AT&T Co yesterday reported fourth-quarter profits down 21% at $635m, in large part because of the previously reported reduction in the book value of AT&T’s investment in Compagnie Industriali Riunite SpA which it took in exchange for its Ing Co Olivetti & Co SpA stake. Long distance and financial services revenues continued to grow during the quarter despite the recession, but the effects of the economy reduced sales of many of the company’s products. AT&T took approximately $4,200m of restructuring and other charges earlier in the year, primarily for changes in its computer and business-equipment operations, product distribution and other areas of its business, including staff reductions. It also made one-time gains of 11 cents a share, from selling its investment in Sun Microsystems, Inc and equity in Unix System Laboratories.Net revenues from telecommunications services increased 6% for the fourth quarter and calling volumes increased nearly 6.5%. The company stabilised its share of the US long distance market in 1991 and made progress in stabilising share in international calling. It expects stronger volume in domestic and international long distance when the economy rebounds. Sales of products and systems declined 7% for the quarter, to $4,405m but AT&T computer products and systems sales from several units fell 19.4% to $1,082m in the fourth quarter.NCR Corp however reported record orders for the quarter, reflecting strong customer acceptance of new products introduced during 1991. Revenues from consumer products increased for the quarter, primarily from higher sales of answering systems, security systems and telephone accessories. Sales of microelectronics products also were up AT&T said.
