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SPRINT DETAILS FIRST QUARTER CHARGES TO EARNINGS

 KANSAS CITY, Mo., April 1 /PRNewswire/ -- Sprint (NYSE: FON) today announced it expects to record after-tax charges against first quarter earnings in a range from $550 million to $575 million, or $1.62 per share to $1.70 per share. The non-recurring charges relate primarily to the company's adoption of Financial Accounting Standard No. 106 and one-time costs resulting from Sprint's merger with Centel Corporation.
 Like other corporations, under the new accounting rules, Sprint is required to change its current method of expensing post-retirement benefits as incurred to a method of accruing such costs as the benefits are earned by employees during their working years. The resulting after-tax charge will reduce net income approximately $340 million, or $1 per share. The adoption of this standard will also increase Sprint's 1993 operating expenses, principally for its local telephone operations, by appri?mately $50 million.
 The merger with Centel will result in a one-time, pre-tax charge to operating expenses of between $225 million to $250 million. This charge will include the transaction costs to consummate the merger, plus expected future costs associated with the integration of the two companies. It is expected to reduce net income in a range from $160 million to $175 million, or 47 cents per share to 52 cents per share.
 The integration of the two companies continues to proceed as expected. Through work force reductions, elimination of duplicate facilities and data systems and other economies, a minimum savings is expected of approximately $145 million annually on a pre-tax basis within two years. About 1,500 positions are now expected to be eliminated by the merger and continued business process improvements, up from an estimated 1,000 positions when the merger was announced.
 In addition to the these two charges, the company also will record charges related to the early adoption of new accounting provisions related to post-employment benefits (Financial Accounting Standard No. 112), the early retirement of some long-term debt, and a change in the method used to account for circuit installation costs in the Local Distance Division. The after-tax charge for these items will reduce net income by approximately $53 million, or 16 cents per share.
 Sprint is a diversified international telecommunications company with more than $10 billion in annual revenues and the United States' only nationwide all-digital, fiber-optic network. Its divisions provide global long distance voice, data and video products and services, local telephone services to nearly 5.9 million subscriber lines in 19 states, and cellular operations that serve 42 metropolitan markets and more than 50 rural service areas.
 -0- 4/1/93
 /CONTACT: Bill White, 913-624-2226 or, after hours, 913-681-9099, or Steve Dykes, 202-828-7435 or, after hours, 703-242-1769, both of Sprint/
 (FON)


CO: Sprint ST: Missouri IN: TLS SU:

DC-KD -- DC017 -- 2104 04/01/93 14:27 EST
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Publication:PR Newswire
Date:Apr 1, 1993
Words:465
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