Global Crossing Reiterates Confidence In 4-Yr Guidance
Dow Jones Newswires
By Janet Whitman
Of DOW JONES NEWSWIRES
NEW YORK -- Global Crossing Ltd. (GX) Chief Executive Thomas Casey reiterated that he is "very confident" with the telecom company's previous guidance for the next four years.
The Bermuda-based company, which is near completion of its global fiber-optic network, projected previously that its revenue will grow by 30% per year through 2004. Its growth in earnings before interest, taxes, depreciation and amortization, or EBITDA, is targeted to exceed 35% per year through the same period.
"We are very confident about these numbers," said Casey in a conference call following the release of the company's better-than-expected third-quarter results. "We are in an advantageous position with respect to our growth rate because our network is still coming on," he said.
Global Crossing is rolling out a "very specialized portfolio of services," he added. "We think we have a competitive differentiater. We can provide data (or) IP private network services across a global span that no one else will be able to provide on an integrated basis."
Casey also reaffirmed that Global Crossing is targeting capital spending of $4 billion in 2001, which includes Asia Global Crossing.
Capital expenditures, which are estimated at $6 billion for this year, are shifting from network construction into "success-based" spending, driven by demand, he said. "We have an assumption that as the network is completed, overall capital spending will decline."
Chief Executive Casey said during the conference call that the growing demand created by the Internet will enable Global Crossing to meet its growth targets.
"We are the beneficiaries of the Internet growth," he said. "We have always assumed there will be competition, but the market is so big, we think our growth rate is very achievable.
"Pricing has remained almost flat over the last four quarters, which I think is an extraordinarily important data point," he added.
Global Crossing does not have any significant credit issues with any of its customers, he said in response to a question. "There are small ones here and there, (but they're of no) material impact."
The company's business plan is fully funded, said Casey.
"We have all the money we need....We don't have to return to the capital markets to complete our plan," he said. "Our network will be completed next year. We won't be scaling back on our completion plans."
The company's fully funded plan puts Global Crossing at an advantage over some of its competitors, who "will be scaling back, I think," said Casey. "We are confident that it gives us a competitive advantage."
Casey said he's hopeful that the previously announced sale of its GlobalCenter unit to Exodus Communications Inc. (EXDS) will close in January of next year. "I don't see any difficulties," he said.
-By Janet Whitman, Dow Jones Newswires, 201-938-5248
janet.whitman@dowjones.com |
