Qwest sees savings better than expected
DENVER, July 27 (Reuters) - Qwest Communications International Inc. said Monday that capital savings from its purchase of LCI International are now projected to be much greater than originally expected.
''The acquisition of LCI International was completed in just 88 days, and the integration of the two companies is progressing very well, with operating and capital synergies expected to be better than originally announced.'' Qwest Chief Financial Officer Robert Woodruff said in a statement.
Over a four-year period through 2001, capital savings from the deal are projected to exceed $600 million -- $290 million more than initially estimated, Qwest said.
In the second half of 1998, Qwest said it expects to realize $75 million in cost savings and $70 million in avoided capital spending.
It said that thus far, it has activated 8,850 miles of a planned domestic 18,449-mile macro-capacity fiber network that will serve over 130 cities across the U.S.
Qwest also said it is extending its network 1,400 miles into Mexico with completion slated for late 1998.
Despite sharply higher revenues and excluding charges from the LCI deal, Qwest posted a 1998 second-quarter loss of $20.0 million, or 6 cents per share, compared with a loss of $11.3 million, or 3 cents per share, a year earlier.
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