US tax dollars NOT at work (was re: Nader)

["Charles Jannuzi" <jannuzi@xxxxxxxxxxxxxxxxxxxxxxxxx>]

I'm sure Sawicky will want to discuss the House of Harkonnen or the BEIC or
something, but just to back up my point about the overall inefficiencies of
letting companies fill government services, at least the American way, let's
just start with Carlyle Group's IT Group (recently sold to Shaw Group, who
apparently wants IT Group to clean up oil and chemical messes for companies
that buy from Shaw Group).
Anyway, how many other companies have such huge backlogs on their government
contracts? Well, let me find out. I'll keep looking and posting. You know
for sure there must be problems with all the gov't contracts Enron and
Global Crossing got. Here is IT Group (interesting for a number of reasons
including that it specializes in parasitizing tax dollars, as many CG
holdings do):


http://www.prnewswire.com/cgi-bin/stories.pl?ACCT=105&STORY=/www/story/10-06
-2000/0001332023

  The IT Group Revises Earnings Outlook

Year-End Debt Level of $625 Million Expected to be Achieved

Backlog Projected to Grow to Record $5 Billion Range

PITTSBURGH, Oct. 6 /PRNewswire/ -- The IT Group, Inc. (the "Company") (NYSE:
ITX) announced today that it expects earnings per share in the third quarter
of 2000 to be between $0.17 and $0.20.  The Company also said that it now
anticipates that fourth quarter earnings per share will be in the $0.25 to
$0.30 range.  The revised 2000 outlook now anticipates ranges for revenues
of $1.42 to $1.45 billion, operating cash flow of $148 to $152 million and
earnings per share of $0.75 to $0.83.  Cash earnings per share for the year
are anticipated to be in the range of $1.15 to $1.23. Anthony J. DeLuca,
chief executive officer and president of The IT Group, said, "Our revised
outlook is due primarily to a revenue shortfall resulting from what the
Company believes are short-term project start-up delays caused by various
client and regulatory issues, technical personnel shortages and unexpected
federal government funding delays in our Outsourced Services business.  In
addition, earnings in the third quarter have been negatively impacted by
poor performance on two projects which are now complete and the delay in the
completion of certain real estate restoration transactions, most of which
are expected to close in the fourth quarter."

Backlog Growth "Recently the Company has successfully bid a diverse range of
major and strategically important new programs.  The Company is nearing the
completion of negotiations for a $200 million, 30-year operations and
maintenance program at a major Superfund site, which provides for advance
funding of approximately $38 million.  We believe negotiations for this
program can be concluded in the next week and will be the subject of a
separate announcement," Mr. DeLuca continued.  "We are also currently in the
negotiation phase of several federal facility management contracts, the
awards of which are expected to be announced in the fourth quarter.  With
these and other wins, the Company expects to report a record level of
backlog approaching $5 billion by the end of the year.  The backlog
strength, combined with anticipated federal government appropriation
increases in 2001, we believe positions the Company well for the future."

Deleveraging Plan "Although operating cash flow will be short of earlier
projections, we remain confident a debt level of approximately $625 million
at year end can be achieved.  Our confidence is supported by continued
progress in working capital management, including the Superfund site program
advance funding mentioned above, which is expected to be received in
December, as well as the proposed sale of certain non-core assets.  With an
increase in third quarter revenue over second quarter revenue, the Company's
focus on working capital management is expected to result in a debt level at
the end of the third quarter consistent with the debt level at the June
quarter end," Mr. DeLuca concluded. The IT Group, Inc. is a leading provider
of a comprehensive range of outsourced services addressing the
infrastructure, consulting, engineering and construction, water, civil works
and facilities management needs of a broad variety of public and private
sector clients.  Additional information about The IT Group can be found on
their new web site at http://www.theitgroup.com .  The IT Group's common
stock and depositary shares are traded on the New York Stock Exchange under
the symbol ITX and ITXpr, respectively. Statements regarding the intentions,
beliefs, expectations or predictions of The IT Group, Inc. and its
management, including, but not limited to, those statements denoted by the
words "anticipate," "believe," "expect," "should," "confidence" and similar
expressions are forward-looking statements that reflect the current views of
The IT Group and its management about future events and are subject to
certain risks, uncertainties and assumptions. Actual results could differ
materially from those projected in such forward-looking statements as a
result of a number of factors, including, but not limited to, funding of
backlog, competition and pricing pressures, bidding and negotiation
opportunities and success, project results including pursuing claims and
change orders, management of the Company's cash resources, particularly in
light of the Company's substantial leverage, matters affecting contracting
and engineering business generally, such as seasonal work, the impact of
weather and clients' timing of projects, technical personnel shortages, the
Company's ability to generate a sufficient level of future earnings to use
its deferred tax assets, the success of the Company's acquisition strategy,
including the effects of the integration of recent acquisitions, and
achievement of expected cost savings and other synergies from these
acquisitions and industry-wide factors.

SOURCE The IT Group, Inc. Web Site: http://www.theitgroup.com

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CJannuzi