An article July 19 on quarterly profits of MCI Communications Corp. incorrectly reported the company's gain on the sale of its Airsignal subsidiary for $120 million. The gain, to be reflected in the company's third quarter earnings, has not been disclosed.
An article July 19 on quarterly profits of MCI Communications Corp. incorrectly reported the company's gain on the sale of its Airsignal subsidiary for $120 million. The gain, to be reflected in the company's third-quarter earnings, has not been disclosed.
MCI Communications Corp. yesterday reported second-quarter profits of $16.4 million (6 cents a share), a 52 percent decline from net income of $34.3 million (15 cents) last year. Revenue grew to $942.5 million from $601.2 million).
For the first six months of the year, earnings also dropped 52 percent, to $36.2 million (14 cents) from $74.7 million (32 cents) the year before. Revenue climbed to $1.8 billion from $1.2 billion.
MCI, which is based in Washington, blamed the earnings decline on several factors: Last year's results included a one-time $30 million cash gain from a legal settlement; this year's results reflect efforts to integrate and turn around Satellite Business Systems, an unprofitable long-distance telephone and data-transmission company acquired by MCI on Feb. 28, and this year, MCI is paying higher fees to connect more new customers.
The company said that the next quarter's results will reflect the $120 million gain from MCI's sale of its Airsignal subsidiary, which was completed July 3. American Management Systems Inc. of Arlington reported a 51 percent increase in second-quarter earnings to $1.1 million (21 cents a share) from $727,000 (14 cents). Revenue rose to $26 million from $21.2 million last year.
For the first six months, the company saw profits of $2 million (39 cents), up 54 percent from $1.3 million the year before. Revenue grew to $49.2 million from $42 million.
Per-share earnings for 1985 were restated to reflect the 3-for-2 stock split effective Aug. 28 last year, and the 2-for-1 split effective June 9.
The company attributed the earnings gains to increases in products and service revenue, combined with a decline in research and development expense and net interest expense. AMS applys computer and systems engineering technology to address organizational management problems. James Madison Ltd., the parent company of Madison National Bank, reported second-quarter earnings of $1 million (83 cents a share), a 27 percent increase over $788,801 (64 cents) the year before.
Six-month net income grew 19 percent to $1.9 million ($1.51) from $1.6 million ($1.30) last year.
Total assets increased to $374 million on June 30 from $310.8 million the year before.
The company, which is based in the District, attributed the results to continued growth. Black & Decker Corp. of Towson, Md., reported earnings of $604,000 (1 cent a share) on sales of $416.5 million for its third quarter that ended June 29 compared with a loss of $7 million (14 cents) on sales of $371.9 million the year before.
The company also reported nine-month profits of $23.1 million (42 cents), a 37 percent drop from $36.7 million the year before. Sales increased to $1.4 billion from $1.3 billion.
The third-quarter results reflect an extraordinary charge of $2.2 million (4 cents) related to the early retirement of certain high-cost, long-term debt. The prior year's results reflected restructuring charges of $9.5 million (19 cents).
The increase in quarterly sales was attributed to increased volume and improved foreign currency translation.