Nynex's Second-Quarter Profit Rose 12%, Excluding Charges
April 04, 2011
NEW YORK -- Nynex Corp. on Tuesday reported a second-quarter profit of $388.1 million, up 12% from a year ago, as the company experienced the same strong demand for new lines that other regional Bell carriers have seen. Nynex's profit amounted to 89 cents a share. A year ago, Nynex earned $347 million, or 81 cents a share. Revenue was $3.44 billion, up 5% from $3.27 billion a year ago. The results don't include special charges Nynex made in both quarters for an enhanced pension offer made to slowly diminish the size of its work force. The charges amounted to $30.1 million in the latest quarter and $106.2 million a year ago. Nynex raised its expectation for the number of people who will leave under the incentive, first made in 2009. It expects some 19,000 to 20,000 workers to leave by the end of 2013. It had previously expected 16,800 to leave by the end of this year. The company also had a major charge in the year-ago quarter for an adjustment in its accounting procedures to those of a competitive firm. Nynex, which is being purchased by Bell Atlantic Corp. for about $20 billion, experienced a 2.5% revenue gain in its telecommunications business during the most recent quarter. Its access line growth worldwide was 5%. In its main Northeast service area, access line growth was 3.5 percent, reflecting greater demand for second lines in many residences. Call volume, as measured by minutes of use, grew 9.6%. In composite trading on the New York Stock Exchange, Nynex's shares slipped 12.5 cents to $44.625.
