Printer Friendly

GTE REPORTS INCREASE IN SECOND-QUARTER EARNINGS; EXCLUDING ONE-TIME CHARGE, EARNINGS PER SHARE WERE UP 13 PERCENT

 STAMFORD, Conn., July 21 /PRNewswire/ -- GTE today reported that consolidated net income for the second quarter of 1993 was $438 million, or 46 cents per share, compared with $412 million, or 45 cents per share, in the second quarter last year. The results for the 1993 quarter include a previously announced one-time pre-tax charge of $74 million associated with the recently completed Telephone Operations voluntary separation programs. This resulted in an after-tax charge of $46 million, or 5 cents per share. Excluding the impact of this one- time charge, earnings per share for the quarter were 51 cents, an increase of 13 percent.
 "Telephone Operations had a strong quarter, reporting continued healthy volume growth and lower domestic operating cot?s," said GTE Chairman and Chief Executive Officer Charles R. Lee. "Telecommunications Products and Services, driven by continued excellent growth in mobile cellular, again reported substantially higher operating income. Across the board, our business units are improving quality, reducing operating costs and improving GTE's competitive posture for the future," said Lee.
 Operating income rose 7 percent to $1.11 billion, exclusive of the one-time charge. Interest expense declined 10 percent compared with the second quarter last year, reflecting reduced debt levels and lower interest rates. Consolidated revenues and sales totaled $4.92 billion in the quarter, compared with $5.06 billion in the year-ago quarter. The 3 percent revenue decline reflects lower government-communications sales and continued competitive price reductions to domestic long- distance companies, which offset solid volume growth in telephone operations.
 Six-Month Results
 For the first half of 1993, net income was $898 million, or 94 cents per share, compared with $805 million, or 88 cents per share last year -- before the cumulative impact of accounting changes which were recorded in the first quarter of last year. Excluding the impact of the recently completed voluntary separation programs, earnings per share for the first half of 1993 would have been 99 cents per share, a 13 percent increase over 1992.
 Operating income, exclusive of the one-time charge, rose 8 percent to $2.21 billion. Consolidated revenues and sales were $9.74 billion for the first half of 1993, compared with $9.89 billion last year.
 Telephone Operations' Minutes of Use Up 7.5 Percent and Access Lines Up 4 Percent
 Revenues from Telephone Operations decreased slightly from the year- ago quarter to $3.92 billion. Increases in unit volumes, in both domestic and international operations, were offset by lower, more competitive interstate access charges to domestic long-distance companies. Minutes of use of GTE's domestic local-exchange network for long-distance calling grew at an annual rate of 7.5 percent, while total access lines increased 4 percent over last year.
 Some 6,400 employees, or nearly 8 percent of Telephone Operations' domestic workforce, accepted various voluntary separation programs offered during the second quarter. These programs will reduce future operating costs by more than $250 million annually, thereby improving GTE's competitive position.
 Excluding the impact of these voluntary separation programs, operating income for the second quarter totaled $1.02 billion, or 4 percent higher than the $981 million earned last year. The operating margin improvement reflects the continuing expense reductions.
 GTE is the largest U.S.-based local telephone company with domestic and international operations serving 21.8 million access lines in 40 states, Canada and Latin America.
 Operating Income Increases Sharply at
 Telecommunications Products and Services
 Revenues and sales from Telecommunications Products and Services decreased to $995 million, compared with $1.08 billion a year ago. This 8 percent decline in revenues reflects reduced government-communications sales resulting from the wind-down of the eight-year Mobile Subscriber Equipment contract which were offset, in part, by higher revenues from the continued strong growth in mobile cellular.
 Operating income, however, rose to $87 million, compared with $57 million a year ago. Higher revenues and efficiencies in mobile cellular as well as cost reductions in the government systems business contributed to this sharp increase.
 Cellular Service Revenues Increase 25 Percent;
 98,000 Customers Added
 GTE is the second-largest cellular-telephone operator in the United States -- serving a population of some 53 million RPOPs.S Customer growth continued at a high level during the second quarter. A total of 98,000 new customers were added, bringing total customers served to 1,254,000. This is a 36 percent increase over the 920,000 customers at the end of the 1992 second quarter. During the quarter, service revenues per subscriber averaged $73 per month, compared with $70 per month reported in the preceding quarter and the average of $78 per month in the second quarter last year. The current average reflects the growth of casual users in the subscriber base. Cellular service revenues were $263 million, an increase of 25 percent over the same period in 1992.
 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 (A)
 Six Months Ended
 Second Quarter June 30
 1993 1992 1993 1992
 (In Millions)
 REVENUES AND SALES
 Telephone Operations $3,921 $3,978 $ 7,836 $ 7,828
 Telecommunications Products
 and Services 995 1,085 1,906 2,058
 Total revenues and sales $4,916 $5,063 $ 9,742 $ 9,886
 OPERATING INCOME
 Telephone Operations (B) $ 951 $ 981 $ 1,992 $ 1,958
 Telecommunications Products
 and Services 87 57 147 86
 Operating income 1,038 1,038 2,139 2,044
 OTHER DEDUCTIONS
 Interest expense - net 311 347 625 693
 Other - net 37 34 90 71
 Income before income taxes 690 657 1,424 1,280
 Income tax provision 252 245 526 475
 INCOME BEFORE CUMULATIVE EFFECT
 OF ACCOUNTING CHANGES 438 412 898 805
 Cumulative effect of
 accounting changes - - - (2,441)
 NET INCOME (LOSS) 438 412 898 (1,636)
 Preferred stock dividends 5 7 9 15
 NET INCOME (LOSS) APPLICABLE TO
 COMMON STOCK $ 433 $ 405 $ 889 $(1,651)
 EARNINGS (LOSS) PER COMMON SHARE
 Continuing operations $ .46 $ .45 $ .94 $ .88
 Cumulative effect of
 accounting changes - - - (2.70)
 Consolidated $ .46 $ .45 $ .94 $ (1.82)
 AVERAGE COMMON SHARES 943 893 942 892
 (A) 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 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 second quarter and six month 1992 effects reduced net income by $34 million, or $.04 per share, and $68 million, or $.08 per share, respectively.
 (B) Includes a provision in the second quarter of 1993 of $74 million ($46 million after-tax, or $.05 per share) associated with the recently completed voluntary separation programs.
 -0- 7/21/93
 /CONTACT: Harvey W. Greisman, 203-965-2903, or after 6 p.m., 203-226-7661; Tony Hamilton, 203-965-2853, or after 6 p.m., 203-327-2162; or Julia Spicer (on the Washington, D.C. leg only), 202-463-5206, or after 6 p.m., 202-797-0715, all of GTE Corporaion/
 (GTE)


CO: GTE Corporation ST: Connecticut IN: TLS SU: ERN

SH -- NY030 -- 3863 07/21/93 10:41 EDT
COPYRIGHT 1993 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1993 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Jul 21, 1993
Words:1226
Previous Article:INGERSOLL-RAND REPORTS SECOND-QUARTER IMPROVEMENT
Next Article:NATEC ANNOUNCES SIGNIFICANT IMPROVEMENT IN SECOND QUARTER RESULTS
Topics:


Related Articles
GTE REPORTS FOURTH-QUARTER RESULTS
GTE REPORTS RECORD SECOND-QUARTER EARNINGS
GTE REPORTS RECORD SECOND-QUARTER EARNINGS
GTE REPORTS RECORD SECOND-QUARTER EARNINGS
GTE REPORTS RECORD THIRD-QUARTER EARNINGS
GTE REPORTS INCOME OF $460 MILLION VS. $2.05 BILLION LOSS; STRONG RESULTS IN TELEPHONE OPERATIONS AND DOUBLE-DIGIT GROWTH IN CELLULAR.
GTE REPORTS FOURTH-QUARTER AND FULL-YEAR 1993 RESULTS; EXCLUDING SPECIAL ITEMS, EARNINGS PER SHARE FROM CONTINUING OPERATIONS INCREASED 13 PERCENT.
GTE REPORTS STRONG SECOND-QUARTER EARNINGS; TELEPHONE NETWORK USAGE UP 10 PERCENT AND CELLULAR SUBSCRIBERS UP 50 PERCENT OVER PRIOR YEAR.
Lucent Technologies Reports Record Earnings in 1999 Fiscal First Quarter.

Terms of use | Copyright © 2017 Farlex, Inc. | Feedback | For webmasters