AT&T takes major hit to start afresh in fiscal 2001

NEWS Despite the one-off charge, the company announced profit of $3bn for the year - 43 per cent down on last year - on turnover that went up five per cent to $66bn. The company report showed quarterly pre-tax profits of $2.6bn, which were converted into a loss by taking into account the company's share of the Excite@Home write-off of $4.6bn, which totalled $1.1bn, plus a $1.6bn 'impairment of goodwill' charge. Total debt was up to $65bn, an 81.4 per cent increase. Consumer long-distance revenue declined, as forecast, by 14.7 per cent to $4.3bn while pre-tax profits dropped 19 per cent. Wireless and broadband customers increased by significant amounts.