AT&T Board Names Armstrong Chairman and CEO; Third Quarter Earnings of 71 Cents a Share Announced; Universal Card and Customer Care Units to Be Sold.NEW YORK--(BUSINESS WIRE)--Oct. 20, 1997--The AT&T Board of Directors today announced the election of 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. as the company's chairman and chief executive officer, effective November 1. Armstrong succeeds Robert E. Allen who, after serving in the role since 1988, said last July that he planned to retire when his replacement was named. Prior to his appointment, Armstrong, 59, was chairman and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. of Hughes Electronics Corporation. The Board also announced that John D. Zeglis John D. Zeglis (1947- )served as the President of AT&T and the Chairman and Chief Executive Officer (CEO) of AT&T Wireless. References
Separately, the company announced that earnings 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 in the third quarter were 71 cents a share. Including gains from the sale of its submarine systems unit to Tyco Incorporated, third quarter profits were 75 cents a share. Revenues grew more than 1 percent year-over-year on communications services volumes that rose more than 10 percent. Revenue growth was tempered principally by lower consumer long distance prices reflecting lower access charges that the company is passing through to customers. The company also continued to increase its use of free minutes to retain and acquire high usage consumer customers. The company also announced it plans to sell two profitable, but non strategic, businesses - AT&T Universal Card Services The software support for PC Cards. PC Card applications talk to Card Services. See PC Card. and AT&T Solutions Customer Care. AT&T Universal Card Services is the company's credit card unit. AT&T Solutions Customer Care, formerly known as American Transtech, provides relationship-management support services support services Psychology Non-health care-related ancillary services–eg, transportation, financial aid, support groups, homemaker services, respite services, and other services - such as telemarketing telemarketing, the practice of selling goods or services to customers by means of the telephone or of surveying consumer preferences in telephone conversations. and customer service - as part of the company's highly successful outsourcing (1) Contracting with outside consultants, software houses or service bureaus to perform systems analysis, programming and datacenter operations. Contrast with insourcing. See netsourcing, ASP, SSP and facilities management. , consulting and systems integration unit. Both units to be sold are headquartered in Jacksonville, Fla. The company considers the balance of AT&T Solutions strategic to its mission of serving multi-national companies. The company expects to complete the divestitures by mid- 1998, based on expressions of interest it has already received from a number of potential buyers. Proceeds from the sales will be used for general corporate purposes. Full details on all three announcements are contained in the attached news releases. CONTACT: Adele Ambrose 908-221-6900/office 908-953-9102/home aambrose@attmail.com or Ruthlyn Newell 908-221-2737/office 908-647-6260/home ruthlyn@attmail.com |
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