SECURITIES AND EXCHANGE COMMISSION
Washington, D. C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report - September 28, 1995
(Date of earliest event reported)
GTE Corporation
(Exact name of registrant as specified in its charter)
NEW YORK
(State or other jurisdiction of incorporation or organization)
1-2755 13-1678633
(Commission File Number) (IRS Employer Identification No.)
One Stamford Forum
Stamford, Connecticut 06904
(Address of principal executive offices) (Zip Code)
203-965-2000
GTE CORPORATION
FORM 8-K
ITEM OF INFORMATION
Item 5. Other Events
NEW YORK -- GTE Corporation (GTE) Chairman and Chief Executive Officer Charles
R. Lee today said he is confident GTE's earnings growth rate will modestly
exceed the average of analysts' current estimates for the third quarter and
the year.
Speaking to a group of telecommunications research analysts at a company
briefing in New York City, Lee said, "We serve very attractive markets and
have a strong competitive position. Given all the initiatives GTE has
underway to benefit from the high growth within the industry, I am confident
we will exceed the average of the current Wall Street estimates not only for
1995, but also into the future as we continue to leverage our strong market
position with new bundled-service offerings.
"All of our energies are focused on enhancing shareholder value and GTE's
competitive position within the industry," Lee noted. "With our recent
management restructuring that will enable us to fully exploit the convergence
of wireline and wireless, the continuing benefit of process re-engineering,
the increasingly favorable regulatory environment as well as promising
opportunities internationally, we can do just that," he said.
As to whether GTE will discontinue regulatory accounting practices
prescribed by Financial Accounting Standards (FAS) 71 and adopt commercial
practices, Lee said the company is evaluating its options and expects to make
a decision by the end of the year. If GTE were to discontinue the application
of FAS 71 and compute the effect on its telephone plant in a manner similar to
the other major local-exchange carriers, the non-cash, after-tax impact is
estimated to be between $3 billion and $5 billion. This potential accounting
charge will have no effect on GTE's customers or its liquidity and capital
resources. The charge would reduce the net book value of the fixed assets of
domestic telephone operations. However, it would have no significant effect
on future depreciation expense for many years.
GTE is the largest U.S.-based local telephone company and a leading
cellular-service provider in the United States, with wireline and wireless
operations that form a market area covering more than one third of the
country's population. With net income of $2.5 billion and revenues of $20
billion in 1994, the corporation is the fourth-largest publicly owned
telecommunications company in the world. GTE also is a leader in government
and defense communications systems and equipment, aircraft-passenger
telecommunications, directories and telecommunications-based information
services and systems.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
GTE CORPORATION
(Registrant)
By Lawrence R. Whitman
Lawrence R. Whitman
Vice President and Controller
Date: September 29, 1995
