Bell Atlantic, BG&E post 3rd-quarter profitsBell Atlantic...

CORPORATE EARNINGS

October 19, 1991|By Leslie Cauley

Bell Atlantic, BG&E post 3rd-quarter profits

Bell Atlantic Corp. said yesterday that its third-quarter profit increased 6.8 percent, to $382.7 million, or 98 cents per share, reflecting a one-time gain from the sale of some stock in Telecom Corp. of New Zealand, the state telephone company that is owned jointly by Bell Atlantic and Ameritech.

Without the stock sale, Bell Atlantic said that its earnings per share would have been 91 cents.

Revenues for the quarter were $3.104 billion, just slightly more than the $3.099 billion reported for the same part of last year.

Bell Atlantic, the parent of Chesapeake & Potomac Telephone Company of Maryland, said that it was continuing to feel the effects of the recession in the hard-hit Northeastern corridor, though demand for new discretionary services, such as Caller ID, was reported to be strong. The company said profits were further hurt by reductions in telephone company interstate rates and lower billing and collections revenues because of a spate of new contracts with the long-distance companies.

Bell Atlantic said that the quarter's performance also reflected the continued downsizing of Bell Atlantic's financial services sector.

The third-quarter figures do not reflect the cost of a $2.5 billion cellular phone deal announced last month. The deal is expected to further dilute Bell Atlantic's 1992 earnings.

Three months ended 9/30/91

.. .. .. .. Revenue .. .. Net .. .. .. Share

'91 .. .. 3,104,000 ....382,700 .. .. 0.98

.... 3,098,700 .. 358,400 .. .. 0.91

change .. +0.2 .. .. .. +6.8 .. .. .. +7.7

Nine months ended 9/30/91

.. .. .. .. .. Revenue .. .. Net .. .. .. .. Share

'91.. .. .. 9,181,100 .. .. 1,091,400 .. .. 2.80

'90 .. .. .. 9,192,800 .. .. 1,076,500 .. .. 2.73

% change .. .. 0.1 .. .. .. +1.4 .. .. .. .. +2.6

Baltimore Gas and Electric

A utility rate increase granted by the Public Service Commission in December plus hot summer weather helped Baltimore Gas and Electric Co. show a 25.9 percent increase in profits during its third quarter.

Kilowatt-hour sales of electricity for the nine months that ended in September increased 4.6 percent from a year earlier. Residential sales rose 9 percent, reflecting the hot weather during the summer cooling season and an increase in the number of customers. Commercial and industrial sales rose 2 percent.

For the first nine months of its fiscal year, the electric utility netted $191.7 million, or $2.28 a share, vs. a year-earlier profit of $184.0 million, or $2.24 a share.

Earnings for the year-ago nine-month period reflect a one-time increase of 46 cents a share because of a change in accounting methods.

BG&E changed the timing of when it recognizes incoming revenues. It now counts revenue as occurring at the time it provides utility service, instead of waiting until it bills customers. "This change conforms with the predominant practice within the utility industry and provides for a better match between revenues and expenses," the utility said.

Three months ended 9/30/91

.. .. Revenue .. .. .. .. Net.. .. .. .. Share

'91 .. 699,957,000 .. ..113,029,000 ..1.34

'90 .. 616,338,000 .. .. 89,749,000 .. 1.08

change .. +13.6 .. .. .. +25.9 .. .. ..+24.1

Nine months ended 9/30/91

.. .. .. Revenue .. .. .. .. Net .. .. .. Share

'91 .. .. 1,850,025,000 ..191,733,000 .. 2.28

'90 .. .. 1,642,439,000 .. 184,017,000 .. 2.24

change .. +12.6 .. .. .. .. +4.2 .. .. ..+1.8

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