Financial Roundup

31 October 2005

Global (fiscal H1)

  • Honda Motor
        Honda raised its full year net profit forecast for the second time this year after a strong first half performance.
       Net profit in the year to March 2006 is now expected to be ¥490 billion ($425.6m; €350.3m; £2.39m), 4.3% above its forecast of ¥470bn three months ago. In the year ended March 2005 it made a net profit of ¥486bn.
        For the first six months of this year, net sales rose year-on-year by 10.5% to ¥4,602bn; net profit likewise increased 1.2% to ¥244. The company sold 1.674m vehicles in the first half, up 6.9% on last year.
        In common with other Japanese carmakers, Honda has benefited from strong sales in the US and the problems afflicting US carmakers, which have undermined their sales. It derives around two thirds of its profit from the North American market.

    USA (calendar Q3)
  • Martha Stewart Living Omnimedia
        Losses in the quarter widened from a year ago, as charges associated with MSLO's primetime TV show offset a solid rebound in advertising revenue in its publishing division.
        In the three months ended September 30, the company lost $26.07 million (€21.46m; £14.62m) compared with a loss of $14.97m in the same period a year ago. The results included a non-cash charge of $10.8m, relating to the debut of The Apprentice: Martha Stewart, a reality show in which the company has no economic interest, but which provides brand visibility.
        Total revenue rose 5.7% year-on-year to $40.85m, from $38.65m, helped by robust advertising revenue for its flagship Martha Stewart Living magazine.

    Global (fiscal Q1)
  • Microsoft
        Earnings for its fiscal first quarter rose 24%, helped by strong growth in the personal computer and server market. Net income rose to $3.14 billion (€2.58bn; £1.76bn), up from $2.53bn in the same period last year. Revenue for the period was $9.74bn, up year-on-year from $9.19bn.
        For the current fiscal second quarter ending December 31, Microsoft expects to earn revenues of between $11.9bn and $12bn - slightly below the current Wall Street consensus estimate of $12.29bn.
        The company did not change its earlier estimates for full year revenue of between $43.7bn and $44.5bn.

    Global (calendar Q3)
  • Reuters
       Revenue at the financial data services group rose to £611 million ($1.089bn; €897.1m) in the three months to the end of September, up year-on-year by 8%.
        Ceo Tom Glocer called the results "solid", placing the company on course for further growth next year. He also reconfirmed its full year revenue growth target of 1%-2%.
        The total number of terminal users - Reuters' main revenue generator - was stable at 353,000 but average revenue per access grew 3% leading to a 1.5% rise in underlying recurring revenue.
        The results indicate that the approach taken by Glocer, since becoming ceo in July 2001, is paying dividends. "Today's results reflect a solid third quarter performance for our core business," he said. "We have further enhanced the core by releasing significant product upgrades this quarter that prepare us well for 2006."
        Analysts said the revenues were in line with expectations but there was disappointment that the media group failed to raise its guidance.

    Data sourced from multiple origins; additional content by WARC staff