NT-t...in the news:
Chunghwa Telecom Selects Nortel Networks To Build Taiwan Optical Backbone; Plans To Fulfill Goal of Providing Island-Wide Universal Broadband Access
fin-info.com
NP says more job cuts and charges loom for Nortel
The National Post reports in its Saturday, Aug. 31, edition that Gimme
Credit analyst Carol Levenson, in a note to institutional investors, says
Nortel Networks will likely face more job cuts, take an $800-million (U.S.)
restructuring charge and be forced to restructure its bank covenants. The
Post's Robert Thompson writes that Ms. Levenson's note follows last week's
earnings warning from Nortel, which did not refer to the charges it would
face for its proposed restructuring. Nortel said only that it would come in
$270-million (U.S.) short of its financial guidance for its third quarter
ended Sept. 30. Ms. Levenson, however, says she expects the charge to be in
the range of $600-million (U.S.) to $800-million (U.S.), half of which is
expected to be in cash. Ms. Levenson says even after the announced job cuts
and if sales stabilize, Nortel will not make money in the third quarter.
She says, "This implies even more restructuring ahead." Unnamed sources
tell the Post that another 5,000 to 7,500 jobs may be cut by the end of the
year. Also, Ms. Levenson believes Nortel's earnings targets will be tough
to achieve and will likely lead to the firm renegotiating its bank
covenants. |
