Sprint reports increased earnings of $39 million for quarter

KANSAS CITY, MISSOURI - Sprint Corporation, facing a report its two top executives are being forced out over their use of a questionable type of tax shelter, reported earnings Wednesday of $39 million during the fourth quarter. <br> <br> Meanwhile, a judge in Georgia said she&#39;ll decide within a week whether an executive from a Sprint rival can take over as chief executive of the Overland Park, Kansas-based telecommunications firm. <br> <br> The $39 million profit is a substantial increase over the $1.2 billion loss the company reported during the same period a year earlier. The company credited cost-cutting measures, which have included 17,000 layoffs since October 2001. <br> <br> Sprint confirmed Sunday that William Esrey, its longtime chief executive and chairman, will be stepping down. The company has not said why or when the 63-year-old Esrey will leave, but his resignation was not unexpected because he was diagnosed with lymphoma in November. <br> <br> However, Wednesday, The Wall Street Journal, citing unnamed sources, reported that Esrey and Ronald LeMay, Sprint&#39;s president and chief operating officer, were being forced out as part of a boardroom dispute over their use of a questionable type of tax shelter that is under scrutiny by the Internal Revenue Service. Esrey and LeMay reportedly used the shelter to defer tax payments when they exercised stock options in 1999 and 2000. <br> <br> Sprint executives would not comment on the report. <br> <br> Sprint wants Gary Forsee, a vice chairman at BellSouth Corporation and former Sprint executive, to replace Esrey. Fulton County, Georgia, Superior Court Judge Stephanie Manis said toay she plans to issue a written ruling within a week on whether to dissolve the temporary restraining order that prevents Forsee from leaving BellSouth to take the top job at Sprint. <br> <br> Cingular Wireless, an affiliate of BellSouth, also filed a lawsuit Wednesday to prevent Forsee from leaving. Cingular wants to combine its lawsuit with BellSouth&#39;s.

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