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Nextel sees weaker 1Q
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March 14, 2001: 12:26 p.m. ET
Wireless service provider blames earnings shortfall on U.S. economy
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NEW YORK (CNNfn) - Wireless telecommunications service provider Nextel Communications Inc. said Wednesday it expects its first-quarter financial results to be hurt by slowing business purchases, downsizing, and higher costs.
At an investor conference in Reston, Va., Tim Donahue, Nextel's president and CEO, said the company's domestic operations have begun to feel the impact of the slowing U.S. economy and related cost-control measures being implemented by many businesses.
"Based on our review of preliminary results for the quarter, we currently expect to report approximately 500,000 net subscriber additions during the first quarter and operating cash flow which is approximately 15 percent less than fourth-quarter results," Donahue said. 
Donahue also said the company is taking "aggressive action to reduce costs, increase efficiencies and focus on profitability," although he did not provide specific details. He did not provide an earnings-per-share estimate for the quarter, either.
The consensus estimate of 13 analysts polled by earnings tracker First Call most recently was for Nextel to log a first-quarter loss of 43 cents per share, a penny more than the 42 cents per share it lost in the same quarter a year earlier.
Analysts had generally expected the company's first-quarter sales to come in at roughly $1.6 billion, compared with $1.1 billion during the same period last year.
Nextel (NXTL: Research, Estimates) shares were down $4.06 at $16.37 in early afternoon Nasdaq trade, a 19.9 percent decline on the day. 
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