Verizon swallows $2 billion loss

The fourth quarter certainly won’t go down as most companies’ favorite. The story is no different for Verizon Communications, which suffered a $2 billion loss after posting a $1.9 billion profit in the same quarter a year ago.

Verizon officials are pinning much of the loss on repair costs for network damage done Sept. 11 and a charge for employee reductions. The attacks destroyed or disrupted 200,000 Verizon telephone lines, 3.6 million data circuits, and 10 cellular towers. The company is still in the midst of settling insurance claims and determining government aid.

Verizon took a $1.4 billion charge for the cost of cutting 10,000 jobs.

On a slightly positive note, revenue for 2002 is expected to increase between 3% to 5%, according to Frederic Salerno, vice chairman and chief financial officer at Verizon.

“We are taking a number of steps to strengthen our position,” Salerno said. “Our focus is always on our balance sheet and cash flow.”

Salerno expects the economy to have a continued effect on the company over the next two quarters. But the company is seeing revenue growth in areas such as long distance and DSL.