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PHH REPORTS SECOND QUARTER RESULTS

 PHH REPORTS SECOND QUARTER RESULTS
 HUNT VALLEY, Md., Nov. 25 /PRNewswire/ -- PHH Corporation


(NYSE: PHH) today reported net income and earnings per share for its second quarter ended Oct. 31, 1991. Earnings per share were 62 cents and net income was $10.6 million, compared with 62 cents and $10.5 million in the second quarter of the prior year. Revenues for the quarter were $449 million compared with $502 million in the prior year period.
 Year-to-date, earnings per share were $1.28 vs. $1.32. Net income was $21.7 million vs. $22.4 million in the prior year. Revenues for the first six months were $956 million compared with $996 million.
 Chairman and Chief Executive Officer Robert D. Kunisch said, "Quarterly results were even with last year's levels despite a continuing international economic downturn which has kept uncertainty high for our clients in many of our major markets. For PHH, this environment translates to reduced vehicle purchases, fewer executives being transferred and fewer homes sold on behalf of our clients. At the same time, we have been able to offset the impact of those trends through proactive cost control measures."
 Reporting on the company's relocation and real estate management services segment, Kunisch said, "The continued sluggishness of real estate markets on a worldwide basis resulted in a decline in home closings, but this was offset by the continued excellent performance by our mortgage banking operation, PHH US Mortgage Corporation, whose servicing portfolio now exceeds $6.2 billion. During the quarter PHH acquired two competing relocation companies. While integration costs will offset earnings from these new operations for the short-term, we fully expect long-term contributions to be significant."
 Commenting on the vehicle management services segment, Kunisch said, "Units under management worldwide increased slightly over prior year levels; however, domestic vehicle purchase authorizations declined. Our European and Canadian vehicle operations are performing at predicted levels, and our fuel and maintenance card services in those locations are expanding. Domestic fuel management and cost control programs have also shown increasing strength as clients continue to look for efficiencies."
 Looking ahead, Kunisch sair? the next several quarters, we expect overall business activity in vehicle, and relocation and real estate management services to continue to improve modestly and we remain optimistic for the long run. PHH continues to benefit from the resulting trend toward outsourcing of services such as those PHH companies provide. We will continue our strategy of expanding our fee-based services and geographic reach while identifying new markets for all our existing services and those under development."
 Over 4,500 employees of PHH Corporation and its operating subsidiaries provide businesses worldwide with a broad range of integrated management services and cost control programs.
 PHH Corporation and Subsidiaries
 Consolidated Statements of Income (Unaudited)
 (Thousands of dollars, except per share data)
 Three Months Six Months
 Ended Oct. 31 Ended Oct. 31
 1991 1990 1991 1990
 Revenues:
 Vehicle management
 services $227,361 $257,534 $464,004 $520,196
 Relocation and real estate
 management services 221,847 244,257 491,806 475,539
 Total 449,208 501,791 955,810 995,735
 Operating expenses:
 Direct costs of
 operating leases 131,474 152,210 270,469 306,914
 Cost of carrying
 and reselling homes 177,012 190,164 398,083 372,027
 Interest 48,835 67,535 99,543 137,213
 Selling, general
 and administrative 73,554 74,117 149,895 141,740
 Total 430,875 484,026 917,990 957,894
 Operating income 18,333 17,765 37,820 37,841
 Other expenses, net (522) (342) (1,161) (760)
 Income before income taxes 17,811 17,423 36,659 37,081
 Income taxes 7,242 6,907 14,917 14,653
 Net income $10,569 $10,516 $21,742 $22,428
 Net income per share $ .62 $ .62 $ 1.28 $ 1.32
 Number of shares used
 in calculation of
 net income per share
 (in thousands) 17,023 16,957 17,023 16,957
 -0- 11/25/91
 /CONTACT: Peter Brinch of PHH Corporation, 410-771-2519/
 (PHH) CO: PHH Corporation ST: Maryland IN: SU: ERN


MK-MH -- DC012 -- 6801 11/25/91 11:26 EST
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Date:Nov 25, 1991
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