AT&T earnings dip 23.6 percent

From CNET News.com: AT&T, the nation's largest phone company, reported Wednesday that its earnings for the fourth quarter fell 23.6 percent year over year, amid a tough economic climate.

The company said it earned $2.4 billion, or 41 cents per share, during the fourth quarter, compared with $3.14 billion, or 51 cents per share, during the same period a year ago. Revenue increased 2.4 percent year over year to $31.1 billion, which was slightly short of analyst expectations of about $31.3 billion.

Even though AT&T saw strong growth in its wireless business and IP data business, it also spent more on operations. AT&T's adjusted operating expenses for the fourth quarter totaled $24.5 billion compared with $23.1 billion a year ago. Its adjusted operating income was $6.6 billion, versus $7.3 billion. And the company also saw its operating income margins fall to 21.1 percent compared with 24 percent.

AT&T announced in December plans to cut 12,000 workers, or about 4 percent of its workforce, in an effort to reduce costs.

"Despite the economic environment, we grew revenues in 2008, and I expect 2009 will be another year of overall revenue growth and solid progress for our company," Randall Stephenson, AT&T's chief executive officer, said in a statement. "Looking ahead, while we are cautious about the economic environment, AT&T is well positioned with a strong balance sheet and premier operational assets, and I am very confident in our ability to execute."

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