Telephone Firms Record Mixed Results

MCI Communications Corp. Wednesday reported a loss of $168 million in the third quarter, largely due to a $550-million charge to modernize its global phone network and the writeoff of certain assets.

At the same time, Pacific Telesis Group and Ameritech reported improved third-quarter profits, while earnings softened slightly at another regional telephone holding company, BellSouth Corp.

Washington-based MCI, the much smaller rival to AT&T;, had profits of $165 million in the year-ago period.

MCI said its third-quarter revenues rose to $2 billion from $1.67 billion, boosted by its Aug. 14 acquisition of Telecom U.S.A., the nation’s No. 4 long-distance phone company.

“Without the writedown and other one-time events, MCI’s profits would have been up 14% over the year-ago quarter,” said Bert Roberts, MCI president and chief operating officer.

Pacific Telesis, which owns the primary phone companies in California and Nevada, said its third-quarter profit rose 2.5% to $285 million.

Revenue totaled $2.47 billion, up from $2.37 billion in the same period of 1989.

The San Francisco-based company said gains in its cellular phone business and other services helped offset state-ordered rate cuts at Pacific Bell, a subsidiary.

Chicago-based Ameritech, which owns five phone companies in the Midwest, said its profit rose 7.6% in the third quarter to $311.2 million.

Revenue totaled $2.7 billion, up from $2.6 billion in the year-earlier period.

Atlanta-based BellSouth said its third-quarter earnings totaled $402.9 million, down slightly from last year’s $404.4 million. Revenue totaled $3.551 billion, up from $3.545 billion.

“Earnings continue to be dampened by rate reductions, but these reductions primarily reflect the costs of adopting incentive regulatory plans,” said John L. Clendenin, BellSouth’s chairman and chief executive.