Phone-Equipment Maker Lowers Forecast

ADC Telecommunications Inc. cut its 2001 profit outlook in half, less than two months after saying it would meet forecasts, sending the phone-equipment maker’s shares down as much as 30%. Sales and per-share profit will rise 15% this fiscal year, down from the previous forecast of 25% to 30%, ADC said. The Minnetonka, Minn.-based company said it will miss analysts’ earnings estimates for the first quarter and may fire more employees to reduce expenses. ADC joins more than a dozen other telecommunications equipment vendors in lowering earnings forecasts. ADC said Nov. 28 that it would meet analysts’ estimates for fiscal 2001 earnings of 68 cents to 70 cents on sales of about $4.15 billion to $4.3 billion. It forecast first-quarter profit at 12 cents then, but now expects 5 cents to 7 cents. ADC, which employs 22,000 people, said it fired 400 workers and is considering more job cuts. ADC shares fell $5.75 to close at $15.56 on Nasdaq.