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GTE REPORTS FIRST-QUARTER NET INCOME OF $427 MILLION VS. $197 MILLION A YEAR AGO; EXCLUDING A ONE-TIME CHARGE IN 1991

GTE REPORTS FIRST-QUARTER NET INCOME OF $427 MILLION VS. $197 MILLION
 A YEAR AGO; EXCLUDING A ONE-TIME CHARGE IN 1991
 STAMFORD, Conn., April 14 /PRNewswire/ -- GTE Corp. (NYSE: GTE) today reported that income from continuing operations for the first quarter was $427 million, or 47 cents per share. In the first quarter last year, GTE's income from continuing operations totaled $197 million, or 21 cents per share, after a one-time net charge of $204 million, or 23 cents per share, in connection with the Contel merger and gain on the transfer of certain cellular properties. Excluding the one-time charge from 1991, GTE's earnings per share from continuing operations were 7 percent higher than last year. Consolidated revenues and sales for the quarter totaled $4.8 billion, compared with $4.7 billion a year ago.
 These first-quarter results exclude GTE's Electrical Products operations which, as previously announced, will be divested and are being accounted for as a discontinued operation.
 "We are very pleased with these results, particularly considering the difficult economic environment," said GTE Chairman and Chief Executive Officer James L. "Rocky" Johnson. "All our businesses showed improvement, but GTE's telephone and cellular-mobile units did exceptionally well."
 "Moreover," the GTE chairman said, "we look forward to continued profitable growth as a result of the strategic actions taken over the past three years, such as the merger with Contel. With respect to the merger, the integration of operations is progressing smoothly and should be completed in 1993. This merger integration has been one of the largest in the history of telecommunications, and will provide a cost-efficient base for GTE for many years to come," he added.
 Telephone Operations Reviewed
 Revenues from Telephone Operations totaled $3.8 billion, 1 percent higher than the first quarter last year, while operating income increased 6 percent to over $1 billion. The revenue improvement reflects increases in unit volumes in both domestic and international operations which were offset, in part, by lower, more competitive domestic interstate access tariffs put into effect in 1991. Minutes-of- use of GTE's domestic local-exchange network for long-distance calling grew at an annual rate of 7 percent, while access lines increased 3 percent over last year.
 The improvement in operating margins reflects the realization of cost efficiencies resulting from both the ongoing consolidation of GTE's domestic telephone companies and the integration of GTE's and Contel's operations following their merger in March 1991. Even with the increases in unit volumes, the domestic telephone companies' operating expenses were lower than those incurred in the first quarter of 1991.
 GTE is the largest U.S.-based local telephone company with domestic and international operations serving 20.4 million access lines in 40 states, Canada and Latin America.
 Telecommunications Products and Services
 Revenues and sales from Telecommunications Products and Services, which includes cellular mobile, government systems, information services, yellow-pages directory advertising, and satellite and aircraft-passenger communications services, increased 7 percent in the first quarter of 1992 to $977 million, up from $909 million in the year-ago quarter. The increase in revenues primarily reflects higher sales of cellular-mobile telephone services and government- communication systems.
 Operating income in the first quarter this year rose to $39 million, compared with $18 million in the first quarter last year. The sharp improvement reflects gains throughout the group, and particularly in cellular mobile which benefited from its increased customer base.
 Group's Growth Spurred by Cellular
 GTE is the second-largest cellular-mobile operator in the United States -- serving some 52 million "POPS." Customer growth continued at a high level during the first quarter. A total of 53,000 new customers were added, bringing total customers served to 864,000, compared with 638,000 at the end of the 1991 first quarter. As expected, revenues per subscriber were lower than previous quarters, reflecting the growth of casual users in the subscriber base -- a trend that is common to the industry. Cellular revenues in the first quarter this year reached $216 million, more than 30 percent higher than the same period last year.
 GTE CORPORATION AND SUBSIDIARIES
 Condensed Summary of Consolidated Results
 (In millions)
 First quarter: 1992 1991
 Revenues and Sales
 Telephone operations $ 3,850 $ 3,795
 Telecommunications products and services 977 909
 Eliminations (4) (10)
 Total revenues and sales $ 4,823 $ 4,694
 Operating Income
 Telephone operations $ 1,019 $ 963
 Telecommunications products and services 39 18
 Merger consummation and integration costs (A) -- (342)
 Operating income 1,058 639
 Other Deductions
 Interest expense - net 346 351
 Other, including $66 million gain
 in 1991 on transfer of cellular
 minority interests 33 (22)
 Income before income taxes 679 310
 Income tax provision 252 113
 Income from continuing operations 427 197
 Discontinued operations -- 4
 Net income 427 201
 Preferred stock dividends 8 10
 Net income applicable to common stock $ 419 $ 191
 Earnings Per Common Share
 Continuing operations $ .47 $ .21
 Discontinued operations -- .01
 Consolidated $ .47 $ .22
 Average Common Shares 891 875
 (A) Reflects the one-time costs of the merger with Contel Corporation which was consummated on March 14, 1991. These costs, net of a gain on the transfer of certain cellular properties, reduced 1991 net income by $204 million, or $.23 per share.
 -0- 4/14/92 R
 /CONTACT: Harvey W. Greisman, 203-965-2903 or (after 6 p.m.) 203-226-7661, or Tony Hamilton, 203-965-2853 or (after 6 p.m.) 203-327-2162, both of GTE/
 (GTE) CO: GTE Corporation ST: Connecticut IN: TLS SU: ERN


TS -- NY022 -- 8190 04/14/92 10:58 EDT
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