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Technology Stocks : Global Crossing - GX (formerly GBLX) -- Ignore unavailable to you. Want to Upgrade?

To: CF Rebel who wrote (12976)	8/1/2001 7:55:37 PM
From: 249443	Respond to of 15615

Global Crossing To Cut Work Force By 15%; '01 Views Cut By CHRISTINE NUZUM Of DOW JONES NEWSWIRES NEW YORK -- Saying that the slowing economy has hurt demand for services on its worldwide fiber network, Global Crossing Ltd. (GX) announced plans to close some facilities and lay off 15% of its work force. It also cut its revenue forecast for the year. Global Crossing posted a net loss of $629.6 million, or 78 cents a share, narrower than the consensus view compiled by Thomson Financial/First Call of a loss of 84 cents a share. The loss is 33% wider than last year's second-quarter loss of $516 million, or 62 cents a share. Second-quarter revenue rose 19% to $1.1 billion from $898 million a year ago. Global Crossing said it will eliminate more than 2,000 positions and close 100 of its roughly 600 facilities worldwide. The company expects to incur a charge of $250 million to $325 million in the third quarter as a result of the restructuring. In an interview with Dow Jones Newswires, Chief Executive Tom Casey said that 60% of the layoffs will be in North America. Although Global Crossing's accounts receivable declined for the quarter, and it weathered no increase in bad debt, "some carriers who are our customers have gone out of business or stopped buying services," said Chief Financial Officer Dan Cohrs. He estimated the impact of that reduced business will be $200 million for the full year. CFO Cohrs estimated that Global Crossing will post revenue from continuing operations between $4.5 billion and $4.6 billion for the year, with all but about $100 million from service revenue. Earlier, Global Crossing had forecast service revenue from continuing operations of $5.05 billion to $5.3 billion for the year. During the second quarter, Global Crossing sold its incumbent local telecom services business to Citizens Communications Co. (CZN) for $3 billion. Cohrs said he is comfortable with the consensus of analysts' for its bottom line for the third quarter and the year. Thomson Financial/First Call consensus estimates put Global Crossing's third quarter loss at 82 cents a share and its year loss at $3.17 a share. After the layoffs, Global Crossing will have 11,400 employees worldwide. Most of the facilities that will be closed are in areas where there are multiple offices, inherited from acquired companies like Frontier Corp. and Global Marine, said Chief Executive Casey. Global Crossing projected that the restructuring will save the company $70 million this year, and between $160 million and $170 million annually starting in 2002. Global Crossing's largest customers during the quarter included Deutsche Telekom AG (DT), WorldCom Inc. (WCOM) and Level 3 Communications Inc. (LVLT), Cohrs said. URL for this Article: interactive.wsj.com