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
An aviation agreement has been signed today by the European Union and the Vietnamese authorities which will remove nationality restrictions in the bilateral air services agreements between EU Member States and Vietnam.
more »
The European Investment Bank marked the 50th anniversary of the Republic of Cyprus and its 30 years of activity in the country with a public ceremony celebrating the signature of a total of EUR 180 million for urban environment.
more »
In response to the financial crisis, the Commission has put forward legislative proposals to strengthen and expand existing tools for coordinating economic and fiscal policy in the EU.
more »
In the first meeting of the SME Finance Forum, possible means to improve the current situation of access to finance were discussed, such as the introduction of a grace period for firms in difficulties, the involvement of credit mediators and improved loan guarantees.
more »
The EU budget is no simple matter, but then no budget ever is.
more »
Parliament will be crucial in avoiding a “lowest common denominator” approach when helping to design the EU's new economic governance architecture, ECB president Jean-Claude Trichet told the Economic and Monetary Affairs Committee on Monday.
more »
With a multitude of language-related events taking place on or around 26 September, the main themes for this year's European Day of Languages are business and jobs.
more »
The EU disbursed today € 1.15 billion to Romania, the third instalment of a € 5 billion loan, which was agreed in May 2009 as part of a multilateral financial assistance package.
more »
The European Investment Bank has agreed to lend GBP250 million for the replacement, reinforcement and expansion of the gas distribution networks operated by Scotland Gas Networks and Southern Gas Networks.
more »
The bargaining positions of all players in the human food chain must be rebalanced, and fair competition enforced by law, to ensure fair returns to farmers and price transparency to consumers, says Parliament in a resolution voted on Tuesday.
more »