WorldCom Posts ‘00-02 Losses

WorldCom Inc., scheduled to exit the biggest U.S. bankruptcy next month, said Friday that it had net losses of $73.7 billion from 2000 through 2002 after correcting accounting errors and writing down the value of assets.

Completing the restatements, ordered by the Securities and Exchange Commission, was the last major hurdle Chief Executive Michael Capellas needed to clear before leading WorldCom out of Chapter 11. At least $10.6 billion of about $74 billion in adjustments for 2000 and 2001 were related to accounting irregularities, WorldCom said.

WorldCom’s losses from 2000 to 2002 are the second-largest reported by a U.S. company for that period. Only Time Warner Inc.’s were worse, at just under $108 billion. WorldCom originally reported net income of $5.47 billion for 2000 and 2001. It had never issued annual results for 2002.

Restated net losses totaled $48.9 billion in 2000 and $15.6 billion in 2001. The 2002 loss was $9.2 billion. The changes resulted from a net reduction of $74.4 billion in previously reported pretax income for 2000 and 2001.

Consolidated revenue for 2000 to 2002 was $109.2 billion, including an increase to $77 billion from $74.1 billion for 2000 and 2001.

Separately, WorldCom settled criminal charges brought by Oklahoma in exchange for a promise to create 1,600 jobs in the state over 10 years.

Oklahoma Atty. Gen. Drew Edmondson in August charged the company with 15 counts of securities fraud after WorldCom’s accounting irregularities and Chapter 11 bankruptcy filing cost the state’s pension funds $64 million.