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CONRAIL REPORTS $376 MILLION FOURTH QUARTER LOSS AFTER SPECIAL CHARGE EFFECT OF $447 MILLION

 CONRAIL REPORTS $376 MILLION FOURTH QUARTER LOSS
 AFTER SPECIAL CHARGE EFFECT OF $447 MILLION
 PHILADELPHIA, Feb. 10 /PRNewswire/ -- Consolidated Rail Corporation (NYSE: CRR) today reported a net loss of $376 million ($9.23 per share) for the fourth quarter 1991, and a net loss of $207 million ($5.39 per share) for the full year.
 The results reflect a fourth quarter special charge of $719 million ($447 million after income taxes).
 Excluding the special charge, Conrail would have reported $71 million in net income for the quarter ($1.47 per share, fully diluted basis) and $240 million in net income for the year ($4.96 per share, fully diluted basis). In 1990, Conrail earned $76 million ($1.61 per share, fully diluted basis) in the fourth quarter and $247 million ($4.78 per share, fully diluted basis) for the year.
 Revenue for the fourth quarter 1991 was $847 million, compared with $841 million for the fourth quarter 1990, and $3.25 billion for the year 1991, compared with $3.37 billion for 1990.
 The special charge includes $362 million for the costs of an asset reduction program directed to under-utilized rail lines and other facilities, $212 million for labor settlements primarily representing certain expected costs associated with a new labor agreement reducing the size of train crews, $88 million for legal matters, and $57 million for certain environmental clean-up costs based on a recent assessment. While the labor agreement will require cash payments, the other items in the special charge will have little or no net effect on Conrail's cash position.
 "By shedding under-utilized lines, preferably by sale to connecting short line railroads, Conrail reduces its asset base while retaining much of the long-haul traffic handled on these lines. The new labor agreement with the United Transportation Union allows all through trains to operate with two-person rather than three-person crews, improving Conrail's ability to compete with trucks," said James A. Hagen, chairman, president and chief executive officer.
 "In 1991, Conrail again demonstrated success during difficult economic times," Hagen said. Although operating revenue fell 3.6 percent, operating expenses (excluding the special charge) were reduced by 5.1 percent, producing a 7.3 percent increase in operating income.
 "For 1992, we see a slow start," Hagen said. "The mild weather is dampening our coal business and auto traffic is sluggish, so we expect a weak first quarter. We anticipate some improvement in the second quarter, but expect the pace to pick up in the second half with an improving economy. For the entire year, our view is consistent with the consensus forecast of a 1.6 percent increase in Real Gross Domestic Product and about a 2.0 percent increase in Industrial Production. We are more encouraged than last year, when Real GDP was off 0.7 percent and Industrial Production fell 1.9 percent."
 Fourth quarter 1991 traffic in units (freight cars and intermodal trailers and containers) increased 2.8 percent vs. the same period of 1990. Increases were registered in automotive (7.6 percent), intermodal (6.3 percent), metals and related products (1.8 percent), coal (1.5 percent), and food and grain products (1.1 percent). Chemicals and related products decreased 4.0 percent, and forest products decreased 0.5 percent.
 For the full year, traffic declined 3.5 percent vs. 1990. Coal increased 1.4 percent, with all other commodities showing year-to-year decreases: metals and related products (10.2 percent), automotive (10.0 percent), chemicals and related products (7.0 percent), forest products (3.5 percent), intermodal (2.6 percent), and food and grain products (1.7 percent).
 Conrail operates a rail-freight transportation network in 14 Northeastern and Midwestern states, the District of Columbia, and the Province of Quebec.
 CONSOLIDATED RAIL CORPORATION
 CONSOLIDATED STATEMENTS OF INCOME
 (In Millions, Except Per Share)
 Periods ended Quarters Years
 Dec. 31 1991 1990 1991 1990
 Revenues $847 $841 $3,252 $3,372
 Operating expenses:
 Before special charge 713 716 2,794 2,945
 Special charge 719 --- 719 ---
 Income (loss) from operations (585) 125 (261) 427
 Interest expense (45) (46) (181) (162)
 Other income, net 26 41 107 121
 Income (loss) before income taxes (604) 120 (335) 386
 Income taxes (credit) (228) 44 (128) 139
 Net income (loss) $(376) $76 $(207) $247
 Net income (loss) per common share:
 Primary $(9.23) $1.78 $(5.39) $5.10
 Fully diluted (9.23) 1.61 (5.39) 4.78
 /delval/
 -0- 2/10/92
 /CONTACT: Robert L. Libkind of Conrail, 215-977-4594/
 (CRR) CO: Consolidated Rail Corporation ST: Pennsylvania IN: TRN SU: ERN


MK -- PH024 -- 8433 02/10/92 16:00 EST
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Date:Feb 10, 1992
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