Verizon: $10B Sandy Charge, Could Bid For Rest Of Wireless Unit

Verizon May Take $10B Charge For Sandy Damage, Other Issues

 @DavidZie
on January 08 2013 9:35 AM
Lower Manhattan A Week After Hurricane Sandy
Residual wastewater trucks were lined up on Monday near the end of FDR Drive in Manhattan’s financial district. Much of the pumping operations appeared to be completed a week after Hurricane Sandy, but a lot of work remained before many office workers and local small businesses could return to their normal routines. IBTimes/Angelo Young

Verizon Communications (NYSE:VZ) expects a one-time, $10 billion charge for Hurricane Sandy damage and other reasons, CEO Lowell McAdam said, as it continues to explore buying out partner Vodafone’s (NASDAQ: VOD) minority share in Verizon Wireless.

“We certainly took a hit because of Sandy,” McAdam said at a Citibank Securities conference in Las Vegas. The fourth-quarter charge for Sandy damage will be about $1 billion, he said, with the remainder coming from debt restructuring as well as pension plan charges. Insurance should cover part of the Sandy damage, he said.

The executive said most of the damaged cable in Lower Manhattan will be replaced by fiber optics.

McAdam said he expects Verizon Wireless to report a gain of 1.2 million subscribers, its best-ever gain, bringing its total above 97 million, still behind the 106 million expected for AT&T (NYSE: T).

The Verizon CEO said the New York-based company “would love” to acquire Vodafone’s 45 percent stake in Verizon Wireless but sees no immediate need because the unit is performing well.

U.S. shares of Vodafone fell 41 cents to $26.14 in Tuesday tradingwhile those of Verizon fell 77 cents to $43.40.

 

 

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