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HAWAIIAN ELECTRIC INDUSTRIES INC. REPORTS SECOND QUARTER EARNINGS

 HONOLULU, July 19 /PRNewswire/ -- Hawaiian Electric Industries Inc. (NYSE: HE) (HEI) reported net income of $19.0 million for the three months ended June 30, up from $15.7 million in the same period of 1992. Earnings per share were 76 cents, compared with 65 cents per share a year ago.
 For the six months ended June 30, net income was $30.1 million, or $1.20 per share, compared with $29.7 million, or $1.24 per share in the same period of 1992.
 Robert F. Clarke, HEI president and chief executive officer, said the results for the quarter include the effect on an interim decision and order by the Hawaii Public Utilities Commission (PUC) regarding accounting for post-retirement medical benefit costs. The order, issued on July 15, allows HEI's electric utility subsidiaries to defer retroactively from Jan. 1, 1993, the additional costs of the benefits which corporations are required to recognize because of a change in accounting rules.
 "We are pleased by the commission's action," Clarke said. "The order is an important demonstration of the commission's continuing support. The PUC has indicated that full recovery of these additional costs through rates is probable, although the exact timing must be decided later. The commission could revise its decision in the final order."
 HEI's second quarter net income includes a deferral of $6 million, or 24 cents per share, in year-to-date expenses for post-retirement medical benefits. The commission said that it is probable that the final order on post-retirement medical benefits will allow those expenses to be fully recovered over a maximum 20-year period.
 Electric utility operating income during the quarter was $34.3 million, compared with $24.9 million in the same quarter of 1992. The results include the establishment of regulatory assets of $4.7 million for post-retirement benefits and $4.4 million for vacation benefits that had previously been expensed. Excluding those effects, the quarter's results improved slightly because of 1992 rate relief and a 1.6 percent increase in kilowatthour sales. Operating income for the six months was $54.0 million, vs. $48.1 million in the same period last year after including the effects of establishing the regulatory assets.
 HEI's major non-utility subsidiary, American Savings Bank, posted increases in operating income of 54 percent for the quarter and 50 percent for the six months because of a larger loan portfolio and wider interest rate spreads. American Savings' interest rate spread, the difference between the yield on earning assets and cost of funds, was 3.83 percent in the quarter, vs. 3.01 percent in the same period a year ago.
 Hawaiian Electric Industries is a diversified electric utility holding company that delivers essential services to the people of Hawaii through its electric utility, banking, maritime freight transportation and residential real estate subsidiaries.
 HAWAIIAN ELECTRIC INDUSTRIES INC. AND SUBSIDIARIES
 Consolidated Statements of Income
 (unaudited)
 (in thousands except per share amounts)
 Three Months Ended Six Months Ended
 June 30, June 30,
 1993 1992 1993 1992
 Revenues
 Electric utility $219,301 $176,958 $425,947 $350,635
 Savings bank 50,168 51,149 99,431 102,170
 Other 12,176 13,297 35,615 26,055
 Total 281,645 241,404 560,993 478,860
 Expenses
 Electric utility 185,017 152,108 371,946 302,562
 Savings bank 40,035 44,569 79,710 88,979
 Other 12,674 11,216 37,087 22,164
 Total 237,726 207,893 488,743 413,705
 Operating income
 Electric utility 34,284 24,850 54,001 48,073
 Savings bank 10,133 6,580 19,721 13,191
 Other (498) 2,081 (1,472) 3,891
 Total 43,919 33,511 72,250 65,155
 Interest expense--
 Electric utility
 and other (13,201) (11,203) (25,962) (22,216)
 Allowance for borrowed
 funds used during
 construction 1,009 570 1,928 1,083
 Preferred stock dividends
 of electric utility
 subsidiaries (1,628) (1,682) (3,260) (3,369)
 Allowance for equity funds
 used during construction 1,795 1,867 3,354 3,530
 Income from continuing
 operations before income
 taxes 31,894 23,063 48,310 44,183
 Income taxes 12,917 7,550 20,04 15,487
 Income from continuing
 operations 18,977 15,513 28,269 28,696
 Income from discontinued
 operations --- 228 1,800 1,037
 Net income $18,977 $15,741 $30,069 $29,733
 Earnings per common share
 Continuing operations $0.76 $0.64 $1.13 $1.19
 Discontinued operations --- 0.01 0.07 0.05
 Total $0.76 $0.65 $1.20 $1.24
 Dividends per common
 share $0.57 $0.56 $1.14 $1.12
 Weighted average number of
 common shares outstanding 25,084 24,166 24,973 24,054
 -0- 7/19/93
 /CONTACT: Constance H. Lau, treasurer, 808-543-7384, or Gary S. Sharpe, director-investor relations, 808-543-7385, both of Hawaiian Electric Industries/
 (HE)


CO: Hawaiian Electric Industries Inc. ST: Hawaii IN: UTI FIN SU: ERN

LS-MF -- LA032 -- 3252 07/19/93 16:59 EDT
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Date:Jul 19, 1993
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