AT&T 1st-period loss is $5.64 billion due to charge, but operating profit rose

Article Abstract:

AT and T reports a 1st qtr 1993 loss of $5.64 billion on revenue of $15.72 billion, up 2 percent from $15.38 billion in 1st qtr 1992. Excluding a one-time charge of $6.64 billion to pay for accounting changes, AT and T actually posted an operating profit of $996 million, or 74 cents per share, up 13 percent from $883 million, or 67 cents per share, in 1st qtr 1992. Operating income for the 1993 quarter was $1.63 billion. The company's long-distance revenue rose 1 percent to $9.97 billion for the quarter as traffic volume advanced 5 percent. Gross margins for long-distance business rose 2 percent to 37 percent. AT and T's stock fell 50 cents to $57.375 in composite trading on the New York Stock Exchange on Apr 21, 1993, the day the quarterly results were announced. Overall, analysts expressed contentment with the results.

Electronic computers, Financial Report

---

AT&T expects big '93 charge for retirees

Article Abstract:

American Telephone & Telegraph Co will take a $5.5 billion to $7.5 billion after-tax charge in the 1st qtr of 1993 to cover projected costs for retiree health benefits. Net income for the quarter will be down by $4.23 to $5.77 a share. The one-time charge is a response by AT&T to a new accounting rule. Starting in 1993, the Financial Accounting Standards Board will require companies to accrue for projected costs of retiree benefits while the employees are working. The rule will allow companies to take a charge at one time or pay it over as many as 20 years. AT&T, according to a spokesman, will probably take the charge at one time.

Laws, regulations and rules, T, Profits, Accounting, Retirement, Financial Accounting Standards Board, Personnel, Profit

---

Similar abstracts:

• Abstracts: AT&T sets alliance to make gear to provide multimedia services. AT&T wins huge computer contract from the Department of Transportation
• Abstracts: AT&T loss of $1.8 billion is posted for third quarter; merger, restructuring lead to $4.2 billion charge; profit for year extended
• Abstracts: AT&T bid to buy NCR is complicated by the recent surge of computer stocks. AT&T offering incentives to staff at computer unit
• Abstracts: American Express dismisses top aide in move tied to firing of IBM executive. IBM's Grabe quits as exodus at top expands
• Abstracts: IBM posts loss of $285 million for first period: mainframe sales plunged; firm doesn't expect a quick turnaround

This website is not affiliated with document authors or copyright owners. This page is provided for informational purposes only. Unintentional errors are possible.