WorldCom Inc revised its guidance downwards for 2002, knocking $1bn off previously given estimates, and increasing doubts about the company's long-term prospects.
The Clinton, Mississippi-based said its core unit, WorldCom Group, would make full year revenue of between $21bn and $21.5bn, compared to its previous forecast of between $22.2bn and $22.6bn. EBITDA expectations have also been lowered to between $7bn and $7.5bn.
The company said it still expects to generate $1bn of free cash flow from operations during the year, and it has reduced its capital expenditure program to $4.5bn from $5.0bn to $5.5bn.
The reduced forecast paints a gloomy picture for WorldCom's future. Although profitable, its debts of $29bn create interest charges that it looks incapable of continuing to pay in the long term without a complete restructuring.
The profit warning, which was issued after hours on Friday, caused its Nasdaq-listed shares to sink 30% in early trading yesterday.
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