Tulsa-based Williams Communications optimistic about earnings

Williams Communications Group on Tuesday said its second quarter earnings before interest, taxes and other items will meet or top expectations.

The Tulsa-based company made the statement in response to news reports that have questioned its financial health.

In a letter to shareholders, the company said it expects second quarter earnings before interest, taxes, depreciation and amortization to meet or exceed expectations. The company did not provide figures on the expectations.

The company has been successfully executing on its financing plan during the first half of this year, and through the combination of new financing and asset sales.

Williams Communications continues to execute on its business plan and deliver on its promises, said Howard Janzen, chairman and CEO. It's unfortunate that the telecom industry is being painted with the same broad brush, causing our stock and bond prices to be undervalued.

In trading on the New York Stock Exchange on Tuesday, Williams Communications was up 36 cents to close at $2.77. The 52-week high is $32 and the low is $2.35.

Last week, officials said that about 300 jobs in Tulsa and 100 worldwide have been cut in layoffs at Williams Communications Group.

The wholesale broadband provider reduced its Tulsa work force from 3,200 to 2,900, Jerry Carson, senior vice president of human resources, said. Its companywide employment was cut from 4,500 to 4,100.

Officials began the layoffs June 29, but did not say exactly how many would be affected until Friday.

Williams Communications officials had earlier denied cuts would be necessary to maintain its growth plan. But Carson said the telecommunications firm would evaluate its resources periodically and adjust its work force accordingly.

The cuts were necessary following the company's transition from a construction mode to an operational mode, said Janzen.

During the past few years, Williams Communications built a 33,000- mile nationwide fiber-optic network and is nearing completion of a 15-story Technology Center in downtown Tulsa. Williams Communications separated from Tulsa-based Williams Cos. on April 23.

Employees who were laid off were given severance packages and are receiving outplacement services.

The Williams Communications announcement was one of the largest in a series of recent major telecommunications industry layoffs in Tulsa. The largest came in March when WorldCom laid off more than 400 of its 4,000 Tulsa-based employees.

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