McLeod says reorganization is paying off

The Cedar Rapids-based McLeod U-S-A communications company issued a positive report on its earnings for the last quarter of 2002. McLeod C-E-O Chris Davis spoke to stockholders today in a conference call. Davis says total revenues for 2002 were 987 million dollars with earnings of 22-point-eight million. That compares to a loss last year of 36 million dollars on one-billion-187-million dollars in revenue. Davis says McLeod achieved the profit by by focusing on its telecommunications business and cutting peripheral businesses.She says the result reflect the significant progress they’ve made in “right sizing” the business, reducing the network operating costs, streamlining the business process and the alignment of the sales process. McLeod now faces the challenge of Qwest communications, which recently received approval to sell long distance services in Iowa. Davis says they took that into account while re-tooling the company. She says they were preparing themselves to provide competitive prices with Qwest, and she says they feel they can do that. McLeod provides telephone and internet services to 25 states, including Iowa.