Global Crossing Sinks to 2-Year Low, Denies Accounting Problems:
quote.bloomberg.com
"Global Crossing Sinks to 2-Year Low, Denies Accounting Problems
By George Stein
Hamilton, Bermuda, Nov. 15 (Bloomberg) -- Shares of Global Crossing Ltd., owner of a worldwide phone and data-communications network, sank to a two-year low of $16.50 as the company sought to spike Internet chat room allegations of accounting problems.
``It's very simple: There is nothing irregular that's happening in our accounting. Period,'' said Global Crossing Chief Financial Officer Dan Cohrs.
Global Crossing, which dropped 28 percent since the first of the month and 67 percent since Jan. 1, has a stock market value of $14 billion. That values Global Crossing's global network at only $4 billion, Cohrs said, since the company holds or soon will receive cash and marketable securities valued at $10 billion.
Global Crossing is building and offering services over a fiber optic network that will have more than 101,000 route miles, serving five continents, 27 countries and more than 200 major cities.
``We're flabbergasted by the comments that are flying around,'' Cohrs said.
``This has happened to us several times in the past,'' he said. ``When short interest in our stock gets to a certain height, these rumors about accounting irregularities start. It's outrageous and it victimizes our shareholders.''
Global Crossing on Monday reported a recurring net loss applicable to common shareholders of $571.8 million, or 65 cents a share. The loss was smaller than the average estimate of analysts surveyed by First Call/Thomson Financial, who expected the company to lose 79 cents a share.
``We've beat all the numbers from the top line to the bottom line,'' Cohrs said. ``We have 91 percent growth on adjusted earnings before interest, taxes, depreciation and amortization, year on year growth, adjusting for acquisitions and divestitures.''
Global Crossing Chief Executive Officer Tom Casey said in a Monday interview that the company expects to meet or beat previous forecasts for 2000 results, given in August.
He declined to provide specific 2001 estimates, though he said the company continues to expect sales growth to approach 30 percent a year through 2004 and adjusted cash flow growth of 35 percent to 40 percent a year.
Global Crossing shares fell $2 to $16.50 in New York Stock Exchange trading.
Global Crossing's network is now 60 percent complete, the company said. Its South American Crossing cable went into service after the quarter ended."
Morgan |
