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IN BRIEF Technology

Sprint Says It's Adding Fewer Customers

June 14, 2002|Bloomberg News

Sprint Corp. said customer growth at its PCS Group wireless unit, the fourth-largest in the U.S., will be 10% to 15% below forecasts this year because of competition.

Overland Park, Kan.-based Sprint had forecast 3 million new subscribers for 2002 and hadn't given a second-quarter outlook. It said it would add 300,000 new users in the period ending June 30, compared with analysts' forecasts for 550,000 to 725,000. Sprint attributed the shortfall to more stringent credit checks and price cuts by rivals. The company added 725,000 new users in the first quarter.

Sprint also reduced planned capital spending at Sprint PCS by $100 million, to $3.3 billion, and it cut capital spending projections for the FON Group, which includes local and long-distance operations, by $100 million, to $2.6 billion.

Sprint shares fell 81 cents to close at $14.29 on the New York Stock Exchange, before the updated forecast was announced. In after-hours trading, shares that track the performance of the PCS Group declined 43 cents to $5.99, and fell as low as $5.85.

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