Moody's Cuts Outlook On Dycom, Citing Weak Demand
NEW YORK (AP) ¿ Moody's Investors Service lowered its rating outlook for Dycom Industries Inc. to "Negative" from "Stable" on Thursday, citing weak demand from cable and telecommunications customers.
The Palm Beach, Fla. telecom contractor still has a non-investment grade "Ba2" rating on about $146 million in debt.
Last month, Dycom posted a loss of $78.3 million, or $1.99 per share, for its fiscal second quarter, compared with a loss of $3.2 million, or 8 cents per share, a year earlier. Excluding a $96.8 million impairment charge and other one-time items, the loss came to 4 cents per share.
Sales fell to $245.5 million from $284.7 million."The negative outlook reflects potential for low earnings through 2010 as the weak economy softens demand," Moody's said in a statement Thursday.
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