Global Crossing Posts Wide Loss, Job Cuts
November 13, 2001 9:54:00 PM ET
news.moneycentral.msn.com
LOS ANGELES (Reuters) - High-speed communications network services company Global Crossing Ltd. (GX) on Tuesday posted a third-quarter loss five times wider than a year earlier and said it would cut another 1,200 jobs as it moves to a more tightly focused recovery plan.
Global Crossing, which operates a fiber-optic network that connects 200 cities around the world, posted a third-quarter net loss of $3.4 billion, or $3.84 per share, compared with a loss of $602.4 million, or 69 cents a share a year ago. Revenue rose to $792.9 million from $778.1 million in the year-earlier period.
The net loss included a $2.08 billion non-cash charge as the company wrote off the shares it had received from now-bankrupt Exodus Communication in exchange for the sale of its GlobalCenter subsidiary.
The company, which rents its network to other carriers and sells services to telecommunications carriers and other businesses, said it would cut an additional 1,200 jobs in addition to a previously announced reduction of 2,000 people as part of a plan to cut $550 million in 2002 from its annual operating costs.
Capital expenditures were projected to fall to near $1 billion to $1.25 billion in 2002, roughly a fourth of the $4.2 projected for this year as the company completes the construction of its core network.
Chief Executive John Legere, who took his post in October as Global Crossing floated and then scrapped plans to acquire the subsidiary Asia Global Crossing, which he had headed, said the company's focus had pulled back to a more realistic business plan. |
