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FLORIDA PROGRESS CORPORATION ANNOUNCES 1991 EARNINGS

 FLORIDA PROGRESS CORPORATION ANNOUNCES 1991 EARNINGS
 ST. PETERSBURG, Fla., Jan. 27 /PRNewswire/ -- Florida Progress


Corporation (NYSE: FPC), parent of St. Petersburg-based Florida Power Corporation, today reported 1991 earnings from continuing operations of $174.5 million, down 2.9 percent from the $179.8 million earned a year ago. Revenues totaled $2.075 billion in 1991 compared with $2.011 billion in 1990.
 Higher operating and maintenance expenses and higher depreciation costs at Florida Power, as well as lower earnings from diversified operations, were the primary reasons Florida Progress reported a decline in earnings for the year.
 Earnings per share from continuing operations in 1991 were $3.24, compared with $3.50 a share in 1990. On a comparative basis, stock dilution accounted for a large part of the decline in earnings per share. Florida Progress issued 2.9 million shares of new common stock in May 1991 and the company sold another 680,000 new shares through its dividend reinvestment and stock purchase plan.
 Florida Progress sold three of its five building products operations in 1991 and, earlier this month, the last two operations were sold. This completes the company's exit from this industry. To complete the sale of all five operations, Florida Progress increased its loss reserve by $2.4 million, or $.04 per share, in the fourth quarter of 1991. The building products operations are reported as discontinued operations in the company's financial statements.
 Florida Power, the largest operating subsidiary of Florida Progress, earned $164.1 million, or $3.05 per share, on revenues of $1.719 billion in 1991, compared with $165.5 million, or $3.22 per share, on revenues of $1.709 billion in 1990. Higher depreciation rates ordered by the Florida Public Service Commission (FPSC) and the continuing impact of inflation on operating and maintenance expenses lowered Florida Power's earnings. The additional expenses have been incurred without a direct increase in revenues collected from Florida Power customers through higher electric rates.
 The accumulated effects of inflation have continued to increase the utility's operating expenses above the level provided for in current rates. Later this week, Florida Power plans to file a petition with the FPSC for an increase in base rates -- the utility's first in eight years. The rate increase is needed to recover these higher expenses and other costs associated with constructing new facilities.
 The higher expenses were in part offset by a 3.1 percent increase in retail kilowatt-hour sales to Florida Power customers, compared with a year ago. The addition of new residential and commercial customers contributed to sales growth in 1991.
 Earnings from continuing diversified operations were $10.4 million, or $.19 per share, compared with $14.3 million, or $.28 per share, a year ago. Losses from real estate development operations were $4.3 million higher in 1991 primarily because of the sale of its citrus properties in 1990. A deferred gain on the sale of $3.1 million was recorded in 1991, compared with the $4.6 million gain in 1990. Also in 1990, $2.2 million in earnings was recognized from citrus sales.
 The nation's depressed economy continues to hurt results at the company's diversified operations. Electric Fuels Corporation, the coal and transportation subsidiary of Florida Progress, experienced a decline in earnings in 1991 because weak market conditions lowered margins at many of its operations.
 Earnings growth in 1991 at Progress Credit Corporation and Mid-Continent Life Insurance Company partially offset the lower real estate and coal and transportation results.
 Florida Progress is a diversified utility holding company with assets of $5 billion. Its principal subsidiary is St. Petersburg-based Florida Power Corporation, the state's second largest electric utility. Diversified operations include coal mining and transportation, life insurance and financial services.
 FLORIDA PROGRESS CORPORATION
 Three Months Ended 12 Months Ended
 Dec. 31, Dec. 31,
 1991 1990 1991 1990
 Revenues from
 Continuing
 Opera-
 tions $500,600,000 $480,900,000 $2,074,700,000 $2,010,800,000
 Net Income
 Continuing
 Opera-
 tions $26,900,000 $ 33,900,000 $ 174,500,000 $ 179,800,000
 Discontinued
 Opera-
 tions (2,400,000) -- (2,400,000) (15,000,000)
 Consoli-
 dated $24,500,000 $ 33,900,000 $ 172,100,000 $ 164,800,000
 Earnings Per Share (EPS):
 Utility $.48 $.71 $3.05 $3.22
 Diversified -- (.05) .19 .28
 Continuing
 Operations .48 .66 3.24 3.50
 Discontinued
 Operations (.04) -- (.04) (.29)
 Consolidated $.44 $.66 $3.20 $3.21
 Average common
 shares
 out-
 standing 55,157,429 51,566,351 53,864,199 51,313,337
 -0- 1/27/92
 /CONTACT: Sally Everett of Florida Progress Corporation, 813-824-6440/
 (FPC) CO: Florida Progress Corporation ST: Florida IN: UTI SU: ERN


AW-SS -- FL004 -- 3851 01/27/92 15:05 EST
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Date:Jan 27, 1992
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