Financial Roundup

18 April 2005

USA (calendar Q1)

  • Dow Jones & Company
    Profits sagged by 54% at the company, publisher of The Wall Street Journal, plunging to $8.2 million (€6.34m; £4.33m) compared with $17.8m in the same quarter last year.
       Sales grew 2.6% to $412m - but fell 3% if revenue from new acquisitions, including the MarketWatch financial news website and others, is stripped out. Expenses increased 7.4% or nearly three times as fast as revenue.

    Global (calendar Q1)
  • IBM
    IBM unveiled first-quarter earnings substantially below expectations. The figures include a charge for the expensing of equity-based compensation, the first time IBM has adopted such an accounting policy. Revenues were $22.9bn (€17.71bn; £12.09bn), up 3% but below expectations. Excluding the impact of currency movements, underlying revenue growth was only 1%.
       Global Services, which accounts for more than half of IBM's revenues, signed services contracts totalling $10bn. At the end of the quarter, the division's backlog of work amounted to $110bn.
       Hardware revenues were unchanged at $6.7bn, or down 2% adjusted for currency. Revenues from software rose 2% to $3.6bn. Strong sales of middleware, including IBM's WebShere application server and DB2 database, were offset by weaker demand from other products.

    Canada (full year 2004)
  • MDC Partners
    The Toronto-based agency holding company said it had a pre-tax net gain of $14.8 million (€11.45m; £7.82m) in 2004 from an asset sale compared to pre-tax net gain on asset sales of $43.8m in 2003 and that operating net income was $3.8m 2004 compared to $13.7m in 2003.
        Fourth quarter revenues were also higher compared to fourth-quarter 2003 at $91.6m compared with $64.9m. Net losses in fourth-quarter for each year were about even with $7.8m compared to a net loss of $7.5m.
        Combined revenue from its marketing communications business was up 48 percent at $296.9m for 2004 compared to $200.3m the year prior. However, that was largely attributed to acquisitions made last year, including Kirshenbaum Bond of the USA.
        Said president, chairman and ceo Miles Nadal: "We are very pleased about what we were able to accomplish in 2004."

    USA (calendar Q1)
  • New York Times Company
    In ebullient mood, the company announced earnings of $111 million (€85.86m; £58.64m) in the first quarter, nearly twice as much as the $58.4m earned in the first quarter of 2004. The 2005 gain was boosted by the sale of the company's headquarters, which added $62.8 million.
        Revenue was $806m, an increase of 0.5% on the first quarter last year. Advertising revenue, which makes up two-thirds of total sales, rose 0.9%, while revenue from circulation fell 0.3%.

    Global (calendar Q1)
  • Pepsico
    Surging international sales helped the beverage and foods giant increase net profits by a better-than-expected 13% in the first quarter and lift its full-year earnings forecast.
        Revenues from outside North America increased 12% and operating profits by 20%, the strongest growth coming from India, China, Russia and Brazil.
        Total net profits were $912 million (€705.44m; £481.77m), or 53 cents a share, beating the consensus Wall Street expectation of 50 cents. Revenues were up more than 7% to $6.59bn.

    Global (calendar Q1)
  • Samsung Electronics
    The South Korea-headquartered company, which in 2004 out-earned Microsoft, saw net income plummet 52% year-on-year to won 1.5 trillion ($1.47 billion; £778 million) - its biggest slide in three years.
        Revenue fell 4.2% to won13.8tr. While operating profit (sales minus the cost of goods sold and administrative expenses), plunged 46% to won 2.15tr.
        This fell short of the won 2.40tr median forecast of seventeen analysts surveyed by Bloomberg.

    Global (calendar Q1)
  • Sony Ericsson
    Demand for the Japanese-Swedish cellphone company's products declined, dragging down pretax-profit in the three months to March 31 by 28% to €70m ($90.50m; £47.81m) from €97m a year earlier. Sales dipped to €1.29bn from €1.34bn.
        The earnings were below expectations and are the latest technology industry figures to disappoint the market. Sony Ericsson said demand suffered because of a "mature" product range.

    Data sourced from multiple origins; additional content by WARC staff