Sprint FON expects Q4 revenue to dip from last year

Sprint FON Group announced at its annual investment community meeting that its fourth-quarter revenues are expected to be $4.1 to $4.2 billion, which is about 5% to 6% below the company’s fourth-quarter results for 2000.

Total revenues for 2002 will be within a range of $16.8 billion to $17.2 billion, compared to the estimated 2001 total revenue of $17.0 billion to $17.1 billion. For 2001, FON Group’s operating income is expected to be about $2.4 billion, while 2002 operating income could dip to between $2.0 billion to $2.2 billion because of continuing competitive pressures on margins and increased depreciation expense in global markets.

While the Sprint group forecasted revenues in the local telecommunications division will grow--driven by bundled services and higher demand for broadband services--revenues for the global markets and product distribution and directory publishing divisions are expected to decline.

--Kelly Carroll, staff writer