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ILLINOIS CENTRAL REPORTS EARNINGS; 2ND QUARTER RESULTS IMPROVE 23.4 PCT.

ILLINOIS CENTRAL REPORTS EARNINGS; 2ND QUARTER RESULTS IMPROVE 23.4 PCT.
 CHICAGO, July 14 /PRNewswire/ -- Illinois Central Corp. (NYSE: IC) announced today that its earnings for the second quarter ended June 30, 1992, increased 23.4 percent to $16.9 million (40 cents per share), versus $13.7 million (35 cents per share) in the second quarter of 1991.
 In commenting on the quarter, Chairman and CEO Edward L. Moyers said, "Second quarter earnings per share were depressed approximately 2 to 3 cents as a result of the 2-day national labor dispute, primarily from lost revenue. However, again this quarter, our operating ratio and net margin reflect improvement from prior year, as both operating expense and interest expense declined."
 Operating income for the quarter was $36.7 million compared to $35.1 million a year ago. Revenues for the quarterly periods were $129.9 million in 1992 and $131.3 million in 1991. Unfavorable labor cost ($1.5 million), primarily associated with future lump sum payments arising out of the 1991 labor agreements plus the 1992 labor dispute, were offset by lower lease and car hire costs ($2.2 million) and fuel savings ($.4 million).
 Interest expense for the second quarter of 1992 was down $4.2 million from last year reflecting lower debt levels, the refinancing of Series K bonds and lower interest rates on the term facility.
 In the second quarter of 1992, total loads of 205,557 were down 1.9 percent from the second quarter of 1991. Gains in grain, paper and grain mill traffic of 4.2 percent, 9.1 percent and 3.9 percent, respectively, compared to 1991 were offset by declines in other traffic (15.4 percent), primarily auto related.
 For the first six months of 1992, earnings before cumulative effect of change in accounting principle were $38.0 million (90 cents per share) compared to $29.0 million (78 cents per share) in 1991, a 31.0 percent improvement. Operating income year-to-date was $79.3 million in 1992 and $71.9 million last year. Revenue was $268.6 million in the first six months of 1992 versus $269.3 million in 1991. Lower fuel expense and lower car lease expense, resulting from a shift in commodity mix, contributed to 1992's lower operating expense compared with 1991.
 Effective January 1, 1992, the company adopted Statement of Financial Accounting Standards No. 109, "Accounting for Income Taxes" ("SFAS No. 109"). As a result, for the first half of 1992, the company recorded a $23.4 million (55 cents per share) reduction of its accrued deferred income tax liabilities.
 Earnings per share are based on the weighted average number ofcommon stock and common stock equivalents outstanding during the period. Amounts for 1991 have been restated to give effect to the February 1992 three-for-two stock split.
 Illinois Central Corporation's principal subsidiary, Illinois Central Railroad Company, operates a 2,700 mile freight railroad between Chicago and the Gulf of Mexico.
 ILLINOIS CENTRAL CORPORATION AND SUBSIDIARIES
 Consolidated Statements of Income
 ($ in millions, except share data)
 Periods ending Three months Six months
 June 30: 1992 1991 1992 1991
 Revenues $ 129.9 $ 131.3 $ 268.6 $ 269.3
 Operating expenses 93.2 96.2 189.3 197.4
 Operating income 36.7 35.1 79.3 71.9
 Interest expense, net (11.0) (15.2) (22.5) (30.3)
 Other income, net (0.2) 0.4 0.7 1.3
 Income before income
 taxes and cumulative
 effect of change in
 accounting principle 25.5 20.3 57.5 42.9
 Provision for income taxes 8.6 6.6 19.5 13.9
 Income before cumulative
 effect of change in accounting
 principle 16.9 13.7 38.0 29.0
 Cumulative effect of change
 in accounting principl - - 23.4 -
 Net income $ 16.9 $ 13.7 $ 61.4 $ 29.0
 Income per share:
 Income before cumulative
 effect of change in
 accting principl $ 0.40 $ 0.35 $ 0.90 $ 0.78
 Cumulative effect of
 change in
 accounting principl - - 0.55 -
 Income per share $ 0.40 $ 0.35 $ 1.45 $ 0.78
 Weighted average number of
 shares of common stock and
 common stock equivalents
 outstanding (000's) 42,469.3 38,883.2 42,436.5 37,263.1
 ILLINOIS CENTRAL CORPORATION AND SUBSIDIARIES
 Condensed Consolidated Balance Sheets
 ($ in millions)
 Assets: 6-30-92 12-31-91
 Cash and cash equivalents $ 44.9 $ 32.7
 Other current assets 138.0 147.1
 Investments 16.8 17.0
 Properties, net 980.8 968.3
 Other assets 18.1 18.4
 Total assets $ 1,198.6 $ 1,183.5
 Liabilities and Stockholders' Equity:
 Current liabilities $ 173.7 $ 183.2
 Long-term debt 391.8 413.5
 Deferred taxes 165.0 172.4
 Other liabilities 154.6 154.1
 Stockholders' equity 313.5 260.3
 Total liabilities and stockhold $ 1,198.6 $ 1,183.5
 ILLINOIS CENTRAL CORPORATION & SUBSIDIARIES
 Operating Expense Detail/Ratios
 Periods ending Three months Six months
 June 30: 1992 1991 1992 1991
 Operating expense detail
 ($ in millions):
 Labor and fringe benef$ 48.2 $ 46.C7 $ 94.9 $ 96.0
 Leases and car hire 15.3 17.5 34.3 37.7
 Diesel fuel 6.8 7.2 14.3 16.3
 Materials and supplies 8.3 7.4 17.2 14.8
 Depreciation and
 amortization 5.4 5.6 10.8 11.1
 Other 9.2 11.8 17.8 21.5
 Total operating
 expenses $ 93.2 $ 96.2 $ 189.3 $ 197.4
 Operating expense ratios as a percent of revenue:
 Line items:
 Labor and fringe bfit.37.08 pct. 35.59 pct. 35.33 pct. 35.64pct.
 Leases and car hire 11.80 pct. 13.30 pct. 12.78 pct. 14.00 pct.
 Diesel fuel 5.27 pct. 5.45 pct. 5.31 pct. 6.07 pct.
 Materials and supples 6.38 pct. 5.65 pct. 6.40 pct. 5.49 pct.
 Depreciation and
 amortization 4.17 pct. 4.24 pct. 4.01 pct. 4.11 pct.
 Other 7.06 pct. 9.05 pct. 6.65 pct. 7.99 pct.
 Total operating
 expenses 71.75 pct. 73.27 pct. 70.48 pct. 73.30 pct.
 ICC basis:
 Transportation 32.94 pct. 33.69 pct. 32.59 pct. 34.81 pct.
 Maintenance of way 6.40 pct. 8.81 pct. 6.10 pct. 6.86 pct.
 Maint. of equipment 21.19 pct. 23.13 pct. 22.51 pct. 23.74 pct.
 Other 11.23 pct. 7.64 pct. 9.28 pct. 7.88 pct.
 Total operating
 expenses 71.75 pct. 73.27 pct. 70.48 pct. 73.30 pct.
 -0- 7/14/92
 /CONTACT: Ann G. Thoma of Illinois Central, 312-819-7491/
 (IC) CO: Illinois Central Corporation ST: Illinois IN: TRN SU: ERN


TQ -- NY001 -- 8940 07/14/92 08:41 EDT
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