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CONRAIL ANNOUNCES ASSET REDUCTION PLAN, LABOR AGREEMENT AND RELATED CHARGES AGAINST FOURTH QUARTER 1991 EARNINGS

 CONRAIL ANNOUNCES ASSET REDUCTION PLAN, LABOR AGREEMENT
 AND RELATED CHARGES AGAINST FOURTH QUARTER 1991 EARNINGS
 PHILADELPHIA, Dec. 11 /PRNewswire/ -- Consolidated Rail Corporation (NYSE: CRR) (Conrail) today announced that its fourth quarter 1991 financial results will be adversely affected by a special charge in the range of $675 million to $725 million, or $420 million to $450 million after income tax effects.
 The charge covers the cost of an asset reduction program directed to under-utilized rail lines and other facilities, a tentative new labor agreement that will reduce the size of train crews, and a recent assessment of environmental clean-up costs and legal matters.
 Conrail's Chairman, President and Chief Executive Officer, James A. Hagen, said, "Our strategic planning process has focused on Conrail's need to improve its return on assets. As a result, we have identified under-utilized lines, most of which have been announced in our line sale process, as well as excess yard tracks and related facilities."
 The tentative new labor agreement with the United Transportation Union (UTU) is subject to ratification by the organization's members.
 Although the labor agreement will require cash payments, the asset reduction program and the costs for environmental clean-up and legal matters will have no, or at most an insignificant, net effect on the company's cash position.
 Hagen stated, "Our strategic planning initiatives have confirmed our belief that Conrail can compete successfully over the long term. Today's announcement demonstrates our dedication to acting on those initiatives necessary to improve our competitive ability and to enhance the potential for increased shareholder value in the future."
 Conrail operates a rail-freight transportation network in 14 Northeastern and Midwestern states, the District of Columbia, and the Province of Quebec.
 /delval/
 -0- 12/11/91
 /CONTACT: Robert L. Libkind or Jean C. Kirshenbaum of Conrail, 215-977-4594/
 (CRR) CO: Consolidated Rail Corporation ST: Pennsylvania IN: TRN SU: ERP


MK -- PH040 -- 1604 12/11/91 16:15 EST
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Publication:PR Newswire
Date:Dec 11, 1991
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