Verizon Communications Inc., the
biggest U.S. local-telephone company, reduced its 2003 per-share
profit forecast because of expenses related to a new labor
agreement.
Profit will be $2.56 to $2.60 a share, excluding certain
costs and gains, compared with an earlier forecast of $2.70 to
$2.80, Verizon said in a statement. The company said comparable
annual revenue will be unchanged to up 2 percent.
Rhode Island's Market Has Changed. Developers, Builders, Investors and Sellers Must Change With It.
By Emilio DiSpirito IV License Partner | Engel & Völkers Oceanside Leader | The DiSpirito…
Learn More
The new forecast partly reflects this month’s agreement to
raise wages for 78,000 union-represented workers by 8 percent
through 2008. The settlement also left intact limits on New York-
based Verizon’s ability to fire and relocate workers, while
helping the company slow the pace of health-care cost increases.
Verizon, which reduced its capital-spending estimate to as
much as $12.5 billion, also increased the estimate for new
subscribers at its wireless operation.
Shares of Verizon have dropped 10 percent this year.
Verizon also said it will have unspecified costs in the
fourth quarter for job reductions. The company is offering
voluntary severance packages to union and management employees.
Verizon Wireless, the biggest U.S. mobile-phone company,
expects to add more than 4.5 million subscribers this year, up
from an earlier forecast for more than 4 million, the company
said in the statement.
Bedminster, N.J.-based Verizon Wireless has been doing
a better job attracting business customers and has drawn a higher-
than-expected number of customers through its retail stores,
SoundView Technologies Group analyst Michael Bowen said in a
research note dated Sept. 18.
Bowen, who rates Verizon shares “outperform,” expected the
wireless unit to add 4.17 million customers this year, up from an
earlier forecast for 3.96 million.
Bloomberg News
