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THE PENN CENTRAL CORPORATION ANNOUNCES FIRST QUARTER EARNINGS

 CINCINNATI, May 3 /PRNewswire/ -- The Penn Central Corporation (NYSE: PC) today reported $31.1 million, or $.67 per share, as 1993 first quarter income from continuing operations before the cumulative effect of accounting change compared with $10.4 million, or $.22 per share, for the 1992 first quarter. Net revenues from continuing operations increased to $356.3 million from $324.1 million for the 1992 first quarter.
 The company's first quarter 1993 results of continuing operations included a tax benefit of $4.5 million compared to a tax charge of $6.8 million for the first quarter of 1992. The 1993 benefit resulted from an increase in the company's net deferred tax asset due to revisions to the estimated future taxable income likely to be generated during the company's tax loss carryforward period. The company's net deferred tax asset is primarily attributable to the company's federal income tax loss carryforward which substantially eliminates the company's requirement to pay current federal income tax. Income from continuing operations before tax was $26.6 million for the 1993 first quarter compared with $17.2 million for the same period last year.
 The company's insurance operations earned premiums for the 1993 first quarter were $271.1 million, an increase of 19 percent as compared with the 1992 period, attributable to growth in both the non-standard automobile and workers' compensation insurance businesses. The insurance operations experienced a 15 percent increase in operating income for the 1993 first quarter as compared to the 1992 first quarter, from $33.6 million to $38.5 million, primarily due to improved underwriting results and higher portfolio income.
 The company's Defense Services businesses have been classified as discontinued operations in connection with implementing the previously announced strategy of disposing of businesses which do not fit the company's property and casualty insurance focus. For the 1993 first quarter, discontinued operations reported net income of $2.8 million, or $.06 per share. This compares with $4.3 million, or $.09 per share, for the 1992 period, which included $.06 per share from the Defense Services businesses and $.03 per share attributable to the operations owned by General Cable Corporation which were spun off to shareholders in July 1992. Revenues from discontinued operations totaled $99.2 million in the 1993 first quarter and $321.9 million in the 1992 first quarter.
 Net income for the 1993 first quarter was $33.9 million, or $.73 per share. Net income for the 1992 first quarter was $260.0 million, or $5.48 per share, which included $245.3 million, or $5.17 per share, from the cumulative effect of a change in accounting for income taxes.
 Penn Central ended the 1993 first quarter with shareholders' equity of $1,543.0 million, or $32.98 per share.
 Penn Central operates businesses primarily in the areas of specialty property and casualty insurance.
 THE PENN CENTRAL CORPORATION AND CONSOLIDATED SUBSIDIARIES
 (In Millions, Except Per Share Amounts)
 FINANCIAL HIGHLIGHTS
 Three Months Ended
 March 31
 1993 1992
 Net revenues $356.3 $324.1
 Income from continuing operations
 before income taxes 26.6 17.2
 Income tax benefit (expense) 4.5 (6.8)
 Income from continuing operations
 before cumulative effect of
 accounting change 31.1 10.4
 Cumulative effect of accounting change --- 245.3
 Income from continuing operations 31.1 255.7
 Income from discontinued operations 2.8 4.3
 Net income $ 33.9 $260.0
 Income per share from continuing
 operations before cumulative effect
 of accounting change $ .67 $ .22
 Income per share from continuing
 operations $ .67 $ 5.39
 Net income per share of common stock $ .73 $ 5.48
 Weighted average number of
 common shares 46.6 47.4
 -0- 5/3/93
 /CONTACT: Philip A. Hagel, vice president-treasurer, The Penn Central Corporation, 513-579-6600/
 (PC)


CO: The Penn Central Corporation ST: Ohio IN: INS SU: ERN

BM -- CL016 -- 3719 05/03/93 11:01 EDT
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Publication:PR Newswire
Date:May 3, 1993
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