FLEMING ADJUSTED EARNINGS RISE 23% IN THIRD QUARTER

OKLAHOMA CITY -- Fleming Cos. here said adjusted earnings for the 12-week third quarter ended Oct. 4 increased 23% to $8.7 million, or 23 cents per share, compared with adjusted earnings of $7.1 million, or 19 cents per share, in the year-ago quarter. The third-quarter adjustment was a change in the effective tax rate from 58% for reported earnings to 51% for adjusted earnings. s and control expenses

OKLAHOMA CITY -- Fleming Cos. here said adjusted earnings for the 12-week third quarter ended Oct. 4 increased 23% to $8.7 million, or 23 cents per share, compared with adjusted earnings of $7.1 million, or 19 cents per share, in the year-ago quarter. The third-quarter adjustment was a change in the effective tax rate from 58% for reported earnings to 51% for adjusted earnings.

s and control expenses in all areas of the company.

"The investments we have been making in our systems support have been paying off through increased efficiencies in our retail chain operations," Stauth said. "In our food-distribution operations, we have made major improvements in our product handling expenses. Productivity increased 3.6% this quarter."

3RD-QUARTER RESULTS

Qtr Ended 10/4/97 10/5/96

Sales $3.5 billion $3.7 billion

Change - 6.8%

Same-store - 5.2%

Net Income $7.4 million $1.0 million

Change + 633%

Inc/Share 20 cents 3 cents

40 Weeks 1997 1996

Sales $11.8 billion $12.6 billion

Change - 6.8%

Same-store - 3.2%

Net Income $14.3 million $16.4 million

Change - 12.8%

Inc/Share 38 cents 43 cents

Figures in the chart do not reflect adjustments for a change in the effective tax rate, litigation, disposition value for divested stores or other extraordinary charges.