AT&T loss of $1.8 billion is posted for third quarter; merger, restructuring lead to $4.2 billion charge; profit for year extended

Article Abstract:

AT&T earnings increase from its long-distance telephone and financial services units, but the company loses a total of $1.8 billion in 3rd qtr after taking a $200 million hit in connection with its merger with NCR Corp. The latest fee brings AT&T's total charges for absorbing NCR to $4.2 billion; the charges cover merger-related costs, a jury award and the planned closing of a Midwest manufacturing plant. Without the charges, AT&T would have netted $808 million, compared with $712 million the year previous. Instead, AT&T lost $1.8 billion, compared with net income of $803 million the year previous. Revenue, including NCR's, totaled $11.04 billion. NCR reported a net loss of $82 million and revenue of $1.38 billion. Meanwhile, AT&T's long-distance service revenue rose 5.1 percent to $5.24 billion; sales of computer products dropped 17 percent to $818 million; and revenue from financial services grew to $358 million.

Telephone companies, Long distance telephone services, NEC Corp., Financial Analysis Software, Telephone Company, Reorganization, Third Quarter, Long-Distance Telephone Service, Acquisition, Losses

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AT&T office system line posts earnings; unit, a drag on parent's net, had first profit in July in more than 8 years

Article Abstract:

AT&T's Global Business Communications Systems unit posts its first profit in eight years with its Jul 1992 financial report. The unit, which has been a drain on AT&T, has been cutting its losses by 50 percent annually since 1990, and Pres Jerre L Stead expects the trend to continue through the end of 1992. The unit had been losing between $200 and $500 million annually, and Stead was brought in to make improvements. He cut 3,500 jobs and combined the operations of two business units. Additionally, Stead consolidated two PBX product lines, increased quality control and increased the price of products. Customers are receiving their PBX within three to four weeks of sale, as opposed to the former 12- to 18-week delivery time. The company's international equipment sales is growing, and it is predicted that AT&T will increase its international volume by 50 percent during 1992.

Management, Profits, Executive, Profit, Subsidiary Company, Stead, Jerre L.

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