Sommer makes public denial that share slump means a crisis at DT
Published:
16 August 2001 y., Thursday
The head of Deutsche Telekom took the rare step of placing a full-page letter in German newspapers to deny his company is on the skids.
Chief Executive Ron Sommer's action was aimed at ending talk of a crisis at Europe's No. 1 phone company. He was responding to a 21 percent stock-price decline in the week after a controversial sale of a block of shares.
His open letter to investors said the battering the shares had taken was in stark contrast to the company's operating performance and strategic position, concluding that "the shares have lost value, but not substance".
To try to demonstrate the company's strength, Sommer gave investors a preview of Telekom's first-half trading perfomance, which won't be reported in detail until August 28.
He wrote that group profit rose more than 20 percent in the first six months, excluding one-time factors such as expenditure on its purchase of VoiceStream in the U.S. and the cost of buying a third-generation mobile-phone license.
In addition, group sales were up more than 17 percent. And in the mobile phone business, operating profit more than doubled compared with the first half of 2000.
This would be the fourth straight report in which Deutsche Telekom had either met or exceeded the forecasts of investment analyts, Sommer said.
Šaltinis:
cnnfn.cnn.com
Copying, publishing, announcing any information from the News.lt portal without written permission of News.lt editorial office is prohibited.
The most popular articles
An International Monetary Fund (IMF) mission led by Mr. Hunter Monroe of the IMF’s Western Hemisphere Department visited Dominica during January 18-28 for the annual Article IV discussions on economic developments and macroeconomic policies.
more »
Experts in agriculture and government authorities coincided in requesting new management mechanisms and market regulation to protect the farming sector from the price crisis and enable generational changeover in rural areas at the European Congress of Young Farmers, organised by the ASAJA-Seville agricultural organisation.
more »
Immediate action is required to solve Europe's skills deficiencies and give Europeans a better chance of labour market success in the future, says an independent expert report published by the European Commission today.
more »
The European Investment Bank (EIB) is lending EUR 15.5 million to upgrade water supply and wastewater treatment in the City of Mykolayiv (southern Ukraine) and EUR 100 million to finance small and medium-sized investments in the areas of SMEs, energy efficiency and the environment in Ukraine.
more »
The European Commission can confirm that on 20 January 2010 Commission officials carried out targeted inspections at the premises of producers of Flexible Alternating Current Transmission Systems (FACTS).
more »
The European Commission has authorised today under the State aid rules a Lithuanian scheme worth LTL 10 million (approximately EUR 2.9 million) aimed at supporting farmers who encounter difficulties as a result of the current economic crisis.
more »
The effects of the global food, fuel and economic crisis would be felt by Africa’s people for some time yet and it was important to persist with efforts to protect the most vulnerable while laying the foundations for future productivity and growth, World Bank Group President Robert B. Zoellick said Tuesday.
more »
Mongolia’s herders have learnt a hard lesson this winter; a lesson that can perhaps be applied to managing Mongolia’s economy.
more »
DnB NORD Bankas, the leader of the country’s in investment products market, raises initial margin ratio for repurchase deals for most actively traded Lithuanian and Estionian shares.
more »
With over 23 million unemployed in the Europe Union and the jobless figure having risen in every member state since last year, how Europe is coping with the crisis and the effect on pension systems were discussed on Thursday 28 January.
more »