AT&T sees profit growth
AT&T Inc. said Tuesday that merger-related efficiencies and growth in its wireless, DSL and business services will produce strong profit growth in each of the next three years.
San Antonio-based AT&T, one of the nation’s largest telecommunications companies, issued the rosy forecast at its annual conference for analysts and investors in New York.
AT&T Inc. was formed late last year when SBC Communications Inc. bought its former parent, AT&T Corp., and then adopted the better known name.
Earnings, excluding merger expenses, are expected to grow at a “double-digit” percentage each year over the next three years. Revenue growth at AT&T is expected to turn positive on a year-over-year basis in 2008.
A former senior executive of Citigroup Inc. has agreed to pay some $2.7 million to settle insider trading charges brought by the Securities and Exchange Commission, the agency announced Tuesday.
Victor Menezes sold about $29 million in Citigroup stock in March 2002, a few weeks before the banking giant reported a substantial charge against its books, according to the SEC. The agency alleged in a civil lawsuit that by virtue of his position as CEO of the emerging markets division, Menezes knew in advance that Citigroup planned to report first-quarter losses of hundreds of millions of dollars from its operations in Argentina.
Canada’s Bombardier Inc. said Tuesday it has dropped plans to produce a new, long-range jet aircraft, blaming poor market conditions on its decision to shelve the $2.1 billion CSeries project.
The Montreal-based aircraft maker said it would shift resources from development of the CSeries to regional jet and turboprop aircraft to service future needs in the 80- to 100-seat aircraft market.
The new jet series had been under development with support from the Canadian and British governments. Bombardier hoped to produce two aircraft seating 110 to 130 passengers.
Construction-equipment seller H&E Equipment Services Inc. and email-software maker IncrediMail Ltd. rose in their trading debuts on the Nasdaq Stock Market on Tuesday.
H&E Equipment, which rents and sells construction and industrial equipment, rose in Tuesday afternoon trading to $22.65, up 26 percent from its IPO price of $18 a share.
Tel Aviv-based IncrediMail, which makes software that can customize e-mail for home users, rose Tuesday to $8.76 in afternoon trading, up 17 percent from its IPO price of $7.50.