Phone concerns remain on path of slow growth; baby Bells, GTE expected to post modest gains for second quarter

Article Abstract:

GTE Corp and the regional bell holding companies post lower than expected earnings for 2nd qtr 1992. Industry observers expect Southwestern Bell Corp to earn 95 cents per share, up from 57 cents during the same period in 1991, and BellSouth to earn 84 cents per share, up from 76 cents during 1991. Southwestern Bell has experienced an increase in subscribers, as well as making an investment in Telefonos de Mexico, while BellSouth experienced growth in access lines. GTE is expected to report earnings of 55 cents per share, up from 45 cents in 1991, due to geographical diversity. Other companies, including Ameritech, Bell Atlantic Corp, Nynex Corp and Pacific Telesis Group posted either flat or very low growth. Industry observers note that the economic health of the region where individual companies does business directly influences the companies' economic performance.

Prepackaged software, Radiotelephone communications, Radio & TV communications equipment, Bell Atlantic Corp., BellSouth Corp., U S WEST Inc., BEL, BLS, USW, Financial Report, Second Quarter, NYNEX Corp., NYN

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Net in 1st period is lackluster for 3 Baby Bells; Sprint parent's profit falls; slow growth in hookups of phone lines is cited

Article Abstract:

Three Baby Bell companies - Southwestern Bell Corp, Ameritech and Pacific Telesis Group - and US Sprint's parent United Telecommunications report poor earnings in the 1st qtr of 1991. Slow growth in customer telephone hookups is blamed for the lackluster earnings. Southwestern Bell's profit is down 9.6 percent, Ameritech's is down 6.8 percent and Pacific Telesis Group's is up only 1.5 percent. An industry observer characterizes these results as 'fairly indicative' of regional Bell companies. Southwestern Bell's earnings were affected by rate reductions imposed by a Texas regulatory plan. United Telecom's 39 percent decrease in operating profit from the 1st qtr of 1990 is blamed on continued poor performance by its US Sprint subsidiary.

Telephone companies, Sprint Corp., UT, Telephone Company, Losses

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