AT&T showed strong financial improvements in the second quarter.
The company reported income from continuing operations of $536 million, or earnings per diluted share of $0.68, for the second quarter of 2003. The company's current quarter income from continuing operations compares to income of $603 million, or earnings per diluted share of $0.80, in the second quarter of 2002. AT&T's overall net income of $536 million, compares to a loss of $12.8 billion for the second quarter of 2002, which included a significant loss from discontinued operations.
"AT&T's second quarter results reflect our relentless focus on managing costs and driving share gains in key areas of our business despite ongoing economic weakness and increased competitive pressures," says AT&T Chairman and CEO Dave Dorman.
AT&T reported second quarter 2003 consolidated revenue of $8.8 billion, which included $6.4 billion from AT&T Business Services and $2.4 billion from AT&T Consumer Services. This represents a consolidated revenue decline of 8.2 percent vs. the second quarter of 2002, primarily due to continued declines in long distance voice revenue, partially offset by the AT&T Consumer Services bundled local and long distance offering, as well as growth in several key markets of AT&T Business Services.
AT&T's second quarter 2003 operating income totaled $1 billion, resulting in a consolidated operating margin of 11.7 percent. AT&T Business Services posted operating income of $597 million, yielding a margin of 9.3 percent, while AT&T Consumer Services generated operating income of $489 million, yielding a margin of 20.6 percent.
The company also announced its board of directors intends to increase the quarterly per share cash dividend by $0.05, to $0.2375, beginning with AT&T's third quarter dividend payable in November.
Additionally, the company announced the board has authorized management to repurchase up to $2 billion of debt, subject to market conditions and other relevant considerations.
