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Frontier 3Q profit rises 11 percent on cost cuts
By
AP
Nov 3, 2009
STAMFORD, Conn. (AP) — Frontier Communications Corp. on Tuesday posted an 11 percent increase in third-quarter net income as the rural phone company aggressively lowered costs in the face of falling revenue.
Frontier earned $52.2 million, or 17 cents per basic share, compared with $47 million, or 15 cents, in the same quarter a year earlier.
Earnings include noncash pension costs of $8.4 million and $3.7 million in expenses to acquire and integrate 4.8 million phone lines it's buying from Verizon Communications Inc.
Revenue fell 6 percent to $526.8 million from $557.9 million, as customers made fewer local and long distance calls.
Analysts polled by Thomson Reuters expected earnings of 15 cents per share on revenue of $530.4 million. Estimates typically exclude one-time items.
Frontier ended the third quarter with 324 fewer employees, or 6 percent of its work force.
Shares of Frontier, based in Stamford, Conn., fell 4 cents to $7.23 in midday trading.













