Financial Roundup

25 October 2004

Latest results from major marketers, agencies and the media


  • Allied Domecq (Full year)
    The UK-headquartered liquor and catering conglomerate reported a 7% increase in sales of its most popular drinks for the full year ended August 31.
        Led by soaring US sales, group pre-tax profits rose 6% to £521 million ($952.23m; €753.41m). If exchange rate fluctuations had been excluded, growth would have been 15%.
        Total sales slipped to £3.23 billion from £3.32bn and exchange rate movements meant actual sales growth in the spirits and wine business was flat.
        Allied spent an additional £25m on advertising for its wine and spirits division during the year, a 6% rise. As a result, net sales in the spirits and wine business rose 5% to £39bn at constant currency rates. Core brands grew 7%.
       Says ceo Philip Bowman: "We are focusing investment behind our core brands and improving the effectiveness of our advertising."

  • (calendar Q3)
    The Seattle-based etail giant reported net income more than tripled year-on-year to $54.1 million (€42.8m; £29.6m) from $15.6m. Revenue rose 29% to $1.46 billion from $1.13bn, in line with the company's forecast.
       It slightly raised its outlook for the full year, increasing the low end of its revenue forecast to $6.68 billion from $6.63bn.
       Amazon doesn't forecast net income, but it raised its expected full year operating income (a figure that excludes interest payment on debt and other items) to the range $415m-$475m, from $400m-$460m.

  • Coca-Cola Company (calendar Q3)
    Net income for the quarter ended September 30 fell to $935 million (€;739.77m; £511.57m )from $1.22 billion for the year earlier period. The results included a $251m charge after taxes related to the impairment of certain bottling assets in Germany.
       Revenue was flat at $5.66bn compared with $5.67 billion a year ago. Worldwide volume increased 1%.
       Said chairman/ceo E Neville Isdell: ""Overall, I am not pleased with the results of this quarter. They are symptoms of key issues our company needs to address."

  • EBay (calendar Q3)
    The California-headquartered online auctioneer has become one of the world's most profitable websites, reporting quarterly earnings up 77% to $82m (€64.88m; £44.87m), due mainly to "spectacular" growth in the UK.
        The auction site, which takes a cut from every item sold, was boosted by the enthusiastic support of eight million Britons - including Cherie, the wife of prime minister Tony Blair.

  • Google (calendar Q3)
    In its first financial results following Google's August IPO, the Mountain View, California, internet search company said its net income rose to $52 million (€41.14m; £28.45m) from $20.4m a year earlier. Revenue more than doubled to $805.9m from $393.9m..
        The results far improved upon the company's previous forecast of a quarterly net loss - expected because of a $201m expense related to the resolution of two disputes with rival Yahoo.
        Google's revenue excluding commissions it pays to marketing partners was $503 million, compared with analysts' estimate of $454 million.

  • Microsoft (fiscal Q1)
    The world's dominant software manufacturer reported an 11% jump in first-quarter profit.
        Net income rose to $2.9 billion (€2.29bn; £1.59bn), compared with the year-earlier period in which it earned $2.61bn. Revenue rose 12% from $8.22bnto $9.19bn.

  • Nestlé (calendar Q3 cumulative)
    The world's largest food company by sales reported strength in developing markets and the USA, which offset a dismal performance in Europe during the first nine months of 2004.
        The Swiss-headquartered titan reported flat sales of SwF 64.6 billion ($53.11bn; €42.02bn; £29.06bn) in the first nine months compared with the year-earlier period. Sales were hurt by the strength of the Swiss franc, while the foods giant also shed about thirty small brands this year, reducing total revenue.
        The company also plans a new round of cost cutting aimed at hiking margins that lag far behind its competitors. It doesn't report income or sales figures for any period less than a full year.

  • Reebok (calendar Q3)
    Reebok International reported a 30% leap in profit and said that its chairman will take on the day-to-day duties of the company.
        The UK-owned (but Massachusetts-headquartered) maker of sports shoes and apparel posted net income of $82 million (€64.88m; £44.87m), up from its year-ago profit of $63m and well ahead of analysts' consensus expectations. Sales jumped 12% year-on-year to $1.17 billion from $1.04bn.

    Data sourced from multiple origins; additional content by WARC staff