Verizon to Take Charges of $3 Billion

Verizon Communications Inc. said it would take about $3 billion in charges, mostly because of a change in accounting in its telephone directory unit and the planned sale of its stake in a Mexican wireless carrier.

The New York-based local phone company said its 2003 guidance for revenue growth and earnings, excluding one-time items, remains unchanged.

Wall Street analysts played down the news of the charges since the company’s outlook remained unchanged. Verizon shares rose 5 cents to $39.50 on the New York Stock Exchange.

Verizon, like its sister Baby Bells, said it had changed its accounting methods for its telephone book unit to recognize revenue and expenses over the life of a directory, which is usually 12 months.