AT&T profits increase 2%

October 18, 1990

AT&T today reported a 2 percent rise in third-quarter profits reflecting strength in the company's long-distance service and increased sales of products in overseas markets.

For the period ended Sept. 30, AT&T said net income totaled $712 million, or 65 cents a share, compared with $699 million, or 65 cents a share, in the year-ago period.

Revenue advanced 5 percent to $9.36 billion from $8.9 billion in the same quarter of 1989. Operating income rose 11 percent to $1.25 billion.

American Telephone and Telegraph Co. Chairman Robert E. Allen called the results "solid in the face of a softening economy."

The company said in a statement that higher taxes and start-up costs for the AT&T Universal Card, a combination credit and calling card introduced in March, prevented earnings from showing even stronger gains. Costs for the card where higher than expected because of greater demand. Overall, increased marketing and advertising pushed AT&T's total expenses up 4.3 percent during the quarter.

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