Verizon Posts $2.11 Billion Second-Quarter Loss.

Byline: Andrea Ahles

Aug. 1--Citing the weak economy and an industrywide slump, Verizon Communications reported a $2.11 billion second-quarter loss that included $4.2 billion in charges and investment write-downs.

Despite the loss, Verizon shares rose 9 percent, up $2.80 a share to close at $33 on the New York Stock Exchange on Wednesday. Analysts said investors had expected the earnings news to be worse.

"They made the best of a bad situation," said Pat Comack, a telecommunications analyst with Guzman & Co. "It's still an industry with very aggressive competition and lower pricing."

Verizon reported a $2.11 billion loss, or 78 cents per share, compared with a $1.02 billion loss, or 38 cents per share, in the same period last year. Revenues also declined slightly to $16.83 billion from $16.91 billion.

The company, which has 14,000 employees in North Texas, also revised its earnings guidance for the rest of the year as consumers and businesses continue to cut spending on telecommunication services.

"A rebound will occur but not in 2002," said Doreen Toben, chief financial officer. "We will wait like everyone else for the turnaround."