CONTEL <CTC> SEES LOWER 2ND QTR, YEAR NET
Contel Corp said its expects to
report second quarter earnings that are lower than last year's
74 cts a share and 1987 earnings from continuing operations
that are about 15 pct lower than last year's 3.04 dlrs per
share.
    Donald Weber, president and chief executive officer of
Contel, said that lower than expected revenues, higher than
anticipated costs to complete certain contracts and one-time
expenses are behind the lower earnings projections.
    As such, Weber said Contel has begun to evaluate
strategies, budgets and operating direction in each of the
company's divisions "with renewed emphasis on maximizing
shareholder value."
    Weber added that Contel is holding discussions with
<Comsat> on an agreement to terminate the previosuly proposed
merger between the two companies.
    Weber added that the results of the evaluations of certain
parts of the company may be reflected later this year in a
combination of one-time gains or losses not in the anticipated
lower earnings.
    Webber said, however, that he was encouraged by the
continued strength of Contel's telephone businesses and the
strong showing from certain of the company's non-regulated
sectors.
    But, he added, that results for other parts of the company
will still be unsatisfactory.
 Reuter
