Commenting on the company’s figures (see opposite), AT&T Co chairman Robert Allen says the first quarter results, excluding the accounting changes, auger well for the rest of the year. AT&T says long distance calling volume increased 5% from a year ago. Long distance margins rose 2% to 37% from a year ago. Revenues from telecommunications services rose $94m and sales of products and systems increased 2.9%. Sales of network telecommunications products increased $76m to $1,750m, and business from communications products and systems were about even with a year ago. NCR Corp’s total revenues, including sales to other AT&T units, fell 3.9% to $1,480m, but the company is said to be seeing strong orders for its products. It reported an operating loss $20m, including a $50m restructuring charge, for the first quarter, compared to a profit of $46m a year ago. Financial services revenues, including lease and finance revenues from AT&T Capital Corp and Universal Card revenues, rose 40% to $570m, and at the end of the quarter, AT&T’s total workforce stood at 312,500 against 316,400 a year ago. The company says earnings growth of 10% in 1993 is on target, excluding the accounting changes. Robert Allen says he is confident that the company’s proposed investment in McCaw Cellular Communications Inc will close in this quarter, hopefully sooner rather than later. Allen told a conference prior to the company’s annual meeting that March calling volumes were strong, even discounting for some weather which popped it up a bit. He also said he is very optimistic about the NCR computer division, where orders from Europe recently have picked up after a period of extreme softness. He also noted that former US trade representative Carla Hills will be nominated for a seat on the board. The company sees China, where AT&T recently signed a memo of understanding opening the way for a wide variety of deals as a huge opportunity for AT&T although prospects depend on political stability and the country’s continued ability to obtain most-favoured-nation trade status.
