Last Updated Mon, 22 Apr 2002 16:57:21
NEW YORK - Stocks in the telecom sector fell sharply Monday after some big names in the field warned that the spending slowdown that's afflicted them for more than a year shows no sign of improvement.
Ericsson, the Swedish cell-hone maker, reported Monday it lost $286 million US in the first quarter, reversing a profit last year. It said it would not make money until at least 2003 and would chop 17,000 more jobs to lower costs.
Ericsson shares plunged almost 25 per cent on that news, off 80 cents US to close at $2.74 US.
Worldcom stock also plunged, thanks to its warning after the market close on Friday that sales and profits would fall short of estimates this year. The company cited lower corporate spending on data and phone services. Worldcom shares plummeted $1.97 US to $4.01 US.
On Monday, telecom equipment maker Lucent reported its eighth consecutive quarterly loss and said it would cut another 6,000 jobs. But it saw some light at the end of the telecom tunnel, predicting its earnings would improve in the third quarter. Lucent shares rose 20 cents US to $4.49 US.
Still, the overall sentiment remained quite negative on telecom stocks. Verizon and Qwest shares fell Monday. Lucent's main rival, Nortel, fell 42 cents to close at $5.87 in TSE trading.
Written by CBC News Online staff
NEW YORK - Stocks in the telecom sector fell sharply Monday after some big names in the field warned that the spending slowdown that's afflicted them for more than a year shows no sign of improvement.
Ericsson, the Swedish cell-hone maker, reported Monday it lost $286 million US in the first quarter, reversing a profit last year. It said it would not make money until at least 2003 and would chop 17,000 more jobs to lower costs.
Ericsson shares plunged almost 25 per cent on that news, off 80 cents US to close at $2.74 US.
Worldcom stock also plunged, thanks to its warning after the market close on Friday that sales and profits would fall short of estimates this year. The company cited lower corporate spending on data and phone services. Worldcom shares plummeted $1.97 US to $4.01 US.
On Monday, telecom equipment maker Lucent reported its eighth consecutive quarterly loss and said it would cut another 6,000 jobs. But it saw some light at the end of the telecom tunnel, predicting its earnings would improve in the third quarter. Lucent shares rose 20 cents US to $4.49 US.
Still, the overall sentiment remained quite negative on telecom stocks. Verizon and Qwest shares fell Monday. Lucent's main rival, Nortel, fell 42 cents to close at $5.87 in TSE trading.
Written by CBC News Online staff
