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TS News - Hughes Electronics Third Quarter Earnings

TELE-satellit News, 16 October 1996

Hughes Electronics Third Quarter Earnings
  NEW YORK, New York, USA, 96/10/14 (SJI Newswire) -- Hughes Electronics
Corporation have reported their third quarter earnings. C. Michael
Armstrong, Hughes Chairman and Chief Executive Officer, said that each of
Hughes' three business segments contributed to the increased revenues. The
Telecommunications and Space segment accounted for the majority of the
growth due to increased commercial satellite manufacturing sales and
continued DirecTv subscriber growth.

  Revenues for the Telecommunications and Space segment were $1,001.8
million, an increase of 31.4% over revenues of $762.6 million reported in
the prior year's
third quarter. DirecTv subscribers at September 1996 month-end totalled
1,920,000.

  Operating profit in the third quarter decreased 5.6% to $62.0 million
compared with $65.7 million reported in the same period in 1995. This
decline was primarily the result of operating losses related to the start of
DirecTv service in Latin America and increased DirecTv marketing expenses in
the United States which were partially offset by profits on higher
commercial satellite manufacturing sales. As a result, third quarter
operating profit margin was 6.2% compared with 8.9% in 1995.

  By: Gary Torrens
  Source: Satellite Journal International

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