AT&T; Profit Up Before One-Time Charge

AT&T;, enjoying a jump in long-distance business, Wednesday reported its first-quarter profit rose by 12% before a special $7-billion charge to comply with new accounting rules.

The charge dropped AT&T; to a net loss of $5.6 billion, or $4.19 a share, for the three-month period that ended March 31. That compares with net income of $883 million, or 67 cents a share, for the first quarter of 1992.

But not counting the one-time charge, AT&T; would have reported net income of $996 million, or 74 cents a share.

“Accounting changes aside, this was a good quarter and I am confident in augurs well for the remainder of the year,” said Robert E. Allen, chairman of New York-based American Telephone & Telegraph Co., which held its annual shareholders meeting in Boston.

Revenue rose 2.2% to $15.7 billion, up from $15.3 billion in the same quarter a year ago. The company attributed the gain to growth in financial and long-distance services, plus sales of telecommunications and microelectronic components.

AT&T; had previously announced it would take the $7-billion charge, which covers accounting rule changes for retiree health care benefits.

AT&T; also reported a $20-million operating loss from its computer subsidiary, NCR, acquired in 1991. Those results included special charges to cover the cost of cutting about 600 jobs as NCR coped with a sluggish economy and narrowing profit margins that have hurt the entire industry.