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GTE REPORTS RECORD SECOND-QUARTER EARNINGS

 GTE REPORTS RECORD SECOND-QUARTER EARNINGS
 STAMFORD, Conn., July 21 /PRNewswire/ -- GTE Corp. (NYSE: GTE) today


reported that income from continuing operations for the second quarter of 1992 reached a record $446 million, or 49 cents per share, compared with $394 million, or 44 cents per share earned in the second quarter last year. This represents an increase in earnings per share of 11 percent. The second-quarter and six-month results exclude GTE Electrical Products' operations which, as previously announced, will be divested and are being accounted for as a discontinued operation.
 "GTE continues to perform very well despite a soft economy," said Charles R. Lee, GTE chairman and chief executive officer. "The long- term strategic-positioning steps taken by GTE over the past several years are generating positive results, while at the same time improving our competitive position.
 "These record-high results were driven by Telephone Operations' continued excellent performance. This unit reported solid volume growth and continued to benefit from many productivity programs. At the same time, customer-measured quality also improved," Lee stated.
 "GTE's cellular-mobile business continued its excellent growth trends, and continues to drive for increased profitability. Also, results for CANTV, the Venezuelan telephone company in which GTE acquired a 20.4 percent equity interest and operating control in late 1991, met our expectations in terms of financial performance, quality improvements and customer service," said Lee.
 Consolidated revenues and sales rose 4 percent to $5.06 billion in the quarter, compared with $4.85 billion in the second quarter last year.
 Six-Month Results.
 For the first half of 1992, income from continuing operations was $873 million, or 96 cents per share, compared with $591 million, or 65 cents per share last year. The 1991 results included 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 last year's results, earnings per share from continuing operations for the first half of 1992 increased 9 percent over 1991.
 Consolidated revenues and sales from continuing operations were $9.89 billion for the first half of 1992, compared with $9.54 billion last year.
 Telephone Operations Reviewed.
 Revenues from Telephone Operations for the second quarter totaled $3.98 billion, or 3 percent higher than the $3.85 billion reported in the same quarter last year. The improvement over 1991 reflects a 7.0 percent annual increase in the usage of GTE's local-exchange network for long-distance calling and a 3.7 percent annual increase in access lines. These increases were partially offset by lower, more competitive domestic tariffs that GTE charges the inter-exchange carriers for access to its local networks.
 Operating income increased 9 percent to over $1.02 billion, compared with $941 million last year. The 1991 results included a $30 million provision related to an adverse court decision in a Texas rate case. Excluding the Texas rate-case decision, operating income was 5 percent higher reflecting increased revenues and the continuing realization of cost efficiencies resulting from the ongoing consolidation of operations and integration of GTE's and Contel's telephone businesses.
 GTE is the largest U.S.-based local-telephone company with domestic and international operations serving 20.5 million access lines in 40 states, Canada and Latin America.
 Telecommunications Products and Services; Growth in Cellular.
 Revenues and sales from Telecommunications Products and Services increased 8 percent in the second quarter to $1.09 billion, up from $1.01 billion in the 1991 quarter. The increase primarily reflects higher revenues from cellular-mobile telephone services and increased sales of government-communications systems. Operating income in the second quarter rose to $65 million, compared with $42 million in the year-ago quarter, reflecting higher revenues and cost efficiencies.
 GTE is the second-largest cellular-telephone operator in the United States -- serving a population of some 52 million "POPS." Customer growth continued at a high level during the second quarter. A total of 56,000 new customers were added, bringing total customers served to 920,000. This is a 35 percent increase over the 682,000 customers at the end of the 1991 second quarter. During the quarter, revenues per subscriber averaged $78 per month, slightly higher than the preceding quarter. Cellular revenues in the second quarter this year totaled $252 million, 30 percent higher than the same period last year.
 GTE's Telecommunications Products and Services group includes cellular mobile, 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
 (in millions)
 Six Months Ended
 Second Quarter June 30
 1992 1991 1992 1991
 REVENUES AND SALES
 Telephone Operations $3,978 $3,847 $7,828 $7,642
 Telecommunications Products
 and Services 1,089 1,007 2,066 1,916
 Eliminations (4) (7) (8) (17)
 Total revenues and sales $5,063 $4,847 $9,886 $9,541
 OPERATING INCOME
 Telephone Operations $1,024 $ 941 $2,043 $1,904
 Telecommunications Products
 and Services 65 42 104 60
 Merger consummation and
 integration costs (A) -- -- -- (342)
 Operating income 1,089 983 2,147 1,622
 OTHER DEDUCTIONS
 Interest expense - net 347 345 693 696
 Other - net 30 57 63 35
 Income before income taxes 712 581 1,391 891
 Income tax provision 266 187 518 300
 Inc. from continuing operations 446 394 873 591
 Income from discontinued
 operations -- 9 -- 13
 Consolidated net income 446 403 873 604
 Preferred stock dividends 7 9 15 19
 Consolidated net income
 applicable to common stock $ 439 $ 394 $ 858 $ 585
 EARNINGS PER COMMON SHARE
 Continuing operations $ .49 $ .44 $ .96 $ .65
 Discontinued operations -- .01 -- 02
 Consolidated $ .49 $ .45 $ .96 $ .67
 AVERAGE COMMON SHARES 893 878 892 877
 (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- 7/21/92
 /CONTACT: Harvey W. Greisman, 203-965-2903 (After 6 p.m., 203-226-7661), or Tony Hamilton, 203-965-2853 (After 6 p.m., 203-327-2162), both of GTE/
 (GTE) CO: GTE Corp. ST: Connecticut IN: TLS SU: ERN


SH -- NY026 -- 1168 07/21/92 09:42 EDT
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