8-KOther Events

VERIZON COMMUNICATIONS INC 8-K Report, Corporate Update (Jan 12, 2005)

Filed January 12, 2005For Securities:VZ

Summary

Verizon Communications Inc. (VZ) filed an 8-K on January 12, 2005, detailing forward-looking statements made at the Smith Barney Citigroup Entertainment, Media and Telecommunications Conference. A key piece of information for investors is the projected increase in pension and postretirement costs for 2005, estimated to impact earnings per share by ten to fourteen cents. This increase is based on a projected discount rate of 5.75 percent. Furthermore, the company indicated that divestitures of certain international and other holdings, including TELUS Corp., Verizon Information Services Canada Inc., and Verizon Hawaii Inc., are expected to reduce 2005 earnings by approximately eight cents per share due to lost earnings. Investors should be aware that these are forward-looking statements and are subject to various risks and uncertainties that could materially affect actual results.

Key Highlights

  • 1Projected increase in pension and postretirement costs for 2005 by 10-14 cents per share.
  • 2Assumed discount rate for pension and postretirement costs is 5.75 percent.
  • 3Divestitures of international and other holdings (e.g., TELUS Corp., Verizon Information Services Canada, Verizon Hawaii) expected to reduce 2005 earnings by approximately 8 cents per share.
  • 4Presentation delivered by Senior Vice President – Investor Relations, Thomas Bartlett.
  • 5The report includes a safe harbor statement for forward-looking statements, highlighting risks and uncertainties.
  • 6Key risk factors mentioned include economic and industry conditions, technology changes, competition, regulatory proceedings, and debt ratings.

Frequently Asked Questions

Verizon expects pension and postretirement costs to increase in 2005, negatively impacting earnings per share by an estimated ten to fourteen cents compared to 2004 costs. This estimate is based on an assumed discount rate of 5.75 percent.

The company estimates that the divestitures of assets such as TELUS Corp., Verizon Information Services Canada Inc., and Verizon Hawaii Inc. will reduce 2005 earnings by approximately eight cents per share due to the loss of earnings from these sold or agreed-to-be-sold businesses.

No, these are forward-looking statements that are subject to risks and uncertainties. The report explicitly states that material changes in economic and industry conditions, technology, competition, regulatory outcomes, and other factors could cause actual results to differ significantly from these projections. Investors should review the 'Important Factors' listed in the report.

The information was presented by Thomas Bartlett, Senior Vice President – Investor Relations for Verizon Communications Inc., at the Smith Barney Citigroup Entertainment, Media and Telecommunications Conference.