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MK REPORTS SECOND-QUARTER EARNINGS; MAINTAINS STRONG BACKLOG

 MK REPORTS SECOND-QUARTER EARNINGS; MAINTAINS STRONG BACKLOG
 BOISE, Idaho, July 15 /PRNewswire/ -- Morrison Knudsen Corp. (MK) (NYSE: MRN) today reported net income of $6.5 million (23 cents per share) on revenue of $514 million for the second quarter ended June 30, 1992. Revenue and net income for the second quarter of 1991 were $474 million and $9.3 million (36 cents per share) respectively. Per-share amounts give effect to a two-for-one stock split in May 1992.
 Backlog at the end of the second quarter was $4.7 billion, up from $4.1 billion a year ago, maintaining the strength established by the record-high backlog booked in the first quarter of 1992.
 "We anticipated lower earnings than the second quarter of last year because of the time required to complete production of transit cars now in the factory, and to start shipments to our customers," said William J. Agee, chairman and chief executive officer of MK. "In the quarters ahead, we see an improvement in operating income compared to the last three quarters. Our rail systems segment will start shipping new cars to Chicago soon and has an increased amount of locomotive work. Our construction and engineering segment is moving ahead on several important major projects. We believe the real gain in earnings will occur after 1992 when these major projects are well underway."
 For the first six months of 1992, MK reported net income of $12.9 million (45 cents per share) compared to $18.2 million (71 cents per share) for the corresponding period of 1991. Revenue for the first six months of 1992 was $1,012 million compared to $926 million for the first six months of 1991.
 Significant events of the second quarter included the awards of contracts totalling nearly $97 million to MK's Australian operations unit for the remanufacture of 25 locomotives for lease to the Australian National Railroad, and upgrade of locomotives and rolling stock for Broken Hill Proprietary Steel. These awards are important as MK moves forward to expand internationally, particularly in the transportation area. MK also was awarded an approximately $22-million contract from the California Department of Transportation to provide construction engineering and inspection services during improvement of Los Angeles' Harbor Freeway.
 MK acquired E.E. Black Ltd. of Honolulu and its affiliated companies, and G.W. Murphy Construction Co. Inc., to broaden market penetration of the Pacific region. E.E. Black is sponsor of, and 60-percent participant in, a joint venture that is apparent low bidder on a $58-million freeway construction project in Oahu. G.W. Murphy is apparent low bidder on two building projects in Hawaii totalling $79 million.
 Showing progress in the environmental division, MK announced receipt of a contract to perform decommissioning, demolition and site restoration of the research reactor at the U.S. Army Materials Technology Laboratory in Watertown, Mass. MK's CF Systems unit received two contracts to perform preliminary cleanup work at Superfund sites in Texas and Maine. MK also received a five-year, multimillion-dollar contract from IBM to perform maintenance and operations at two IBM facilities in San Jose, Calif., and was awarded a five-year operations contract at an Exxon Co. site at Port Hueneme, Calif.
 Morrison Knudsen Corp. is an international company serving the environmental, industrial process, power and transportation markets with complete development, design/engineering, construction, operations and financial services.
 MORRISON KNUDSEN CORP.
 FINANCIAL HIGHLIGHTS
 (Dollars in thousands except per-share data)
 Three Months Six Months
 Ended June 30: 1992 1991(a) 1992 1991(a)
 Revenue
 Engineering and
 construction $462,780 $360,858 $ 918,030 $ 695,510
 Rail systems 51,217 113,483 94,310 230,981
 Total revenue $513,997 $474,341 $1,012,340 $ 926,491
 Operating income (loss)
 Engineering and
 construction $ 14,397 $ 15,099 $ 29,448 $ 33,161
 Rail systems (852) 6,825 (1,953) 13,560
 Total operating income 13,545 21,924 27,495 46,721
 Equity in and interest
 earned from McConnell
 Dowell and other
 affiliates 2,189 404 3,610 647
 Other income - net 8,920 7,464 17,403 13,205
 General and administrative
 expense (9,290) (9,985) (19,123) (21,584)
 Interest expense (4,185) (3,804) (7,768) (7,553)
 Income before income taxes
 and minority interests 11,179 16,003 21,617 31,436
 Income tax expense (4,658) (6,671) (8,733) (13,197)
 Net income $ 6,521 $ 9,332 $ 12,884 $ 18,239
 Earnings per common
 and common equivalent
 share (b) $ 0.23 $ 0.36 $ 0.45 $ 0.71
 Earnings per common
 share-assuming full
 dilution (b),(c) 0.23 0.35 0.45 0.69
 New business booked in period
 Engineering and
 construction $259,900 $529,200 $ 594,000 $1,075,800
 Rail systems 171,800 33,500 848,900 51,900
 Total new business $431,700 $562,700 $1,442,900 $1,127,700
 Backlog at June 30: 1992 1991
 Engineering and construction $3,521,700 $3,611,100
 Rail systems 1,158,900 514,200
 Total backlog $4,680,600 $4,125,300
 (a) Restated to include the results of operations of a business acquired in October 1991, accounted for as a pooling-of-interests.
 (b) Earnings-per-share-data have been restated for all periods presented to reflect the two-for-one stock split in May 1992.
 (c) The conversion of the convertible debt for the quarter and six-month periods of 1992 is not assumed because it would be antidilutive.
 -0- 7/15/92
 /CONTACT: Jess Hawley of Morrison Knudsen, 208-386-5000/
 (MRN) CO: Morrison Knudsen Corp. ST: Idaho IN: CST TRN SU: ERN


SC -- SE010 -- 9698 07/15/92 16:09 EDT
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Date:Jul 15, 1992
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