Sprint denies it's for sale; net falls 21%

Article Abstract:

Sprint reported a 21% decline in 4th qtr 1997 net income, while Chmn William T. Esrey said the company is neither for sale nor looking for partners. Sprint's core local and long-distance phone businesses showed a 7.6% increase in revenue and 11% rise in operating profit. These numbers, however, were offset by increasing investments in a new wireless service class and an international joint venture. Esrey blasted market rumors that Sprint will add to its big partnerships or be acquired by one of the Bell companies, GTE or Sprint's foreign owners. Sprint's 4th qtr 1997 net income totaled $194.9 million, or 45 cents a diluted share, and basic earnings of 45 cents a share. By comparison, the company reported a 4th qtr 1996 net income of $245.3 million, or 56 cents a diluted share, and basic earnings of 57 cents a share. Revenue jumped from $3.58 billion in the 4th qtr 1996 to $3.85 billion in the 4th qtr 1997, representing a 7.6% growth.

Economic policy, Sprint Corp., FON, Esrey, William T.

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Deutsche Telekom stocks drops sharply as earnings reflect stiff competition

Article Abstract:

Deutsche Telekom reported a disappointing 1st half 1998 net income of 1.95 million marks ($1.08 billion). The 18% improvement over the 1st half 1997 dipped slightly below analysts's expectations and remained consistent with preliminary results. This showing reflects growing German competition despite Deutsche Telekom's 96% share, as the company said it is losing 4% to 5% market share in 1998. Germany deregulated its phone market in Jan 1998. Asia and Global One, a venture with Sprint and France Telecom, accounted for other losses. The German telecommunications company could lose up to 800 million in 1998 from these two areas, up from the forecast of 550 million marks, according to Deutsche Morgan Grenfell. Pretax profit of five billion marks represents a 40% gain from 3.5 billion marks in the 1st half 1997. One positive sign is that Deutsche Telekom's annual dividend will remain at 1.20 marks.

Deutsche Telekom AG

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NTT doesn't see speedup in sale of Japanese government's share

Article Abstract:

Nippon Telegraph and Telephone Corp (NTT) is hoping that the Japanese government will be to able quickly sell its remaining shares of NTT stock but company officials are not optimistic about the possibility of a quick sale. The government began selling NTT shares in 1987 but the Finance Ministry still owns 10.2 million shares or 65%, which reflects the lack of confidence in the stock market. The sale of shares of NTT was intended to raise money for public works projects requested in the national budget but investors did not like the idea of buying the shares of former government monopolies and an extended slump in the stock market has not helped the sale of the stocks. NTT officials have floated the idea of issuing Balladur-style government bonds that could be converted into NTT stock but the company is not considering the idea seriously.

Nippon Telephone and Telegraph Corp., Stock markets, Government Funding, Stock Market, Government aid

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