AT&T posts $418 million profit as sales drop 8.1 percent in third

NEW YORK (AP) — AT&T Corp. earned $418 million in the third quarter, topping many forecasts, even as revenues fell 8.1 percent as the long-distance business continued a steep decline.

The quarterly profit, which amounted to 53 cents a share, compared with net income of $207 million, or 26 cents per share, in the same period a year ago, which included a $318 million loss from operations that are no longer part of the company.

The latest results reported Tuesday include a charge of $27 million to reflect a change in accounting standards and $13 million from businesses that are being discontinued.

Revenues totaled $8.65 billion, down from $9.41 billion in the third quarter of 2002.

AT&T Business Services, which provides data and voice services to companies, network generated $6.28 billion of the total, down 6.2 percent from $6.70 billion a year earlier.

AT&T Consumer Services, once a $25 billion a year business, posted revenues of $2.35 billion, down 15.8 percent from $2.79 billion in the third quarter of 2002, as the long-distance business remained under assault by the local Bell phone companies, cell phones and Internet-based calling.

The lost business in long distance was partially offset by AT&T’s stepped-up expansion into the local phone business by selling service over leased Bell lines. Revenues from bundled local and long-distance services grew 77 percent and now represents over 22 percent of AT&T, the company said.

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