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.