SPRINT New chief will face stockholders

KANSAS CITY, Mo. (AP) -- Gary D. Forsee will face plenty of nervous shareholders Tuesday at his first meeting as Sprint Corp.'s new chief executive.
The company has been largely unable to capitalize on the woes at bankrupt rival WorldCom Inc., recent profits have come mainly through heavy cost cuts, and the telecom giant's stocks have swooned.
"I think they really are going to want to know how Sprint is going to get back on track and why they haven't been able to capitalize from Worldcom's downturn," said David Willis, a telecom analyst with META Group.
WorldCom could emerge from the largest-ever U.S. bankruptcy as early as September. It plans to take the name of its long-distance service, MCI, and move to Virginia from its longtime Mississippi headquarters.
In the last year, Sprint has remained profitable largely through cost-cutting measures. In 2002, Sprint earned $630 million, up from a $1.4 billion loss in 2001. But it also cut thousands of jobs, including 575 additional positions announced last week.
Other trouble
Other turmoil at the company included the board's removal of longtime CEO William T. Esrey and Ronald LeMay, the former president and chief operating officer, over concerns about the pair's use of a questionable tax shelter.
The company's two tracking stocks, meanwhile, have not fared well. Shares of Sprint's wireline division, FON, have fallen from more than $16 a year ago to $11.58 Friday on the New York Stock Exchange. Shares of Sprint's wireless division, PCS, have fallen more dramatically -- from nearly $13 to $3.84 Friday.