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 and diluted 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 7 cents to $7.20. |