American Water Works reports second quarter, six months results.

VOORHEES, N.J.--(BUSINESS WIRE)--July 29, 1996--American Water Works Co. Inc. (NYSE:AWK) Monday announced that net income to common stock in the second quarter of 1996 totaled $25.5 million or 35 cents a share.

For the second quarter of 1995, net income to common stock totaled $26.4 million, including $3.9 million or 6 cents a share resulting from the conclusion of litigation relating to the sale of assets in Massachusetts. Earnings per share in the second quarter of 1995, exclusive of the one time again, were 34 cents.

All per share numbers have been restated to reflect the two-for-one stock split paid in the form of a 100 percent stock dividend on July 25, 1996.

Revenues recorded in the second quarter of 1996 totaled $228.6 million, which was 14 percent higher than revenues of $200.7 million recorded in the second quarter of last year.

"The second quarter of 1996 reflects continued progress for the company," said George W. Johnstone, president and chief executive officer. "During the quarter we successfully completed the first common stock offering in 41 years. The offering was received very well in the market, as we knew it would.

"The offering was important because it illustrated our ability to raise a significant amount of equity capital, which is important to our growth strategy. Proceeds from the offering were invested in the company's Pennsylvania subsidiary to partially fund the acquisition of the water systems serving the Wilkes-Barre and Scranton metropolitan areas. That acquisition was completed this past February."

For the first six months of 1996, net income to common stock totaled $41.5 million, or 59 cents per share. For the first six months of 1995, net income to common stock was $39.0 million, including the one-time gain of $3.9 million. Earnings per share for the first six months of 1995, exclusive of the one-time gain, were 53 cents.

American Water Works Co. Inc. is the largest investor-owned water utility business in the United States, serving some 7 million people in more than 800 communities in 21 states.

For the three, six and 12 month periods ended June 30, American Water Works Co. Inc. reported unaudited consolidated revenues and income as follows: -0-

                          Three Months Ended       Six Months Ended
                                June 30,                June 30,
                            1996        1995        1996        1995

(in thousands, except per share amounts)

Operating revenues       $228,621    $200,662    $426,810    $381,506
Net income                 26,505      27,425      43,536      40,972
Dividends on preferred
   stocks                     996         996       1,992       1,992
Net income to common
   stock                 $ 25,509    $ 26,429    $ 41,544    $ 38,980
Average shares of common
   stock outstanding
   (in thousands (a))      73,606      66,266      70,987      65,890
Earnings per common
   share on average
   shares outstanding (a)    $.35        $.40        $.59        $.59

(a) Adjusted for 1996 stock split consummated after the close of the
period.
-0-
                                    Twelve Months Ended
                                            June 30,
                                       1996          1995

(in thousands, except per share amounts)

Operating revenues                   $848,124      $778,952
Net income                             94,625        86,465
Dividends on preferred
   stocks                               3,984         3,984
Net income to common
   stock                             $ 90,641      $ 82,481
Average shares of common
   stock outstanding
   (in thousands (a))                  69,107        65,264
Earnings per common
   share on average
   shares outstanding (a)               $1.31         $1.26

(a) Adjusted for 1996 stock split consummated after the close of the
period.

CONTACT: American Water Works Co. Inc., Voorhees

George W. Johnstone, president/CEO, 609/346-8200