Qwest Communications doubled its profit to $246 million in its second quarter from the same period a year ago, but revenues were flat.

Chief Executive Officer Dick Notebaert, who is retiring, also hinted that the board of directors is close to naming his successor. But he declined to give a timetable for an announcement, except to say it would be "sooner rather than later."

The earnings of 13 cents a share missed analyst projections by two cents. Qwest shares were off 13 cents to $8.40. Shares were trading at $10.17 when Notebaert announced in June his plans to retire.

Telecommunications analyst Donna Jaegers of Janco Partners in Greenwood Village noted that the "bulls" also may be concerned about steeper-than-expected phone line losses of 7.1 percent, and may have been disappointed that Qwest didn't announce a new stock buyback or dividend.

Qwest profits are coming from tight cost control, growth in high-speed Internet services and sales of communications "bundles."

"Our results continue to demonstrate that our strategies are working," Notebaert told analysts in a conference call.

Notebaert said he is leaving at a time that Qwest is "normal," producing profits and positioned well for the future, and that he has high expectations for his successor.

In a brief telephone interview, he discouraged speculation he might be interested in the top job at Motorola should it become available. He reiterated that he plans to spend time with his grandchildren and in his new post as chairman of the board of trustees at Notre Dame University.

"I have nothing else on the radar screen," Notebaert said.

He declined comment on last Friday's sentencing of former Qwest CEO Joe Nacchio to six years in prison, except to say "I respect the decision of the court."

Notebaert said the company's phone line losses may be affected by home foreclosure rates and slower housing starts in the region. But he also noted that the second quarter "for as long as I remember" has been the weakest quarter of the year.

Jaegers said Qwest did a good job in the second quarter in offsetting expected losses in its wholesale business. BellSouth, which has been acquired by AT&T, and Nextel both migrated traffic from Qwest's network during the quarter.

"It was a good achievement (by Qwest) to replace those losses," Jaegers said.

Qwest's work force totaled 37,585 as of June 30, down 4.4 percent since last year, although the company has added 250 business market sales people since December.

Notebaert said Qwest has completed half of its planned $2 billion share buyback. He indicated the board may be close to a decision on an additional buyback or dividend as a way to reward stockholders.

Qwest

Q: NYSE

$8.40

-13 cents

smithje@RockyMountainNews.com or 303-954-5155