SBC Sees Charges

The company says job cuts will trim fourth-quarter profits by a nickel a share.

Author:: TSC Staff
Publish date:: Jan 11, 2005 4:36 PM EST

SBC

(SBC)

said late Tuesday that it would take $250 million worth of fourth-quarter charges to cover severance and pension costs.

SBC said severance expenses linked to its ongoing job-cutting program will amount to $150 million for the fourth quarter ended Dec. 31, while costs of changing assumptions on the management pension plan will total $100 million. SBC said that it cut 6,000 jobs in 2004 and that it could cut at least 4,000 more this year.

SBC said the charges should trim fourth-quarter earnings by a nickel a share. The company, which is due to post fourth-quarter numbers Jan. 26, is expected to earn 33 cents a share on revenue of $13.7 billion, going by the Thomson First Call consensus.

The San Antonio, Texas-based telco said it would recognize additional charges for integration costs in the quarter as its 60%-owned Cingular Wireless unit folds in newly acquired AT&T Wireless.

SBC fell 18 cents Tuesday to $24.72.