Show AT&T believes the worst over But two years after breakup it's NEW YORK (AP) — The earthquake or the Bell System breakup occurred more than two years ago but American Telephone & Telegraph Co its one- third of a million employees and 87 million customers are still feeling the aftershocks AT&T has to cope in negotiations be- ginning last week with labor unions demanding job security It is waging a $400 million campaign for customers And during it all it must make the transition to a new chairman continues to make money for AT&T but the company has had declining rental revenue on communications equipment and slow sales of 'both phone equipment and computers 'Revenues rose but earnings slipped 16 percent at the end of 1985 and Wall Street analysts recently lowered their earnings projections for 1986 and 1987 Even so AT&T continues to have 29 million shareholders and Charles L ' Brown who led the company through its worst upheaval believes the worst is over Brown retires as chairman in August Industry analysts expect James Olson AT&T's vice chairman president and chief operating officer to succeed Brown Brown is a traditionalist said analyst Kenneth Leon at LF Rothschild Tow bin ' "Whereas Mr Olson we don't know yet what his management style will be He has a higher energy level than Mr Brown a different flair It could be Peter 'the Great moving AT&T out of the Dark Ages" AT&T was the world's largest corporation when "Charlie" Brown became 'chairman in 1979 It had guaranteed re- turns on investment and a near monop-oIon the nation's telephone service ' Today the Bell System belongs to his-- " tory and a shrunken AT&T — with less than a third the assets of its predecessor — is battling a host of competitors in service communications equipment and computers WIN from 1E Martinez said he has gotten a couple of good employees through the program But what bothers him and some other participating employers are those people who go through the program because they have to and then find a way to quit working and return to the welfare rolls still trying to 1985 total market $4865 billion Long distance market shares by company AT&T 78-- VtJ Other 104 US MCISBS 62 Telecorr ALC" 07 Doesn't telephone " Merger vices Inc Source V3TE 27 10 include company long distance territories calls Sprint wrthm local between Artnet Communications and Lent el Corporation Yankee Ser- Group graphtc The Brown describes the AT&T breakup as "the most shattering reorganization in business history" Job security is expected to be a major issue in the union contract talks because the company has eliminated 56000 jobs since the breakup Brown also has to shepherd AT&T through the final months of "equal access" voting in which people are choosing which phone service Most of they want to reach by dialing the nation's residential phone customers will have chosen by Sept AT&T has done surprisingly well in the sweepstakes so far AT&T had just under 79 percent of the market at the end of 985 not far from the 91 percent it had at divestiture estimates Mary Johnston an analyst for the Yankee Group in Boston Even though Brown said the issue of divestiture "is largely behind us now" AT&T is still feeling some tremors: Analysts say profit margins on its lucrative services for big business are likely to erode MCI with providing an avenue for single parents to get off of welfare While some might point to the savings to taxpayers in reduced welfare costs and increased income and other taxes paid by the new workers Fetter and Pledger have a different viewpoint "I was tired of working for minimum wages or sitting around the house waiting for a welfare check" Pledger said "I'm supporting myself and my son now and it feels much better" "The program needs some work done on it" he said "They need some better screening to make sure the person is going to stay on the job" Another endorsement of the WIN program comes from Marie Fetter Pledger's supervisor at Tool Tech Fetter who is purchasing and personnel officer is herself a graduate of the WIN program She went through the program two years ago and gives it high marks for Past year especially hard on Trans World Airlines By RICK GLADSTONE NEW YORK — From takeover battles and terrorist ordeals to staggering financial losses and striking flight attendants the past year has been especially hard on Trans World Airlines The latest crisis to befall the US airline was a bomb that blew a hole in a TWA Boeing 727 en route from Rome to Athens where the jet landed safely Wednesday "It has been hit with almost every one of the major airline difficulties that has occurred within the past year" said Lee Howard vice president of Airline Economics Inc a Washington consulting nd publishing firm "This thing will certainly cost them a few passengers here and there" said Louis Marckesano an airline analyst for the Philadelphia investment firm Janney Montgomery Scott Inc Last June hijackers forced one Jf its jets to land in Beirut killed an American passenger and held others hostage for several Part of its financial loss stemmed from expenses incurred during a takeover battle for the airline which began in May when New York financier Carl C Icahn disclosed he owned 205 percent of TWA's stock Icahn eventually won control outmaneuvering rival bidder Texas Air Corp and now is TWA's chairman But the veteran of corporate takeovers had no previous experience running an airline and encountered immediate trouble with the Indepen- dent Federation of Flight Attenhis which dants rejected demands for longer working hours and lower pay The union struck March 7 and talks remain deadlocked TWA President Richard Pear- son said in February that since then bookings to the Middle East have fallen by 70 percent and bookings to Rome by 35 percent TWA claims it has restored the full schedule of more than 600 daily flights by using new hires and other staff trained as emergency backups But Icahn has estimated the strike will cost TWA at least $75 million Historically known as a sumWr airline that makes most of its 'money on tourism to Europe the TWA has strugNew gled financially for several years One of the nation's oldest carriers TWA began operations in 1925 when its original parent company Western Air Express flew passengers in folding seats "weeks ' lost $1931 million in 1985 In addition its debt of nearly $13 billion is among the highest in the industry and the declining value of the US dollar has dis-couraged overseas travel and Press Associated rSKATE BOARDS Oll TT ski innnifis UU Ideck AND SPORTS 2959 Wash 95 BtW Read The Classified located in the mail compartment route of planes on the between Los Angeles and Salt Lake City It started transcontinental service four years later with a fleet of Ford hL "Our whole thesis on the company is that this will be a turnaround year for TWA" Marckesano said "We feel they're getting their house in order and good things are ahead for them" Unbelievable? 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"Building upon an Historic Heritage creates a progressive future The speciality shop Trends & Traditions adds a new dimension to se lecting the perfect gift tor any occasion" — Shelley Clarke Coldenwest Credit Union Downtown Ogden Assoc IP Save Eagfe Notionofi Msxrtgoge Association 'liAr' r LsD Y WV T 3E April 6 1936 Sunday (pi Ur©r Bezyack By 1955 TWA had introduced the "Connie" the propeller-driveLockheed Super G Constellation with Los Angeles to London service that took 21 hours double the time it takes a 747 Boeing jumbo jet Today TWA flies to 63 US points and 23 foreign cities with a fleet of 165 jets Among the firsts claimed by TWA are its service on international routes in 1961 service on domestic routes in 1967 747 service in 1970 and sections on all flights in 1970 Despite its problems several nancial analysts have upgraded their outlook for TWA since Icahn took control and believe his planned purchase of Ozark Air Lines for $250 million along with lower labor costs and fuel prices will help the airline emerge as one of the strongest US carriers FIXED RATE Bmtoos tfcrr cope with changes the backing of part owner IBM and GTE Sprint are targeting the market and customers have realized they can demand more for less The "Baby Bells" have shown a to go elsewhere for equipment they traditionally bought from AT&Ts Western Electric Computers continue to cause headaches It is far from challenging IBM for supremacy in information processing and its 6300 personal computers have won only about 6 percent of the PC market The regional Bell companies are trying to break down the barriers that have kept them out of equipment manufactursering and most interstate vice AT&T could find that its offspring are some of its toughest competitors AT&T fell from first to eighth on the 1984 Fortune 500 list after the Jan divestiture of its 22 wholly owned Bell System companies The company's net income fell 16 percent in the last quarter of 1985 the first such decline since the breakup Earnings were $364 million or 32 cents $370 mila share versus the lion or 33 cents a share Revenue rose 84 percent to $912 billion highest since the breakup Leon recently lowered his 1986 estimate of earnings per share to $150 from $190 and his 1987 estimate to $170 from $215 However AT&T remains a stock held by widows and orphans who count on its clockwork dividend More than half its owners have less than 100 shares Most shareholders don't seem to realize that AT&T is far smaller than before and far more dedicated to growth by internal reinvestment said analyst John Bain of Shearson Lehman Brothers Inc AT&T's quarterly dividend is unlikely to be cut but it is also unlikely to rise soon Bain said The chafienge now is to make money 'AT&T still has vestiges of the monopoly mentality and is not as good at salesmanship as say IBM said Ken Zita an analyst for Tetra Communications in New York market Long-distanc- e r Ogden Business Trends & Traditions 2487 Grant Ave Phone 394-415- 7 OTBP!I |