Late Friday it was WorldCom (NASDAQ:WCOM) dialing up investors to tell them that revenues and earning were going to miss targets. This mornings its Sweden's bellwether Ericsson (NASDAQ:ERICY) plunging 25.7% to $2.63 in pre-market trading after the telecom gear and mobile phone maker warned it would post a loss for the year and said it would ask shareholders for $2.9 billion to strengthen its financial and strategic position. Ericsson (ERICY) said while it expects to report a loss for the year, cost cutting would return it to profitability some time in 2003. In January, Ericsson told investors it would turn a profit this year.
Ericsson said 3,000 jobs were cut in the first quarter and that the global workforce would be cut to 65,000 by the end of the year from 85,000 at the end of last year.
WorldCom sinks to new lows
Shares of WorldCom (NASDAQ:WCOM) look set to trade a new 52-week low this morning as the stock is the most actively traded in pre- market action at $3.92 (-34% from Friday's close). Late Friday, WCOM cut its financial projections for 2002, citing the weak economy and lower corporate spending on data and phone service.
SAP removed from Salomon Smith Barney's ADR Focus List
Share of German software maker SAP Aktiengesell (NYSE:SAP) $35.31 were downgraded this morning by Salomon Smith Barney to "outperform" from "buy", as the firm cut its price target to $39 from $45, and reoved the company from its American Depository Receipt (ADR) Focus List.
Stock futures lower
Late Friday's news from WorldCom (WCOM) and this morning's warnings from Ericsson (ERICY) have soured investors this morning as S&P futures (sp02m) trade down 4 points at 1,122. NASDAQ futures (nd02m) trade lower by 19 points at 1,370 and Dow futures (dj02m) are falling 32 points at 10,220.