Newspaper article THE JOURNAL RECORD

Southwestern Bell Profits Decline 14% / to $212.9 Million

Newspaper article THE JOURNAL RECORD

Southwestern Bell Profits Decline 14% / to $212.9 Million

Article excerpt

ST. LOUIS - A 14.4 percent decrease in net income to $212.9 million, or 71 cents per share, was reported for the second quarter of 1988 by Southwestern Bell Corp., which has over 6,000 employees in Oklahoma.

The lower earnings were due to increased expenses for telephone company operations and the termination of the Silver Pages operations, according to a statement by the company.

Net income was down from the $248.8 million, or 83 cents per share, reported for the second quarter of 1987.

Operating revenues for the second quarter were $2 billion, up 7.8 percent from the $1.89 billion for the same quarter in 1987.

Operating expenses for the quarter rose 15.2 percent to $1.6 billion from $1.4 billion in the second quarter of last year.

For the first six months of 1988, Southwestern Bell's net income dropped 11.3 percent to $431.6 million, $1.44 per share, from the $486.5 million, or $1.62 per share, reported for the first six months of 1987.

Bell's operating revenues from January to June of this year were up 7.2 percent to $4 billion from $3.76 billion during the same period last year.

However, operating expenses so far this year totaled $3.17 billion, an increase of 13.7 percent over the $2.79 billion during the first half of 1987.

Zane E. Barnes, Southwestern Bell's chairman and chief executive officer, said the second quarter performance matched the company's projections of earnings resulting from changes enacted during the period.

"This quarter's financial performance was very much in line with our expectations," Barnes said. "These results reflect the final expense of shutting down Silver Pages operations, the earnings dilution associated with our new cellular and paging properties and increases in telephone company expenses."

It was revealed during the Silver Pages Classic golf tournament in June held at the Quail Creek Golf and Country Club that Southwestern Bell's Silver Pages operations would not be continued. …

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