Business : AT&T; Has First Loss in 103 Years
From Times Wire Services
NEW YORK —
American Telephone & Telegraph Co. today reported the first annual loss in its 103-year history due to a huge accounting charge to write down the value of obsolete equipment. Underlying earnings actually strengthened for the telephone giant.
The company reported a net loss of $1.67 billion for last year after a profit of $2.04 billion in 1987. Its revenues rose 4.3% to $35.21 billion from $33.77 billion. In the fourth quarter, its loss was $3.34 billion, compared with a profit of $498 million in 1987. Revenues rose 6.4% to $9.21 billion from $8.65 billion.
Without the net charge of $3.94 billion, AT&T; would have earned $2.27 billion for the year and $593 million in the quarter, a gain of 19% over the prior year’s final quarter.
