Pacific Telesis Group Inc expects to report a net loss for full year 1993 after estimated charges of $2,000m related to accounting changes and other restructuring and disposition reserves: the accounting change on future retiree health benefits will reduce first quarter pre-tax profit by $2,600m and first quarter net by $1,600m, and an accounting change on post-employment benefits, such as long-term disability and workers’ compensation, will reduce first quarter net by $151m; it will also establish reserves that will lower net profit by about $260m – some $210m of this is related to the recent decision to dispose of its property portfolio over the next three to five years, the balance to withdrawal from or restructuring of cable and equipment businesses, and costs following spin-off of the cellular operation; its Pacific Bell subsidiary will recognise employee benefits liability over 20 years, consistent with a decision by the California Public Utilities Commission.
