graphic
graphic  
graphic
News > Companies
graphic
AT&T meets forecasts
graphic October 23, 2001: 7:12 p.m. ET

No. 1 long-distance phone provider posts a sharply lower profit.
graphic
graphic graphic
graphic
graphic
graphic       graphic
  • AT&T to cut 2,400 jobs - Oct. 23, 2001
  •  
    graphic
    NEW YORK (CNNmoney) - AT&T Corp. on Tuesday posted third-quarter results that met Wall Street expectations while citing a softening economy and September's terrorist attacks for a falling profit.

    New York-based AT&T (T: Research, Estimates) reported third-quarter income from continuing operations of 4 cents a diluted share, excluding other income and charges, compared with 35 cents for the same time period last year. Earnings tracker First Call expected 4 cents a share for the quarter.

    AT&T confirmed earlier Tuesday that it would cut 2,400 jobs.

    Cash earnings were 16 cents. AT&T earned $3.13 a diluted share in the third quarter, on a reported basis, which includes a $13.5 billion after-tax gain, or $3.82 a share, due to the spinoff of AT&T Wireless.

    The nation's No.1 phone provider said it expects to take a fourth-quarter restructuring charge related to cost-control initiatives taken mostly at AT&T business. The company did not quantify or detail impacts of the charge.

    A softening economy and the terrorist attacks of Sept. 11 will impact key market sectors that AT&T serves throughout fourth quarter and 2002, the company said.

    "The Sept.11 attack was layered on an already weak economy," said AT&T CEO Mike Armstrong on a conference call open to analysts and reporters. "This is impacting our core businesses. AT&T is seeing a mirroring of the U.S. economy."

    Armstrong later added that any signs of a rebound for the U.S. economy and AT&T's businesses will likely not come before the second half of 2002.

    graphic  
    AT&T sees fourth-quarter earnings from continuing operations to be 3 cents-to-6 cents a share, while cash earnings will be 14 cents-to-17 cents a share, excluding charges and other income. Earnings before taxes, excluding charges, will be in the range of $3.4 billion-to-$3.6 billion.

    First Call expects 4 cents a share in the fourth quarter.

    Revenue dropped to $13.1 million from $14.2 million last year, which AT&T said is due to the decline in long-distance voice services and the softening economy. AT&T expects to cut capital expenditures by 20 percent in 2002, the company said.

    AT&T said $400 million in charges were due to Excite At Home, the troubled high-speed Internet service provider.

    AT&T segments vary

    Margins for AT&T Broadband increased by 8.1 percentage points compared with 25.2 percentage points. Revenue grew by 15.2 percent to $2.4 billion. The cable business added 43,000 new subscribers during the quarter.

    Revenue for AT&T business dropped 4.7 percent to $6.9 billion due to the decline in long-distance voice services. Margins for the unit fell to 14.6 percent.

    AT&T Consumer posted a 17 percent drop in revenue to $3.8 billion. graphic

      RELATED STORIES

    AT&T to cut 2,400 jobs - Oct. 23, 2001





    graphic graphic


    Most stock quote data provided by BATS. Market indices are shown in real time, except for the DJIA, which is delayed by two minutes. All times are ET. Disclaimer.

    Morningstar: © 2014 Morningstar, Inc. All Rights Reserved.

    Factset: FactSet Research Systems Inc. 2014. All rights reserved.

    Chicago Mercantile Association: Certain market data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved.

    Dow Jones: The Dow Jones branded indices are proprietary to and are calculated, distributed and marketed by DJI Opco, a subsidiary of S&P Dow Jones Indices LLC and have been licensed for use to S&P Opco, LLC and CNN. Standard & Poor's and S&P are registered trademarks of Standard & Poor’s Financial Services LLC and Dow Jones is a registered trademark of Dow Jones Trademark Holdings LLC. All content of the Dow Jones branded indices © S&P Dow Jones Indices LLC 2014 and/or its affiliates.

    Most stock quote data provided by BATS. Market indices are shown in real time, except for the DJIA, which is delayed by two minutes. All times are ET. Disclaimer.

    Morningstar: © 2014 Morningstar, Inc. All Rights Reserved.

    Factset: FactSet Research Systems Inc. 2014. All rights reserved.

    Chicago Mercantile Association: Certain market data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved.

    Dow Jones: The Dow Jones branded indices are proprietary to and are calculated, distributed and marketed by DJI Opco, a subsidiary of S&P Dow Jones Indices LLC and have been licensed for use to S&P Opco, LLC and CNN. Standard & Poor's and S&P are registered trademarks of Standard & Poor’s Financial Services LLC and Dow Jones is a registered trademark of Dow Jones Trademark Holdings LLC. All content of the Dow Jones branded indices © S&P Dow Jones Indices LLC 2014 and/or its affiliates.

    graphic