Qwest Says It May Cut Spending Again

Telephone and data services company Qwest Communications International Inc. said it may cut its capital spending plans below already-reduced levels but still expects to meet its 2001 revenue and cash flow growth targets.

Qwest, the No. 4 U.S. long-distance telephone company, in April cut its capital spending budget to $9.2 billion from $9.5 billion. Qwest now said it is looking for ways to further reduce its expenditures to between $8.8 billion and $9 billion for 2001, and to as low as $8 billion for 2002.

Qwest reiterated that it expects revenue to increase 12% to 13% in the second quarter and to be up 12.5% to 14.5% for the year to $21.3 billion to $21.7 billion. The Denver-based company said it expects cash flow for the year to increase 15% to 18% to $8.5 billion to $8.7 billion.

Qwest shares rose 8 cents to $36.23 on the NYSE.