AT&T income down, with more of that foreseen
Article Abstract:
AT&T announces a 24% decline in its net income from continuing operations to $1.12 billion in the 1st qtr 1997, partly due to its minimal growth in revenue of 1.5% from $12.85 billion to $13.05 billion. The company's stock price also dropped to $33 and its net income per share is down from $.85 in the same period in 1996 to $.69 per share in 1997. AT&T recruited 9.7% less subscribers in the 1st qtr 1997 than it did during the same period last year. Revenue in the company's consumer division dropped to $6.05 billion while its business division's revenue increased to $5.45 billion, an increase of $129 million. Analysts are worried about AT&T's recorded $1 billion in capital expenditures since the company promised to spend between $7 billion and $8 billion in 1997 to upgrade its wired and wireless networks. Earnings may continue to plummet if the company allocates an additional $6 billion to $7 billion for renovations in the remaining 3 qtrs 1997.
Publication Name: The New York Times
Subject: Business, general
ISSN: 0362-4331
Year: 1997
User Contributions:
Comment about this article or add new information about this topic:
After nine months, AT&T president quits under pressure
Article Abstract:
AT&T's Pres, John R. Walter, has announced his resignation after eight months at the long-distance phone company. Walter's decision to resign was prompted by the board's informing him that he would not be succeeding Robert Allen as CEO when Allen resigns in Jan of 1998. The board claims its reason for bypassing Walter, is he lacks sufficient intelligence to run the complex company. Walter replied by stating he was qualified to run the company and that he had worked tirelessly for the company's shareholders. Walter's severance package will include a one-time payment of $3.8 million in addition to the $22 million compensation package granted him for leaving his position as CEO of RR Donnelley & Sons to become AT&T's president. News of Walter's leaving caused AT&T's stock to rise $1.3125 a share to $36.3125.
Publication Name: The New York Times
Subject: Business, general
ISSN: 0362-4331
Year: 1997
User Contributions:
Comment about this article or add new information about this topic:
- Abstracts: AT&T plans to discontinue Network Notes. America Online moves to placate its angry users. BBN steps out of the shadows and into the limelight
- Abstracts: Getting Win95 with the program. A few short cuts to presenting the big picture. An Internet multilingual interpreter
- Abstracts: Texas Instruments takes bids for sale of defense unit. After taking some recent lumps, Texas Instruments may be poised for an upturn
- Abstracts: Stepping out of the AT&T nest; NCR spreads its wings (flight insurance, anyone?). The designer who made the Mac smile: Susan Kare's electronic icons are computer history writ small
- Abstracts: Laptop buyers struggle with shortages. How Sony turned a skinny laptop into an unlikely PC success. Dell takes another shot at selling to home-PC users; broader ad campaign sets its sights on hassle-free, second-time buyers