dancing with myself?
oh oh oh oh ...
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U S West's higher spending will cut profit growth
Reuters Story - February 23, 1999 08:23
NEW YORK, Feb 23 (Reuters) - U S West Inc., the Denver-based regional Bell phone company, said on Tuesday its 1999 earnings growth will be less than previously expected due to plans to increase capital spending to improve its data networks and counter competition from AT&T Corp.
U S West said it will spend about $300 million more than expected this year to upgrade its communications network and reduce bottlenecks caused by increasing data traffic. The company will also spend money to accelerate its electronic commerce service and its new video, data and wireless products.
The higher spending will reduce U S West's 1999 earnings growth to about 10 percent, down from previous expectations of 12 percent to 14 percent. Wall Street had previously expected U S West to earn $3.33 a share in 1999, compared with earnings of $3.01 a share in 1998, according to First Call, which tracks analysts' estimates.
U S West said the higher spending is to counter aggressive moves by competitors, including AT&T, which plans to enter four of U S West's major markets -- Denver, Portland, Ore., Salt Lake City and Seattle -- by year's end.
"When... AT&T announces that it is taking you on and when others are spending lots of money to cherry-pick your best customers, you need to make every effort to be the very best at meeting and exceeding customer needs with differentiated products and services," U S West Chief Executive Sol Trujillo said in a prepared statement. |
