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CERIDIAN REPORTS SECOND QUARTER LOSS

 CERIDIAN REPORTS SECOND QUARTER LOSS
 Second Quarter Results Reflect Reshaping Actions
 MINNEAPOLIS, July 21 /PRNewswire/ -- Ceridian Corporation (NYSE: CEN) today reported a net loss of $378.3 million, or $8.90 per share, on revenues of $195.7 million for the second quarter of 1992, and a net loss of $412.4 million, or $9.70 per share, on revenues of $401.9 million for the first half of 1992. During the second quarter, as previously announced, the Company recorded $368 million of charges, primarily related to reshaping actions, past restructuring activities and actions intended to refine the continuing businesses' product lines in order to improve profitability. Ceridian also recorded a $42 million charge for a change in accounting for post-retirement healthcare benefits (FAS 106), which has been reflected in first quarter 1992 results.
 "Ceridian's continuing operations Q Arbitron, Ceridian Employer Services, Computing Devices International and Ceridian Network Services -- all were profitable in the second quarter, apart from restructure charges, and we are encouraged by their results," said Lawrence Perlman, Ceridian's president and chief executive officer.
 "In Arbitron and Ceridian Employer Services, order rates strengthened toward the end of the second quarter, and we expect to see modest revenue improvements in these two businesses during the second half of 1992," Perlman said. "Although Arbitron experienced reduced order activity in late 1991 that affected its revenue and profitability in the first half of 1992, it is winning contract renewals despite the difficult economic environment in which its customers are operating. Ceridian Employer Services has been negatively affected by declining interest rates. The business continues to implement process and technology improvements in its field organization and to reduce costs and expenses. Its actions, which include consolidating staff functions, have resulted in first and second quarter charges. We are pleased by the continuing progress of the small Ceridian Network Services business, which is developing several new services.
 "Computing Devices International is in the relatively low-margin, developmental phase of its $1.1 billion contract to integrate a new communications systems for the Canadian armed forces," Perlman continued. "In 1993, when Computing Devices International moves into later phases of this contract, margins are expected to improve.
 "I am pleased with the progress so far of the Company's reshaping, and we are now focused on growing Ceridian's businesses and improving their profitability," Perlman concluded.
 Results of sold or discontinued operations have been retroactively reclassified in the statements of operations and are presented separately to provide a better picture of Ceridian's results from continuing operations. These sold or discontinued operations include Control Data Systems, Inc., which is to be spun off July 31; Automated Wagering, which was sold during the second quarter; and Empros Systems International, an energy management systems business that Ceridian intends to sell. On July 17, Ceridian signed a non-binding letter of intent with Siemens AG to sell Empros to Siemens, and the companies are engaged in negotiations.
 The second quarter loss from operations of sold or discontinued businesses includes $130 million of restructuring and other charges recorded by Control Data Systems in connection with its ongoing business transition. The loss from the disposition of sold or discontinued operations includes a $55 million loss in connection with the sale of Automated Wagering; a $32 million provision for obligations related to Ceridian's headquarters building, which Ceridian has decided to sublet in connection with recent reshaping actions; and $70 million of estimated losses and other expenses related to reshaping actions being pursued, including the planned sale of Empros.
 "Control Data Systems continues to make progress in its transition from proprietary computing to open systems integration," said James E. Ousley, president of Control Data Systems. "In connection with the planned spin-off of Control Data Systems and related second quarter charges, we expect to accelerate the move toward the business model that is necessary to succeed in the open systems integration environment."
 Ceridian is a services company. It provides payroll processing and other employer services, media and market research, and network services to business customers, as well as information management services and products to government customers.
 Control Data Systems, which is an operating division of Ceridian until it is spun off on July 31, integrates open systems solutions that satisfy customers' requirements for manufacturing engineering and information management systems.
 CERIDIAN CORPORATION
 CONSOLIDATED STATEMENTS OF OPERATIONS
 (Dollars in millions, except per share data)
 (Unaudited)
 Three Months Ended Six Months Ended
 6/30/92 6/30/91 6/30/92 6/30/91
 Revenue
 Product Sales $87.9 $72.2 $178.5 $145.4
 Services 107.8 113.7 223.4 235.8
 Total 195.7 185.9 401.9 381.2
 Cost of revenue
 Product sales 75.5 56.4 153.1 111.8
 Services 60.5 62.6 120.9 129.5
 Total 136.0 119.0 274.0 241.3
 Gross profit 59.7 66.9 127.9 139.9
 Operating Expenses
 Selling, general,
 and administrative 37.3 36.5 78.4 81.9
 Technical expense 12.1 11.4 24.1 23.6
 Other expense (income) (1.7) -- (4.9) 3.0
 Restructure loss (gain) 81.4 -- 76.2 (20.5)
 Earnings (Loss) before
 interest and taxes (69.4) 19.0 (45.9) 51.9
 Interest expense (4.1) (4.6) (8.1) (12.8)
 Interest income 5.3 4.9 9.5 11.6
 Earnings (Loss) before
 income taxes (68.2) 19.3 (44.5) 50.7
 Income tax provision 1.7 2.3 4.5 3.2
 Earnings (Lossrations 151.6 11.1 164.8 34.6
 Loss from disposition 156.8 -- 156.8 --
 Cumulative charge to
 adopt FAS 106 -- -- 41.8 --
 Net earnings (loss) $(378.3) $5.9 $(412.4) $12.9
 Earnings (Loss) per share data:
 From continuing operations $(1.65) $.40 $(1.16) $1.11
 Sold or Discontinued
 operations $(7.25) $(.26) $(7.56) $(.81)
 Cumulative charge to
 adopt FAS 106 -- -- $(.98) --
 Net earnings (loss) $(8.90) $.14 $(9.70) $.30
 Weighted average common
 shares (in thousands) 42,548 42,531 42,541 42,531
 CERIDIAN CORPORATION AND SUBSIDIARIES
 CONDENSED CONSOLIDATED BALANCE SHEETS
 (Unaudited)
 (Dollars in millions)
 June December
 1992 1991
 Cash and equivalents $287.1 $193.5
 Receivables 132.7 141.2
 Inventories 52.8 42.0
 Net assets of sold or
 discontinued operations 47.6 319.3
 All other assets 249.2 278.7
 Total assets $769.4 $974.7
 Debt $183.6 $184.1
 All other liabilities 555.1 344.4
 Stockholders' equity 30.7 446.2
 Total liabilities and
 stockholders' equity $769.4 $974.7
 -0- 7/21/92
 /CONTACT: Nancy Foltz of Ceridian Corporation, 612-853-5229/
 (CEN) CO: Ceridian Corporation; Control Data Systems ST: Minnesota IN: CPR SU: ERN


DS -- MN007 -- 1087 07/21/92 08:18 EDT
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