GTE REPORTS INCOME OF $460 MILLION VS. $2.05 BILLION LOSS; STRONG RESULTS IN TELEPHONE OPERATIONS AND DOUBLE-DIGIT GROWTH IN CELLULAR.
STAMFORD, Conn., April 20 /PRNewswire/ -- GTE (NYSE: GTE) today reported that first-quarter earnings per share increased 12 percent over the year-ago quarter -- excluding the cumulative impact of accounting changes effective in the first quarter of last year. "Telephone Operations posted another strong quarter on higher volumes and lower domestic operating costs while Telecommunications Products and Services, driven by mobile-cellular increases, doubled its operating income," said GTE Chairman and Chief Executive Officer Charles R. Lee. "We are very pleased with these results, which reflect GTE's strengthened competitive posture." Consolidated net income for the first quarter of 1993 was $460 million, or 48 cents per share, compared with a loss of $2.05 billion, or $2.27 per share, in the first quarter last year. The results for the 1992 quarter included a cumulative after-tax charge of $2.44 billion, or $2.70 per share, resulting from the adoption of new accounting rules for post-retirement benefits and income taxes. Excluding the accounting changes, earnings per share in the first quarter of 1992 were 43 cents. Operating income rose 9 percent to $1.10 billion. Consolidated revenues and sales totaled $4.83 billion in the quarter, compared with $4.82 billion in the first quarter last year. Telephone Operations Improves Margins Revenues from Telephone Operations totaled $3.92 billion, compared with $3.85 billion in the first quarter last year, while operating income increased 7 percent to $1.04 billion. The revenue improvement reflects increases in unit volumes in both domestic and international operations which were offset, in part, by more competitive interstate access tariffs charged to domestic long-distance companies. Minutes-of- use of GTEUs domestic local-exchange network for long-distance calling grew 9.2 percent, while access lines increased 3.8 percent over last year. The improvement in operating margins primarily reflects lower domestic operating expenses resulting from on-going cost-reduction programs. Venezuelan Operations Perform Well Revenues at CANTV, the Venezuelan telephone company in which GTE acquired a 20.4 percent equity interest in late 1991, rose 70 percent to over $1 billion in 1992. "I am extremely proud of our progress in Venezuela," the GTE chairman said. "In 1992, CANTV installed more than 320,000 digital lines, added over 200,000 new customers, expanded international circuits by nearly 20 percent and increased the number of public telephones by over 40 percent to 45,000. CANTV is expected to continue to make substantial progress in 1993. Through CANTV, Venezuela will eventually have the most advanced telephone system in Latin America," said Lee. GTE is the largest U.S.-based local-exchange telephone company with domestic and international operations serving 21.6 million access lines in 40 states, Canada and Latin America. Operating Income Doubles at Telecommunications Products and Services Revenues and sales from Telecommunications Products and Services decreased 6 percent in the first quarter of 1993 to $911 million, compared with $973 million in the same quarter a year ago. This decline in revenues reflects reduced government-communication sales offset, in part, by higher revenues from the continued strong growth in customers of the mobile-cellular business. Operating income increased sharply in the first quarter this year, despite the revenue decline, rising to $60 million, compared with $29 million in the first quarter last year. The improvement reflects the higher revenues in mobile-cellular as well as cost reductions and efficiencies throughout the group. GTE is the second-largest mobile-cellular operator in the United States -- serving a population of approximately 53 million RPOPs.S Cellular Service Revenues Increase 24 Percent; 66,000 Customers Added Cellular customer growth continued at a high level during the first quarter. A total of 66,000 new customers were added, bringing total customers served to 1,156,000, an increase of 34 percent over the 864,000 reported at the end of the 1992 first quarter. Revenues per subscriber averaged $70 per month, compared with $76 per month in the year-ago quarter, reflecting the growth of casual users in the subscriber base. Cellular service revenue, which excludes equipment sales, was $238 million for the first quarter 1993, an increase of 24 percent over the same period in 1992. Total cellular revenues in the first quarter this year reached $258 million. GTEUs Telecommunications Products and Services group includes mobile-cellular, government systems, information services, Yellow-Pages directory advertising and satellite and aircraft-passenger communications services. GTE is the fourth-largest publicly held telecommunications company in the world. GTE CORPORATION AND SUBSIDIARIES Condensed Summary of Consolidated Results First Quarter 1993 1992 (In Millions) Revenues and Sales: Telephone operations $3,915 $ 3,850 Telecommunications products and services 911 973 Total revenues and sales $4,826 $ 4,823 Operating Income: Telephone operations $1,041 $ 977 Telecommunications products and services 60 29 Operating income 1,101 1,006 Other Deductions: Interest expense - net 314 346 Other - net 53 37 Income before income taxes 734 623 Income tax provision 274 230 Income before cumulative effect of accounting changes 460 393 Cumulative effect of accounting changes - (2,441) Net income (loss) 460 (2,048) Preferred stock dividends 4 8 Net income (loss) applicable to common stock $ 456 $(2,056) Earnings (loss) per Common Share: Before cumulative effect of accounting changes $ .48 $ .43 Cumulative effect of accounting changes - (2.70) Consolidated $ .48 $ (2.27) Average common shares 941 891 During the fourth quarter of 1992, GTE adopted the new accounting rules for post-retirement health care and life insurance benefits (FAS 106) and income taxes (FAS 109) retroactive to Jan. 1, 1992. These accounting changes resulted in a one-time, non-cash, after-tax charge of $2.44 billion, or $2.70 per share. This charge was recorded by restating previously reported first quarter 1992 results. Operating results for the first three quarters of 1992 were also restated to give effect to the adoption of FAS 106. The first quarter 1992 effect reduced net income by $34 million, or $.04 per share. -0- 04/20/93 /CONTACT: Harvey W. Greisman, 203-965-2903, or after 6:00 p.m., 203-226-7661; Tony Hamilton, 203-965-2853, or after 6:00 p.m., 203-327-2162; or (in Washington), Julia Spicer, 202-463-5206, or after 6 p.m., 202-797-0715, all of GTE/ (GTE)
CO: GTE Corp. ST: Connecticut IN: TLS SU: ERN
AH -- NY037 -- 7905 04/20/93 10:09 EDT
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|Date:||Apr 20, 1993|
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