Copyright (c) 1995, Dayton Newspapers Inc.
May 23, 1995
Don't expect any sweeping changes soon at AT&T Global Information Solutions.
Lars Nyberg, the Philips Electronics NV executive who will become chairman and chief executive of AT&T GIS on June 1, has told employees he will spend the first several months ``listening to customers and employees around the world to see what the issues and opportunities of the business are,'' spokesman Mark Siegel said.
That could entail a lot of traveling and talking. The former NCR Corp. has 46,250 employees and 1,100 offices in more than 120 countries. About 24,000 ofthose employees are in the United States, including 4,600 in the Dayton area.
There's no doubt, though, that some changes are necessary because AT&T GIS can't generate consistent profits despite strong revenue growth.
For first quarter 1995, for example, AT&T GIS reported a $143 million operating loss despite a 28 percent increase in revenue to $850 million. AT&T Corp. cited ``competitive pricing pressures on all products.''
The parent company also said AT&T GIS has an ``unfavorable product mix'' because low-margin personal computers are some of its hottest-selling products.
The company sells computer products and systems, including automatic tellermachines, and related software and services. AT&T GIS has defined the financial, retail, communications, consumer goods manufacturing, transportation and public sector markets as its key customer base.
The large loss last quarter followed a $45 million operating income gain infourth quarter 1994 and break-even performance in third quarter 1994. The company reported operating income of $14 million in second quarter 1994, but an operating loss of $57 million for first quarter 1994.
For the year, the company reported $8.4 billion in sales, but only $2 million in operating income.
Meanwhile, Nyberg, a 43-year-old native of Sweden, is busy closing out his 20-year career at Philips, where he rose to become chairman and chief executive of the company's Communications Systems division. He has an agreement to buy a house in Kettering and is preparing to move his family fromthe Netherlands.
Nyberg has declined all requests for interviews, Siegel said.