SBC planning charges up to $2.3 billion; move in connection with deal for Pactel
Article Abstract:
SBC Communications reveals that it will take up to $2.3 billion in charges in 1997 with its Pacific Telesis Group acquisition that was completed on Apr 1, 1997. SBC claims that between $1.6 billion and $1.9 billion of the charges will be executed in the second quarter and that based on 912 million shares outstanding, second quarter results will be reduced by up to $2.08 per share, resulting in a loss. The second half of the year is expected to meet with additional charges and SBC's full-year results are expected to be lowered by up to $2.52 a share. The charges are attributed mainly to write-offs on equipment and discontinuing of video services projects. SBC claims that these write-offs will provide the company with $1 billion in annual profit by the year 2000. SBC shares increased by 37.5 cents per share on Jun 19, 1997 to $60.625. SBC's CFO Donald Kiernan claims that the company remains committed to adding 1,000 California jobs by Apr 1999.
Publication Name: The New York Times
Subject: Business, general
ISSN: 0362-4331
Year: 1997
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Baby Bells rely on specialty services for solid earnings
Article Abstract:
Nynex, the Pacific Telesis Group, SBC Communications and Bell Atlantic announced substantial fourth-quarter earnings. In their reports, released Jan 21, 1997, the four regional telephone companies cited specialty services, such as call waiting and caller ID, as paramount to their respective earnings. Nynex reported earnings of $397.7 million, or 86 cents per share, which exceeds an average prediction, based on a 15-analyst survey, of 94 cents a share. The Pacific Telesis Group maintains that its earnings equal $282 million, or 66 cents a share, which is higher than an analyst survey calling for 58 cents per share. SBC Communications' earnings are up to 90 cents a share, or $542.9 million, which is slightly less than the average 91 cents per share derived from the predictions of 17 analysts. Bell Atlantic reported earnings of $345.6 million, or 79 cents a share, which equals the average forecast taken from a survey of 16 analysts.
Publication Name: The New York Times
Subject: Business, general
ISSN: 0362-4331
Year: 1997
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Telecommunications concerns top estimates
Article Abstract:
The Internet and the increasing popularity of wireless telephones are largely responsible for the amount of growth the telecommunications industry is experiencing. Northern Telecom of Canada, Bell Atlantic and Nynex all reported earnings that exceeded analysts expectations for their second quarters. Bell Atlantic earned $499 million during its second quarter, ended on Jun 30, 1997. Bell Atlantic's gain of $1.14 a share is an increase of 7.6% over the company's 1996 second quarter showings of $463.7 million. Nynex reported a profit of 86 cents a share, totaling $380.5 million in its second quarter also ended Jun 30, 1997. Northern Telecom's earnings for its second quarter were 63 cents a share or $165 million, up from the $108 million earned in the second quarter of 1996.
Publication Name: The New York Times
Subject: Business, general
ISSN: 0362-4331
Year: 1997
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