MCI, AT&T; Report Higher Income; PacTel Profit Drops

The top two U.S. long-distance companies boosted profits for the first quarter of 1995 as both increased traffic on their long-distance telephone networks, the companies reported Wednesday. At Pacific Telesis, meanwhile, rate changes contributed to an earnings decline.

The quarter ended March 31 marked renewed efforts by MCI Communications Corp., the No. 2 long-distance carrier, to halt the previous quarter’s market-share decline, which came largely at the hands of AT&T; Corp., the No. 1 carrier.

New York-based AT&T; said Wednesday that first-quarter earnings rose 12%, as increased calling volume offset a wider operating loss at the company’s Global Information Solutions computer unit, formerly NCR Corp. AT&T; acquired NCR in 1991.

AT&T; said net income rose to $1.2 billion, or 76 cents a share, from $1.07 billion, or 69 cents, a year earlier. Revenue climbed 6.8%, to $18.3 billion from $17.1 billion.

Washington-based MCI said first-quarter earnings rose 17% as a new discount plan boosted calling on its long-distance network. It said net income rose to $244 million from $209 million a year ago. Per-share earnings were unchanged at 36 cents because the average number of shares outstanding increased 18% to 685 million. Revenue rose 11%, to $3.56 billion from $3.22 billion.

Pacific Telesis said earnings fell to $282 million in the first quarter, down from $305 million in the first quarter of 1994. The company blamed the drop partly on rate changes.

Earnings for Pacific Bell’s parent company were 67 cents per share on $2.25 billion in revenue, compared to 72 cents per share on $2.29 billion in the same period last year.

The decrease stemmed mainly from rate changes in response to new toll-call competition and from state-ordered price reductions, the company said. The company also had to bear $63 million in extra repair expenses because of California’s flooding, Chairman and Chief Executive Phil Quigley said.