Want CNET to notify you of price drops and the latest stories?

Global Crossing sees strong 2001

2 min read
Fiber optic firm Global Crossing (NYSE: GX) said Monday it expects to post strong revenue growth in 2001, with earnings between $2 billion and $2.1 billion.

Shares in the company, which replaced its CEO back in October, closed Friday's session off more than 10 percent, falling 2.25 to 18.94.

The company said it now sees adjusted earnings from continuing operations before taxes, depreciation and amortization of between $2 billion and $2.1 billion on cash revenue of $7.1 billion to $7.2 billion in fiscal 2001.

First Call consensus predicted 2001 revenue of $7 billion for Global Crossing.

Global's figures do not include its incumbent local exchange carrier (ILEC) business, which is being sold to Citizens Communications (NYSE: CZN) for about $3.65 billion. The 2001 projections also leave out results from Global Crossing's Web hosting business, which will be sold to Exodus Communications (Nasdaq: EXDS).

Global Crossing officials also said that the company will maintain previously announced capital expenditure plans, totaling around $10 billion. Capital spending for continuing operations is expected to be about $4.5 billioni to $4.7 billion in 2001.

The company said that its current business plan is fully financed.

In a release, CEO Tom Casey said that the expected 2001 results would allow the company to reach its previously-stated long-term growth objectives: 30 percent annual growth in cash revenue and 35 percent to 40 percent annual growth in adjusted EBITDA.

The company also highlighted its new services and diversified revenue base. The company expects its new networks in Europe, Hong Kong and South America to be completed within the year.

"We are already selling capacity on each of these systems and we project new revenue sources throughout the Asian, Pacific, North American, South American and European regions in 2001," added Casey.