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PHH CORPORATION'S SECOND QUARTER NET INCOME UP 27 PERCENT, YEAR-TO-DATE NET INCOME UP 22 PERCENT; 137TH CONSECUTIVE DIVIDEND DECLARED

 HUNT VALLEY, Md., Nov. 29 /PRNewswire/ -- PHH Corporation (NYSE: PHH) today reported record results for its second quarter ended Oct. 31, 1993. Net income was $16.2 million, an increase of 27 percent from $12.8 million in the prior year. Earnings per share rose 23 percent, from 73 cents to 90 cents. Revenues of $545.4 million increased 8 percent from $504.1 million a year ago.
 In the first half of fiscal 1994, net income was up 22 percent to $31.0 million, and earnings per share were up 18 percent to $1.74. Revenues for the first six months increased 7 percent and were $1.1 billion compared with $1.0 billion in the prior year.
 In an overview of the company's performance, Chairman and Chief Executive Officer Robert D. Kunisch said: "Our operating results and cost management efforts combined to produce two record quarters for the first half of fiscal 1994. We are extremely proud of our accomplishments, and the efforts of our mortgage banking services segment were especially gratifying."
 Discussing the mortgage banking operation, Kunisch said: "During the quarter, the servicing portfolio reached $14 billion. Year-to-date, loan closings increased 67 percent from last year's record performance. We continue to make excellent progress in developing new customer groups, and our servicing portfolio growth with its high quality loans will provide us with an excellent long-term earnings stream."
 Commenting on the vehicle management business, Kunisch said: "North American operations produced solid results, while our overseas operations continue to be challenged by the general economic environment in Europe." He added: "Solid improvements from fee-based services helped offset small declines in units under management and vehicle purchases."
 Reporting on the performance of the corporation's relocation and real estate services segment, Kunisch noted: "Our North American operations are realizing the benefits of the successful integration of our recent acquisitions. We continue to produce market improvements from our expanding fee-based product offerings, however these were offset by costs incurred to broaden our worldwide consulting business."
 Looking ahead, Kunisch said: "Our most recent results continue the excellent trend of the past eight quarters, and we anticipate a solid performance for the year. We are confident that our marketing and cost management efforts will enable us to achieve our stated growth objectives."
 The board of directors of PHH Corporation has declared a regular quarterly dividend of 30 cents per share on the company's common stock. This dividend represents the 137th consecutive quarterly dividend to be paid by PHH. It is payable Jan. 31, 1994, to shareholders of record on Jan. 7, 1994, and is the same as that last paid Oct. 29, 1993.
 Founded in 1946, PHH Corporation today is a $4.7 billion transnational business services corporation listed on the New York Stock Exchange. PHH and its operating units provide a broad range of integrated business services to more than 3,000 major corporations and organizations in North America, the United Kingdom and Europe.
 PHH CORPORATION AND SUBSIDIARIES
 Consolidated Statements of Income
 (Thousands of dollars except per share data)
 (Unaudited)
 Three Months Ended
 Oct. 31,
 1993 1992
 Revenues:
 Vehicle management services $289,043 $265,013
 Relocation and real estate services 213,066 203,261
 Mortgage banking services 43,265 35,783
 Total 545,374 504,057
 Operating Expenses:
 Direct costs of operating leases 205,001 175,995
 Costs, including interest,
 of carrying and reselling homes 187,778 177,979
 Direct costs of mortgage
 banking services 18,214 16,375
 Interest 33,118 38,310
 Selling, general and administrative 72,813 73,690
 Total 516,924 482,349
 Operating income 28,450 21,708
 Other expense, net (521) (514)
 Income before income taxes 27,929 21,194
 Income taxes 11,726 8,437
 Net income $ 16,203 $ 12,757
 Net income per share $ 0.90 $ 0.73
 Number of shares used in calculation
 of net income per share (in thousands) -- --
 Six Months Ended
 Oct. 31,
 1993 1992
 Revenues:
 Vehicle management services $577,982 $525,011
 Relocation and real estate services 425,087 428,838
 Mortgage banking services 80,875 63,474
 Total 1,083,944 1,017,323
 Operating Expenses:
 Direct costs of operating leases 405,418 341,565
 Costs, including interest,
 of carrying and reselling homes 377,662 378,871
 Direct costs of mortgage
 banking services 29,866 25,161
 Interest 71,010 82,450
 Selling, general and administrative 146,115 145,666
 Total 1,030,071 973,713
 Operating income 53,873 43,610
 Other expense, net (1,000) (1,024)
 Income before income taxes 52,873 42,586
 Income taxes 21,881 17,190
 Net income $ 30,992 $ 25,396
 Net income per share $ 1.74 $ 1.47
 Number of shares used in calculation
 of net income per share (in thousands) 17,778 17,260
 -0- 11/29/93
 /CONTACT: Gene Truett (analysts), 410-771-2463, or Peter Brinch (media), 410-771-2519, both of PHH Corporation/
 (PHH)


CO: PHH Corporation ST: Maryland IN: FIN SU: ERN

MH-DS -- DC005 -- 8169 11/29/93 09:47 EST
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Date:Nov 29, 1993
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