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GM HUGHES ELECTRONICS ANNOUNCES INCREASED FIRST QUARTER EARNINGS

 GM HUGHES ELECTRONICS ANNOUNCES INCREASED FIRST QUARTER EARNINGS
 DETROIT, April 27 /PRNewswire/ -- GM Hughes Electronics Corporation (GMHE) (NYSE: GMH) Chairman Robert J. Schultz announced today that GMHE recorded 1992 first quarter earnings of $181.4 million, up from the $151.2 million reported for the same period a year ago. Earnings attributable to General Motors Class H Common Stock on a per share basis amounted to $0.44 for the first quarter of 1992, an increase from the $0.36 reported in the first quarter of 1991.
 In the first quarter of 1992, GMHE earnings were favorably impacted in the amount of $22 million, or $0.06 per share, by the settlement of a patent infringement lawsuit. The first quarter of 1991 included two actions that favorably impacted earnings: a change in accounting for spare parts inventories ($0.04 per share), and the adoption of SFAS No. 109, Accounting for Income Taxes, ($0.09 per share). Excluding these non-recurring items, GMHE's earnings were 65 percent higher than the prior year, primarily due to cost reductions, increased North American GM vehicle production, and increased electronic content in those vehicles.
 GMHE revenues in the first quarter of 1992 increased 8.4 percent to $3.0 billion, up from $2.7 billion in the same period last year. The revenue increase was due primarily to a 14 percent increase in GM North American vehicle production and higher application rates of inflatable restraints (air bags) and anti-lock braking systems in motor vehicles, and increased sales of satellites and related business communications systems.
 Automotive Electronics
 During the quarter, GMHE's Delco Electronics Corporation (Delco Electronics) subsidiary increased its shipments of electronic engine controls to the Saturn Corporation by 20 percent and began supplying new, smaller, lighter-weight pressure sensors to Toyota.
 Alfa Romeo awarded Delco Electronics a contract to produce automotive instrument clusters for future passenger cars. Hughes Microelectronics Limited, a GMHE subsidiary, will manufacture the circuit boards at its plant in Scotland, and Delco Electronics will assemble the cluster in Europe.
 Quality recognition continued to flow to the Automotive Electronics
segment. Delco Electronics received Chrysler's "Quality Excellence


Award" for its work on climate control systems for the third consecutive year; New United Motor Manufacturing presented Delco Electronics its "Partnership Award" for outstanding audio system products; and Delco Electronics was given Subaru-Isuzu Automotive's highest quality award for the pressure sensors it supplies.
 The 1992 Indianapolis Pace Car, the Cadillac Allante, will be powered by a new double-overhead-cam, 32-valve all-aluminum 4.6 liter V8 powerplant featuring a new engine management and transmission control computer designed and produced by Delco Electronics.
 Telecommunications and Space
 GMHE's Hughes Aircraft Company (Hughes) subsidiary continued to strengthen its Telecommunications and Space capabilities during the quarter when the first of eight Hughes communications satellites scheduled for launch in 1992 was placed in orbit. The Galaxy V satellite was built for Hughes Communications, Inc. and becomes the 12th in-orbit satellite owned and/or operated by the Hughes subsidiary. It will provide service to the leading names in cable television programming during the 1990s.
 Hughes also took a major step in its development of the nation's first high-power direct-to-home satellite system by contracting with Thomson Consumer Electronics, Inc. and News Datacom to provide digital compression technology, satellite receiving antennas and set-top decoder boxes for the company's DirecTvSM entertainment and delivery system. News Datacom will provide a controlled access security system that will give programmers unprecedented protection against signal theft. The DirecTv system will be capable of providing more than 100 channels of entertainment programming to 18-inch diameter antennas installed at consumers' homes across the U.S. by 1994.
 Defense Electronics
 Defense contracts received during the quarter included a $452 million award from the U.S. Army to produce tactical battlefield air defense radars, a Navy order for 4,100 computer workstations, a $253 million order for 401 Air-to-Air Medium-Range Missiles (AMRAAM), and follow-on production contracts for Trident II missile guidance electronics and sensors and Navy fighter aircraft thermal imaging sets. In addition, a British Aerospace/Hughes team was selected by the U.K. Ministry of Defence to develop and produce a new Advanced Short-Range Air-to-Air Missile.
 Hughes also announced a manufacturing breakthrough developed by the company that could dramatically reduce the defense industry's use of ozone-depleting chlorofluorocarbons (CFCs) for cleaning electronic circuit boards manufactured to military specifications. The new solution is a citric acid-based solder flux that can be cleaned off with water, instead of the CFC-based solvents required by industry-standard fluxes.
 Delco Systems Operations (DSO) was rated a "World Class Supplier" for the guidance computers it supplies for the Titan and Delta space launch vehicles. The recognition came from the McDonnell Douglas Space Systems Company and the Martin Marietta Aerospace Group, respectively. DSO also has achieved "Blue Ribbon Supplier" status at the U.S. Air Force's Ogden Air Logistics Center for quality and on-time delivery of the Magic III fire-control computer for the F-16 fighter jet aircraft.
 Commercial Technologies
 Hughes' Rediffusion Simulation Limited subsidiary added Singapore Airlines to its list of airline customers who have ordered Rediffusion's Concept 90 simulators for 747-400 airliners. The United Kingdom-based subsidiary also announced the availability of Commander, the world's first interactive public entertainment simulator for use in such venues as arcades, museums, shopping centers, transportation terminals and leisure centers.
 Management Succession
 On March 30, C. Michael Armstrong, former chairman of IBM World Trade, became chairman and chief executive officer of Hughes, succeeding Malcolm R. Currie, who retired after 30 years with the company. In addition to heading IBM's operations outside the United States, Armstrong served as a member of IBM's five-man management committee and its corporate management board. In his 31 years at IBM, he rose through the ranks from systems engineer to positions of increasing responsibility in marketing, international operations, manufacturing and product development. Armstrong brings to Hughes an extensive record of accomplishment in commercial/industrial global markets at a time when the company has launched a major effort to diversify into new commercial businesses and expand its international operations.
 GM's Class H Common Stock is traded on the New York Stock Exchange under the GMH stock symbol.
 GM HUGHES ELECTRONICS CORPORATION
 STATEMENT OF CONSOLIDATED INCOME
 AND AVAILABLE SEPARATE CONSOLIDATED NET INCOME
 Three Months Ended March 31,
 (Dollars in millions 1992 1991
 except per-share amounts)
 Revenues
 Net sales
 Outside customers $1,960.9 $1,979.1
 General Motors and affiliates 960.2 741.8
 Other income-net 56.6(a) 25.5
 Total revenues 2,977.7 2,746.4
 Costs and expenses
 Cost of sales and other operating charges
 exclusive of items listed below 2,244.7 2,147.3
 Selling, general, and administrative
 expenses 305.6 292.3
 Depreciation and amortization 122.5 121.7
 Amortization of GM purchase accounting
 adjustments related to Hughes 31.0 31.0
 Interest expense 9.8 20.7
 Total cost and expenses 2,713.6 2,613.0
 Income before income taxes 264.1 133.4
 Income taxes 113.7 67.6
 Income before cumulative effect
 of accounting changes 150.4 65.8
 Cumulative effect of accounting changes --- 54.4(b)
 Net income 150.4 120.2
 Adjustments to exclude the effect of
 GM purchase accounting adjustments
 related to Hughes 31.0 31.0
 Earnings used for computation of
 available separate consolidated
 net income $181.4 $151.2
 Available separate consolidated
 net income $31.8 $32.0
 Earnings attributable to General Motors
 Class H Common Stock on a per-share basis
 Before cumulative effect of accounting
 changes $0.44 $0.23
 Cumulative effect of accounting changes --- 0.13
 Net earnings attributable to General
 Motors Class H Common Stock $0.44 $0.36
 (a) Includes $35.0 million pre-tax income on patent infringement settlement.
 (b) Effective Jan. 1, 1991, accounting procedures at Delco Electronics were changed to include in inventory general purpose spare parts previously charged directly to expense. Effective the same date, GMHE adopted Statement of Financial Accounting Standards No. 109, Accounting for Income Taxes. First-quarter 1991 earnings were restated for the effect of this change.
 CONSOLIDATED BALANCE SHEET
 March 31, Dec. 31,
 (Dollars in millions) 1992 1991
 Assets
 Current assets
 Cash and cash equivalents $188.2 $348.3
 Accounts and notes receivable
 Trade receivables 640.3 705.0
 General Motors and affiliates 428.5 375.6
 Contracts in process 2,385.6 2,283.1
 Inventories 1,082.4 1,033.8
 Prepaid expenses 76.2 88.0
 Total current assets 4,801.2 4,833.8
 Property - net 3,432.8 3,409.5
 Intangible assets 3,720.2 3,766.9
 Investments and other assets 948.2 920.6
 Total assets $12,902.4 $12,930.8
 Liabilities and stockholder's equity
 Current liabilities
 Accounts payable
 Outside $699.1 $548.4
 General Motors and affiliates 87.8 106.7
 Advances on contracts 412.7 493.2
 Notes and loans payable 583.7 703.2
 Income taxes, including deferred amounts 217.0 226.7
 Accrued liabilities 1,132.6 1,206.8
 Total current liabilities 3,132.9 3,285.0
 Long-term debt and capitalized leases 245.8 147.1
 Other liabilities, deferred income taxes,
 and deferred credits 1,216.3 1,280.5
 Total stockholder's Equity 8,307.4 8,218.2
 Total liabilities and stockholder's
 equity $12,902.4 $12,930.8
 -0- 4/27/92 R
 /CONTACT: Bruce McCristal of GM Hughes Electronics, 313-556-2025/
 (GMH) CO: GM Hughes Electronics Corporation ST: Michigan IN: AUT CPR SU: ERN


ML-JG -- DE004 -- 3262 04/27/92 14:24 EDT
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