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HOUGHTON MIFFLIN ANNOUNCES FIRST QUARTER SALES GAIN

 HOUGHTON MIFFLIN ANNOUNCES FIRST QUARTER SALES GAIN
 BOSTON, April 16 /PRNewswire/ -- Houghton Mifflin Company (NYSE: HTN) today reported net sales of $52.1 million for the first quarter ended March 31, 1992, a 4.4 percent increase over last year's $49.9 million. Because textbook sales to schools and colleges are seasonal, the company normally incurs a substantial loss in the first quarter. The loss in 1992's first quarter was $14 million, or 98 cents per share, compared with a loss of $15.6 million, or $1.09 per share, a year ago. Last year's first quarter included a pre-tax operating loss recorded by the company's Australian business of $1.2 million, or 5 cents per share. Houghton Mifflin sold its Australian operations in the third quarter of 1991.
 Sales results from the company's two publishing segments were mixed in the first quarter. Educational publishing segment sales rose 11 percent in the quarter led by a substantial sales increase recorded by The Riverside Publishing Company. Both the School and College Divisions also reported higher sales. General publishing sales declined 5 percent from a good first quarter in 1991. Both the Trade & Reference Division and Victor Gollancz reported lower sales, although U.S. sales of adult trade books were ahead of last year. The Software Division's sales also rose in the quarter.
 Nader F. Darehshori, chairman and chief executive officer, said, "The lower first-quarter neresults were in line with our plans for the year which target increased operating and net income, even though weak economic conditions and limited funding and sales opportunities in school publishing, Houghton Mifflin's largest business, are expected to continue."
 HOUGHTON MIFFLIN COMPANY AND SUBSIDIARIES
 Unaudited Consolidated Financial Information
 (Dollars in thousands except per share amounts)
 Three months ended 12 months ended
 March 31 March 31
 1992 1991 1992 1991
 Net sales $52,096 $49,917 $468,980 $427,733
 Costs and expenses:
 Cost of sales 35,429 35,336 229,023 207,214
 Selling & administrative 38,620 39,075 193,264 191,694
 Total 74,049 74,411 422,287 398,908
 Operating income (loss) (21,953) (24,494)(a) 46,693(b) 28,825(c)
 Net interest expense (663) (617) (3,752) (3,244)
 Income (loss) before
 income taxes (22,616) (25,111) 42,941 25,581
 Provision (credit) for
 income taxes (8,594) (9,542) 16,317 11,065
 Net income (loss) $(14,022) $(15,569) $26,624 $14,516
 Net income (loss) per
 share (98 cents) ($1.09) $1.86 $1.02
 Avg. shares outstanding
 during each period 14,305,684 14,300,945 14,325,266 14,271,286
 ---
 Notes:
 (a)-Includes $1.2 million in operating losses (5 cents per share) incurred by the company's Australian subsidiary.
 (b)-Includes operating costs and losses totaling $3.7 million (16 cents per share) related to the sale of the company's Australian business and provisions for U.S. cost reductions and reorganization.
 (c)-Includes a $3.6 million pre-tax charge for the write-down of intangible assets, a pre-tax gain of $1.4 million from the sale of a secondary school list, and $1.5 million in operating losses related to the Australian subsidiary's fiscal year results. The net effect of these activities reduced earnings per share by 24 cents.
 -0- 4/16/92
 /CONTACT: Stephen O. Jaeger, executive vice president and chief financial officer, 617-725-5017/
 (HTN) CO: Houghton Mifflin Company ST: Massachusetts IN: PUB SU: ERN


SH -- NE002 -- 9179 04/16/92 10:24 EDT
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Date:Apr 16, 1992
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