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ITEL REPORTS SECOND QUARTER, SIX-MONTH RESULTS

 ITEL REPORTS SECOND QUARTER, SIX-MONTH RESULTS
 CHICAGO, Aug. 6 /PRNewswire/ -- Itel Corp. (NYSE: ITL), reflecting


significant charges related to its recently completed railcar lease transaction, today reported a net loss applicable to common stock of ($46.8 million), or ($1.57) per share, during the second quarter of 1992. This amount compares to a net loss applicable to common stock of ($5.8 million), or (17) cents per share, during the second quarter of 1991.
 For the first six months of 1992, Itel's net loss applicable to common stock was ($62.2 million), or ($2.02) per share, compared to a net loss applicable to common stock of ($23.4 million), or (64 cents) per share, for the first six months of 1991.
 Excluding railcar transaction-related costs and items, Itel reported sharply reduced losses in 1992: a loss of ($0.9 million), or (3 cents) per share, in the second quarter of 1992, and ($12.0 million), or (39 cents) per share, for the first half of 1992. These amounts include pre-tax interest expense of approximately $7.3 million in the second quarter, and approximately $14.7 million in the first half related to Itel's investments in Santa Fe Energy Resources and Catellus Development. Without the cost of carrying these investments, Itel would have reported earnings for both periods.
 Results for the three- and six-month periods of 1992 were heavily affected by restructuring costs and extraordinary items related to the railcar lease transaction with a subsidiary of General Electric Capital Corp., completed June 1.
 The restructuring costs and extraordinary items amounted to ($45.9 million), or ($1.54) per share, in the second quarter of 1992, and ($50.2 million), or ($1.63) per share, in the six-month period. Restructuring costs reflect severance and other expenses related to the restructuring after the lease transaction, and the extraordinary items result from costs associated with the repurchase of higher-cost debt.
 Per share results in 1992 reflect 29.8 million weighted average shares outstanding during the second quarter, and 30.8 million shares for the six months. In 1991, there were 34.0 million weighted average shares outstanding in the second quarter and 36.4 million shares for the six months.
 While net results were negatively affected by the transaction related charges, operating income rose approximately 9 percent to $46.5 million in the second quarter of 1992 from $42.5 million in the second quarter of 1991. These amounts reflect goodwill amortization of $2.2 million in both periods. For the six months, operating income rose an equal percentage to $92.5 million in 1992 from $84.5 million in 1991, after goodwill amortization of $4.3 million in both periods.
 Rod Dammeyer, Itel president, said higher revenues and operating income included improvements at Anixter, Itel's wiring systems distribution business. Anixter's revenues rose 2 percent in the three- and six-month periods, and Anixter's operating income rose 34 percent in the second quarter and 19 percent in the first half of 1992.
 "Anixter's European operations continue their significant expansion and improvement, and start-up investments continue to decline," Dammeyer said. "Our North American distribution business also had a significantly better quarter, as did ANTEC's Cable TV Supply business.
 "The major accomplishment of the quarter, however, was the June 1 completion of the lease transaction with GECC and the concurrent offering of approximately $1 billion in Railcar Trust Notes. With the transaction complete, we are now able to focus Itel on the continued rapid growth of Anixter."
 Through its Anixter Distribution and ANTEC businesses, Itel Corp. is involved mainly in supplying wiring systems for data, voice, video and energy.
 (Unaudited, in millions, except per share amounts)
 Three-Month Periods Ended June 30,
 Consolidated Anixter(A) Rail car leasing
 1992 1991 1992 1991 1992 1991
 Revenues $449.7 $419.6 $360.5 $320.5 $64.4 $75.4
 Cost of opers. (401.0) (374.9) (344.8) (308.2) (33.3) (43.6)
 Amortizations of
 goodwill (2.2) (2.2) (2.2) (2.2) -- --
 Operating income 46.5 42.5 13.5 10.1 31.1 31.8
 Interest expense and
 other, net (43.8) (47.1) (6.4) (7.3) (19.1) (17.8)
 Restructuring
 costs (21.8) -- -- -- (21.8) --
 Income (loss) from
 cont. opers.before
 income taxes (19.1) (4.6) 7.1 2.8 (9.8) 14.0
 Income tax (expense)
 benefit(A) (1.4) (0.7) (2.5) (3.2) (5.5) (3.4)
 Income (loss) from
 continuing
 operations (20.5) (5.3) 4.6 (0.4) (15.3) 10.6
 Income (loss) from discontinued
 operations (net of related
 taxes) (0.7) 1.0 -- -- -- --
 Income (loss) before
 extraordinary
 item (21.2) (4.3) 4.6 (0.4) (15.3) 10.6
 Extraord. item (24.1) -- -- -- (14.7) --
 Net income
 (loss) (45.3) (4.3) $4.6 ($0.4) ($30.0) $10.6
 Preferred stock
 dividends
 and amortization (1.5) (1.5)
 Loss applicable to
 common stock ($46.8) ($5.8)
 Loss per common
 and common
 equivalent share
 Continuing
 operations ($0.74) ($0.20)
 Before extraordinary
 item ($0.76) ($0.17)
 Net loss ($1.57) ($0.17)
 Weighted average
 common and common
 equivalent
 shares 29.8 34.0
 Three-Month Periods Ended June 30 1992 1991
 Other
 Revenues $24.8 $23.7
 Cost of operations (22.9) (23.1)
 Amortization of goodwill -- --
 Operating income 1.9 0.6
 Interest expense and other, net (18.3) (22.0)
 Restructuring costs -- --
 Income (loss) from continuing
 operations before income taxes (16.4) (21.4)
 Income tax (expense) benefit (A) 6.6 5.9
 Income (loss) from continuing
 operations (9.8) (15.5)
 Income (loss) from discontinued
 operations (net of related taxes) (0.7) 1.0
 Income (loss) before extraordinary
 item (10.5) (14.5)
 Extraordinary item (9.4) --
 Net income (loss) ($19.9) ($14.5)
 (A) -- Operating income includes start up expenses from European expansion of approximately $.2 and $1.9 million for the three-month periods ended June 30, 1992 and 1991, respectively.
 Six-Month Periods Ended June 30,
 Consolidated Anixter(a) Rail car leasing Other
 1992 1991 1992 1991 1992 1991 1992 1991
 Revenues $895.2 $822.5 $707.0 $628.3 $140.7 $149.7 $47.5 $44.5
 Cost of
 opers. (798.4) (733.7) (676.3) (601.9) (76.4) (85.7) (45.7) (46.1)
 Amort. of
 goodwill (4.3) (4.3) (4.3) (4.3) -- -- -- --
 Operating
 income 92.5 84.5 26.4 22.1 64.3 64.0 1.8 (1.6)
 Interest expense
 and other,
 net (94.2) (89.2) (12.4) (15.9) (35.6) (34.7) (46.2) (38.6)
 Restructuring
 costs (21.8) -- -- -- (21.8) -- -- --
 Income (loss)
 from cont.
 opers. before
 income
 taxes (23.5) (4.7) 14.0 6.2 6.9 29.3 (44.4) (40.2)
 Income tax
 (expense)
 benefit (1.5) (1.1) (5.8) (5.8) (9.2) (5.1) 13.5 9.8
 Income (loss) from
 continuing
 opers. (25.0) (5.8) 8.2 0.4 (2.3) 24.2 (30.9) (30.4)
 Loss from
 discontinued
 operations
 (net of
 related
 taxes) (5.8) (23.5) -- -- -- -- (5.8) (23.5)
 Income (loss)
 before
 extraordinary
 item (30.8) (29.3) 8.2 0.4 (2.3) 24.2 (36.7) (53.9)
 Extraordinary
 item (net
 of related
 taxes in
 1991) (28.4) 8.9 -- -- (15.7) -- (12.7) 8.9
 Net income
 (loss) (59.2) (20.4) $8.2 $0.4 ($18.0) $24.2 ($49.4) ($45.0)
 Preferred
 stock
 dividends
 and
 amort. (3.0) (3.0)
 Loss applicable
 to common
 stock ($62.2) ($23.4)
 Consolidated
 1992 1991
 Loss per common and common equivalent share:
 Continuing operations ($0.91) ($0.24)
 Before extraordinary item ($1.10) ($0.89)
 Net loss ($2.02) ($0.64)
 Weighted average common and common
 equivalent shares 30.8 36.4
 (A) -- Operating income includes start up expenses from European expansion of approximately $1.3 and $4.6 million for the six-month periods ended June 30, 1992 and 1991, respectively.
 -0- 8/6/92
 /CONTACT: Kirk Brewer of Itel, 312-902-1515/
 (ITL) CO: Itel Corp. ST: Illinois IN: SU: ERN


TS -- NY045 -- 7537 08/06/92 11:00 EDT
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