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Last updated: Thursday, October 30, 2008

Qwest Communications International Inc. posted a profit for its third quarter Wednesday, but said the continued slide of its traditional phone business is forcing it to cut 1,200 jobs, 3 percent of its work force. The cuts will come before the end of the year, which will leave the company with 33,500 employees, 9 percent fewer than at the end of last year. That’s about the same rate at which customers are canceling their phone service to go wireless or sign up with the cable company. The cuts will come from all levels and units of the company, Chief Operating Officer Tom Richards said. The Denver-based phone company, the country’s third-largest, earned $151 million, or 9 cents per share, in the three months that ended Sept. 30. That was down 93 percent from $2.06 billion, or $1.08 per share, a year ago, but those 2007 results were boosted by a $2.1 billion tax benefit. Revenue fell 2 percent to $3.38 billion. Analysts polled by Thomson Reuters had expected the company to earn 10 cents per share on $3.33 billion in revenue. Analyst Tim Horan at Oppenheimer & Co. said that Qwest met earnings expectations after taking into account a $30 million net charge for severance benefits and a lease restructuring. Qwest also said it expects results this year to come in at the low end of its previous forecast, which called for earnings before interest, taxes, depreciation and one-time items to fall 1 or 2 percent. Analysts were already expecting a 2.25 percent full-year decline in that earnings measure, which fell 6 percent in the third quarter to $1.08 billion. Qwest shares fell 31 cents, or 12 percent, to $2.29 in morning trading Wednesday, nearly reversing a 17 percent gain Tuesday. Qwest lost 320,000 phone lines during the quarter, to end with 11.9 million. The rate of decline is…

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Qwest 3Q Profit Down; Will Cut 1,200 Jobs

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