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Nortel meets expectations, sees profit in
Q4 2002
Last Updated Thu Jan 17 19:41:28 2002
TORONTO - Nortel Networks posted a fourth quarter
loss that was in line with expectations, but warned
that it expects revenues to continue sliding through
the first quarter of 2002.
After the closing bell, the
telecommunications giant reported
a net loss for the fourth quarter of
$1.8 billion US, or 57 cents a
share, compared with a loss of
$1.4 billion US, or 46 cents a
share, a year earlier.
On a pro-forma basis, the company's loss from
continuing operations was 16 cents per share, which
met the expectations of analysts surveyed by
Thomson Financial/First Call. In the same quarter last
year, the company reported a pro-forma profit from
continuing operations of 29 cents a share.
Revenues were $3.46 billion US, well off the $8.2
billion US the company generated in Q4 of 2000.
"Revenues for the fourth quarter of 2001 reflected the
reduced levels of spending in the global telecom
industry which impacted all of our businesses," Nortel
CEO Frank Dunn said in a release.
Nortel CFO Terry Hungle said the Q4 2001 revenue
figure met the company's own expectations, while the
bottom line figure was better than the company had
expected, due to gains on the sales of businesses
which closed late in the quarter.
Looking ahead, the company expects its revenues for
the first quarter of 2002 will be about 10 per cent
below than the fourth quarter of 2001.
"At this time, market visibility remains limited given the
uncertainty of the economic downturn and its impact
on our customers' businesses and spending plans.,"
Dunn said.
He said the company expects revenues will begin
gradually growing in the second quarter of 2002.
"We expect an ongoing steady improvement from our
fourth quarter 2001 performance and to return to
profitability in the fourth quarter of 2002," he said.
Last year was a tough year for Nortel employees and
shareholders. The company slashed its
96,000-member payroll by about half as its moved to
cut costs amid the slowing economy.
The company's stock tumbled. From a one-year high
of $61.10 hit early last year, the stock dropped to a
low of $7.50.
On Thursday, the stock closed at $12.34, up 61
cents.