Verizon more than doubled its loss to $2.1 billion in quarter end...
Verizon more than doubled its loss to $2.1 billion in quarter ended June 30 from year ago and trimmed revenue forecast for 2002. Carrier attributed net loss to charges related to write-down of certain investments and to $4.2 billion…
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in after-tax charges, including $2.4 billion related to its investment in Genuity. Verizon said last week it was relinquishing its right to reintegrate Genuity, deciding to not reabsorb company that it was forced to spin off as condition of GTE-Bell Atlantic merger (CD July 26 p1). Other charges include $862 million to reflect loss of value of its investment in Telus, Cable & Wireless and other operations and $475 million for severance payments. Verizon also reported charge of $183 million related to its WorldCom exposure. Company updated its 2002 guidance to projected revenue of no growth to minus 1% for full year, compared with earlier expectation of 0-1% growth. Earnings per share before nonrecurring charges now stand at $3.05-$3.09, down from $3.12-$3.17. Capital expenditure estimates were trimmed to $13-$13.5 billion from $14-$15 billion. At end of 2nd quarter, Verizon said it had 9 million long distance customers, making it 4th largest IXC in U.S. Company said it added 800,000 long distance customers in quarter, up 51% from year earlier. It also added 150,000 DSL lines in quarter for total of 1.5 million, 80% increase from same period last year. Verizon said it was on track to meet year-end DSL line target of 1.8-2 million lines. Total switched access lines in service dropped 3.3% to 60.4 million, with largest decrease in business lines, down 11.2% to 564 million. Carriers’ and CLECs’ min. of use fell 7.4% to 66.5 million. High-capacity and digital data revenue rose 6.8% to $1.9 million.