SBC Reports on Q3

Diluted earnings per share of $0.59 versus $0.57 a year ago; company to reduce capital spending by about 20% in 2002

October 22, 2001

1 Min Read

SAN ANTONIO -- SBC Communications Inc. (NYSE:SBC) today reported third-quarter results that reflect an increasingly challenging U.S. economy and a burdensome and uncertain regulatory environment. Diluted earnings per share, before one-time items, increased 3.5 percent to $0.59, or $2.0 billion, compared with $0.57, or $1.96 billion, in the third quarter a year ago. Revenues, together with proportionate revenues from Cingular Wireless, of which SBC owns 60 percent, increased 0.8 percent to $13.5 billion, up from $13.4 billion a year ago. Revenue comparisons with the year-ago quarter were adversely affected by the sale of assets during the current year, such as SBC's security-monitoring business, and by the pro forma effect of Cingular, which began operation in the fourth quarter of last year. Excluding these factors, SBC's third-quarter revenue growth was 3.0 percent, before one-time items. "The impact of a tough economy is being exacerbated by an adverse and uncertain regulatory environment, so we've taken the steps required to maintain our keen focus on controlling expenses, strengthening margins and maintaining financial flexibility," said Edward E. Whitacre Jr., chairman and CEO.SBC Communications Inc.

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