Sprint Nextel ousts CEO, chairman
Sprint Nextel Corp.’s board removed Chairman and Chief Executive Gary Forsee on Monday, complaining over the cell phone carrier’s financial results, which have lagged since the massive Sprint-Nextel merger Forsee engineered.
The board said it was searching for a replacement for Forsee, who was also president. In the meantime, Director James Hance Jr. will be acting chairman, and Chief Financial Officer Paul Saleh will serve as acting CEO.
Also Monday, Sprint Nextel said it expects to report a net loss of approximately 337,000 monthly subscribers in the third quarter. Its operating income, excluding some items, is expected to fall below the previously forecast range $11 billion to $11.5 billion. Revenue is expected to fall below the earlier forecast of $41 billion to $42 billion.
Sprint Nextel shares closed Monday at $18.50, down 51 cents or 2.7 percent. In extended trading, after the announcement of Forsee’s departure, the shares regained 50 cents.
Fast-food giant Yum Brands Inc. said Monday its third-quarter profit rose 17 percent on the strength of surging sales in its international and China divisions that offset sluggishness in the United States, led by slumping Taco Bell.
The operator of KFC, Taco Bell and Pizza Hut reported 28 percent profit growth in its China division and 21 percent growth in its international division for the three months ended Sept. 8. Yum’s U.S. operation had a scant 1 percent profit growth for the period.
Overall, net income rose to $270 million, or 50 cents per share, from $230 million, or 42 cents per share, in the same quarter a year ago. Analysts polled by Thomson Financial expected earnings per share of 45 cents.
Yum shares climbed $1.94, or 5.7 percent, to close at $36.29 Monday before the results were released. They gained another $1.42 in after-hours trading.
TiVo Inc. is introducing music to its mix of entertainment services, offering owners of the company’s digital video recorders access through their TVs to RealNetworks Inc.‘s Rhapsody music service.
The new feature announced today means TiVo subscribers with broadband-connected set-top boxes will be able to listen to music streamed over the Internet from Rhapsody’s service, which has a catalog of more than 4 million songs.
TiVo and RealNetworks view their partnership as a way to cross-market to boost their subscriber bases.
The Rhapsody service will cost $12.99 per month on top of the $12.95 or more TiVo regularly charges.