Verizon Expects Flat Earnings,
Plans A Charge Of $2.5 Billion

Copyright 2002 Toronto Star Newspapers, Ltd.
Toronto Star...04/10/2002
From LexisNexis
AP

from BroadbandWeek Direct - April 10, 2002

Verizon Communications Inc. said yesterday it expects first-quarter earnings to fall a penny a share short of Wall Street expectations and said expenses related to investments, among other things, would lower earnings by $2.5 billion (U.S.).

The local and long-distance telephone company said it anticipates earnings of 72 cents a share, even with year-earlier results.

The mean estimate of analysts surveyed by Thomson Financial/First Call was for earnings of 73 cents a share.

Chief financial officer Fred Salerno reiterated that Verizon doesn't expect to report an improvement in revenue growth but "we expect our adjusted first-quarter earnings to be within the range of analyst expectations, primarily due to our continued, aggressive focus on cost control."

Year-earlier revenue was $16.27 billion.

The quarter's charges will include up to $500 million related to new accounting rules for goodwill amortization and nearly $ 2 billion after-tax for the writedown of various company investments.

The company, based in Bedminster, N.J., is slated to release its first-quarter results on April 23.

The reduction in values resulting in earnings charges include stakes in Venezuela's largest telephone company, CANTV; Verizon's wireless affiliate in Argentina; and Metromedia Fiber Network Inc. in the United States.