Sprint lowers guidance

Sprint late last night said it expects its wireline and Internet business to generate $4.6 billion in earnings before depreciation, interest and tax for the full year, about 15% lower than previous estimates. However, the company also said it was sticking to its earnings-per-share estimate of $1.40. Additionally, the company reconfirmed cash flow expectations for 2003.

Revenues for the full year are expected to decline at “a mid-single digit rate compared to the company's previous expectation that revenues could decline at a low-single digit rate,” the company said in a prepared statement.

Breaking down the major components of the group, the company said it expect the Local Telecommunications Division and Global Markets Division to be at the lower end of previous guidance. While not providing specific guidance, the company said Sprint North Supply continues to face pressure and likely won’t see relief through the second half of the year.

In accordance with the new guidance, Sprint has reduced its FON Group capital expenditures to $2.6 billion, about $100 million less than previously announced.

--Vince Vittore, Executive News Editor