Qwest Swings to a Quarterly Profit as Sales Rise

Telecommunications provider Qwest Communications International Inc. posted a profit for the second quarter as higher sales of bundled products offset a decline in phone access lines.

The company’s stock rose 61 cents, or 7.8%, to a 52-week high of $8.40.

Qwest, the primary local phone service provider in 14 states, mostly in the West and the Midwest, earned $117 million, or 6 cents a share. That compared with a loss of $164 million, or 9 cents a share, in the second quarter of 2005. Revenue was $3.47 billion, about the same as last year.

Analysts polled by Thomson Financial has expected earnings of 5 cents a share on $3.5 billion in revenue.

It was the second straight profitable quarter for the Denver-based telecom company.

Chairman and Chief Executive Richard Notebaert said Qwest made improvements in both cost structure and productivity and was on track to remain profitable through the end of the year.