."
 The comparative financial data for the third quarter of fiscal years 1993 and 1992 are summarized below:
 SYSCO CORPORATION
 ($000 Omitted)
 13 weeks ended 3/27/93 3/28/92
 Total sales $2,399,326 $2,186,357
 Costs and expenses
 Cost of sales 1,968,664 1,798,956
 Operating expenses 351,825 318,606
 Interest expense 9,369 10,616
 Other income, net (661) (1,076)
 Total costs and expenses 2,329,197 2,127,102
 Earnings before income taxes 70,129 59,255
 Income taxes 27,350 23,109
 Net earnings 42,779 36,146
 Earnings per share (A) $ 0.23 $ 0.20
 (A) Based on 188,307,148 average shares outstanding for the period ended March 27, 1993 and 186,250,358 for the period ended March 28, 1992.
 Note: Certain amounts in the prior year have been restated to conform to the 1993 presentation.
 The comparative financial data for the first 39 weeks of fiscal years 1993 and 1992 are summarized below:
 SYSCO CORPORATION
 ($000 Omitted)
 39 weeks ended 3/27/93 3/28/92
 Total sales $7,207,498 $6,544,401
 Costs and expenses
 Cost of sales 5,917,931 5,378,368
 Operating expenses 1,039,215 938,692
 Interest expense 28,746 32,944
 Other income, net (1,331) (4,787)
 Total costs and expenses 6,984,561 6,345,217
 Earnings before income taxes 222,937 199,184
 Income taxes 86,945 77,262
 Net earnings 135,992 121,922
 Earnings per share (B) $ 0.73 $ 0.66
 (B) Based on 187,068,330 average shares outstanding for the period ended March 27, 1993 and 185,870,338 for the period ended March 28, 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 each of its 150 largest cities.
 -0- 4/21/93
 /CONTACT: E. James Lowrey, executive vice president-finance & administration of Sysco, 713-584-1390/
 (SYY)


CO: SYSCO Corporation ST: Texas IN: FOD SU: ERN

WB-LR -- NY030 -- 8640 04/21/93 10:43 EDT
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Date:Apr 21, 1993
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