Strong Growth, Better Margins Boost At&T; Profits 12 Percent

AT&T Corp. reported a 12 percent rise in first-quarter profit Wednesday and Chief Executive Robert Allen told shareholders the integration of McCaw Cellular was proceeding well.

Solid growth and better margins in the long-distance business boosted AT&T earnings to $1.2 billion, or 76 cents per share, in the three months ended March 31. It earned $1.07 billion, or 69 cents a share, in the same period last year.

Revenue rose to $18.26 billion from $17.1 billion a year ago.

The 1994 results were restated to include the results of McCaw Cellular Communications, which AT&T acquired in September.

While the company’s profit met Wall Street expectations, AT&T’s stock closed down 12 1/2 cents to $49.87 1/2 a share on the New York Stock Exchange.

In the first quarter, AT&T benefited from a 4 percent jump in telecommunications revenue and 8.5 percent increase in long distance calling volume.

The gap was attributed to customers switching to lower-priced services. Even so, the gross profit margin from telecommunications services rose more than three percentage points to exceed 43 percent.

In other earnings reports Wednesday:

Ford Motor Co. reported that its first-quarter profits grew 71 percent.

Ford’s retail sales were higher than last year’s and its profit totaled $1.55 billion, or $1.44 per share, compared with $904 million, or 83 cents a share, a year ago.

It was the ninth consecutive quarter of profit improvement for the company. Revenues rose 14 percent to $34.8 billion from $30.4 billion a year ago.

The per-share results were on the low end of Wall Street expectations. Nonetheless investors bid up the price of Ford’s stock, which closed at $27.75 a share, up 62.5 cents, on the New York Stock Exchange.

General Electric Co. reported a 28 percent increase in first-quarter profits, citing higher revenues from all 12 of its core businesses.

The industrial-financial services conglomerate earned $1.37 billion, or 81 cents a share, in the three-month period ending March 31, compared with $1.07 billion, or 62 cents a share, in the same period a year ago.

Revenues were up 18 percent to $15.1 billion from $12.8 billion in last year’s first quarter. Six of its businesses recorded double-digit percent increases, led by Plastics, NBC and Appliances.

GE Chairman John F. Welch said the company is positioned to deliver record results for 1995, emphasizing efforts to boosts sales, improve productivity and hold down costs. The company made a record $4.76 billion last year.

McDonnell Douglas Corp., the maker of the C-17 military transport plane, reported Wednesday that firstquarter profits jumped 19 percent, boosted by a strong performance in its defense business.

The company earned $159 million, or $1.38 per share, in the three months ended March 31, compared with $134 million, or $1.13 per share, in the same period last year. Revenues rose to $3.33 billion from $2.95 billion.

The strongest gains came in the military aircraft unit, which had operating profits of $210 million, up 27 percent from a year earlier.

Eastman Kodak Co. said its firstquarter earnings more than tripled from a year ago, an unexpected performance the company attributed to robust sales of consumer film products.

Kodak earned $262 million, or 77 cents a share, compared with $82 million, or 25 cents a share, in the same period a year ago. Wall Street had projected a profit of around 54 cents a share.

Revenue climbed 14 percent to $3.14 billion from $2.76 billion.

Investors responded by bidding up Kodak stock. The company’s shares finished $4.62 higher at $57 on the New York Stock Exchange.

Sales in Kodak’s consumer imaging segment jumped 27 percent to $1.26 billion from $999 million. Sales were particularly strong overseas.