"Verizon strike seen hitting second-quarter earnings: CFO" This is for all the economic scholars who said " no big deal"

and to all the stockholder trolls on here who shot themselves in the foot.

Lesson Learned.

"By Malathi Nayak

NEW YORK (Reuters) - The seven-week strike by Verizon Communications Inc's (VZ.N) wireline workers will hurt the company's second-quarter earnings and potentially cost up to 7 cents per share, its chief financial officer said.

The company "will see about a 5 cent to 7 cent impact to the bottom line for the quarter," CFO Fran Shammo said at the Bank of America Merrill Lynch global telecom and media conference in London on Tuesday. The remarks were the first Verizon has made to quantify the strike's cost.

Nearly 40,000 network technicians and customer service representatives of the company's Fios internet, telephone and television services units walked out on April 13 after contract talks hit an impasse. The strike, one of the largest in recent years, was called by the Communications Workers of America and the International Brotherhood of Electrical Workers.

Verizon and the unions said a tentative deal reached last month includes 1,400 new jobs and pay raises topping 10 percent.

Workers returned to work on June 1.

Once the agreement is ratified in a vote scheduled for June 17, Verizon will share more details on the impact of the strike on its second-quarter earnings call, scheduled for July 26, Shammo said.

The work stoppage at Verizon stretched across several U.S. East Coast states, including New York and Massachusetts.

Verizon has shifted its focus in recent years to new initiatives in mobile video and advertising, while scaling back its Fios TV and Internet service. Last year, it launched a mobile video service targeted at millennials called go90 and acquired AOL for $4.4 billion.

It is considered a front-runner in Yahoo Inc's (YHOO.O) auction of its web business.

Asked about Verizon's second-round bid for Yahoo's assets, "we'll see whether we move forward or we don't move forward," Shammo said, declining to provide details.

Verizon's stock was off 29 cents, or 0.56 percent, at $51.46 in midday trading on the New York Stock Exchange.

(Reporting by Malathi Nayak; Editing by Dan Grebler)

http://finance.yahoo.com/news/verizon-strike-seen-hitting-second-163056936.html

Comment! It's anonymous!

12 replies (most recent on top)

"Shampoo said loss was due to the increase in operating cost due to the high cost of scab labor."

Don't you think he said this for a reason? It's a good reason to limit OT in Q3 & Q4, girls. Going to take a while to make back 7 weeks of time wasted walking in circles

The company is really concerned about 2Q. The are complaining that too much OT paid out during the walkout. So there efforts now are not to ask for OT, push jobs out, stop clocks and new orders until 3Q starts. Nothing has changed. This is the real Verizon.

Union is safe....I thought buyouts were part of the new contract.

Shamwow still doesn't get it - you reap what you sow even for the mighty big red turd.

Verizon's number is up, they fuked over too many and they put their eggs in the $hit go90 and AOL basket. Good luck with that!

"Union is safe through 2019." Not those who were hired post 2003. DERP.

Shampoo said loss was due to the increase in operating cost due to the high cost of scab labor. At least he finally admits union labor is more cost effective than contract labor. Failure of ewa's and scabs to do their jobs stopped fios installs damn near cold. Good call Lying Lowell, you lost and so did the shareholders.

Its going to be a rough ride, EWA's . Stockholders will take a hit. Union is safe through 2019. That's a fact. This isn't smoke and mirrors anymore. Vz went down on their bid for yahoo. Reality sometimes can be a real slap in the face. How many times do you jerks want to be slapped? Life is about learning, it appears some choose to be in a battered relationship.

Riff is coming ,big big ,June 30 and October ,to make up lost revenues and crappy Go90 ,should be Gosouth and say Hum ,,people say what the hell is HUM and GO90,maybe the HB1's will come up with better products...

Rick & Jim Fallriver Rif

Oh NOES a 5 to 7 cent impact on shares. DERP

It sounds like the problem was the shift away from wireline and softness in the mobile video area. The strike is a convenient way to get quickly out of a room without answering whether this is really a one time event or it is going to be the new watermark for overall lackluster wireline performance compounded by poor take-up on new wireless products. I suspect that time will reveal the latter. As for the OP, union zero burgers should keep their conspiracy theories among their peers.

If you are a union employee hired after '03', then you might want to stick around on this board to keep track of RIF news as well.

This really doesn't make any sense. If I recall, all the hot-shot EWA scabbies boasted about the great job they did, better, faster, no backlogs, the customers loved them .... remember? Oh and didn't the EWA scabbies also say Verizon was saving so much $$$ by not paying union wages that there would be no hit on profit?

I think the EWA scabbies really are "managers" after all. They just lie and pat each other on the back.

Good job Scabbies! Just think how wonderful you will become when you grow opposing thumbs.

Now how about latest RIF news.....

Thread regarding Verizon Communications Inc. layoffs

"Verizon strike seen hitting second-quarter earnings: CFO" This is for all the economic scholars who said " no big deal"

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