Had anyone noticed this article re: our friends from WMB?
January 15, 1999
Williams Warns Heavy Charges
Will Weigh on Quarterly Profits
Dow Jones Newswires
TULSA --Williams Co. expects to take charges totaling $133 million for
the fourth fiscal quarter, citing disappointing results at its communications division.
The energy and communications company said the results, which it will
release financial results later in January, will include a $30 million charge for changes to its employee benefit plan; a $22 million charge for loss contingency costs; a $58 million charge for long-term gas supply contracts; and a $23 million charge for asset impairments for its energy services unit.
Last year, Williams earned $66.1 million, or 19 cents a diluted share, in the fourth quarter. Those figures included an extraordinary loss of $5.4 million or two cents a share. Revenues were $1.27 billion.
Analysts surveyed by First Call survey estimated the Tulsa, Okla.,
company would earn 22 cents in the latest fourth quarter.
Williams, the nation's largest natural gas shipper, said its energy units are performing within expectations. Williams and other energy concerns have been hurt by a slump in oil prices.
However, the company expressed disappointment with the continued poor
results of its communications unit's Solutions division. Williams created the division to integrate telecommunications operations it bought in April 1997 from Northern Telecom Ltd. of Canada. Williams Chairman and Chief Executive Keith Bailey said in November that the integration took a year longer than expected.
Williams has invested heavily in its telecommunications operations, which include a large fiber-optic network, and some analysts have said the company is too debt-heavy.
Copyright © 1999 Dow Jones & Company, Inc. All Rights Reserved.
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