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Verizon Communications reported a 30 percent drop

By Amarendra Bhushan for CEOWORLD Magazine Updated:October 27, 2009

Verizon Communications (NYSE:VZ) reported a 30 percent drop in third-quarter earnings as it couldn’t sign up enough new subscribers to offset higher costs from laying off workers and absorbing an acquisition.

Verizon earned $1.18 billion, or 41 cents per share, in the third quarter, compared with $1.67 billion, or 59 cents per share, a year ago. Excluding one-time items such as restructuring costs, Verizon said it earned 60 cents per share.

In a plan aimed at Apple Inc.’s (AAPL) iPhone, Verizon Wireless and Google Inc. (GOOG) agreed this month to team up to develop mobile devices based on Google’s Android operating system. Verizon Wireless, jointly owned with Vodafone Group PLC (VOD), has lacked its own marquee phone to rival the iPhone, offered by AT&T Inc. (T).

Some other third-quarter earnings reported Monday:

•Apparel maker VF Corp., which includes the Lee Jeans operations in

the Kansas City area, earned $217.9 million, $1.94 a share, down 7

percent from a year-ago $233.9 million, $2.10 a share. Revenue fell 5

percent, to $2.1 billion.

•Plagued by weakness in advertising and the education markets,

information-services company McGraw-Hill Cos. earned $336.1 million,

$1.07 a share, down 14 percent from a year ago. Revenue declined 8

percent, to $1.88 billion.

•Swedish appliance maker Electrolux AB earned $236 million, up 93

percent from a year ago. Revenue was up 5 percent.

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