ARMSTRONG PLAN WOULD SHAKE UP AT&T.Byline: Daily News Staff and Wire Services Hired three months ago to turn around AT&T, Chairman C. Michael Armstrong C Michael Armstong (born 18 October, 1938, in Detroit, Michigan) is the former AT&T chairman and CEO, who tried to reestablish AT&T as an end-to-end carrier. Unfortunately, due to the dot.com bust and various other issues, he was forced to break the group up in 2001. on Monday detailed a cost-cutting drive to slash up to 18,000 jobs, freeze executive salaries and shake up management. AT&T Corp., which is cutting up to 14 percent of its 128,000-person work force, combined the reductions with new investments aimed at shoring up Noun 1. shoring up - the act of propping up with shores propping up, shoring supporting, support - the act of bearing the weight of or strengthening; "he leaned against the wall for support" sagging revenues. The nation's largest telecommunications company See telecom company. plans to boost its capacity to carry Internet and data traffic, offer telephone service across the Internet and sell a new type of mobile-phone service. The company announced the blueprint after disclosing that quarterly profits fell 18 percent in the fourth quarter. Profit from continuing operations continuing operations Parts of a business that are expected to be maintained as an ongoing segment of an overall business operation. Income and losses from continuing operations are reported separately if any segments have been discontinued during the rose to $1.32 billion, or 81 cents a diluted share, from $1.25 billion, or 77 cents, a year earlier. AT&T was expected to earn 71 cents, the average estimate of analysts polled by IBES IBES See: Institutional Brokers Estimate System International Inc. Revenue dropped less than 1 percent to $12.83 billion from $12.87 billion, while long-distance revenue fell 2.3 percent to $11.39 billion. Among other major companies to announce quarterly earnings Monday: General Motors Corp. said cost cuts in North America North America, third largest continent (1990 est. pop. 365,000,000), c.9,400,000 sq mi (24,346,000 sq km), the northern of the two continents of the Western Hemisphere. helped it more than double fourth-quarter profits. GM earned $1.7 billion, or $2.33 a fully diluted share, compared with $786 million, or 91 cents a share, in the October-December period of 1996. American Express American Express (NYSE: AXP), sometimes known as "AmEx" or "Amex", is a diversified global financial services company, headquartered in New York City. The company is best known for its credit card, charge card and traveler's cheque businesses. Co.'s fourth-quarter earnings fell 17 percent from results a year ago that were fattened by a one-time gain. The financial services company earned $493 million, or $1.04 per diluted share, in the three months ended Dec. 31, down from $595 million, or $1.23 a share, a year earlier. Travelers Property Casualty Corp.'s fourth-quarter earnings rose 10 percent, led by net investment income as operating expenses Operating expenses The amount paid for asset maintenance or the cost of doing business, excluding depreciation. Earnings are distributed after operating expenses are deducted. and payments on claims fell. The Hartford, Connecticut-based insurer said profit from operations rose to $287.9 million, or 73 cents a diluted share, from $261.6 million, or 65 cents. Occidental Petroleum Corp. said its fourth-quarter profit fell 10 percent on currency losses affecting a Thai petrochemical joint venture, as well as lower profit from other subsidiaries. Occidental, an oil and natural gas company based in Los Angeles, reported profit from operations of $143 million, or 34 cents a diluted share, down from $159 million, or 41 cents, in the year-earlier period. |
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