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MCI reports $3.4 billion loss

MCI Inc.  on Thursday reported a $3.4 billion third-quarter loss as it wrote down the value of its assets due to a withering price war for long-distance telephone service.
/ Source: Reuters

MCI Inc. on Thursday reported a $3.4 billion third-quarter loss as it wrote down the value of its assets due to a withering price war for long-distance telephone service.

The net loss totaled $10.65 per share. A year earlier it posted a net loss of $55 million, when the company formerly known as WorldCom was working through the largest bankruptcy in U.S. corporate history.

Excluding the $3.5 billion writedown, MCI said it would have reported operating income of $121 million, up from $77 million a year earlier.

Revenues fell 3 percent to $5.1 billion.

MCI said it had $5.6 billion in cash on hand, an increase of $200 million from the second quarter. It also said it had begun talks with credit rating agencies on rating its $5.7 billion in bonds, and expects to complete the talks by the end of the year.