increase of 47 percent compared with the previous year.

The company defied the recession largely as a result of economies made well before the Island's economy started to slide, said Mr. John Carey, general manager of DI's chief operation, Bermuda Paint Co.

"Several years ago, we took a conscious look at our business and commenced a downsize of the company through attrition,'' he said.

"We currently employ 20 percent fewer people than we did in 1988. This has helped put us in good stead.'' Bermuda Paint, which accounts for virtually all of Devonshire Industries operations, had also sought out the most competitively-priced suppliers of its raw materials, he added.

"The world economy has made some of our suppliers more competitive and that's enabled us to hold our pricing,'' he said.

"For example, our main product line, ACR exterior latex paint, is selling now for the same price as it sold in October, 1989.'' The company had also managed to keep costs under control during the 12 months to March 31, 1992, said Mr. Carey.

DI's sales were up nine percent in 1992 to $2.6 million, while the cost of sales rose by six percent to $1.4 million. Administrative and selling expenses actually fell, by two percent, to $812,989. Income per share rose from 75 cents to $1.10.

Devonshire Industries, which is based at Brighton Hill Road, Devonshire, manufactures and sells paint on a local basis and employs 15 people. It is one of the smallest companies listed on the Bermuda Stock Exchange.

Mr. Carey said his firm was affected as much by the weather as the recession.

"Not a lot of people were out painting during the wet days of June,'' he said.

DEVONSHIRE INDUSTRIES 1992 RESULTS Profit $478,675 Revenue $2.7M Expenses $2.2M Assets $2.9M Liabilities $122,252 Retained earnings $1.7M.