Article Abstract:
AT&T says its charge against earnings for new accounting rules that cover retiree health benefits will amount to about $7 billion in the current quarter. The charge will cause a paper loss in 1993, but it will not negatively impact AT&T's cash flow or dividends. Like other companies, AT&T is required to conform with new rules called Financial Accounting Standards Board No. 106, which cover liability for current and future health care and other benefits for retired employees. The rules, which were adopted in 1990, require companies to estimate the likely financial effect of retiree health benefits. AT&T's estimates assume that the company will impose limits on the premiums it will pay out and also assume that the government and the private sector will be able to reduce annual health-cost increases from nearly 12 percent to about 8 percent.
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Article Abstract:
AT&T announces pretax charges of about $4 billion by the end of 1991. Even so, the telephone company expects a good earnings report for 2nd qtr 1991. AT&T's net income is up 26 percent, to $828 million, or 75 cents a share, from $657 million, or 60 cents a share, in the same period in 1990. AT&T's stock rose $1.625 on Thursday, Jul 18, closing at $39.625, as the market responded to the growth in long-distance usage and AT&T's steady market share. Meanwhile, MCI Communications Corp reports net income of $137 million, or 50 cents a share, for 2nd qtr 1991, a decrease of 22.6 percent from the $177 million, or 67 cents a share, reported in the same quarter in 1990. Revenues are up 12.4 percent, from $2.03 billion in 1990 to $2.1 billion for the 2nd qtr of 1991.
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Article Abstract:
AT&T and Southwestern Bell both report 3rd qtr earnings. AT&T, the largest telecommunications company in the world, posts profits of $963 million or 72 cents a share. AT&T's results are slightly misleading because the company took a one-time restructuring charge of $4.2 billion for the acquisition of NCR. AT&T's quarterly revenue grew 3.5 percent to $16.18 billion from $15.63 billion in 1991. Southwestern Bell reports a 6.2 percent increase in earnings from 3rd qtr 1991 to 3rd qtr 1992 to $385.6 million or $1.28 a share. The 3rd qtr earnings were reduced by $25 million because the company relocated its headquarters to San Antonio from St. Louis.
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