U-Haul
UHAL
#1894
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C$14.65 B
Marketcap
C$77.13
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Change (1 year)

U-Haul - 10-Q quarterly report FY


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1

UNITED STATES SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(Mark One)

[X] QUARTERLY REPORT PURSUANT TO SECTION 13 or 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934

For the quarterly period ended June 30, 1997

OR

[ ] TRANSITION REPORT PURSUANT TO SECTION 13 or 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934

For the transition period from __________________ to __________________

Commission Registrant, State of Incorporation I.R.S. Employer
File Number Address and Telephone Number Identification No.
_______________________________________________________________________

0-7862 AMERCO 88-0106815
(A Nevada Corporation)
1325 Airmotive Way, Ste. 100
Reno, Nevada 89502-3239
Telephone (702) 688-6300


2-38498 U-Haul International, Inc. 86-0663060
(A Nevada Corporation)
2727 N. Central Avenue
Phoenix, Arizona 85004
Telephone (602) 263-6645

Indicate by check mark whether the registrant (1) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange
Act of 1934 during the preceding 12 months (or for such shorter period
that the registrant was required to file such reports), and (2) has
been subject to such filing requirements for the past 90 days.
Yes [X] No [ ].

22,614,087 shares of AMERCO Common Stock, $0.25 par value were
outstanding at August 19, 1997.

5,385 shares of U-Haul International, Inc. Common Stock, $0.01 par
value, were outstanding at August 19, 1997. U-Haul
International, Inc. meets the conditions set forth in General
Instruction H(1)(a) and (b) of Form 10-Q and is therefore filing this
form with the reduced disclosure format.
2
TABLE OF CONTENTS



PART I. FINANCIAL INFORMATION

Item 1. Financial Statements.

a) Consolidated Balance Sheets as of June 30, 1997,
March 31, 1997 and June 30, 1996................... 4

b) Consolidated Statements of Earnings for the
Quarters ended June 30, 1997 and 1996.............. 6

c) Consolidated Statements of Changes in Stockholders'
Equity for the Quarters ended June 30, 1997
and 1996........................................... 7

d) Consolidated Statements of Cash Flows for the
Quarters ended June 30, 1997 and 1996.............. 9

f) Notes to Consolidated Financial Statements -
June 30, 1997, March 31, 1997 and
June 30, 1996...................................... 10

Item 2. Management's Discussion and Analysis of Financial
Condition and Results of Operations.................... 17

PART II. OTHER INFORMATION

Item 1. Legal Proceedings...................................... 23

Item 6. Exhibits and Reports on Form 8-K....................... 23
3













THIS PAGE LEFT
INTENTIONALLY BLANK
4
PART I. FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS.


AMERCO AND CONSOLIDATED SUBSIDIARIES

Consolidated Balance Sheets


June 30, March 31, June 30,
ASSETS 1997 1997 1996
-----------------------------------
(unaudited) (audited) (unaudited)
(in thousands)


Cash and cash equivalents $ 33,178 41,752 39,972
Receivables 242,214 238,523 267,287
Inventories 62,926 65,794 51,447
Prepaid expenses 19,775 17,264 14,591
Investments, fixed maturities 850,667 859,694 884,049
Investments, other 150,262 127,306 128,434
Deferred policy acquisition costs 50,924 48,598 54,726
Other assets 73,594 72,997 19,550
----------------------------------

Property, plant and equipment, at
cost:
Land 210,995 209,803 213,936
Buildings and improvements 819,770 814,744 784,478
Furniture and equipment 201,911 199,126 190,182
Rental trailers and other rental
equipment 152,783 148,807 145,811
Rental trucks 1,051,231 947,911 965,133
General rental items 21,590 21,600 22,574
----------------------------------
2,458,280 2,341,991 2,322,114
Less accumulated depreciation 1,106,084 1,094,925 1,072,298
----------------------------------

Total property, plant and
equipment 1,352,196 1,247,066 1,249,816
----------------------------------























$ 2,835,736 2,718,994 2,709,872
===================================

The accompanying notes are an integral part of these consolidated financial
statements.
5


June 30, March 31, June 30,
LIABILITIES AND STOCKHOLDERS' EQUITY 1997 1997 1996
------------------------------------
(unaudited) (audited) (unaudited)
(in thousands)

Liabilities:
Accounts payable and accrued
liabilities $ 137,309 131,099 179,378
Notes and loans 1,035,340 983,550 756,098
Policy benefits and losses, claims
and loss expenses payable 468,568 469,134 497,461
Liabilities from premium deposits 429,984 433,397 422,514
Cash overdraft 47,942 23,606 22,709
Other policyholders' funds and
liabilities 31,896 30,966 30,510
Deferred income 36,317 35,247 33,262
Deferred income taxes 28,000 9,675 89,983
----------------------------------

Stockholders' equity:
Serial preferred stock, with or
without par value, 50,000,000
shares authorized -
Series A preferred stock, with no
par value, 6,100,000 shares issued
and outstanding as of June 30, 1997,
March 31, 1997 and June 30, 1996 - - -
Series B preferred stock, with no
par value, 100,000 shares issued
and outstanding as of June 30, 1997,
March 31, 1997 and none issued and
outstanding as of June 30, 1996 - - -
Serial common stock, with or
without par value, 150,000,000
shares authorized -
Series A common stock of $0.25 par
value, 10,000,000 shares authorized,
5,762,495 shares issued as of
June 30, 1997, March 31, 1997,
and June 30, 1996 1,441 1,441 1,441
Common stock of $0.25 par value,
150,000,000 shares authorized,
36,487,505 shares issued as of June 30,
1997 and March 31, 1997, and 34,237,505
shares issued as of June 30, 1996 9,122 9,122 8,559
Additional paid-in capital 337,933 337,933 165,756
Foreign currency translation adjustment (14,365) (14,133) (12,372)
Unrealized gain(loss) on investments (1,432) 4,411 3,084
Retained earnings 667,976 644,009 645,783
----------------------------------
1,000,675 982,783 812,251
Less:
Cost of common shares in treasury,
(19,635,913 shares as of June 30,
1997 and March 31, 1997, 7,209,077
shares as of June 30, 1996) 359,723 359,723 111,118
Unearned employee stock
ownership plan shares 20,572 20,740 23,176
----------------------------------
Total stockholders' equity 620,380 602,320 677,957

Contingent liabilities and commitments

----------------------------------


$ 2,835,736 2,718,994 2,709,872
==================================
6
AMERCO AND CONSOLIDATED SUBSIDIARIES

Consolidated Statements of Earnings

Quarters ended June 30,
(Unaudited)

1997 1996
------------------------
(in thousands except
per share data)

Revenues
Rental and other revenue $ 272,485 260,495
Net sales 56,719 55,979
Premiums 35,465 31,155
Net investment income 11,588 13,002
-----------------------
Total revenues 376,257 360,631

Costs and expenses
Operating expense 225,003 210,733
Cost of sales 31,397 31,581
Benefits and losses 35,099 23,258
Amortization of deferred acquisition
costs 3,460 4,022
Depreciation 20,490 18,779
Interest expense, net of interest
income of $3,478 and $10,883 in
1997 and 1996, respectively 16,688 7,971
-----------------------
Total costs and expenses 332,137 296,344

Pretax earnings from operations 44,120 64,287
Income tax expense (14,922) (24,282)
-----------------------

Net earnings $ 29,1982 40,005
=======================

Earnings per common share:
Net earnings $ 1.09 1.15
=======================

Weighted average common shares outstanding 21,879,156 32,015,301
=======================


The accompanying notes are an integral part of these consolidated
financial statements.
7
AMERCO AND CONSOLIDATED SUBSIDIARIES

Consolidated Statements of Changes in Stockholders' Equity

Quarters ended June 30,
(Unaudited)

1997 1996
-------------------
(in thousands)
Series A common stock of $0.25 par value:
10,000,000 shares authorized, 5,762,495
shares issued as of June 30, 1997,
March 31, 1997 and June 30, 1996
Beginning and end of period $ 1,441 1,441
-------------------

Common stock of $0.25 par value:
150,000,000 shares authorized, 36,487,505
shares issued as of June 30, 1997 and
March 31, 1997, and 34,237,505 shares
issued as of June 30, 1996
Beginning and end of period 9,122 8,559
-------------------

Additional paid-in capital:
Beginning and end of period 337,933 165,756
-------------------

Foreign currency translation:
Beginning of period (14,133) (11,877)
Change during period (232) (495)
-------------------

End of period (14,365 (12,372)
-------------------

Unrealized gain (loss) on investments:
Beginning of period 4,411 11,097
Change during period (5,843) (8,013)
-------------------

End of period (1,432) 3,084
-------------------

Retained earnings:
Beginning of period 644,009 609,019
Net earnings 29,198 40,005
Dividends paid to stockholders:
Preferred stock Series A($0.53 per share) (3,241) (3,241)
Preferred stock Series B($19.90 per share) (1,990) -
-------------------

End of period $ 667,976 645,783
-------------------


The accompanying notes are an integral part of these consolidated
financial statements.
8

AMERCO AND CONSOLIDATED SUBSIDIARIES

Consolidated Statements of Changes in Stockholders' Equity

Quarters ended June 30,
(Unaudited)

1997 1996
--------------------
(in thousands)
Less Treasury stock:
Beginning and end of period 359,723 111,118
-------------------

Less Unearned employee stock ownership
plan shares:
Beginning of period 20,740 23,329
Increase in loan 1 -
Proceeds from loan (169) (153)
-------------------

End of period 20,572 23,176
-------------------

Total stockholders' equity $ 620,380 677,957
===================






The accompanying notes are an integral part of these consolidated
financial statements.
9
AMERCO AND CONSOLIDATED SUBSIDIARIES

Consolidated Statements of Cash Flows

Quarters ended June 30,
(Unaudited)
1997 1996
--------------------
(in thousands)
Cash flows from operating activities:
Net earnings $ 29,198 40,005
Depreciation and amortization 25,435 25,180
Provision for losses on accounts
receivable 1,120 869
Net (gain) loss on sale of real and
personal property 89 500
Gain on sale of investments 75 (207)
Changes in policy liabilities and
accruals 7,870 10,976
Additions to deferred policy
acquisition costs (3,545) (6,385)
Net change in other operating assets
and liabilities 19,815 126,755
--------------------
Net cash provided by operating activities 80,057 197,693
--------------------

Cash flows from investing activities:
Purchases of investments:
Property, plant and equipment (210,431) (61,686)
Fixed maturities (39,134) (51,483)
Private equity investment (24,500) -
Preferred Stock (979) -
Real estate - 353
Mortgage loans (6,036) (1,800)
Proceeds from sale of investments:
Property, plant and equipment 82,937 137,031
Fixed maturities 39,757 31,955
Real estate 138 335
Mortgage loans 6,809 5,366
Changes in other investments 1,497 (4,634)
--------------------
Net cash provided (used) by investing
activities (149,942) 55,437
--------------------

Cash flows from financing activities:
Net change in short-term borrowings 76,000 (391,000)
Proceeds from notes - 175,000
Debt issuance costs (439) (2,146)
Loan to leveraged Employee Stock
Ownership Plan (1) -
Repayments from leveraged Employee Stock
Ownership Plan 169 153
Principal payments on notes (24,210) (26,122)
Net change in cash overdraft 24,336 (9,450)
Preferred stock dividends paid (5,231) (3,241)
Investment contract deposits 4,818 25,891
Investment contract withdrawals (14,131) (13,411)
--------------------
Net cash provided (used) by
financing activities 61,311 (244,326)
--------------------
Increase (decrease)in cash and
cash equivalents (8,574) 8,804
Cash and cash equivalents at
beginning of period 41,752 31,168
--------------------
Cash and cash equivalents at
end of period $ 33,178 39,972
====================


The accompanying notes are an integral part of these consolidated
financial statements.
10

AMERCO AND CONSOLIDATED SUBSIDIARIES

Notes to Consolidated Financial Statements

June 30, 1997, March 31, 1997 and June 30, 1996
(Unaudited)


1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

ORGANIZATION
AMERCO, a Nevada corporation (the Company), is the holding
company for U-Haul International, Inc. (U-Haul), Amerco Real Estate
Company (AREC), Republic Western Insurance Company (RWIC) and Oxford
Life Insurance Company (Oxford).

PRINCIPLES OF CONSOLIDATION
The consolidated financial statements include the accounts of the
parent corporation, AMERCO, and its subsidiaries, all of which are
wholly-owned. All material intercompany accounts and transactions of
AMERCO and its subsidiaries have been eliminated.

The consolidated balance sheets as of June 30, 1997 and 1996, and
the related consolidated statements of earnings, changes in
stockholders' equity and cash flows for the quarters ended June 30,
1997 and 1996 are unaudited; in the opinion of management, all
adjustments necessary for a fair presentation of such financial
statements have been included. Such adjustments consisted only of
normal recurring items. Interim results are not necessarily
indicative of results for a full year.

The operating results and financial position of AMERCO's
consolidated insurance operations are determined on a one quarter lag.
There were no effects related to intervening events which would
significantly affect consolidated financial position or results of
operations for the financial statements presented herein.

The financial statements and notes are presented as permitted by
Form 10-Q and do not contain certain information included in the
Company's annual financial statements and notes.

Earnings per share are computed by dividing net earnings after
deduction of preferred stock dividends by the weighted average number
of common shares outstanding, excluding shares of the employee stock
ownership plan that have not been committed to be released. Preferred
dividends include undeclared or unpaid dividends of the Company.

Certain reclassifications have been made to the financial
statements for the quarter ended June 30, 1996 to conform with the
current year's presentation.
11
AMERCO AND CONSOLIDATED SUBSIDIARIES

Notes to Consolidated Financial Statements, Continued
(Unaudited)


2. INVESTMENTS

A comparison of amortized cost to market for fixed maturities is
as follows:

March 31, 1997
- ------------------- Par Value Gross Gross Estimated
Consolidated or number Amortized unrealized unrealized market
Held-to-Maturity of shares cost gains losses value
------------------------------------------------------
(in thousands)

U.S. treasury
securities
and government
obligations $ 16,630 $ 16,514 848 (43) 17,319
U.S. government
agency mortgage-
backed securities $ 48,547 48,276 287 (2,180) 46,383
Obligations of
states and
political
subdivisions $ 30,130 29,928 869 (130) 30,667
Corporate
securities $ 167,680 171,734 2,092 (3,345) 170,481
Mortgage-backed
securities $ 111,284 109,827 900 (2,646) 108,081
Redeemable preferred
stocks 1,168 32,712 318 (436) 32,594
----------------------------------------

408,991 5,314 (8,780) 405,525
----------------------------------------

March 31, 1997
- ----------------- Gross Gross Estimated
Consolidated Amortized unrealized unrealized market
Available-for-Sale Par Value cost gains losses value
------------------------------------------------------
(in thousands)

U.S. treasury
securities and
government
obligations $ 11,685 11,766 701 - 12,467
U.S. government
agency mortgage-
backed securities $ 28,423 27,934 139 (502) 27,571
States,
municipalities
and political
subdivisions $ 11,900 12,079 431 (160) 12,350
Corporate
securities $ 299,605 302,960 3,760 (5,465) 301,255
Mortgage-backed
securities $ 77,094 76,565 849 (1,238) 76,176
Preferred
stock $ 476 11,794 127 (64) 11,857
----------------------------------------

443,098 6,007 (7,429) 441,676
----------------------------------------

Total $ 852,089 11,321 (16,209) 847,201
----------------------------------------

In February 1997, the Company, through its insurance
subsidiaries, invested in the equity of a limited partnership in a
Texas-based self-storage corporation. RWIC invested $13,500,000 in
exchange for a 27.3% limited partnership and Oxford invested
$11,000,000 in exchange for a 22.2% limited partnership. U-Haul is a
50% owner of a corporation which is a general partner in the Texas-
based self-storage corporation. The Company has a $10,000,000 note
receivable from the corporation.
12

AMERCO AND CONSOLIDATED SUBSIDIARIES

Notes to Consolidated Financial Statements, Continued
(Unaudited)



3. SUMMARIZED CONSOLIDATED FINANCIAL INFORMATION OF INSURANCE
SUBSIDIARIES

A summary consolidated balance sheet for RWIC is presented
below:

March 31,
---------------------
1997 1996
---------------------
(in thousands)

Investments - fixed maturities $ 411,652 413,669
Other investments 22,122 14,330
Receivables 114,790 155,611
Deferred policy acquisition costs 9,778 11,682
Due from affiliate 22,352 12,415
Deferred federal income taxes 14,751 17,119
Other assets 9,095 7,989
-------------------
Total assets $ 604,540 632,815
===================

Policy liabilities and accruals $ 336,969 343,223
Unearned premiums 48,823 79,218
Other policyholders' funds and liabilities 25,721 20,018
-------------------
Total liabilities 411,513 442,459

Stockholder's equity 193,027 190,356
-------------------
Total liabilities and
stockholder's equity $ 604,540 632,815
===================

A summarized consolidated income statement for RWIC is presented
below:

Quarter ended March 31,
-----------------------
1997 1996
-----------------------
(in thousands)

Premiums $ 34,482 25,238
Net investment income 7,282 7,737
Other income 55 (52)
---------------------
Total revenue 41,819 32,923
Benefits and losses 29,438 17,824
Amortization of deferred policy
acquisition costs 2,155 2,464
Other expenses 5,203 6,640
---------------------
Income from operations 5,023 5,995
Federal income tax expense (1,550) (1,886)
---------------------
Net income $ 3,473 4,109
=====================
13
AMERCO AND CONSOLIDATED SUBSIDIARIES

Notes to Consolidated Financial Statements, Continued

3. SUMMARIZED CONSOLIDATED FINANCIAL INFORMATION OF INSURANCE
SUBSIDIARIES, continued

A summary consolidated balance sheet for Oxford is presented
below:

March 31,
---------------------
1997 1996
---------------------
(in thousands)

Investments - fixed maturities $ 439,015 470,380
Other investments 105,911 89,679
Receivables 12,349 14,733
Deferred policy acquisition costs 41,146 43,044
Due from affiliate 507 291
Other assets 2,928 2,347
-------------------
Total assets $ 601,856 620,474
===================

Policy liabilities and accruals $ 82,776 75,025
Premium deposits 429,984 422,514
Other policyholders' funds and liabilities 6,587 14,213
Deferred taxes 8,856 10,588
-------------------
Total liabilities 528,203 522,340
Stockholder's equity 73,653 98,134
-------------------

Total liabilities and
stockholder's equity $ 601,856 620,474
===================

A summarized consolidated income statement for Oxford is
presented below:

Quarter ended March 31,
-----------------------
1997 1996
-----------------------
(in thousands)

Premiums $ 5,943 7,089
Net investment income 4,433 4,882
Other income 41 (541)
--------------------
Total revenue 10,417 11,430
Benefits and losses 5,661 5,434
Amortization of deferred policy
acquisition costs 1,305 1,558
Other expenses 1,400 1,483
--------------------
Income from operations 2,051 2,955
Federal income tax expense (604) (1,028)
--------------------
Net income $ 1,447 1,927
====================
14
AMERCO AND CONSOLIDATED SUBSIDIARIES

Notes to Consolidated Financial Statements, Continued
(Unaudited)


4. CONTINGENT LIABILITIES AND COMMITMENTS

During the three months ended June 30, 1997, a subsidiary of U-
Haul entered into eleven transactions, and has subsequently entered
into three additional transactions, whereby the Company sold rental
trucks and subsequently leased back. The Company has guaranteed
$14,857,000 of residual values and an additional $5,346,000 subsequent
to June 30, 1997 for these assets at the end of the respective lease
terms. U-Haul also subsequently entered into one transaction, whereby
the Company sold and subsequently leased back computer equipment.
Following are the lease commitments for the leases executed during the
three months ended June 30, 1997, and subsequently which have a term
of more than one year (in thousands):

Net activity
Year ended Lease subsequent to
March 31, Commitments quarter end Total
---------------------------------------------------------

1998 $ (6,209) 1,097 (5,112)
1999 (8,167) 1,558 (6,609)
2000 (8,167) 1,558 (6,609)
2001 (1,257) 2,565 1,308
2002 5,405 2,876 8,281
Thereafter 21,952 7,986 29,938
------------------------------------
$ 3,557 17,640 21,197
====================================



During the three months ended June 30, 1997, the Company has
reduced future lease commitments by $68,000,000 and subsequently
$8,432,000 through early termination of certain leases. Residual
value guarantees were also reduced by $11,402,000 and $1,527,000 in
connection with the terminations.

In the normal course of business, the Company is a defendant in
a number of suits and claims. The Company is also a party to several
administrative proceedings arising from state and local provisions
that regulate the removal and/or clean-up of underground fuel storage
tanks. It is the opinion of management that none of such suits,
claims or proceedings involving the Company, individually or in the
aggregate are expected to result in a material loss.


5. SUPPLEMENTAL CASH FLOWS INFORMATION

The (increase) decrease in receivables, inventories and accounts
payable and accrued liabilities net of other operating and investing
activities follows:

Quarters ended June 30,
1997 1996
---------------------
(in thousands)

Receivables $ (9,049) 74,020
=====================
Inventories $ 2,868 (5,556)
=====================
Accounts payable and
accrued liabilities $ 6,744 28,728
=====================

Income taxes paid in cash amounted to none and $53,000 for the
quarters ended June 30, 1997 and 1996, respectively.

Interest paid in cash amounted to $17,395,000 and $18,080,000 for
the quarters ended June 30, 1997 and 1996, respectively.
15
AMERCO AND CONSOLIDATED SUBSIDIARIES

Notes to Consolidated Financial Statements, Continued
(Unaudited)


6. EARNINGS PER SHARE

Earnings per share are computed based on the weighted average
number of shares outstanding for the year and quarterly periods,
excluding shares of the employee stock ownership plan that have not
been committed to be released. Preferred dividends include undeclared
or unpaid dividends of the Company. Net income is reduced for
preferred dividends for purposes of the calculation.

The following table reflects the calculation of the earnings per
share (in thousands except per share data):
Quarters ended June 30,
1997 1996
-----------------------

Earnings from operations $ 29,198 40,005
Less dividends
on preferred shares 5,255 3,241
-----------------------
Net earnings for per
share calculation $ 23,943 36,764
=======================

Earnings per common share $ 1.09 1.15
========================

Weighted average common
shares outstanding 21,879,156 32,015,301
=========================

7. RELATED PARTIES

During the quarter ended June 30, 1997, a subsidiary held various
senior and junior notes with SAC Holding corporation and its
subsidiaries (SAC Holdings). The voting common stock of SAC Holdings
is held by Mark. V. Shoen, a major stockholder of the Company.

The Company's subsidiary received principal payments of $911,000
and interest payments of $1,263,000 from SAC Holdings during the
quarter.

The Company currently manages the properties owned by SAC
Holdings pursuant to a management agreement, under which the Company
receives a management fee equal to 6% of the gross receipts from the
properties. The Company received management fees of $434,000 during
the quarter ended June 30, 1997. The management fee percentage is
consistent with the fees received by the Company for other properties
managed by the Company.


8. NEW ACCOUNTING STANDARDS

On April 1, 1995, the Company implemented Statement of Position
93-7, "Reporting on Advertising Costs", issued by the Accounting
Standards Executive Committee in December 1993. This statement of
position provides guidance on financial reporting on advertising costs
in annual financial statements. The Company is currently reviewing
its implementation procedures.

Other pronouncements issued by the Financial Standards Board with
future effective dates are either not applicable or not material to
the consolidated financial statements of the Company.
16
AMERCO AND CONSOLIDATED SUBSIDIARIES

Notes to Consolidated Financial Statements, Continued
(Unaudited)


9. SUBSEQUENT EVENTS

On July 7, 1997, the Company executed an agreement with Sophia
Shoen whereby the Company paid $1,250,000 to Sophia Shoen to settle an
arbitration proceeding entitled JAMS-ENDISPUTE Link No. 940517195 and
--------------
to terminate a Share Repurchase and Registration Right Agreement.
Sophia Shoen is a major stockholder and the sister of Edward J., James P.,
and Paul F. Shoen, who are major stockholders and directors of the Company.

In July 1997, the Company extinguished $76,000,000 of its long-
term notes originally due in fiscal 1999 through fiscal 2002. The
above transactions resulted in an extraordinary loss of $4,134,000,
net of tax of $2,275,000 ($0.19 per share).

On August 5, 1997, the Company declared a cash dividend of
$3,241,000 ($0.53125 per preferred share) to preferred stockholders of
record as of August 15, 1997.
17


ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS.

RESULTS OF OPERATIONS
The following table shows industry segment data from the Company's
three primary industry segments: Moving and Storage Operations,
Property/Casualty Insurance and Life Insurance. Moving and Storage
Operations is composed of the operations of U-Haul, which consists of
the rental of trucks, automobile-type trailers and self-storage space
and sales of related products and services and AREC. Property/Casualty
Insurance is composed of the operations of RWIC, which operates in
various property and casualty lines. Life insurance is composed of the
operations of Oxford, which operates in various life, accident and
health and annuity lines. The Company's U-Haul Moving and Storage
Operations are seasonal and proportionately more of the Company's
revenues and net earnings are generated in the first and second
quarters each fiscal year (April through September).

Moving and Property/ Adjustments
Storage Casualty Life and
Operations Insurance Insurance Eliminations Consolidated
-----------------------------------------------------------
(in thousands)
Quarter ended
June 30, 1997
Revenues:
Outside $ 329,202 37,140 9,915 - 376,257
Intersegment - 4,679 502 (5,181) -
----------------------------------------------------------
Total revenues 329,202 41,819 10,417 (5,181) 376,257
==========================================================
Operating profit $ 53,734 5,023 2,051 - 60,808
===========================================
Interest expense 16,688
------
Pretax earnings
from operations $ 44,120
======
Identifiable assets $1,933,630 604,540 601,856 (304,290) 2,835,736
==========================================================

Moving and Property/ Adjustments
Storage Casualty Life and
Operations Insurance Insurance Eliminations Consolidated
-----------------------------------------------------------
(in thousands)
Quarter ended
June 30, 1996
Revenues:
Outside $ 317,609 31,983 11,039 - 360,631
Intersegment - 940 391 (1,331) -
----------------------------------------------------------
Total revenues 317,609 32,923 11,430 (1,331) 360 631
==========================================================
Operating profit $ 63,308 5,995 2,955 - 72,258
===========================================
Interest expense 7,971
-------
Pretax earnings
from operations $ 64,287
=======
Identifiable assets $1,774,805 632,815 620,474 (318,222) 2,709,872
==========================================================
18
QUARTER ENDED JUNE 30, 1997 VERSUS QUARTER ENDED JUNE 30, 1996

Moving and Storage Operations
Revenues consist of rental revenues and net sales.

Total rental revenue increased by $11.3 million, 4.3%, to $272.6
million during the first quarter of fiscal 1998. The increase was
primarily due to increased fleet activity.

Net sales revenues were $56.7 million in the first quarter of
fiscal 1998, which represents a 1.3% increase from the first quarter
of fiscal 1997 net sales of $56.0 million. Revenue realized from the
sale of moving support items (i.e. boxes, etc.) and propane was $1.7
million higher for the first quarter of fiscal 1998. These gains
were partially offset by a $0.5 million decrease in gasoline sales and
a $0.5 million decrease in outside repair income.

Cost of sales was $31.4 million for the first quarter of fiscal
1998, as compared to $31.6 million for the same period in fiscal 1997.
Higher material costs for hitches were offset by a reduction in moving
support sales item costs and a reduction in gasoline costs related to
decreased gasoline sales.

Operating expenses increased to $223.6 million in the first
quarter of fiscal 1998 from $203.9 million in the first quarter of
fiscal 1997, an increase of 9.6%. During the first quarter of
fiscal 1998, leasing activity increased $5.3 million and personnel
costs increased $3.5 million in conjunction with higher rental and
sales activity. Increased insurance costs of $2.7 million were due to
increased cost of risk and an increase in the rental fleet.
Maintenance and utility costs of the operating facilities increased by
$1.5 million. All other operating expenses increased in the aggregate
by $6.7 million.

Depreciation expense for the first quarter of fiscal 1998 was
$20.5 million, as compared to $18.8 million during the same period of
the prior year. In accordance with Company policy, $11.9 million of
betterments related to rental trucks were capitalized.

Property and Casualty
RWIC's gross premium writings for the quarter ended March 31,
1997 were $33.1 million, as compared to $48.1 million for the quarter
ended March 31, 1996. This represents a decrease of $15.0 million, or
31.2%. As in prior periods, the rental industry market accounts for a
significant share of total premiums, approximately 38.1% and 27.7% in
the first quarter 1997 and 1996, respectively. These writings include
U-Haul customers, fleetowners and U-Haul as well as other rental
industry insureds with similar characteristics. RWIC continues
underwriting professional reinsurance via broker markets. Premiums
in this area decreased during first quarter 1997 to $14.7 million or
44.5% of total gross premiums, from comparable 1996 figures of $24.1
million or 50.2% of total premium. This decrease can be primarily
attributed to a written premium accrual procedural change. At March
31, 1997 only premiums due in the present period are accrued while at
March 31, 1996, premiums due in future accounting periods were
accrued. Premium writings in selected general agency lines were 17.4%
of total gross written premiums in the quarter ended March 31, 1997 as
compared to 22.1% in the same period of 1996. This decrease resulted
from the cancellation of a general agency agreement in November 1996.
RWIC continues its direct multiple peril coverage of various
commercial properties and businesses in 1997. These premiums
accounted for 13.3% of the total gross written premiums for the
quarter ended March 31, 1997 as compared to 7.1% for the same period
in 1996. The increase is the result of planned business expansion.

Net earned premiums increased $9.2 million, or 36.6%, to $34.5
million for the quarter ended March 31, 1997, compared with premiums
of $25.2 million for the quarter ended March 31, 1996. The premium
increase was primarily due to planned business expansion in the rental
industry and direct multiple peril markets, offset by decreases in
assumed treaty reinsurance and general agency lines. As mentioned
previously, the assumed treaty reinsurance decrease is a result of the
change in accrual procedure which eliminated future premiums and the
decrease in general agency lines resulted from the cancellation of a
general agency agreement.

Underwriting expenses incurred were $38.3 million for the quarter
ended March 31, 1997, an increase of $9.4 million, or 32.5% over 1996.
Comparable underwriting expenses incurred for the first quarter of
1996 were $28.9 million. The increase is attributed to increased
commission expense and losses incurred. Losses incurred increased in
the rental industry, general agency lines, and assumed treaty
reinsurance segments, but were partially offset by a decrease in the
direct multiple peril markets.
19
Net investment income was $7.3 million for the quarter ended
March 31, 1997, a decrease of 5.8% over 1996 net investment income of
$7.7 million. The decrease is due to a planned restructuring of the
portfolio.

RWIC completed the first quarter of 1997 with income before tax
expense of $5.0 million as compared to $6.0 million for the comparable
period ended March 31, 1996. This represents a decrease of $1.0
million, or 16.2% over 1996. Increased premium earnings were offset
by increased underwriting expenses and decreased investment income
discussed above.

Life Insurance
Premiums from Oxford's reinsurance lines before intercompany
eliminations were $3.9 million for the quarter ended March 31, 1997, a
decrease of $1.3 million, or 25.0% over the same period in 1996 and
accounted for 66.1% of Oxford's premiums for the period. These
premiums are primarily from term life insurance and deferred annuity
contracts that have matured. Decreases in premiums are primarily from
these matured reinsurance contracts.

Premiums from Oxford's direct lines before intercompany
eliminations were $2.0 million for the quarter ended March 31, 1996,
an increase of $0.1 million (5.3%) from the same period during 1996.
This increase in direct premium is primarily attributable to the
Company's disability and group life business ($0.6 million in
premium). Oxford's direct business related to group life and
disability coverage issued to employees of the Company for the quarter
ended March 31, 1996 accounted for 10.2% of premiums. Other direct
lines, including credit life and health business, accounted for 23.7%
of Oxford's premiums for the quarter ended March 31, 1997

Net investment income before intercompany eliminations was $4.4
million and $4.9 million for the quarters ended March 31, 1997 and
1996 respectively. This decrease is due to a lower asset base
resulting from the dividend paid to the Company during December 1996.
Gains (losses) on the disposition of fixed maturity investments were
immaterial for the quarter ended March 31, 1997 and $(0.5) million for
the quarter ended March 31, 1996.

Benefits and expenses incurred were $8.4 million for the quarter
ended March 31, 1997, a decrease of 0.1% over 1996. Comparable
benefits and expenses incurred for the same quarter in 1996 were $8.5
million. This decrease is primarily due to a decrease in the reserves
and amortization of deferred acquisition costs, partially offset by
increases in death benefits.

Operating profit before tax and intercompany eliminations
decreased by $0.9 million, or approximately 30.0%, in the first
quarter of 1997 to $2.1 million, primarily due to the decrease in
premium income and a lower asset base attributable to the dividend
paid to the Company during December 1996, partially offset by a
decrease in benefits and expenses.

Interest Expense
Interest expense was relatively stable at $20.2 million for the
quarter ended June 30, 1997, as compared to $18.9 million for the
quarter ended June 30, 1996. Higher average debt levels outstanding
during the current quarter attributed to the increase.

The decline in interest income reflects a reduced level of
interest income for mortgage loans on storage properties sold at the
end of first quarter of fiscal 1997.

Consolidated Group
As a result of the foregoing, pretax earnings of $44.1
million were realized in the quarter ended June 30, 1997, as compared
to $64.3 million for the same period in 1996. After providing for
income taxes, net earnings for the quarter ended June 30, 1997 were
$29.2 million, as compared to $40.0 million for the same period of the
prior year.
20
QUARTERLY RESULTS

The following table presents unaudited quarterly results for the
nine quarters in the period beginning April 1, 1995 and ending June
30, 1997. The Company believes that all necessary adjustments have
been included in the amounts stated below to present fairly, and in
accordance with generally accepted accounting principles, the selected
quarterly information when read in conjunction with the consolidated
financial statements incorporated herein by reference. The Company's
U-Haul rental operations are seasonal and proportionally more of the
Company's revenues and net earnings from its U-Haul rental operations
are generated in the first and second quarters of each fiscal year
(April through September). The operating results for the periods
presented are not necessarily indicative of results for any future
period (in thousands except for per share data).

Quarter Ended
---------------
Jun 30
1997
---------------
Total revenues $ 376,257
Net earnings (loss) 29,198
Weighted average common
shares outstanding 21,879,156
Net earnings (loss)
per common share (1) 1.09



Quarter Ended
----------------------------------------------
Jun 30 Sep 30 Dec 31 Mar 31
1996 1996 1996 1997
----------------------------------------------
Total revenues $ 360,631 417,223 320,583 308,105
Earnings from operations
before extraordinary loss
on early extinguishment
of debt (3) - 39,741 (9,538) -
Net earnings (loss) 40,005 37,737 (9,853) (16,024)
Weighted average common
shares outstanding (2) 32,015,301 27,675,192 20,359,873 21,868,241
Earnings from operations
before extraordinary loss
on early extinguishment
of debt per common share (3) - 1.29 (0.72) -
Net earnings (loss) per
common share (1) (2) (3) 1.15 1.22 (0.74) (0.97)


Quarter Ended
----------------------------------------------
Jun 30 Sep 30 Dec 31 Mar 31
1995 1995 1995 1996
----------------------------------------------
Total revenues $ 340,359 389,861 313,063 298,656
Net earnings (loss) 15,177 35,332 7,701 2,184
Weighted average common
shares outstanding (2) 37,958,426 37,931,825 36,796,961 32,554,458
Net earnings (loss) per
common share (1) (2) 0.31 0.85 0.13 (0.04)

________________
(1)Net earnings (loss) per common share amounts were computed after
giving effect to the dividends on the Company's Preferred Stock.

(2)Reflects the acquisition of treasury shares acquired pursuant to
the Shoen Litigation as discussed in Note 14 of the Consolidated
Financial Statements in Item 8 of the Company's Form 10-K for the
year ended March 31, 1997.

(3)During second quarter of fiscal year 1997, the company
extinguished $76.3 million of debt and $86.2 million of its long-
term notes originally due in fiscal 1997 through fiscal 1999.
This resulted in an extraordinary loss of $2.3 million, net of tax
of $2.4 million ($0.09 per share).
21

LIQUIDITY AND CAPITAL RESOURCES

Moving and Storage Operations
To meet the needs of its customers, U-Haul must maintain a large
inventory of fixed asset rental items. At June 30, 1997, net
property, plant and equipment represented approximately 70.1% of total
U-Haul assets and approximately 47.7% of consolidated assets. In the
first quarter of fiscal 1998, capital expenditures were $210.4
million, as compared to $61.7 million in the first quarter of fiscal
1997, reflecting expansion of the rental truck fleet, and real
property acquisitions. These acquisitions were funded with internally
generated funds from operations and debt financings.

Cash flows from operations were $67.5 million in the first
quarter of fiscal 1998, as compared to $193.7 million in the first
quarter of fiscal 1997. The decrease results from the sale of
mortgage note receivables for proceeds of $83.5 million for the
quarter ended June 30, 1996, along with decreased deferred tax and
decreased earnings.

Property and Casualty
Cash flows from operating activities were $1.5 million and $(0.2)
million for the quarters ended March 31, 1997 and 1996, respectively.
This change is due to decreased paid losses recoverable, accounts
receivable, and due from affiliates, as well as a smaller loss and
expense reserve increase and unearned premium decrease than that for
the quarter ended March 31, 1996.

RWIC's short-term investment portfolio was $1.6 million at March
31, 1997. This level of liquid assets, combined with budgeted cash
flow, is adequate to meet periodic needs as well as any near term
shortfall. The balances reflect funds in transition from maturity
proceeds to long-term investments. The structure of the long-term
portfolio is designed to match future liability cash needs. Capital
and operating budgets allow RWIC to schedule cash needs in accordance
with investment and underwriting proceeds.

RWIC maintains a diversified securities investment portfolio,
primarily in bonds at varying maturity levels with 94.9% of the fixed-
income securities portfolio consisting of investment grade securities.
The maturity distribution is designed to provide sufficient liquidity
to meet future cash needs. Current liquidity remains strong, with
RWIC having 5.4% more invested assets than total liabilities.

Stockholder's equity increased 0.4% from $192.3 million at
December 31, 1996 to $193.0 million at March 31, 1997. RWIC considers
current stockholder's equity to be adequate to support future growth
and absorb unforeseen risk events. RWIC does not use debt or equity
issues to increase capital and therefore has no exposure to capital
market conditions.

Life Insurance
Oxford's primary sources of cash are premiums, receipts from
interest-sensitive products and investment income. The primary uses
of cash are operating costs and benefit payments to policyholders.
Matching the investment portfolio to the cash flow demands of the
types of insurance being written is an important consideration.
Benefit and claim statistics are continually monitored to provide
projections of future cash requirements.

Cash provided by operating activities were $11.0 million and $4.1
million for the quarters ended March 31, 1997 and 1996, respectively.
Cash flows provided (used) by financing activities were $(9.3) million
and $12.5 million for the quarters ended March 31, 1997 and 1996,
respectively. Cash flows from financing activities result from
deferred annuity sales and annuitizations, which have the effect of
increasing and decreasing cash flows, respectively. In addition to
cash flow from operating and financing activities, a substantial
amount of liquid funds is available through Oxford's short-term
portfolio. At March 31, 1997 and 1996, short-term investments
amounted to $6.5 million and $12.0 million, respectively. Management
believes that the overall sources of liquidity will continue to meet
foreseeable cash needs.

Stockholder's equity of Oxford decreased to $73.7 million in 1997
from $96.1 million in 1996 as a result of a dividend paid to the
Company during December 1996.
22
Applicable laws and regulations of the State of Arizona require
the Company's insurance subsidiaries to maintain minimum capital
determined in accordance with statutory accounting practices. With
respect to Oxford, such amount is $0.6 million. In addition, the
amount of dividends that can be paid to stockholders by insurance
companies domiciled in the State of Arizona is limited. Any dividend
in excess of the limit requires prior regulatory approval. Statutory
surplus that can be distributed as dividends without prior regulatory
approval is zero at March 31, 1997. These restrictions are not
expected to have a material adverse effect on the ability of the
Company to meet its cash obligations.

Consolidated Group
During each of the fiscal years ending March 31, 1998, 1999, and
2000, U-Haul estimates gross capital expenditures will average
approximately $250-$300 million as a result of the expansion of the
rental truck fleet and self-storage locations. This level of capital
expenditures, combined with an average of approximately $75.0 million
in annual long-term debt maturities during this same period, are
expected to create annual average funding needs of approximately $325-
375 million. Management estimates that U-Haul will fund between 75%
and 88% of these requirements with internally generated funds,
including proceeds from the disposition of older trucks and other
asset sales. The remainder of the anticipated capital expenditures
are expected to be financed through existing credit facilities, new
debt placements, lease fundings, and equity offerings.

Credit Agreements
The Company's operations are funded by various credit and
financing arrangements, including unsecured long-term borrowings,
unsecured medium-term notes, and revolving lines of credit with
domestic and foreign banks. Principally to finance its fleet of
trucks and trailers, the Company routinely enters into sale and
leaseback transactions. As of June 30, 1997, the Company had $1,035.3
million in total notes and loans payable outstanding, as compared with
$983.6 million at March 31, 1997, and $756.1 million at June 30, 1996.
Unutilized committed lines of credit are $260.0 million at June 30,
1997.

Certain of the Company's credit agreements contain restrictive
financial and other covenants, including, among others, covenants with
respect to incurring additional indebtedness, maintaining certain
financial ratios, and placing certain additional liens on its
properties and assets. At June 30, 1997, the Company was in
compliance with these covenants.

The Company is further restricted in the issuance of certain
types of preferred stock. The Company is prohibited from issuing
shares of preferred stock that provide for any mandatory redemption,
sinking fund payment, or mandatory prepayment, or that allow the
holders thereof to require the Company or a subsidiary of the Company
to repurchase such preferred stock at the option of such holders or
upon the occurrence of any event or events without the consent of its
lenders.
23

PART II. OTHER INFORMATION

ITEM 1. LEGAL PROCEEDINGS.

On July 7, 1997, Sophia M. Shoen, a major stockholder of the
Company, executed a settlement agreement with the Company resolving a
lawsuit in the Second Judicial District Court of the State of Nevada,
Case No. CV96-01628 arising out of an arbitration proceeding entitled
JAMS-ENDISPUTE Link No. 940517195. In the arbitration proceeding,
- --------------
Sophia Shoen alleged that the Company breached her Share Repurchase
and Registration Rights Agreement, dated as of May 1, 1992 (the Rights
Agreement), with the Company by failing to timely register the sale of
her shares of Common Stock which were sold to the public in November
1994. Pursuant to the settlement agreement, (i) the Company paid
Sophia M. Shoen $1.25 million, (ii) the Rights Agreement was
terminated, (iii) Sophia M. Shoen released the Company and others from
any liability relating to the foregoing proceedings and the Rights
Agreement, (iv) the Company released Sophia M. Shoen and others from
any liability relating to the foregoing proceedings and the Rights
Agreement and (v) the shares of Common Stock held by Sophia M. Shoen
were released from a stockholder agreement covering approximately 70%
of the Company's Common Stock


ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K.

a. Exhibits

3.1 Restated Articles of Incorporation (1)
3.2 Restated By-Laws of AMERCO as of August 27, 1996 (2)
10.1 Settlement Agreement between AMERCO and Sophia Shoen
10.2 Amended and Restated Side Agreement, dated as of June 1, 1997
27 Financial Data Schedule

b. Reports on Form 8-K.

No report on Form 8-K was filed for the quarter ended June 30, 1997.

_____________________________________

(1) Incorporated by reference to the Company's Quarterly Report on
Form 10-Q for the quarter ended December 31, 1992, file no. 0-7862.

(2) Incorporated by reference to the Company's Quarterly Report on
Form 10-Q for the quarter ended September 30, 1996, file no. 0-7862.
24

SIGNATURES


Pursuant to the requirements of the Securities Exchange Act of
1934, the registrant has duly caused this report to be signed on its
behalf by the undersigned, thereunto duly authorized.


AMERCO
___________________________________
(Registrant)


Dated: August 19, 1997 By: /S/ GARY B. HORTON
___________________________________
Gary B. Horton, Treasurer
(Principal Financial Officer)