Sonki, this Bloomberg article clarifies matters a bit:
Brazil's Embratel Reports Quarterly Loss on
One-Time Charges
Bloomberg News
October 28, 1998, 5:15 p.m. ET
Brazil's Embratel Reports Quarterly Loss on One-Time Charges
Sao Paulo, Oct. 28 (Bloomberg) -- Embratel Participacoes SA
posted a 356 million-real ($290 million) third-quarter loss after
one-time charges related to MCI Worldcom's takeover of the
formerly state-controlled Brazilian long-distance company.
Embratel took a 720 million write-off for the cost of
changing retirement and health benefits plans, an employee buyout
program and depreciation of outdated assets.
MCI Worldcom acquired Embratel for 2.65 billion reais during
the selloff of Telecomunicacoes Brasileiras SA, the Brazilian
government controlled company that was sold at the end of July.
Since then, MCI Worldcom and other companies that bought
Telebras units have been combing through their operations,
looking for places to cut costs. Embratel is the first Telebras
spinoff to report net income.
Embratel didn't provide year-ago earnings figures for when
it was still part of Telebras. In the second-quarter, the company
said it posted earnings of 116 million reais.
The company posted third-quarter revenues of 1.1 billion
reais, an increase of about 5 percent from the second quarter,
excluding one-time changes in accounting methods, the company
said.
The Brazilian long-distance carrier cut payrolls by about
1,000 people through a voluntary severance plan valued at 57
million reais.
Embratel shares fell 70 centavos, or 4.12 percent, to 16.3
reais. The earnings were released after the Brazilian market
closed.
--Christian Plumb in Sao Paulo (5511) 3048-4527 through the New |
