ALLTEL Announces Earnings Forecast for 2001; Reorganization Reduces Workforce by About 1,000 Jobs

Business Wire, Feb 15, 2001

Business Editors

LITTLE ROCK, Ark.--(BUSINESS WIRE)--Feb. 15, 2001

ALLTEL (NYSE:AT) today announced it has updated its 2001 financial forecast. Fully diluted cash earnings per share is expected to range between $3.20 and $3.35 while earnings per share from current businesses is expected to range between $2.85 and $3.00 for the year.

Wireless customer growth this year is expected to accelerate as the company projects a gain of 2.4 million to 2.5 million customers. Churn is expected to range from 2.4 percent to 2.5 percent throughout the year, producing a net gain of 500,000 to 550,000 customers.

ALLTEL also today announced that it is reorganizing its regional and corporate operations. This reorganization is expected to reduce the communications workforce by about 1,000 positions through early retirements and job reductions.

Under the reorganization, ALLTEL will reduce the number of operating regions from five to three, with regional headquarters remaining in Cleveland, Charlotte and Little Rock.

"This reorganization reaffirms ALLTEL's commitment to grab its share of the customer growth in the wireless business," said Scott Ford, ALLTEL's president and chief operating officer. "Over the past three years, the company has added more than 10,000 employees, roughly doubling its workforce, and has added more than 6 million new customers.

"As we enter 2001, it is imperative that ALLTEL have a flexible and responsive organization that can compete aggressively," Ford said. "We must continue to simplify and streamline ALLTEL's entire organization to maintain customer and earnings growth in an increasingly competitive environment."

A replay of the company's guidance call will be available beginning at 9:30 a.m. CST today. The replay, which will be available for 48 hours, can be accessed by calling 800/633-8625, passcode 17896203. ALLTEL's Web site, http://www.alltel.com/investors-index.html, also will feature a replay of the call beginning at 9:30 a.m. CST today.

ALLTEL, with more than 10 million communications customers and more than $7 billion in annual revenues, is a leader in the communications and information services industries. ALLTEL has communications customers in 24 states and provides information services to telecommunications, financial and mortgage clients in 55 countries and territories.