Nextel Warns Of Weak 1Q Results
14 Mar 12:48
A WSJ.com News Roundup
RESTON, Va. (Dow Jones)--Nextel Communications Inc. (NXTL) warned that
first-quarter results will be hurt by slowing business purchases, corporate
downsizing and higher costs.
Shares of Nextel dropped on the news, which was released around midday
Wednesday in conjunction with a New York conference appearance by the company.
In early-afternoon trading on the Nasdaq Stock Market, shares of Nextel were
down $6.94, or 34%, to $13.50.
The wireless provider's president and chief executive, Tim Donahue, said in a
prepared statement that domestic operations have "begun to feel the impact of a
slowing economy and related cost-control measures being implemented by many
businesses."
The company said it is taking unspecified aggressive actions to reduce costs,
boost efficiencies and focus on profitability.
He added that the company now expects to report about 500,000 net subscriber
additions during the first quarter and operating cash flow that is about 15%
below the fourth-quarter level.
For the fourth quarter, the company had a loss of $61 million, or 8 cents a
share. The loss included a $275 million one-time gain related to investments,
as well as charges of $61 million, partly related to foreign-currency losses.
Excluding one-time items, the loss was 34 cents a share.
Analysts surveyed by First Call/Thomson Financial had been expecting a loss
of 43 cents a share for the current first quarter.
For continuously updated news from The Wall Street Journal, see WSJ.com at
wsj.com.
(END) DOW JONES NEWS 03-14-01
12:48 PM |
