AT&T Co yesterday reported fourth-quarter net profits of $982m or 72 cents a share, including previously announced charges without which the figure would have been $1,150m or 85 cents a share compared with $1,000m or 75 cents a share. Turnover grew by 5.5% to $18,460m. An accounting change for post-employment benefits and payments and a restructuring charge at AT&T Global Information Solutions reduced earnings by $167m or about 13 cents a share. The company says it reported solid revenue growth in each of its product businesses, as well as in its long distance and financial services units. The former NCR reported an increase of more than 20% in sales of its computer products and systems over the year-ago quarter to $1,260m, and total business at Globisol rose 7% to $2,300m but only 2% for the year to $7,260m. Excluding restructuring charges of $190m, NCR made an operating profit of $61m for the quarter, despite poor economic conditions in Europe and Japan, two of its key markets. The profit or loss for the year was not given.
Equipment
The network telecommunications equipment unit turned in its best quarter on record, with robust sales growth both within and outside the US. Long-distance calling volumes grew slightly more than 6% from the year-ago quarter and 5.5% for the year signalling an improving domestic economy. Turnover in the phone service business increased 2% in the quarter to $9,920m, and nearly 1% for the year to $39,860m; cost reductions produced a two-percentage-point increase in margins to 38.2% compared with fourth-quarter 1992. In the products and systems sector, sales increased about 11% in the quarter to $5,880m, and 8% for the year to $17,800m, with many units showing strong growth in sales outside the US, AT&T said. Revenues from sales of network telecommunications equipment to telephone companies improved sharply, with sales outside the US up 17% for the year to $2,220m, led by strong sales in Latin America and Asia Pacific. Sales of special-design components to the US government declined in the quarter, sales of microelectronic components to other customers set a quarterly record. Sales of communications products to businesses and consumers were up in the quarter and the year, with the largest gains seen in telephone systems for large businesses, cellular phones, voice-processing systems and corded phones. Financial services revenues increased 23% for the quarter and 32% for the year. AT&T Universal Card Services says it now has 17m cards in the market, and AT&T Capital Corp is now one of the largest equipment-leasing and financing businesses in the US. Costs increased – 5% in the quarter, 2% in the year, but declined as a percentage of revenue for the quarter and the year, leading to higher profitability for the company.
