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Nortel reports fourth quarter ’04 results, profits down sharply compared to 12 months earlier

Nortel Networks Corp. today reported results for the fourth quarter and audited results for the year 2004. The comp...


May 2, 2005  


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Nortel Networks Corp. today reported results for the fourth quarter and audited results for the year 2004. The company’s profits fell by 75% compared to the same quarter one year earlier.

Revenues were $2.62 billion for the fourth quarter of 2004 compared to $3.27 billion for the fourth quarter of 2003 and $2.18 billion for the third quarter of 2004.

The company reported net earnings in the fourth quarter of 2004 of $133 million, or $0.03 per common share on a diluted basis, compared to a net earnings of $528 million, or $0.12 per common share on a diluted basis, in the fourth quarter of 2003 and net loss of $259 million, or $0.06 per common share on a diluted basis, in the third quarter of 2004.

Net earnings in the fourth quarter of 2004 included $37 million from discontinued operations; special charges of $81 million related to restructuring activities; and a benefit of approximately $134 million primarily related to customer financing recovery and settlements.

All numbers quoted are in U.S. dollars.

Despite the decline, Bill Owens, vice-chairman and chief executive officer of the telecom equipment supplier said he was “proud of the progress made during the past year.

“Our message is clear: Nortel is Playing to Win,” he said. “In the past year, we’ve stabilized the business and laid the groundwork to move forward with velocity.

“We’ve taken steps to ensure ethics, integrity and transparency in our financial reporting, strengthened our world-class leadership team by recruiting new talent, and are speeding solutions to market through a partnerships and alliances strategy, while focusing on emerging markets and opportunities.”