Sprint Reaffirms 2002 Outlook
KANSAS CITY, Mo., (AP) _ Shares of Sprint Corp.’s two divisions rose Wednesday after the nation’s third largest long-distance carrier announced it is on track to meet its financial targets for 2002.
The company reaffirmed its expectation of 3 million net customer additions and earnings for the PCS wireless group of $3 billion before interest, taxes, depreciation and amortization.
Based on results this year, Sprint expects 700,000 to 750,000 net customer additions in the first quarter and EBITDA approaching $600 million, excluding one-time charges associated with the previously announced closing of five customer care centers.
The company also reaffirmed its 2002 goals for the FON Group, its larger local- and long-distance calling unit, including EBITDA of about $4.6 billion and earnings per share approaching $1.40, excluding ION.
In the first quarter, the global markets division is expected to show ``sequential″ revenue growth, and the local division is expected to continue its steady performance, the company said.
Sprint also announced planned 2002 capital expenditures for the PCS Group of $3.4 billion.
The company recently reduced its expectation for FON Group capital expenditures from $3.4 billion to $3.0 billion.
In trading on the New York Stock Exchange, shares in Sprint’s wireless business PCS Group rose more than 20 percent, or $1.92 a share, to close at $11.47, while shares of its wireline business FON Group gained 8.7 percent, or $1.27 a share, to close at $15.83.