Published January 07, 2013
Verizon Communications (VZ) told investors on Monday it plans to take up to $10 billion worth of charges in the fourth quarter tied to pension liabilities as well as about $1 billion of Hurricane Sandy-related costs.
Shares of the telecom giant ticked higher as concerns about the hefty charges were offset by upbeat comments regarding Verizon Wireless, the company’s joint venture with Vodafone (VOD).
Speaking at a Citigroup (C) investment conference, Verizon CEO Lowell McAdam said he expects to disclose fourth-quarter charges of $9 billion to $10 billion, Dow Jones Newswires reported.
The one-time items include about $1.5 billion in restructuring costs, approximately $7 billion of mark-to-market pension charges and $1 billion linked to Hurricane Sandy, which slammed the East Coast in late October. McAdam said about one-third of the Sandy costs are covered by insurance.
The Verizon CEO also warned that the company expects 2013 to be “relatively flat” overall.
Still, Verizon impressed shareholders by saying it sees more than 130,000 new customers for its FiOS cable and Internet service, Dow Jones reported.
Likewise, Verizon Wireless added 2.1 million net subscribers in the fourth quarter amid the joint venture’s “best quarter in history,” McAdam said.
Shares of New York-based gained 0.61% to $44.56 in somewhat volatile trading Monday afternoon, leaving them up 3.3% on the year.