Third-Quarter Earnings Up for Northern Telecom
NASHVILLE, Tenn. (AP) _ Northern Telecom reported an increase in third-quarter net earnings Tuesday and predicted continued strong growth for the rest of 1990.
The telecommunications company said net earnings rose to $97.7 million in the quarter ended Sept. 30, compared to $80.1 million in the 1989 period. Earnings per share rose to 38 cents, up 23 percent from 31 cents in the same period last year.
Third-quarter revenues increased 14 percent to $1.62 billion vs. $1.41 billion reported for the same three months of 1989.
Northern Telecom Inc. is the Nashville-based U.S. subsidiary of Northern Telecom Limited, which is headquartered in Toronto.
The company said revenues from all geographic areas increased in both the quarter and first nine months, with international revenues continuing to lead in year-over-year percentage gains.
Central office switching remained Northern Telecom’s most profitable product line, and revenues from transmission products showed the largest percentage increase overall.
″The strong results for the third quarter and first nine months lead us to remain optimistic that 1990 will be a year of record performance for Northern Telecom,″ said Paul G. Stern, company chairman, president and chief executive officer.
Net earnings for the first nine months were $272.5 million or $1.05 per share, up from $208 million or 80 cents per share in the 1989 period.
Revenues for the first nine months were $4.89 billion, up 13 percent from $4.32 billion last year.
Northern Telecom sells digital telecommunications systems and provides products and services to telephone operating companies and other institutions. It has more than 49,000 employees worldwide.