PacTel expects '95 profit to fall 10%; dividend-wary investors sell shares
Article Abstract:
Pacific Telesis (PacTel) is announcing its 1995 profits will be 10% lower than last year's results, prompting dividend concern and producing an 8.9% drop in its stock prices. The San Francisco regional telephone provider has no current plan to augment dividends, but made no promises that it will not make future cuts. PacTel first announced the possibility that earnings may be lower than expected after it reported low 1st qtr earnings in Apr 1995. The telephone company is blaming state-mandated cuts in CA toll rates for the poor showing. Analysts had indicated the company would earn the same profit for 1995 that it posted in 1994, $1.14 billion, or $2.68 per share. The company's stock fell by $2.625 to close at $27, an atypical decline for a regional Bell company, in heavy trading on the NYSE.
Publication Name: The Wall Street Journal Western Edition
Subject: Business, general
ISSN: 0193-2241
Year: 1995
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PacTel's 7 top officers would share $25 million on losing jobs in takeover
Article Abstract:
SBC Communications would be compelled to pay the seven highest ranking Pacific Telesis Group executives a total of $25 million in the event that their employment is terminated within three years of the companies' proposed merger. Pacific Telesis CEO and Chmn Philip Quigley could receive a severance settlement as high as $7.9 million if he is dismissed after closure of the deal, according to terms of a document released by the SEC. Analysts suggest that the deal is not uncommon in such a large-scale company acquisition, especially in the increasingly competitive market of telecommunications. SBC officials indicate that they have no intention of altering the basic existing management structure at Pacific Telesis.
Publication Name: The Wall Street Journal Western Edition
Subject: Business, general
ISSN: 0193-2241
Year: 1996
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Ameritech had a loss, U S West's net surged in period; operating profits rose
Article Abstract:
Baby Bell Ameritech posted a one-time loss of $1.8 billion, while sibling Bell U S West recorded a one-time gain of 55% for 4th qtr 1994. The Ameritech loss was attributed to a one-time noncash charge of $3.8 billion needed to cover regulation-related accounting charges. Ameritech's revenue figures were up for the 4th qtr, climbing 12% to $445.2 million. U S West's 4th qtr net income skyrocketed 55% to $409 million from $264 million for the same period a year earlier. The gains were the result of the sale of U S West's rural telephone systems and paging operations. U S West's revenue figures were also on the upswing, climbing 6.5% to $2.84 billion compared to $2.66 billion a year earlier.
Publication Name: The Wall Street Journal Western Edition
Subject: Business, general
ISSN: 0193-2241
Year: 1995
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