MCI Reports a Second Straight Quarterly Profit

MCI Inc., the long-distance telephone company being bought by Verizon Communications Inc., posted its second straight quarterly profit since emerging from Chapter 11, helped by lower administrative costs and a tax reduction.

Third-quarter net income was $271 million, or 82 cents a share, after a loss of $3.4 billion, or $10.65, a year earlier, when the company wrote down the value of its network.

Sales fell 12% to $4.47 billion, the Ashburn, Va.-based company said.

A tax gain and a 49% drop in operating costs bolstered results.

MCI shares fell 1 cent to $19.82. They have risen 15% in the last year.