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NYNEX REPORTS 1991 FOURTH QUARTER AND YEAR-END RESULTS

 NYNEX REPORTS 1991 FOURTH QUARTER AND YEAR-END RESULTS
 WHITE PLAINS, N.Y., Jan. 23 /PRNewswire/ -- NYNEX Corporation (NYSE: NYN) today reported the following results:
 NYNEX CORPORATION
 Financial Results
 (Unaudited, in millions, except EPS and ROE)
 Year ended Dec. 31: 1991(A) 1990(B)
 Operating revenues $13,228.8 $13,582.1
 Net income $ 600.8 $ 949.4
 Earnings per share $ 2.98 $ 4.78
 Weighted avg. shares outstanding 201.5 198.7
 Return on equity (as a percent) 6.36 10.22
 Three months ended Dec. 31: 1991(A) 1990(B)
 Operating revenues $3,243.1 $3,437.3
 Net income ($ 251.3) $ 60.7
 Earnings per share ($ 1.24) $ 0.30
 Weighted avg. shares outstanding 203.3 199.5
 Return on equity (as a percent) (10.50) 2.60
 (A) -- 1991 results include $550 million in fourth-quarter after-tax charges for force reduction programs and business restructuring.
 (B) -- 1990 results include after-tax charges of $211 million in the fourth quarter for business restructuring and $48 million in the first half of the year for a management early retirement plan.
 NYNEX Corporation today reported 1991 net income of $600.8 million, or $2.98 per share, compared with $949.4 million, or $4.78 per share, for 1990.
 Absent charges for force reduction and restructuring initiatives in 1991 and 1990, net income for 1991 would have been $1.15 billion, down 4.8 percent from $1.21 billion for 1990. Normalized earnings per share for 1991 and 1990 were $5.71 and $6.08, respectively.
 Without the charges, net income for the fourth quarter of 1991 would have been $298.5 million, up 8.0 percent from $276.4 million for the same period a year ago. Normalized earnings per share for the fourth quarter of 1991 were $1.47, compared with $1.38 per share for the fourth quarter of 1990.
 "The decisive steps we have taken over the past two years vastly improve our competitive position and efficiency in serving our customers," said William C. Ferguson, chairman and chief executive officer. "While we are not anticipating much help from the economy in 1992, we will benefit from our aggressive cost-reduction initiatives and ongoing investments to upgrade the telecommunications infrastructure in the Northeast."
 Work Force Reductions and Business Restructuring
 Previously announced after-tax charges totaling $550 million were recorded in the fourth quarter of 1991 to cover the costs of force reduction programs throughout NYNEX, as well as for restructuring in non-telephone businesses.
 Most of the 1991 charges were related to force reduction programs for craft and management employees. Approximately 7,300 craft employees retired in 1991 under an early retirement program included in new labor agreements NYNEX reached with its unions in September.
 In addition, NYNEX expects to reduce its management work force by approximately 3,400 employees through 1993, as announced in November, under the provisions of its Force Management Plan.
 As of Jan. 1, 1992, NYNEX had approximately 83,900 employees, down 10.6 percent from 93,800 employees a year ago. The force reductions in 1991 were due primarily to early retirement programs for both craft and management employees and the sale of the NYNEX Business Centers.
 "In 1991, we exited certain lines of business and streamlined other operations to strengthen our competitive position in businesses that help people communicate," said Ferguson. "As a result, NYNEX now is focused on information network and services businesses."
 Operating Results
 Total operating revenues in 1991 were $13.23 billion, down 2.6 percent from $13.58 billion in 1990. The decrease reflects continued weakness in telephone usage throughout the Northeast, coupled with the sale of the NYNEX Business Centers.
 Total operating expenses in 1991 were $11.62 billion, up 0.5 percent from $11.57 billion in 1990. Comparing 1991 and 1990 without restructuring charges, 1991 operating expenses would have been $10.87 billion, down 3.6 percent from $11.27 billion in 1990. The sale of the NYNEX Business Centers and aggressive cost-reduction measures throughout NYNEX contributed to the expense reductions.
 Telecommunications
 The NYNEX Telecommunications Group had total operating revenues of $11.14 billion in 1991, up 0.6 percent from $11.08 billion in 1990. For the fourth quarter of 1991, telecommunications revenues were $2.79 billion, up 1.6 percent from $2.75 billion for the same period a year ago.
 The recession continued to affect growth of new access lines. Total customer access lines increased to 15,455,000 at year-end 1991, up 1.2 percent from 15,267,000 access lines at year-end 1990. From 1984 to 1990, NYNEX had averaged 2.5 percent annual access line growth.
 Telecommunications operating expenses were $9.46 billion in 1991, up 6.5 percent from $8.88 billion in 1990, primarily due to restructuring charges. Normalizing for restructuring charges and excluding depreciation and taxes, telecommunications operating expenses decreased by 1.5 percent in 1991.
 In 1991, the NYNEX Telecommunications Group invested approximately $2.30 billion in network improvements.
 Cellular
 NYNEX Mobile Communications reported operating revenues of $324.1 million for 1991, up 4.4 percent from $310.4 million for 1990. For the fourth quarter, cellular revenues reached $84.1 million, up 5.0 percent from the same period in 1990.
 In 1991, NYNEX Mobile added 48,500 new customers for a year-end total of 307,500 customers, up 18.7 percent from year-end 1990.
 Cellular operating income for 1991 was $48.5 million, down 19.4 percent from $60.2 million reported for 1990. The decline was caused by lower average customer usage, combined with higher operating expenses.
 In 1991, NYNEX Mobile moved to a new headquarters facility in Orangeburg, N.Y., upgraded its network management capabilities and prepared for the 1992 implementation of Info2000, an advanced customer information and billing system.
 NYNEX Mobile operates 265 cell sites, the local transmitters that relay cellular calls, including 51 built in 1991 to improve service and expand geographic coverage.
 In 1992, the company plans to invest approximately $155 million in its cellular network, up 36.0 percent from the $114 million it spent on network improvements in 1991.
 NYNEX is a leader in helping people communicate using information networks and services. Through New England Telephone, New York Telephone and NYNEX Mobile Communications, NYNEX provides telecommunications services to approximately 12 million customers. NYNEX offers these services in selected markets around the world through NYNEX Network Systems.
 NYNEX companies also provides directory publishing, data base management, information delivery, software and consulting services in the United States and more than 60 other countries.
 -0- 1/23/92
 /CONTACT: Sean Healy of NYNEX, 914-644-7250/
 (NYN) CO: NYNEX Corporation ST: New York IN: TLS SU: ERN


TS -- NY018 -- 2643 01/23/92 09:17 EST
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Date:Jan 23, 1992
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