Yahoo Inc. may finally be pulling out of a three-year slump that cast aside two CEOs and spurred a cost-costing spree that laid off about 2,000 workers.
The purge is the main reason Yahoo's third-quarter profit more than tripled from last year to soar past analysts' relatively low expectations for the troubled Internet company.
But the results released Tuesday also showed Yahoo's revenue fell by at least 12 percent for the third consecutive quarter. The revenue rut means Yahoo still has a long way to go on its comeback trail.
Tuesday, October 20, 2009
Friday, October 16, 2009
Mattel Inc., the largest U.S. toymaker, said Friday its fiscal third-quarter profit declined 3 percent as the tough economy dampened demand for key brands like Barbie and Fisher-Price.
Chief Executive Robert A. Eckert said Friday that revenue "continues to be challenging this year" because of the economy, stronger dollar and a lack of toys tied to hot movies and other entertainment.
A year ago, results were boosted by toys tied to movies including "Kung Fu Panda," "Speed Racer" and "The Dark Knight."
The company said it has continued to cut costs to maintain profit margins. In response to weak sales and cautious ordering by retailers, toy makers have been reducing spending and slashing inventory in an effort to preserve profit.
Mattel, which is based in El Segundo, Calif., is in the midst of a cost-cutting plan designed to save $180 million to $200 million over two years.
Profit for the quarter ended Sept. 30 declined to $229.8 million, or 63 cents per share, matching analyst expectations. A year ago the company earned $238.1 million, or 65 cents per share.
Revenue declined 8 percent to $1.79 billion, partly because of the stronger dollar. Analysts polled by Thomson Reuters, on average, predicted revenue of $1.78 billion. When the dollar rises in value, companies' overseas revenue translates back into fewer dollars.
Mobile phone maker Sony Ericsson said Friday its losses widened to euro164 million ($245 million) on sagging sales in the third quarter, and announced new financing from external investors.
The LM Ericsson and Sony Corp. joint venture said losses in the same period a year ago came to euro25 million.
Sales in the quarter fell more than 40 percent to euro1.6 billion, compared with euro2.8 billion in the same period in 2008. Units shipped in the July-September period amounted to 14.1 million, up 2 percent on the quarter, but down 45 percent on the year.
Sony Ericsson said it had strengthened its balance sheet by securing euro455 million ($676 million) in external financing facilities, primarily from parent companies Sony and Ericsson.In April, Sony Ericsson announced it would slash 2,000 jobs, on top of 2,000 jobs cut last year, to lower costs. In total, it aims to cut operating costs by euro880 million, with full effect of the measures expected in the second half of next year.
General Electric (NYSE: GE) opened at $16.35. So far today, the stock has hit a low of $16.19 and a high of $16.41. GE is now trading at $16.35, down $0.45 (-2.68%). Over the last 52 weeks the stock has ranged from a low of $5.73 to a high of $21.04. GE reported earnings this morning, posting a third-quarter profit of $2.41 billion, or 23 cents per share, on revenue of $37.80 billion. Analysts had forecast a profit of 20 cents per share on revenue of $40.03 billion.
Halliburton's third-quarter results Friday gave the first concrete evidence that the oil industry may have bottomed out as profits plunged but drilling activity in the critical region of North America grew.
"This is not going to be as hard a downturn as we thought a quarter or so ago," Dave Lesar, Halliburton's chairman, president and CEO, said in a conference call with investors.Those comments sent company shares jumping to a 52-week high of $31.27.