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Technology Stocks : 360Networks - TSX - TSIX
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To: Sal Pugliese who started this subject5/15/2001 7:11:39 PM
From: Dexter Lives On   of 449
 
360networks Cuts Back in Light of Tight Capital Markets

18:09 GMT-04:00 Tuesday, May 15, 2001

VANCOUVER, British Columbia (Reuters) - Fiber-optic telecoms network builder 360networks said on Tuesday it remains committed to building a global system, but is scaling back its construction schedule in light of tighter capital markets.

The company told analysts that after reviewing its business plan it has decided to suspend construction work on its 360asia and 360pacific projects.

Chief executive Greg Maffie said the company feels it will be better in the short term to buy capacity to serve customers between Asia and North America than to build the projects itself, although it remains committed to the area.

360networks said it was reducing its planned capital expenditures in 2001 to a range of $2.2 billion to $2.4 billion from a range of $3.5 billion to $4 billion.

The company said it believes the scaling back of its capital expenditures will allow it to avoid seeking any waivers of its debt convents, concern about which has battered the company's shares.

360networks said tight capital markets have tempered customer demand for capacity in new and planned networks. It said its revised business plan is designed to meet actual customer demand rather than "hoped for" demand.

The company said the bulk of the capital expenditure reductions will be a result of its Asian changes, although it is also making smaller cutbacks on work in Europe and in the Americas.

© 2001 Reuters Limited. All Rights Reserved.

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