AT&T income down, with more of that foreseen

Article Abstract:

AT&T announces a 24% decline in its net income from continuing operations to $1.12 billion in the 1st qtr 1997, partly due to its minimal growth in revenue of 1.5% from $12.85 billion to $13.05 billion. The company's stock price also dropped to $33 and its net income per share is down from $.85 in the same period in 1996 to $.69 per share in 1997. AT&T recruited 9.7% less subscribers in the 1st qtr 1997 than it did during the same period last year. Revenue in the company's consumer division dropped to $6.05 billion while its business division's revenue increased to $5.45 billion, an increase of $129 million. Analysts are worried about AT&T's recorded $1 billion in capital expenditures since the company promised to spend between $7 billion and $8 billion in 1997 to upgrade its wired and wireless networks. Earnings may continue to plummet if the company allocates an additional $6 billion to $7 billion for renovations in the remaining 3 qtrs 1997.

Finance, Company sales/revenue, Company sales and earnings, Company losses

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After nine months, AT&T president quits under pressure

Article Abstract:

AT&T's Pres, John R. Walter, has announced his resignation after eight months at the long-distance phone company. Walter's decision to resign was prompted by the board's informing him that he would not be succeeding Robert Allen as CEO when Allen resigns in Jan of 1998. The board claims its reason for bypassing Walter, is he lacks sufficient intelligence to run the complex company. Walter replied by stating he was qualified to run the company and that he had worked tirelessly for the company's shareholders. Walter's severance package will include a one-time payment of $3.8 million in addition to the $22 million compensation package granted him for leaving his position as CEO of RR Donnelley & Sons to become AT&T's president. News of Walter's leaving caused AT&T's stock to rise $1.3125 a share to $36.3125.

Officials and employees, Human resource management, Appointments, resignations and dismissals, Company personnel management, Company executive, Computer executives, Walter, John R.

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