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TAMBRANDS REPORTS SECOND-QUARTER RESULTS

 WHITE PLAINS, N.Y., July 28 /PRNewswire/ -- Tambrands Inc. (NYSE: TMB) reported today that second-quarter sales and earnings were in line with the company's expectations as announced earlier this year.
 Net sales for the quarter en ?June 30, 1993 were $149,041,000, compared to second-quarter 1992 sales of $169,412,000. Including the previously announced charge of $20,273,000 after tax for restructuring and other costs, the net loss for the quarter was $3,387,000, or $.09 per share, compared to net income of $28,434,000, or $.72 per share, in the second quarter of 1992. Without the charge, second-quarter 1993 net income would have been $16,886,000. The restructuring is part of the company's ongoing program to reduce operating costs and increase efficiency.
 Sales were lower in the second quarter of 1993 due to several factors, including the divestiture of the Maxithins sanitary pad business in 1992; the sale last year of the sanitary pad and diaper businesses in Brazil and Mexico; lower volume in the United States, driven by continuing reductions of trade inventories and lower market share; and the weakening of European currencies.
 In addition to the charge, second-quarter 1993 earnings were further reduced by higher marketing, selling and distribution expenses, as the company's advertising and promotional spending increased. The increased spending reflects the implementation of additional components of the company's more aggressive marketing strategy.
 Howard B. Wentz, Jr., Tambrands' chairman of the board, commented, "The company is pushing ahead on its strong marketing initiatives to rebuild market share off our solid worldwide base. Our second-quarter advertising and promotional activity and the recent restructuring show our resolve to increase our operating strengths and our profitability."
 For the first six months of 1993, net sales were $303,389,000, compared to $344,298,000 for the comparable period of 1992. After the second-quarter charge, net earnings for the six months were $28,804,000, or $.74 per share, compared to $56,734,000, or $1.41 per share, for the first half of last year.
 Tambrands manufactures Tampax(R) tampons and markets them in over 150 countries around the world.
 A summary of consolidated operating results for the three months and six months ended June 30, 1993 follows.
 TAMBRANDS INC.
 Consolidated Income Statement
 (In thousands, except per share figures)
 Periods ended Three months Pct. Six months Pct.
 June 30 1993 1992 Change 1993 1992(A) Change
 Net sales $149,041 $169,412 (12) $303,389 $344,298 (12)
 Cost of products
 sold 48,096 57,036 (16) 97,314 115,829 (16)
 Gross profit 100,945 112,376 (10) 206,075 228,469 (10)
 SG&A:
 Marketing, selling
 & distribution 56,434 51,393 10 96,811 105,182 (8)
 Admin. & Gen. 17,091 17,080 -- 31,402 32,713 (4)
 Restructuring and
 other charges 30,042 -- -- 30,042 -- --
 103,567 68,473 51 158,255 137,895 15
 Operating income
 (loss) (2,622) 43,903 -- 47,820 90,574 (47)
 Interest, net &
 other (618) 135 -- 38 358 --
 Earnings (loss)
 before provision
 for income taxes &
 cumulative effect
 of accounting
 change (3,240) 44,038 -- 47,858 90,932 (47)
 Provision for
 income taxes 147 15,604 -- 19,054 33,189 (43)
 Earnings (loss)
 before cumulative
 effect of accounting
 change (3,387) 28,434 -- 28,804 57,743 (50)
 Cumulative effect
 of accounting
 change -- -- -- -- (1,009) --
 Net earnings
 (loss) (3,387) 28,434 -- 28,804 56,734 (49)
 Per common share:
 Earnings (loss)
 before cumulative
 effect of accounting
 change $(0.09) $0.72 -- $0.74 $1.44 (49)
 Cumulative effect of
 accounting change -- -- -- -- (0.03) --
 Net earnings
 (loss) (0.09) 0.72 -- 0.74 1.41 (48)
 Average shares
 outstanding 38,534 39,677 -- 38,810 40,012 --
 (A) Reflects adoption of SFAS No. 106 effective 1/1/92.
 -0- 7/28/93
 /CONTACT: Ray Wright or Bruce Garren of Tambrands Inc., 914-696-6535, or 914-696-6543 (investors), or George Sard or Paul Verbinnen of Sard Verbinnen & Co., 212-687-8080 (media), for Tambrands/
 (TMB)


CO: Tambrands Inc. ST: New York IN: HOU SU: ERN

MP-OS -- NY023 -- 7207 07/28/93 10:49 EDT
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Publication:PR Newswire
Date:Jul 28, 1993
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