October 16, 2001
Global Crossing Says Has Liquidity To Break Even In 2002
Dow Jones Newswires
NEW YORK -- Responding to the recent sell-off in its stock, Global Crossing Ltd. (GX) reiterated Tuesday that it has sufficient liquidity until it breaks even in 2002, despite lowered guidance for third-quarter earnings.
"Contrary to what the market has been telling us, we feel that we have a very strong liquidity position," Dan Cohrs, chief financial officer, said at the Kaufman Bros. Emerging Communications Conference here. And he said liquidity should improve even more after the planned sale of the company's noncore assets, including Global Marine Systems Ltd. and IPC.
Global Crossing's stock has fallen sharply since the Bermuda-based fiber optic network operator said at the beginning of the month that it was reorganizing its business and would miss analysts' revenue estimates for the third quarter. It expects cash revenues of $1.2 billion in the quarter, well below the $1.6 billion forecast by analysts.
Cohrs said the company will have at least $1.5 billion in cash at the end of the year, which is down from $2.4 billion at the end of the third quarter. In addition, he said, the company would need $1 billion in adjusted earnings before interest, taxes, depreciation and amortization in 2002 to break even, which he said shouldn't be a problem.
As part of its reorganization, Global Crossing plans to merge with its affiliate, Asia Global Crossing Ltd. (AX).
-By Tom Barkley, Dow Jones Newswires; 201-938-2047; tom.barkley@dowjones.com
___________
reh/long |
