The CEO is delivering the kind of savings and synergies he promised…
Published:
25 January 1999 y., Monday
If anyone doubts that MCI WorldCom CEO B. Ebbers really wants to run a lean and mean company, he or she should pay a visit to an airplane hangar outside Washington, D.C. Sitting on the tarmac are two top-of-the-line Falcon corporate jets that WorldCom picked up when it bought MCI
last year. Ebbers is not planning to take the planes up for a spin: He is selling them, along with a WorldCom jet, as part of a cost-cutting blitz that has Wall Street buzzing. Analysts and money managers consider it strong evidence that Ebbers is delivering the kind of savings and synergies he promised when WorldCom outmaneuvered British Telecom and GTE to take over MCI. Indeed, the stock has been among the leaders of Wall Street_s recent surge, rising more than 25% since early December. In just the first week of 1999 it moved up from $70 to $75 after Salomon Smith Barney telecom guru Jack Grubman raised his 12-month target price from $80 to $100. Ebbers is not putting all his faith in one-time cost cuts to make his numbers. Far more important, he is also focusing on the hottest areas in telecom--such as local and international calling and data--to guarantee long-term revenue and profit growth. At least a third of U.S. Internet traffic now flows over MCI WorldCom_s network, analysts say, and overall revenue from Internet communications should jump by 60% in 1999. In the next year the company_s total profits are expected to rise by more than 40%.
Šaltinis:
Internet
Copying, publishing, announcing any information from the News.lt portal without written permission of News.lt editorial office is prohibited.
The most popular articles
Statistics Lithuania has calculated that, based on provisional data, FDI in Lithuania in 2009 amounted by 5.3 % more than in 2008. Also, direct investment of Lithuanian enterprises abroad grew by 13.9 % in 2009.
more »
Concerns about foreign fish being sold in Europe and what to do about the future of Europe's fisheries industry were aired in a hearing held by the Fisheries Committee on 8 April.
more »
EU opens public debate on its agricultural policy, the prelude to a major reform in 2013.
more »
The European Commission today launched a €35 million call for eco-innovation projects to be funded under the Competitiveness and Innovation Programme.
more »
Bank SNORAS group company Finasta Holding recruits all funds management and investment companies of the group in the Baltic States.
more »
The European Central Bank (ECB) and the European Commission are jointly holding a high-level conference on financial integration and stability at the ECB’s premises in Frankfurt am Main.
more »
Today, the European Central Bank (ECB) is publishing its fourth Report on Financial Integration in Europe, which notes the return towards integration in the European financial markets.
more »
World Bank Group financial commitments since July 2008, just before the full fury of the financial crisis hit, reached US$ 100 billion today as the institution helped countries respond to and recover from the global downturn.
more »
On March 31, 2010, the Executive Board of the International Monetary Fund concluded the Article IV consultation with Serbia.
more »
The International Monetary Fund and the United Kingdom’s Department for International Development have launched a new project to improve macroeconomic statistics in 23 African countries. DFID will provide US$7.5 million over the next five years to support the project.
more »