*LTD*
Jan 26, 2010, 11:52 AM
http://online.wsj.com/article/SB10001424052748703906204575026803979106926.html
Verizon swings to loss, projects another round of layoffs
"Verizon Communications Inc. swung to a fourth-quarter loss because of charges related to job cuts, as the company's executives continued to cast a downbeat note on the economic recovery," Roger Cheng reports for The Wall Street Journal.
"While the New York telecommunications giant's wireless arm remained resilient in the face of lower consumer spending, its legacy wireline segment wasn't so fortunate. Verizon said there haven't been any indications of a pickup in spending on the business side. In addition, the number of new FiOS customers disappointed Wall Street," Cheng reports.
"'The economy won't help us as much as we thought,' Chairman and Chief Executive Ivan Seidenberg said, adding that he doesn't see a significant improvement until the end of the year. As a result, the company projects another round of layoffs, similar in size to last year," Cheng reports.
"The company reported a loss of $653 million, or 23 cents a share, compared with a year-earlier profit of $1.23 billion, or 43 cents. Excluding one-time items, among them the costs from cutting about 8,000 jobs, earnings fell to 54 cents a share," Cheng reports. "Revenue jumped 9.9% to $27.09 billion. Both profits and revenue disappointed analysts, who were already bracing for weaker results."
"The wireless business, however, remained strong thanks to Verizon Wireless's latest attempt to counter the popularity of AT&T Inc. and Apple Inc.'s iPhone. Motorola Inc.'s Droid, powered by Google Inc.'s Android software, saw moderate success with its holiday launch," Cheng reports.
"To offset the slowing revenue, the company maintained its commitment to cutting costs," Cheng reports. "It expects to cut its work force of 117,000 by another 13,000, similar to the amount of jobs it slashed last year."
Verizon swings to loss, projects another round of layoffs
"Verizon Communications Inc. swung to a fourth-quarter loss because of charges related to job cuts, as the company's executives continued to cast a downbeat note on the economic recovery," Roger Cheng reports for The Wall Street Journal.
"While the New York telecommunications giant's wireless arm remained resilient in the face of lower consumer spending, its legacy wireline segment wasn't so fortunate. Verizon said there haven't been any indications of a pickup in spending on the business side. In addition, the number of new FiOS customers disappointed Wall Street," Cheng reports.
"'The economy won't help us as much as we thought,' Chairman and Chief Executive Ivan Seidenberg said, adding that he doesn't see a significant improvement until the end of the year. As a result, the company projects another round of layoffs, similar in size to last year," Cheng reports.
"The company reported a loss of $653 million, or 23 cents a share, compared with a year-earlier profit of $1.23 billion, or 43 cents. Excluding one-time items, among them the costs from cutting about 8,000 jobs, earnings fell to 54 cents a share," Cheng reports. "Revenue jumped 9.9% to $27.09 billion. Both profits and revenue disappointed analysts, who were already bracing for weaker results."
"The wireless business, however, remained strong thanks to Verizon Wireless's latest attempt to counter the popularity of AT&T Inc. and Apple Inc.'s iPhone. Motorola Inc.'s Droid, powered by Google Inc.'s Android software, saw moderate success with its holiday launch," Cheng reports.
"To offset the slowing revenue, the company maintained its commitment to cutting costs," Cheng reports. "It expects to cut its work force of 117,000 by another 13,000, similar to the amount of jobs it slashed last year."
