Verizon 4Q earnings on target

(Telephony) Citing strong performances in its data, wireless and international segments, Verizon Communications released fourth quarter 2000 earnings today of 70 cents per diluted share on net income of $1.9 billion.

The company posted 63 cents per diluted share and a net income of $1.7 billion for the same period in 1999 for an 11.1% increase in 2000.

Reported EPS for the year rose 45.1% from $2.97, or $8.3 billion in 1999 to $4.31, or $11.8 billion in 2000.

Adjusted profits for the quarter were 77 cents per share, or $2.1 billion, an increase of 2.7% from fourth quarter 1999. For the year, adjusted EPS increased 2.5% to $2.91, or $8 billion.

The results were on target with the 77 cents per share earnings predicated by analysts surveyed by First Call/Thompson Financial.

"Right now we have the necessary scale and scope on a national basis, as well as the financial strength and flexibility, to deliver sustained profitable growth in a very competitive market," said Fred Salerno, vice chairman and chief financial officer at Verizon.

The company said that 40% of its adjusted consolidated revenues for both the fourth quarter and the year were generated from high-growth data, wireless, long-distance, DSL and international services. Fourth quarter revenues in these areas totaled $6.6 billion and for the year were more than $23.6 billion.

"Our solid performance in 2000 confirms both the validity of our business model and our ability to execute on it," said Verizon Chairman and Co-CEO Charles R. Lee in a prepared statement. "In 2001, we will build on these successes and further expand into high-growth markets of the future."

Verizon’s DSL added 190,000 users to its customer base bringing its subscriber total to 540,000, an increase of more than 500% from the 1999 total.

The company has applied to sell long-distance services in Massachusetts, Pennsylvania and New Jersey, which Salerno said have a combined annual market value of $14 billion in voice services alone.

Looking ahead to 2001, Verizon said it anticipates 8% to 10% revenue growth and earnings of $3.13 to $3.17 per share. The company also said it would continue efforts to meet a goal of $2 billion in annual savings by the end of 2003.