AT&T; Posts Quarterly Loss of $2.7 Billion

AT&T; Corp. on Thursday reported a fourth-quarter loss of about $2.7 billion after taking a previously announced $6.25-billion charge for job cuts and other costs associated with its plan to split into three companies.

For the full year, AT&T; reported net income of $139 million, or 9 cents a share, a small fraction of its earnings of $4.71 billion, $3.01 a share, reported in 1994.

The nation’s largest long-distance phone company said it lost $2.68 billion, or $1.67 a share, in the fourth quarter, contrasted with a profit of $1.34 billion, 85 cents a share, a year earlier.

AT&T; said without the charge, its net income for the quarter was $1.5 billion, or 94 cents a share.

Earlier this month, the company announced it was cutting 40,000 of its 300,000 jobs and taking at least a $6-billion pretax charge to pave the way for its breakup.

Industry analysts said the results were about as expected.

Meanwhile, GTE Corp., the nation’s largest local telephone company, said increases in its cellular business drove fourth-quarter earnings 11% higher, before a charge for an accounting change resulted in a loss.

The Stamford, Conn.-based company said profit from continuing operations rose to $719 million, or 74 cents a share, from $648 million, 67 cents, a year earlier.

GTE beat an average estimate of 73 cents a share.

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Delta Air Lines Inc. posted disappointing second-quarter profit because of higher-than-expected operating costs and sluggish revenue gains.

Delta also said it may take a charge of as much as $650 million in its next quarter to account for previously announced job cuts and the grounding of airplanes.

The nation’s third-largest airline posted net income for the quarter ended Dec. 31 of $70 million, or 93 cents a share, contrasted with a year-earlier loss of $18 million, 79 cents. Per-share results reflect the payment of preferred-stock dividends.

Atlanta-based Delta was expected to earn $1.69 a share.

Dallas-based Southwest Airlines Co.’s profit more than doubled in the fourth quarter on higher traffic and a 12% increase in average fares.

The company said net income rose to $43.4 million, or 29 cents a share, from $20.3 million, 14 cents, in the year-ago quarter.

The results beat an average earnings estimate of 27 cents a share.

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Boeing Co. said earnings rose 39% in the fourth quarter, bolstered by tax credits and lower-than-expected research and development costs.

Many analysts had expected earnings to suffer in the quarter because a 10-week strike by the company’s machinists Union slashed production at the world’s largest jet maker.

Seattle-based Boeing said it earned $218 million, or 63 cents a share, during the quarter, up from $157 million, 46 cents, in the same period a year ago.

Boeing’s results beat Wall Street’s expectations of 26 cents a share during the quarter.

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Three major consumer-product makers reported increased earnings on higher sales.

Procter & Gamble Co., the maker of Tide detergent, Crest toothpaste and Pampers disposable diapers, said net income for its fiscal second quarter rose 11%, with cost-cutting efforts contributing to the improved results.

Cincinnati-based P&G; said net income rose to $836 million, or $1.18 a share, from $750 million, $1.06, a year earlier. The results for the world’s largest consumer products company were a penny below Wall Street expectations.

Alberto Culver Co., the maker of Alberto VO5 hair care products and Mrs. Dash seasonings, said fiscal first-quarter net income rose 15% on higher sales at its international units and Sally Beauty Co.

The company said net income rose to $12.9 million, or 46 cents a share, from $11.2 million, 40 cents, a year ago. The earnings beat an average estimate of 44 cents a share.

Church & Dwight Inc., the maker of sodium bicarbonate-based products under the Arm & Hammer brand, reported a profit of $1.80 million, or 9 cents a share, contrasted with a loss of $2.43 million, 12 cents, a year earlier. The year-ago period included a pretax restructuring charge of $1.6 million, or 5 cents a share.

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Unocal Corp. said its fourth-quarter profit from operations rose 7% on increased natural gas production and higher gas prices.

The El Segundo-based energy company’s earnings before special items rose to $92 million, or 34 cents a share, from $86 million, 32 cents, a year earlier. Per-share figures reflect payment of preferred dividends.

The results were 5 cents a share above an average forecast of analysts.

At a Glance:

Dow Chemical Co. said its fourth-quarter earnings from continuing operations rose to $417 million, or $1.63 a share, from $323 million, $1.16, a year earlier, failing to meet an average estimate of $1.68 a share. . . . Oakland-based Safeway Inc. said fourth-quarter profit from operations rose to $113.9 million, or 47 cents a share, from $85.7 million, 35 cents, a year earlier. . . . McDonald’s Corp. said its fourth-quarter net income rose to $366.8 million, 51 cents a share, topping an average estimate of 49 cents and up from $308.9 million, 43 cents a share, a year earlier. . . . Coca-Cola Co. reported fourth-quarter earnings of $2.99 billion, or $2.37 a share, for 1995, compared with $2.55 billion, $1.98, in 1994.