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SNET ANNOUNCES THIRD QUARTER EARNINGS

 SNET ANNOUNCES THIRD QUARTER EARNINGS
 NEW HAVEN, Conn., Oct. 22 /PRNewswire/ -- Southern New England


Telecommunications Corporation (NYSE: SNG) today announced third quarter net income of $29.6 million or $0.48 per share after an extraordinary charge of $2.7 million or $0.04 per share to refinance high-coupon debentures and a charge of $7.0 million or $0.11 per share for the discontinuation of a subsidiary, SNET Credit. Earnings from continuing operations were $39.3 million or $0.63 per share for the third quarter of 1992. Last year, third quarter net income was $38.0 million or $0.62 per share. Restated third quarter 1991 earnings from continuing operations that reflect the discontinuation of SNET Credit were $37.1 million or $0.61 per share.
 "We have taken several steps that will further strengthen SNET," said Walter H. Monteith, Jr., SNET chairman and chief executive officer. "We reached a new labor contract with the Connecticut Union of Telephone Workers in record time, eliminating uncertainty over this issue among employees and investors. And a week ago we announced our intention to file for a $130 million to $160 million rate increase, which if approved would be phased in over three years. This filing was made within a comprehensive proceeding with the Department of Public Utillity Control that will focus on our state's need for an advanced telecommunications infrastructure to strengthen the economy, produce jobs, and enhance the quality of life for people in Connecticut," Monteith said.
 Consolidated revenues and sales for the third quarter were down 1.3 percent to $405.2 million, compared with $410.4 million for the same period last year. Southern New England Telephone's revenues were $350.4 million versus $352.6 million for third-quarter 1991. Revenues for the company's directory publishing business dropped 7 percent, reflecting the weak economy in 1991. Non-telephone subsidiary revenues increased 4.0 percent.
 Costs and expenses for the third quarter, excluding interest, were down 1.6 percent to $313.6 million from $318.7 million. The leading cause of the reduction was a drop in wages because of an average 6 percent fewer employees on the payroll. Interest expense declined 3.5 percent because of lower rates on short-term borrowings and savings from a prior refinancing of high-coupon debt.
 SNET is an independent telecommunications company that offers through its subsidiaries network and information management services and communications equipment; directory publishing and advertising services; and cellular mobile phone and paging services.
 SNET
 Preliminary Summary of Consolidated Results
 For the three months ended September 30, 1992
 (in Millions Except Per Share Amounts)
 Percent
 3Q 1992 3Q 1991 Change
 Revenue & Sales $405.2 $410.4 -1.3
 Costs & Expenses
 (excluding interest) $313.6 $318.7 -1.6
 Provision for employee
 seperation plans - $0.6
 Interest Expenses $24.8 $25.7 -3.5
 Income from continuing
 operations before income
 taxes & extraordinary charge $66.8 $65.4 2.1
 Income Taxes $27.5 $28.3 -2.8
 Income from continuing operations
 before extraordinary charge-(a) $39.3 $37.1 5.9
 Discontinued Operations, net of taxes ($7.0) $0.9
 Income before extraordinary charge $32.3 $38.0 -15.0
 Extraordinary charge, net of taxes ($2.7) -
 Consolidated Net Income $29.6 $38.0 -22.1
 Earnings per share from continuing
 operations before
 extraordinary charge-(a) $0.63 $0.61 3.3
 Earnings per share from discontinued ($0.11) $0.01
 operations
 Earnings per share before extraordinary
 charge $0.52 $0.62 -16.1
 Earnings per share - extraordinary
 charge ($0.04) -
 Consolidated Earnings Per Share $0.48 $0.62 -22.6
 Average Common Shares (000) 63,134 62,454 1.1
 Total Access Lines in Service (000) 1,931 1,918 0.7
 Note-(a): Net Income and Earnings Per Share from continuing operations before extraordinary charge excluding the provision for separation plans:
 Net Income $39.3 $37.4 5.1
 Earnings Per Share $0.63 $0.61 3.3
 SNET
 Preliminary Summary of Consolidated Results
 For the nine months ended September 30, 1992
 (in Millions Except Per Share Amounts)
 9 Months 9 Months Percent
 9/30/92 9/30/91 Change
 Revenues & Sales $1,208.5 $1,205.0 0.3
 Costs & Expenses
 (excluding interest) $934.8 $939.6 -0.5
 Provision for employee seperation
 plans --- $36.6
 Interest Expense $74.3 $75.7 -1.8
 Income from continuing operations
 before income taxes & extraordinary
 charge $199.4 $153.1 30.2
 Income Taxes $80.2 $63.4 26.5
 Income from continuing operations
 before extraordinary charge-(a) $119.2 $89.7 32.9
 Discontinued Operations,
 net of taxes ($5.1) $2.6
 Income before extraordinary charge $114.1 $92.3 23.6
 Extraordinary charge, net of taxes ($2.7) --
 Consolidated Net Income $111.4 $92.3 20.7
 Earnings per share from continuing
 operations before extraordinary
 charge-(a) $1.92 $1.47 30.6
 Earnings per share from discontinued
 operations ($0.08) $0.04
 Earnings per share before
 extraordinary charge $1.84 $1.51 21.9
 Earnings per share - extraordinary
 charge ($0.04) --
 Consolidated Earnings Per Share $1.80 $1.51 19.2
 Average Common shares (000) 62,992 62,325 1.1
 Note (a): Net Income and Earnings Per Share from continuing operations before extraordinary charge excluding the provision for separation plans:
 Net Income $119.2 $110.5 7.9
 Earnings Per Share $1.92 $1.80 6.7
 -0- 10/22/92
 /CONTACT: Bill Seekamp of SNET, 203-771-2136 (office) or 203-453-6720 (home)/
 (SNG) CO: Southern New England Telephone ST: Connecticut IN: TLS SU: ERN


DD -- NE007 -- 3559 10/22/92 12:00 EDT
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Publication:PR Newswire
Date:Oct 22, 1992
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