The fourth-quarter profits for Qwest Communications International Inc., the local phone provider in 14 U. S. states, dipped 39% as more subscribers opted for the mobile handsets instead of home phones.

According to a statement from the company, profit not including costs to fire workers, fell to 8 cents a share from 11 cents the previous year and the sales decreased 9.7%. This was in harmony with the average estimate of analysts by Bloomberg. Sales fell 9.7 percent. Unemployment, a poor business climate and weak housing cut into earnings were held responsible for this decline. Last year it decreased its work force by almost 2,800 job cuts.

Qwest stated that the pace of its sales by the fourth quarter of this year will decline "low- to mid-single digit rate". The cost to pay benefits to retired workers is expected to drop to $130 million from about $200 million last year as said by the company.

Almost similar to the forecast of $3.01 billion by Bloomberg analyst survey, the fourth-quarter sales fell to $2.99 billion from $3.32 billion. Net income decreased to $108 million or 6 cents a share, from $177 million, or 10 cents, previous year.