SBC ( SBC) posted a slide in second-quarter earnings after a labor settlement charge.

For its second quarter ended June 30, the San Antonio telco earned $1.2 billion, or 35 cents a share. That's down from the year-ago $1.4 billion, or 42 cents a share.

The latest quarter included a charge of $263 million, or 5 cents a share, on the company's settlement with 100,000 union workers. Revenue nudged higher, rising to $10.3 billion from the year-ago $10.2 billion. SBC's second-quarter operating income margin was 14.5% on a reported basis and 17% before labor settlement and strike-related costs.

"I am particularly pleased at how well we executed and regained traction during the final weeks of the quarter after several weeks of preparation for a strike," CEO Ed Whitacre said. "In both long distance and DSL, our weekly run rates improved substantially as we moved through June, and we have begun the third quarter with solid momentum."

On Wednesday, SBC closed at $23.20.