Nov 16, 2009
Income falls on AOL, Time Inc
Posted by: whoyg2859
The New York-based parent company of CNNMoney.com and Fortune said its net income fell to $662 million, or 56 cents per share, down 38% from a year earlier. Results included a charge of pearl jewelry 5 cents per share.
Without the charge, Time Warner said it earned 61 cents per share. Analysts polled by Thomson Reuters, who typically exclude one-time items from their estimates, forecasted earnings of biwa pearl 53 cents per share.
The company said adjusted operating income before depreciation and amortization (adjusted OIBDA), a commonly used profit metric for media companies, fell 9% to $1.8 billion, topping analysts' expectations of akoya pearl $1.7 billion. Adjusted OIBDA declines at AOL and Time Inc. negated moderate growth at the company's television networks and film units.
Profit rose modestly in the company's TV networks and film units, but earnings were halved at AOL and Time Inc.
Without the charge, Time Warner said it earned 61 cents per share. Analysts polled by Thomson Reuters, who typically exclude one-time items from their estimates, forecasted earnings of biwa pearl 53 cents per share.
The company said adjusted operating income before depreciation and amortization (adjusted OIBDA), a commonly used profit metric for media companies, fell 9% to $1.8 billion, topping analysts' expectations of akoya pearl $1.7 billion. Adjusted OIBDA declines at AOL and Time Inc. negated moderate growth at the company's television networks and film units.
Profit rose modestly in the company's TV networks and film units, but earnings were halved at AOL and Time Inc.
Advertising, magazine sales tumble
Posted by: whoyg2859| Revenue fell in every segment except for the company's TV networks unit. Network sales rose 5% in the quarter, despite a 1% dip in advertising sales from the same period a year ago. The biggest decline in sales came from the akoya pearl Time Inc. unit, in which revenue dove 18%. Ad sales fell 22% at the company's publishing arm, and subscriptions were down 24% in the quarter. The company's filmed entertainment segment, which includes film studio Warner Bros., posted sales that fell 4% in the quarter. That decline was mostly due to a difficult comparison to the same period last year, which brought in hefty revenue from the blockbuster "The Dark Knight." The biwa pearl company said the new Harry Potter movie and "Final Destination" performed very well, and it was still taking in carryover ticket sales from the summer blockbuster "The Hangover." Sales at AOL, which the company has been planning to spin off since May, fell 23% on an 18% decline in online ad revenue. Time Warner's results come a pearl jewelry day after rival Viacom (VIA) reported profit jumped 15%, even as advertising sales slumped. Also on Wednesday morning, cable provider Comcast (CMCSA, Fortune 500) reported 22.5% earnings growth. Comcast is reportedly in negotiations to buy General Electric's (GE, Fortune 500) NBC Universal unit, but some analysts believe Time Warner is also in the running for the Peacock Network. To top of page | |
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Gold hits a record near $1,100
Posted by: whoyg2859
The gold market had rallied earlier in the session amid speculation that foreign central banks would increase their purchases of the precious metal.
But the rally lost some momentum after the Fed announced plans to hold interest rates steady near 0%. The central bank said in a statement that although the economy continues to improve, it expects interest rates to remain low for an extended time.
The dollar, which had languished for pearl jewelry most of the day, fell sharply after the statement came out.
December gold was up $2.40 to $1,087.30 an ounce, after hitting an all-time trading high of $1,096.20 an ounce earlier in the session. On Tuesday, gold closed at a record $1,084.90 an ounce.
Gold, which is up 23% this year, surged on Tuesday after the International Monetary Fund said it sold 200 metric tons of the precious metal to India's central bank.
That sale heightened expectations that more overseas central banks will move to increase their gold holdings.
"To have India step in and buy half of the biwa pearl IMF gold was a big surprise," said Joe Foster, a precious metals analyst at Van Eck Global. "It shows that other central banks are looking to buy gold."
Analysts say many monetary policy makers are looking for ways to reduce their exposure to the U.S. dollar, which is the traditional reserve currency of choice for many foreign central banks.
The dollar, which is down 6% this year, has been pressured by concerns about the growing U.S. budget deficit and rock bottom interest rates.
Traders say gold could emerge as the "new dollar" when it comes to reserve currencies.
The IMF is slated to sell another 200 metric tons of akoya pearl gold, and many analysts expect China to be a significant buyer. The Russian central bank has also expressed interest in expanding its gold hoard.
"You have countries that believe gold is going to go higher, otherwise they wouldn't be making these long-term purchases," said Adam Klopfenstein, senior market strategist at commodities brokerage firm Lind-Waldock. "That's the main catalyst propelling the market higher." To top of page
But the rally lost some momentum after the Fed announced plans to hold interest rates steady near 0%. The central bank said in a statement that although the economy continues to improve, it expects interest rates to remain low for an extended time.
The dollar, which had languished for pearl jewelry most of the day, fell sharply after the statement came out.
December gold was up $2.40 to $1,087.30 an ounce, after hitting an all-time trading high of $1,096.20 an ounce earlier in the session. On Tuesday, gold closed at a record $1,084.90 an ounce.
Gold, which is up 23% this year, surged on Tuesday after the International Monetary Fund said it sold 200 metric tons of the precious metal to India's central bank.
That sale heightened expectations that more overseas central banks will move to increase their gold holdings.
"To have India step in and buy half of the biwa pearl IMF gold was a big surprise," said Joe Foster, a precious metals analyst at Van Eck Global. "It shows that other central banks are looking to buy gold."
Analysts say many monetary policy makers are looking for ways to reduce their exposure to the U.S. dollar, which is the traditional reserve currency of choice for many foreign central banks.
The dollar, which is down 6% this year, has been pressured by concerns about the growing U.S. budget deficit and rock bottom interest rates.
Traders say gold could emerge as the "new dollar" when it comes to reserve currencies.
The IMF is slated to sell another 200 metric tons of akoya pearl gold, and many analysts expect China to be a significant buyer. The Russian central bank has also expressed interest in expanding its gold hoard.
"You have countries that believe gold is going to go higher, otherwise they wouldn't be making these long-term purchases," said Adam Klopfenstein, senior market strategist at commodities brokerage firm Lind-Waldock. "That's the main catalyst propelling the market higher." To top of page
GM scraps deal to sell European arm
Posted by: whoyg2859
The GM board of directors said an improving business environment over the past few months and the importance of Opel and its British brand, Vauxhall, to GM's global strategy were reasons to akoya pearl retain Opel.
The board said it would begin restructuring its European operations "in earnest" instead, according to a news release issued late Tuesday.
GM's decision is a setback for Magna, which agreed to biwa pearl purchase Opel and Vauxhall in September in a deal brokered by German Chancellor Angela Merkel. General Motors said in March that it wanted to sell Opel after it reported an annual loss of $30.9 billion for 2008.
Magna issued a statement saying it will continue to support Opel and GM despite the canceled sale.
Opel, together with Vauxhaull, is the pearl jewelry fourth-largest car brand in Europe after Volkswagen, Ford (F, Fortune 500), and Renault. It is also GM's largest-selling brand in Europe by far, representing more than 70% of GM's European sales.
The board said it would begin restructuring its European operations "in earnest" instead, according to a news release issued late Tuesday.
GM's decision is a setback for Magna, which agreed to biwa pearl purchase Opel and Vauxhall in September in a deal brokered by German Chancellor Angela Merkel. General Motors said in March that it wanted to sell Opel after it reported an annual loss of $30.9 billion for 2008.
Magna issued a statement saying it will continue to support Opel and GM despite the canceled sale.
Opel, together with Vauxhaull, is the pearl jewelry fourth-largest car brand in Europe after Volkswagen, Ford (F, Fortune 500), and Renault. It is also GM's largest-selling brand in Europe by far, representing more than 70% of GM's European sales.
Workers relieved.
Posted by: whoyg2859| While GM's decision may still mean layoffs as it restructures its European businesses, it may safeguard jobs in the pearl jewelry short-term. Employees arriving at the Vauxhall plant Wednesday morning in Ellesmere Port, England, welcomed the news. "I think it's a good idea, really, because a lot of people will have jobs," one employee told Sky News. "We've had a three-day week now for biwa pearl ages," said another man. "We've lost money, so now we're going to start getting some back." The head of the Unite union, which represents Vauxhall workers, said he was "absolutely delighted" that GM will retain ownership of the brand. "GM was once the biggest company in the world and we have no reason to believe that it cannot restructure itself to address its present difficulties," Unite Joint General Secretary Tony Woodley said. "My worry is akoya pearl that they would be forced to spin off their U.K. business to Magna, which simply does not have the expertise to run a global car company." |
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