Nortel loss widens

Nortel Networks said after market close yesterday that its net loss for fiscal year 2001 was $27.30 billion, compared to $1.4 billion for 2000. In the fourth quarter, the company reported a net loss of $1.83 billion--57 cents per common share--versus $1.41 billion or 46 cents per share in the fourth quarter of 2000.

Business-unit revenues in the fourth quarter dropped throughout the company, with the optical long-haul networks segment being hit the hardest. The group, which includes all equipment related to traditional long-distance service, saw a revenue decrease of 89% compared to the fourth quarter of 2000. The metro and enterprise networks group’s revenues dropped 53%, while the wireless group’s revenue decreased 21%.

Frank Dunn, commenting on his first quarter since being named CEO, said that while 2001 was difficult, the company is still on track to be EBITDA positive in the third quarter and turn a profit before year’s end.

In the U.S., Nortel revenues were flat but were offset by strong growth in Europe and Asia. Dunn said he expects the breakup of China Telecom into two separate entities to dampen the whole Asian market.

“I would think the first region to be out of the downturn would be the U.S.,” he said.