AT&T Posts $520 Million Income

AT&T Corp. on Friday reported net income of $520 million, or 64 cents per share, for the third quarter of 2005, compared to a net loss of $7.1 billion, or loss per share of $8.99, during the third quarter of 2004.

The company is nearing its sale to SBC Communications Inc., making this third quarter earnings release possibly its last.

“AT&T’s solid third quarter results demonstrate the successful execution of our strategies across both our consumer and business portfolios,” said AT&T chairman and CEO David W. Dorman, in a news release. “We’ve expanded our margins in the consumer and small business markets as we wind down these businesses, and our enterprise portfolio has benefited from significant cost structure improvement, revenue and volume growth in IP and enhanced services and share expansion in other product lines.”

AT&T said it had third-quarter 2005 consolidated revenue of $6.6 billion, which includes $5.1 billion from AT&T Business and $1.5 billion from AT&T Consumer. Consolidated revenue declined 13.3 percent versus the third quarter of 2004, mostly due to continued losses in long-distance voice and data sales. AT&T last year reduced its agent channel from four tiers to one, canceling a number of its agent contracts; the company also stopped selling to retail consumers.

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