Sprint posts profit, improved cash flow

Sprint today reported consolidated revenues of $6.79 billion, an increase of 3% from $6.57 billion in the same quarter a year ago. Consolidated net income for the quarter was $519 million, compared to a net loss of $134 million in the third quarter last year.

At the same time, the company reported a significant improvement in free cash flow.

During the quarter, the company's operations produced more than $500 million of positive free cash flow. Additionally, Sprint now expects full-year free cash flow to be approximately $500 million versus the company's previous expectation of $200 million. Moreover, Sprint is forecasting $1 billion in free cash flow for 2003.

On a per-share basis, Sprint had earning of 54 cents from continuing operations. If results from the soon-to-be sold directory group is included, the company earned 59 cents per share.

In the core long distance group, Sprint took a two-cent-per-share charge related to WorldCom’s Chapter 11 filing. However, according to Ron LeMay, president and COO of Sprint, the effects of other carriers’ filing for Chapter 11 is diminishing.

“We appear to be bottoming out on customer disconnects related to bankruptcies,” he said. --Vince Vittore, news editor