Thursday, December 04, 2008
now come the capex cuts
Dow component AT&T (T) announced it plans to cut some 12,000 jobs, or about 4%, from its workforce. AT&T also plans to reduce 2009 capital expenditures from 2008 levels; AT&T spent more than $14 billion in capital expenditures through the first three quarters of 2008. Fellow Dow component DuPont (DD) also indicated this morning it will reduce capital spending by 10% to 20% in 2009. The company is forecasting a fourth quarter loss between $0.20 and $0.30 per share, but expects fiscal 2009 earnings to range from $2.25 to $2.75 per share. The consensus 2009 estimate calls for $2.80 per share.
this has already been seen among commodities firms as input prices have crashed; now we're seeing it in large downstream firms.