PROFIT FALLS 34% AT OSHAWA; DISTRIBUTION PROBLEMS CITED

ETOBICOKE, Ontario -- Oshawa Group reported prolonged operational difficulties at its distribution facilities here, but said earnings from the Western region continued on a solid growth trend, and higher sales in drug store operations significantly improved results.ian), or 21 cents (29 cents Canadian), from the same period a year ago.The company said the earnings decline was attributable to Ontario

ETOBICOKE, Ontario -- Oshawa Group reported prolonged operational difficulties at its distribution facilities here, but said earnings from the Western region continued on a solid growth trend, and higher sales in drug store operations significantly improved results.

ian), or 21 cents (29 cents Canadian), from the same period a year ago.

The company said the earnings decline was attributable to Ontario and occurred in both retail/wholesale and food-service operations. Operations in the province face severe price competition, Oshawa said.

Oshawa said sales were spurred by recent food-service acquisitions. In February, the company acquired Scott National, a food-service distributor with annual sales of $314 million ($440 million Canadian), for $32.7 million ($45.8 million Canadian).

The company also acquired Neptune Food Services and six midsize food stores in the greater Montreal area.

1ST-QUARTER RESULTS

Qtr Ended 4/19/97 4/20/96

Sales $1.1 billion $996 million

Change + 12.3%

Net Income $5.2 million $7.9 million

Change - 34%

Inc/Share 14 cents 21 cents

Financial results have been calculated in U.S. dollars, with $1 U.S. = $1.40 Canadian.