DENVER—Qwest Communications International Inc. revised financial guidance for this year citing continuing weakness in both the telecommunications sector and the regional economy in its 14-state local service area as well as increased competitive pressure.
The telecommunications provider said it expects total revenue of between $18 billion and $18.4 billion, adjusted earnings before interest, taxes, depreciation and amortization between $6.4 billion and $6.6 billion and capital expenditures of between $3.1 billion and $3.3 billion. The company continues to expect to be cash flow positive beginning in the second quarter.
Qwest also said it expects to cut another 2,000 employees through attrition, continued business process improvements and layoffs, bringing its total employee count to 53,000 by September.
“While we remain optimistic about Qwest’ longer-term performance based on the platforms we have built, we want to make investors aware that current trends will affect our results in 2002,” said Joseph Nacchio, chairman and chief executive officer of Qwest. “We believe this guidance is realistic, assuming no further deterioration in the regional economy or industry outlook.”
