ATT <T> CHAIRMAN SAYS DIVIDEND WILL NOT BE CUT
American Telephone and Telegraph Co does
not plan to reduce its regular quarterly dividend of 30 cts a
share on its common stock, said James E. Olson, chairman.
    "It has been the intent to set the dividend at a level so
that it could be sustained through the ups and downs of the
business cycle," Olson told a meeting of securities analysts.
    "We see no reason to change that policy," he said.
    Although ATT will maintain its current dividend, Olson said
the company wants to decrease the percentage of earnings paid
in dividends by increasing earnings.
    Industry analysts had speculated that ATT might cut its
common dividend, especially after the company posted a fourth
quarter net loss of 1.17 billion dlrs and earned only five cts
a share for the full year.
    The loss included a one-time restructuring charge of 1.7
billion dlrs.
    Olson said he expects ATT's cash flow to remain strong
despite the poor earnings.
 Reuter
