Sprint Corp. on Tuesday reported a fourth-quarter profit of $38 million on net operating revenue of $6.7 billion.
For the year, the Overland Park, Kan., phone company posted net income of $1.2 billion, compared to $630 million in 2002.
Sprint FON Group, which includes the global markets division, the local division and other businesses mostly consisting of wholesale services, reported a fourth-quarter net income of $360 million, compared to a $294 million profit in the period a year ago. Quarterly net operating revenue fell to $3.5 billion, down from $3.7 billion in the fourth quarter of 2002.
Sprint PCS Group posted a fourth-quarter net loss of $322 million on $3.3 billion in operating revenue. That compares a net loss of $255 million on $3.1 billion in revenue in the quarter a year ago.
In a cost-saving move, Sprint is expected to announce a pact with IBM Corp. to take over 5,000 to 6,000 jobs at Sprint, The Wall Street Journal reported Monday. Sprint is expected to outsource most of its wireless customer service operations to IBM under an agreement that will save Sprint an estimated $2 billion to $3 billion, the newspaper reported. Sprint is expected to make a formal announcement on the decision Wednesday.
