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IES INDUSTRIES REPORTS THIRD QUARTER EARNINGS

 IES INDUSTRIES REPORTS THIRD QUARTER EARNINGS
 CEDAR RAPIDS, Iowa, Nov. 6, /PRNewswire/ -- Net income for IES


Industries (NYSE: IES) for the third quarter of 1991 was $19.5 million, or 81 cents per share, compared with combined net income of $56.7 million, or $2.37 per share, for the same period in 1990. Revenues for IES Industries for the quarter were $163.6 million, compared with $163 million combined revenues for the separate companies during the third quarter of 1990.
 Earnings for the company, which was created July 1, 1991, by the merger of IE Industries Inc. and Iowa Southern Inc., were affected by the one-time expenses associated with the merger of the two companies. Merger-related expenses were $3.2 million after taxes. In addition, earnings for the third quarter of 1990 included an after-tax gain of $39.3 million resulting from the August 1990 sale of MCI of IE Industries' holdings of Telecom-USA.
 For the most recent 12 months, earnings were $1.65 per share, compared with $3.61 per share in 1990. In addition to the items noted above, these results also were affected by provisions to valuation and contingency reserves, the write-down of a cogeneration project, a contribution to the IES charitable foundation and regulatory disallowances. The effect of all of those items, including the gain on sale of Telecom-USA stock and merger expenses, was to contribute $1.50 per share to 1990 earnings and reduce 1991 earnings by 33 cents per share.
 Iowa Electric Light and Power Co. and Iowa Southern Utilities Co., principal utility subsidiaries of IES Industries, reported increased electric and natural gas sales for the quarter. Iowa Electric reported a 4.3 percent increase in kilowatt hour sales and a 2.1 percent increase in gas dekatherm volumes sold and transported for the quarter, compared with the same quarter last year. Iowa Southern Utilities reported 7.5 percent and 7.3 percent increases in electricity and natural gas sales, respectively, in the third quarter of 1991 compared to the same quarter a year earlier.
 On Oct. 1, 1991, Iowa Electric filed an application with the Iowa Utilities Board to increase electric prices by $18.9 million. Interim rates for Iowa Electric are expected to become effective in the fourth quarter. In September 1991, the Iowa Office of Consumer Advocate asked the IUB to reduce electric revenues of Iowa Southern Utilities by $10.1 million.
 Based on historical performance and future prospects for the company, the IES Industries Inc. board of directors continued the quarterly dividend at the current level of 52.5 cents per share on common stock, equal to an annual payment of $2.10. The dividend is payable Jan. 1, 1992, to shareholders of record Dec. 13, 1991.
 In separate actions, the boards of directors of IES Industries' principal utility subsidiaries, Iowa Electric and Iowa Southern Utilities, continued dividends for each of their cumulative preferred and preference stock issues.
 The following are selected summaries of the consolidated results of operations for IES Industries Inc. for the periods ended Sept. 30, 1991 and 1990:
 Quarter Ended Nine Months Ended
 Sept. 30 Sept. 30
 1991 1990 1991 1990
 (in thousands, except per share amounts)
 Revenues $163,601 $162,995 $458,107 $442,141
 Net income $ 19,532 $ 56,658 $ 35,546 $ 76,123
 Average number of common
 shares outstanding 24,201 23,891 24,113 23,810
 Earnings per average common
 share based on average
 number of shares
 outstanding $ .81 $ 2.37 $ 1.47 $ 3.20
 The following items impacted earnings per average common share as follows:
 Gain on sale of Telecom-USA
 stock $ -- $ 1.64 $ -- $ 1.65
 Write-down of a cogeneration
 project -- $ (0.03) -- (0.03)
 Regulatory disallowances -
 Iowa Electric -- -- (0.09) --
 Establishment of various
 reserves 0.01 (0.06) 0.01 (0.06)
 Contribution to a charitable
 foundation -- (0.06) -- (0.06)
 Merger expenses (0.12) -- (0.13) --
 Total earnings per average
 common share impact $ (0.11) $ 1.49 $ (0.21) $ 1.50
 Twelve Months Ended
 Sept. 30
 1991 1990
 (in thousands, except per share amounts)
 Revenues $608,910 $589,967
 Net income $ 39,753 $ 85,783
 Average number of common
 shares outstanding 24,077 23,776
 Earnings per average common
 share based on average
 number of shares
 outstanding $ 1.65 $ 3.61
 The following items impacted earnings per average common share as follows:
 Gain on sale of Telecom-USA
 stock -- $ 1.65
 Write-down of a cogeneration
 project (0.01) (0.03)
 Regulatory disallowances -
 Iowa Electric (0.13) --
 Establishment of various
 reserves (0.06) (0.06)
 Contribution to a charitable
 foundation -- (0.06)
 Merger expenses (0.13) --
 Total earnings per average
 common share impact $ (0.33) $ 1.50


NOTE: The consolidated results reflect the merger of IE Industries Inc. and Iowa Southern Inc. as if the July 1, 1991 merger between these companies to form IES Industries Inc. had occurred at the beginning of the periods
presented. -0- 11/6/91
 /CONTACT: Colleen Reilly of IES Industries, 319-398-7288/
 (IES) CO: IES Industries ST: Iowa IN: UTI SU: ERN DB -- SF013 -- 1971 11/06/91 18:57 EST
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Date:Nov 6, 1991
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