Newspaper article THE JOURNAL RECORD

Southwestern Bell Net Income Cliombs 16.8% in First Quarter

Newspaper article THE JOURNAL RECORD

Southwestern Bell Net Income Cliombs 16.8% in First Quarter

Article excerpt

ST. LOUIS _ A 16.8 percent increase in net income to $261.6 million, or 87 cents per share, was reported Thursday for the first quarter of 1992 by Southwestern Bell Corp. of St. Louis.

The net income for the quarter was up from $223.9 million, or 75 cents per share, for the first quarter of 1991. Revenues for the quarter increased 6.7 percent to $2.29 billion, up from $2.1 billion for the first quarter of 1991. Return on shareowners' equity was 11.66 percent, up from 10.33 percent in the first quarter of 1991.

First quarter earnings were reduced by a one-time charge of $23.5 million, or 8 cents a share, for a voluntary offer of pension enhancements and related benefits being made to surplus non-management employees at Southwestern Bell Telephone Co. In accordance with an agreement with the Communications Workers of America, the offer is designed to reduce the number of layoffs that might otherwise become necessary.

The telephone company estimates that up to 1,700 employees will accept the offer and that up to 2,000 nonmanagement positions will be eliminated during 1992.

Southwestern Bell announced the job elimination program on March 16.

Southwestern Bell has about 52,300 workers. Of those, about 4,000 non-management jobs are in Oklahoma with about 1,787 in Oklahoma City.

"This was a strong growth quarter for Southwestern Bell Corp.," said Edward E. Whitacre Jr., chairman and chief executive officer.

"These results reflect continuing growth in our telephone company and cellular operations and an increased contribution from our investment in Telmex," Whitacre said.

Telmex is Mexico's national telecommunications company, and Southwestern Bell Corp. owns a 10 percent equity stake in the company.

"We began the year with 3,700 fewer managers due to a successful voluntary retirement program in the fourth quarter of 1991," Whitacre said. …

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