Abstracts » Business, general

AT&T posts surge in profit for 4th period; revenue in long distance, equipment were best since 1984 divestiture

Article Abstract:

AT and T posts net income of $1.34 billion, or 85 cents per share, in 4th qtr 1994, a 72 percent increase from the year-before period, when restructuring costs reduced the telecommunications giant's earnings to $776 million, or 50 cents per share. For 4th qtr 1994, AT and T had to restate its figures to account for the acquisition of McCaw Cellular Communications Inc; otherwise, the company would have netted $1.09 billion, or 70 cents per share. Revenue was $21.11 billion, up from $19.07 billion in 4th qtr 1993. For 1994, AT and T posted net income of $4.71 billion, or $3.01 per share, compared to a loss of $3.82 per share in 1993. Revenue rose 8.3 percent, from $69.35 billion to $75.09 billion. The glowing financials only sparked a 25-cent rise in AT and T stock, to $48.625. Investors fret about a number of unknowns in AT and T's future, including possible legislation that would allow the Baby Bells to offer long-distance services.

Wired Telecommunications Carriers, Telephone Communication, Telephone Communications, T, Telephone services, American Telephone and Telegraph Co.

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US West to cut 9,000 positions, take big charge; entry totalling $3.8 billion reflects company plan to modernize network

Article Abstract:

US West Inc lays off 9,000 employees and takes a $3.8 billion charge resulting in a 3rd qtr 1993 loss in order to streamline its operations and develop a modern data, video and voice superhighway. A new accounting method for the depreciation of the company's network equipment contributes a non-cash charge of $3.2 billion to the total charge. The elimination of the 9,000 jobs, 17 percent of US West's 53,000 workforce, stems from the consolidation of 560 service centers into 26. The company maintains that its customers will benefit from a more efficient customer-order system. The use of an accelerated depreciation plan is similar to the accounting method used by nonutility companies, from which regional Bell companies such as US West are experiencing intensified competition.

Radiotelephone communications, Telephone communications, exc. radio, Accounting, U S WEST Inc., USW, Layoffs, Depreciation, Layoff, Networks, Third Quarter, Losses

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