EARNINGS REPORTS: BIG FIRMS ANNOUNCE REVENUES.

Byline: Associated Press

A new drive by AT&T Corp. to lure first-time customers with free phone calls contributed to a mixed bottom line in the second quarter at the nation's largest long-distance company.

AT&T was among a handful of major companies that announced second-quarter earnings Monday. Among them:

AT&T reported its profits fell 38 percent in the quarter amid sluggish revenues, partly due to the offer of up to 250 free minutes of calls to new customers.

AT&T, based in Basking Ridge, N.J., said it earned $959 million, or 59 cents a share, in the quarter ended June 30. That was down from $1.54 billion, or 95 cents a share, in the year-ago period, excluding results from AT&T's underwater cable unit, which it has since sold.

Revenues rose 2.4 percent to $13.17 billion from $12.87 billion.

IBM Corp. reported a 7.4 percent increase in second-quarter profits on a 3.8 percent rise in revenues, as strong demand for computer services, parts and business PCs helped offset weakness in IBM's big business machines. IBM said it earned $1.45 billion, or $1.46 per share, in the quarter ended June 30. That was up from $1.35 billion, or $1.26 per share, in the year-ago quarter.

Revenues grew to $18.87 billion from $18.18 billion.

Nabisco Holdings Corp. posted a profit of $103 million for the second quarter, compared with a $216 million loss a year ago, when its results were depressed by a big restructuring charge. Worldwide net sales barely rose to $2.19 billion from $2.18 billion.

Earnings per share amounted to 38 cents for the three months ended June 30, vs. a loss of 81 cents per share for the second quarter of 1996.

The 1996 figures included $438 million in restructuring charges and expenses, while the latest earnings were boosted by a $1 million net gain from the sale of several domestic regional businesses.

Boeing Co.'s profits tumbled 15 percent in the second quarter as its drive to raise jet production is causing parts shortages and higher overtime costs.

The results for the quarter ended June 30, the last before Boeing's planned merger with McDonnell Douglas, showed profits of $399 million, or 55 cents a share, compared with $468 million, or 68 cents a share, in 1996. Last year's second quarter was inflated by a $176 million gain for the settlement of some defense and space contracts.