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SOUTHWESTERN BELL REPORTS SECOND QUARTER EARNINGS

 SOUTHWESTERN BELL REPORTS SECOND QUARTER EARNINGS
 ST. LOUIS, July 20 /PRNewswire/ -- Southwestern Bell Corp.


(NYSE: SBC) today reported second quarter net income of $304.5 million or $1.01 a share, a 20.2 percent increase from a year ago. Earnings for the second quarter of 1991 were $253.3 million or 84 cents a share(1).
 "By almost any measure, this was an outstanding quarter for Southwestern Bell Corporation," said Edward E. Whitacre Jr., chairman and chief executive officer. "Revenues increased $146.1 million, to $2,388.6 million from $2,242.5 million a year ago. This marked our fourth consecutive quarter of double-digit earnings growth.
 "The quarter's results reflect continued strong performances by our Telephone Company and cellular operations along with excellent contributions from our investment in Telmex," Whitacre said. Telmex is Mexico's national telecommunications company, and Southwestern Bell owns a 10 percent equity stake in the company.
 Whitacre pointed out that Southwestern Bell Mobile Systems added 90,000 new customers during the quarter, compared with an addition of 68,000 during the second quarter a year ago. Over the past year, Mobile Systems gained 314,000 customers, for a growth rate of 39 percent, and now serves 1,113,000 cellular customers in 29 United States metropolitan markets and 26 rural service areas.
 During the second quarter, Southwestern Bell Telephone added 59,000 access lines, most of which were in Texas and Missouri. The company added 51,500 access lines in the second quarter a year ago and 342,000 access lines over the past year, bringing its total to 12.6 million.
 Whitacre also said he was pleased with Southwestern Bell Yellow Pages' performance. "Even though our largest directories won't be published until the last half of this year, Yellow Pages continues the positive trend in revenue growth we saw throughout 1991.
 "Southwestern Bell Telephone's performance was particularly encouraging in light of the increasing competition the company faces every day," Whitacre said.
 To improve its ability to respond to competition, effective July 1, Southwestern Bell Telephone reorganized into three divisions: one providing telephone services in Texas; another responsible for telephone services in Arkansas, Kansas, Oklahoma and Missouri; and, a third responsible for providing network, marketing, finance, planning and other staff and operational services.
 "These organizational changes signal our commitment to keeping our focus on the needs of our customers and responding to those needs with faster decision making," Whitacre said. "These are keys to competing effectively."
 Also during the second quarter, Southwestern Bell took major steps forward by introducing a variety of new information services.
 In April, a comprehensive package of audiotex services including news, weather, traffic, sports, stock market and entertainment information was introduced to St. Louis area cellular customers. Similar services were introduced to Kansas City area customers in June, and are available to Southwestern Bell cellular customers in six United States markets.
 Southwestern Bell Corp., based in St. Louis, is an international communications corporation with 1 million shareowners. It provides a variety of products and services through its principal subsidiaries including Southwestern Bell Telephone Co., Southwestern Bell Yellow Pages, Southwestern Bell Mobile Systems, Metromedia Paging, Southwestern Bell Telecom, Gulf Printing and Southwestern Bell International Holdings.
 (1) Net income before extraordinary items is provided to show more meaningful comparisons. The corporation's reported net income for the second quarter of 1991 included an extraordinary charge of $81 million or 27 cents a share for refinancing $732 million of long-term debt. The charge reduced 1991 quarterly earnings after extraordinary items to $172.6 million or 57 cents a share.
 SOUTHWESTERN BELL CORP.
 Financial Summary and Comparisons
 (dollars in millions, except earnings per share)
 (unaudited)
 Second Quarter Results
 Percent
 1992 1991 Change
 Operating revenues $2,388.6 $2,242.5 6.5
 Operating expenses $1,870.1 $1,755.0 6.6
 Income before
 extraordinary loss $ 304.5 $ 253.3 20.2
 Extraordinary loss on
 early extinguishment
 of debt --- $ 80.7 ---
 Net income $ 304.5 $ 172.6 76.4(1)
 Earnings per share
 Income before
 extraordinary loss $ 1.01 $ .84 20.2
 Extraordinary loss on
 early extinguishment
 of debt --- $ .27 ---
 Net income $ 1.01 $ .57 77.2(1)
 Weighted average number
 of common shares
 outstanding
 (in millions) 300.2 300.2 ---
 Return on weighted
 average shareowners'
 equity 13.47pct. 7.93pct. 554 basis
 pts.(1)
 Return on weighted average
 shareowners' equity before
 extraordinary loss 13.47pct. 11.62pct. 185 basis
 pts.(1)
 (1) Southwestern Bell Corp.'s reported net income for the second quarter of 1991 included an extraordinary charge of $81 million or 27 cents a share for refinancing $732 million of long-term debt. The charge reduced 1991 quarterly earnings after extraordinary items to $172.6 million or 57 cents a share.
 Six-Month Results
 Percent
 1992 1991 Change
 Operating revenues $4,675.7 $4,385.7 6.6
 Operating expenses $3,713.7 $3,477.0 6.8
 Income before
 extraordinary loss $ 566.1 $ 477.2 18.6
 Extraordinary loss on
 early extinguishment
 of debt --- $ 80.7 ---
 Net income $ 566.1 $ 396.5 42.8(1)
 Earnings per share
 Income before
 extraordinary loss $ 1.89 $ 1.59 18.9
 Extraordinary loss on
 early extinguishment
 of debt --- $ .27 ---
 Net income $ 1.89 $ 1.32 43.2(1)
 Weighted average number
 of common shares
 outstanding
 (in millions) 300.2 300.1 ---
 Return on weighted
 average shareowners'
 equity 12.57pct. 9.13pct. 344 basis
 pts.(1)
 Return on weighted
 average shareowners'
 equity before
 extraordinary loss 12.57pct. 10.98pct. 159 basis
 pts.(1)
 (1) Southwestern Bell Corp.'s reported net income for the second quarter of 1991 included an extraordinary charge of $81 million or 27 cents a share for refinancing $732 million of long-term debt. The charge reduced 1991 quarterly earnings after extraordinary items to $172.6 million or 57 cents a share.
 -0- 7/20/92
 /CONTACT: Jerrell Ross of Southwestern Bell Corp., 314-235-7100/
 (SBC) CO: Southwestern Bell Corp. ST: Missouri IN: TLS SU: ERN


BB -- DV006 -- 0694 07/20/92 11:30 EDT
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Date:Jul 20, 1992
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