(VZ) - Get Report

met second-quarter profit goals Wednesday despite continued sales declines, but the phone giant once again lowered its revenue and earnings targets for the year.

The nation's largest local phone company and biggest equipment buyer also slashed its 2002 capital spending target by $1.25 billion, or 9%. That's less of a cut than some observers had expected, but it puts Verizon's capital spending target 24% below last year's levels.

Not including one-time charges, Verizon posted earnings of 77 cents a share, a 7% sequential increase but even with the same period a year ago. Revenue was $16.8 billion, a 2% increase from the first quarter and flat with last year.

For the sixth consecutive quarter, Verizon's core local phone business declined as a slackening economy and wireless competition has eroded its formidable grip on the local phone market.

With writedowns and charges, the company's second-quarter net loss on a GAAP basis was $2.1 billion, or 78 cents a share, more than doubling the year-ago loss of $1 billion, or 38 cents a share. Latest-period charges included more than $2.4 billion in writedowns related to Verizon's interest in its former data communications services arm