AT&T wireless sales grow, offsetting landline losses

NEW YORK -- Showing few signs of being affected by a slowing economy, AT&T Inc.'s first-quarter earnings rose 22 percent on strong growth in wireless service.

The wireless division at country's largest telecommunications company continued to drive growth, even as the local-phone business is stuck with declining numbers.

The enterprise division, which provides services to the government and large corporations, reversed a slide.

AT&T earned $3.46 billion, or 57 cents per share, in the three months ended March 31, compared with $2.85 billion, or 45 cents per share, a year ago.

Revenue rose 6.1 percent to $30.7 billion.

The earnings per share and revenue matched the average expectation of analysts polled by Thomson Financial.

Chief Financial Officer Rick Lindner said that apart from some "softness" in local phone lines, there was little sign that the weakness in the U.S. economy is affecting the company.

Analyst David Barden of Bank of America said the "solid metrics and revenue trends" supported the view that the big phone companies are resilient in an economic downturn.

AT&T shares gained 22 cents, or 0.6 percent, to close at $37.81 in Tuesday trading.