BELL AND HOWELL <BHW> SEES EARNINGS GROWTH
Bell and Howell Co, in remarks prepared
for delivery to the New York Society of Security Analysts, said
it expects per-share earnings to grow in the 12-to-15 pct range
in the next three to four years.
    President Gerald Schultz said the growth is without stock
buybacks and tax law changes. He said the gain is expected off
1986 per-share earnings of 1.89 dlrs, calculated to exclude
DeVry Inc <DVRY.O> operations and non-recurring gains totaling
45 cts a share.
    The company said its decision to sell the DeVry business to
Keller Graduate School of Management Inc will provide Bell and
Howell with a non-recurring gain of more than 4.00 dlrs a share
in the third quarter and about 80 mln dlrs in additional cash.
    "We will use proceeds of the transaction to repurchase
stock (probably at least 10 pct) and for other purposes, such
as reducing debt" Chairman Donald Frey told analysts.
    Bell and Howell said it will invest 16 mln dlrs this year
in electronic product development and introduction.
    It said a stepped-up investment in its IDB2000 electronic
storage system, which uses optical disks, will result in a 5.0
mln dlr loss for the product line, similar to last year. But it
said "the swing to profitability in 1988 for this product will
be significant."
    Currently, Bell and Howell is marketing the IDB2000 only to
General Motors Corp <GM> dealers.
 Reuter
