Newspaper article THE JOURNAL RECORD

Mci Net Income Up 25%, 3 Bell Companies' Profits Up

Newspaper article THE JOURNAL RECORD

Mci Net Income Up 25%, 3 Bell Companies' Profits Up

Article excerpt

A 25 percent increase in net income to $25 million, or 9 cents per share, was reported Monday for the first quarter of 1987 MCI Communications Corp..

Among the regional Bell companies, first-quarter profits were up 6.1 percent at Philadelphia-based Bell Atlantic Corp., up 13.5 percent at Denver-based U S West Inc., and up 7.7 percent at Atlanta-based BellSouth Corp.

The other four Baby Bells reported their results last week. Profits were up 1.5 percent at Chicago-based Ameritech, up 0.9 percent at New York-based Nynex Corp. and up 7.1 percent at Pacific Telesis Group.

Southwestern Bell Corp., which serves Oklahoma, was the only one to report a down quarter, with profit slipping 3.4 percent.

AT&T said last week its profit rose 25.7 percent in the first quarter in spite of a 6.8 percent decline in revenue. US Sprint had a pre-tax loss of $242 million, according to its corporate parents, GTE Corp. and United Telecommunications Inc.

- MCI, which is based in Washington, said its profit was up from $20 million, or 8 cents a share, in the first quarter of 1986.

Revenues for the quarter totaled $955 million, up 16.6 percent from $819 million a year earlier.

The profit contrasted with the last quarter of 1986, when the company lost $502 million because of a pre-tax charge of $585 million to cover the writedown of outmoded equipment and a reserve for a restructuring program aimed at cutting costs.

MCI, the nation's second-largest long-distance company which has operations in Oklahoma, said its revenue rose 4 percent from the last quarter of 1987 in spite of a March 1 rate reduction of 9 percent that was taken in response to price cuts by market leader American Telephone & Telegraph Co.

MCI's income from operations was the same as a year earlier, but the bottom line was helped by a $12 million pre-tax gain from previously negotiated antitrust settlements and a $5 million tax-related benefit. …

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