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GTE REPORTS FOURTH-QUARTER RESULTS

 GTE REPORTS FOURTH-QUARTER RESULTS
 STAMFORD, Conn., Feb. 4 /PRNewswire/ -- GTE (NYSE: GTE) today


reported that consolidated net income for the fourth quarter of 1991 totaled $515 million, or 57 cents per share, compared with $467 million, or 52 cents per share in the fourth quarter of 1990.
 Income from continuing operations, excluding electrical products, totaled $481 million, or 53 cents per share in the fourth quarter, compared with $435 million, or 48 cents per share in the year-earlier quarter. GTE had previously announced it would divest its non-telecommunications electrical products unit in 1992.
 Fourth-quarter results reflected the continued weakness in the economy, offset in part by lower interest rates. Excluding an accounting change, earnings per share from continuing operations increased 6 percent when compared with the 1990 fourth quarter.
 Consolidated revenues and sales from continuing operations for the fourth quarter totaled $5.2 billion, a 7 percent increase over the $4.9 billion in the year-ago quarter.
 "We were pleased with the continued improvement in the fourth quarter, particularly by telephone operations and mobile communications," said GTE Chairman and Chief Executive Officer James L. "Rocky" Johnson. "I look forward to continued growth in 1992," he said.
 GTE Chairman Comments on Full-Year 1991 Results
 "Overall, 1991 was an excellent year for GTE in the face of a challenging economic environment," the GTE chairman added. "Not only did we consummate the largest merger in telecommunications history, but we also successfully began the integration of GTE's and Contel's operations in a cost-effective and efficient manner. We also continued to focus our resources on key telecommunications businesses by acquiring operating control of CANTV, the Venezuelan telephone company, and announcing divestitures of our remaining interest in US Sprint and the electrical products group. These long-term strategic actions will be positive for the company and for our shareholders in 1992 and beyond," Johnson said.
 For the full year, consolidated net income totaled $1.8 billion, or $1.98 per share, 7 percent higher than the $1.85 earned on a pro forma basis in 1990, excluding the one-time net charge of $204 million, or 23 cents per share, taken in the first quarter of 1991 in connection with the Contel merger and gain on the transfer of certain cellular properties. Adjusting for the one-time net charge, 1991 consolidated net income was $1.6 billion, or $1.75 per share. This compares with $1.93 per share in 1990, which included cellular properties from their dates of acquisition rather than for a full year as reflected in the pro forma results.
 Income from continuing operations for 1991, exclusive of the one- time net charge, totaled $1.7 billion, or $1.92 per share, as compared with 1990's pro forma earnings of $1.74 per share. Consolidated revenues and sales from continuing operations for 1991 totaled $19.6 billion, 2 percent higher than the $19.2 billion in 1990.
 Telephone Operations Reviewed
 Revenues from telephone operations for the year 1991 increased 2 percent to $15.7 billion, compared with $15.4 billion in the previous year. This revenue improvement reflects an 8 percent increase in the number of minutes that GTE's local-exchange network was used for long- distance calling as well as a 3 percent increase in the number of access lines in service. The additional revenues from these volume increases were partially offset by reductions in the prices GTE charged long- distance companies for access to its network as well as other price reductions.
 Telephone operations' operating income increased 5 percent to $4 billion for the full year, and 3 percent to $1 billion for the fourth quarter over 1990 results. The slowdown in operating-income growth reflects the impact of the sluggish economy, the company noted.
 GTE is the largest U.S.-based local-exchange telephone company with domestic and international operations serving 20.2 million access lines in 40 states, Canada and Latin America.
 Telecommunications Products and Services
 Revenues and sales from telecommunications products and services, which includes cellular, government systems, information services, yellow-pages directory advertising, and satellite and air-to-ground communications services, increased 5 percent in 1991 to $4 billion, up from $3.8 billion in 1990. Operating income increased substantially, rising to $127 million in 1991, compared with $16 million in 1990, which included a $40 million charge to discontinue a Contel product line. These improvements reflect higher sales of cellular-mobile telephone services and directory advertising, as well as costs incurred in 1990 associated with the disposal of the cellular-mobile reseller operations.
 Growth in Cellular Operations
 GTE is the second-largest cellular-telephone operator in the United States -- serving a population of some 52 million "POPS."
 Customer growth continued at a high level despite the weak economy. Some 84,000 new customers were added during the fourth quarter of 1991, bringing the total customers served at year-end 1991 to 811,000, compared with 594,000 at the end of 1990. As a result, cellular revenues for the year reached $765 million, 30 percent higher than 1990, after adjusting last year's revenues on a pro forma basis to include cellular properties purchased last year.
 Outside the United States, GTE also operates cellular-mobile networks through international subsidiaries. Its largest market is in Canada, where the "POPS" served total 1.9 million.
 GTE CORPORATION AND SUBSIDIARIES
 Summary of Consolidated Results
 (In millions)
 Year Ended
 Fourth Quarter Dec. 31
 1991 1990 1991 1990
 Revenues and sales
 Telephone operations $4,094 $3,922 $15,652 $15,393
 Telecommunications products
 and services 1,147 991 4,005 3,804
 Eliminations (12) (11) (36) (40)
 Consolidated 5,229 4,902 19,621 19,157
 Operating income
 Telephone operations 1,040 1,005 3,957 3,771
 Telecommunications products
 and services 35 (18) 127 16
 Merger consummation and
 integration costs -- -- (342) --
 Operating income 1,075 987 3,742 3,787
 Other deductions
 Interest expense - net 347 365 1,384 1,296
 Other - net 63 53 167 170
 Income before income taxes 665 569 2,191 2,321
 Income tax provision 184 134 662 698
 Income from continuing opers. 481 435 1,529 1,623
 Income from discontinued opers. 34 32 51 92
 Consolidated net income 515 467 1,580 1,715
 Preferred stock dividends 9 11 37 44
 Consolidated net income
 applicable to common stock 506 456 1,543 1,671
 Earnings per common share
 Continuing operations $.53 $.48 $1.69 $1.82
 Discontinued operations .04 .04 .06 .11
 Consolidated .57 .52 1.75 1.93
 Average common shares 888 873 882 867
 Note to Condensed Summary of Consolidated Results:
 The condensed summary of consolidated results for 1990 has been restated on a pooling-of-interests basis to include the operations of Contel Corporation which merged with GTE on March 14, 1991. The results for 1990 include certain cellular operations purchased during that year from their respective dates of acquisition. The table below includes pro forma adjustments to reflect those operations for the full 1990 periods. The 1991 results have also been adjusted below for comparison purposes to exclude one-time net charges of $204 million, or 23 cents per share, incurred in the first quarter in connection with the Contel merger and gain on the transfer of certain cellular properties.
 Year Ended
 Fourth Quarter Dec. 31
 1991 1990 1991 1990
 (In millions)
 Revenues and sales $5,229 $4,902 $19,621 $19,207
 Operating income 1,075 987 4,084 3,763
 Net income
 Continuing operations 481 435 1,733 1,559
 Consolidated 515 467 1,784 1,651
 Earnings per common share
 Continuing operations $.53 $.48 $1.92 $1.74
 Consolidated .57 .52 1.98 1.85
 -0- 2/4/92
 /CONTACT: Harvey W. Greisman, 203-965-2903, or after 6 p.m., 203-226-7661, or Tony Hamilton, 203-965-2853, or after 6 p.m., 203-327-2162; or in Washington, Julia Spicer, 202-463-5206, or after 6 p.m., 202-797-0715, all of GTE/
 (GTE) CO: GTE Corp. ST: Connecticut IN: SU: ERN


CK -- NY029 -- 6585 02/04/92 10:23 EST
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