MCI Predicts Surprisingly Steep Losses
(Associated Press)
MCI Communications Corp. warned of unexpectedly steep losses from its effort to expand into local phone service and blamed what it called anti-competitive practices by the Baby Bell companies. MCI, the nation’s second-largest long-distance company after AT&T; Corp., said it would lose about $800 million this year, double its previous expectations, in its local-market campaign. The company said the surprising loss would hit its bottom line in the second half of this year, and that its second-quarter results, due July 30, should meet Wall Street expectations. MCI said its losses in 1998 could surpass the 1997 deficit. MCI released its forecast after the close of financial markets. Its stock eased down 19 cents to close at $42.38 on Nasdaq.
