Time Warner's Profit up 80%

Elena
02 Nov, 2001
New York City

Asian-Pacific markets closed higher, led by the Nikkei, hitting a new four-year peak of 0.2% to 13,894,78. European stocks lost ground at mid-day on earnings releases. On the earnings news front, Time Warner reported 80% Q3 profit jump of 19 cents a share on 6% revenue growth, exceeding estimates of 17 cents a share. The company said it was lifting its stock buyback plan by $7.5 billion to $12.5 billion.

U.S. MARKET AVERAGES

U.S. stock futures are sitting near the flat line, predicting lower opening Wednesday on media sector news. The sector got in the spotlight after Time Warner boosted its stock buyback plan and Knight Ridder reacted to a call by its top investor to sell the company. In a day of comparatively fewer earnings and economic news, the increased banking interest rate by the Fed Reserve is expected to remain in focus.

Dow Jones futures were recently down 7 points, S&P 500 futures were down 0.5 point, and Nasdaq 100 futures fell 2.5 points.

On the corporate news front, British mobile phone operator O2 was lower after Deutsche Telekom said it won't launch a bid for the company, clearing the way for Spain's Telefonica to buy the firm for $31.5 billion.

Time Warner topped forecasts by reporting an 80% increase in net profit to $897 million, or 19 cents a share, with revenue up 6% to $10.54 billion., beating estimates of 17 cents a share on revenue of $10.37 billio. Time Warner also said it was lifting its stock buyback plan by $7.5 billion to $12.5 billion.

INTERNATIONAL MARKET NEWS

Asian-Pacific benchmarks finished broadly higher across the region. The Nikkei hit a four-year high for a second consecutive session, reaching 13,894,78 points. Among the other regional gainers, Singapore’s Straits Times climbed 1.8%, South Korea’s Kospi rose 1.6%, and Hong Kong’s Hang Seng added 0.2%.

European markets lost ground at mid-day, reflecting lower close of U.S. markets overnight, earnings releases, and news that Deutsche Telecom won’t launch a counter bid for the U.K. mobile operator O2. Henkel and Credit Swisse Group helped limit today’s losses. The German DAX 30 lost 0.3%, the French CAC 40 shed 0.4%, and London’s FTSE 100 fell 0.2%.

ENERGY, METALS, CURRENCIES

Crude oil continued to fall below $60 a barrel on mild weather forecast, which curbed heating oil demand. Light sweet crude December contract fell 31 cents to $59.54 a barrel on the Nymex. Heating oil fell 1cent to $1.7926 a gallon. Gasoline declined to $1.5910. London Brent lost 30 cents to $58.07 on London’s ICE Futures exchange.

Gold futures traded higher in Europe. In London gold was fixed at $461.65 per troy ounce, up from $459.60. In Zurich it traded at $461.55, up from $459.40. In Hong Kong the precious metal lost $4.70 to close at $461.25. Silver opened at $7.46, down from $7.82.

In European trading the U.S. dollar was mixed against its major counterparts. The euro traded unchanged at $1.2014.. The dollar changed hands at 116.88 yen, up from 116.63. The British pound was trading at $1.7661, up from $1.7616.

EARNINGS NEWS

Time Warner Inc. ((TWX)), media and entertainment company, announced that Q3 net income advanced 80% to 19 cents a share, up from 11 cents a share in the year-ago period on 6% higher revenue, beating analyst estimate of 17 cents a share. The company lifted its buyback plan by $7.5 billion. Adjusted operating profit before depreciation and amortization rose 9%, in view of the increases of 21% at networks and cable, 6.9% at the AOL Internet unit and 9.1% in publishing. Filmed entertainment dropped 30% due to difficult prior-year comparisons.

Alliant Techsystems, Inc. ((ATK)), defense contractor announced that Q2 profit advanced 34% to $1.01 a share from the year-earlier period. Sales increased 15% on strong demand for ammunition, rocket motors and precision munitions. The company envisages fiscal-year earnings in the range of $4.48 to $4.58 a share on revenue of $3.1 billion.

Citizen Communications ((CZN)), telecom operator, reported that it reversed to a Q3 profit of 11 cents a share, up vs. a loss of 4 cents a share in the same period last year despite a revenue decline.

Beazer Homes USA ((BZH)), homebuilder, reported fiscal Q4 earnings of $3.61 a share, up from $1.82 a share in the year-ago period on revenue growth, topping analyst estimate of $3.11 a share. Home closings advanced 24%, new orders increased 16% and the sales value rose 25%. For fiscal 2006, the company anticipates earnings of $10.50 a share, vs. analyst expectations of $10.44.

Dean Foods ((DF)) posted Q3 net income of 67 cents a share, up from 25 cents a share in the year-earlier period, beating analyst estimate of 51 cents a share. Earnings from continuing operations amounted to 43 cents a share, up vs. 24 cents. Sales advanced to $2.65 billion from $2.58 billion. The company estimated earnings of 52-55 cents a share for Q4 and added that higher fuel costs will be in the range of $35-$40 million.

Huntsman Corp ((HUN)), chemicals maker, posted a Q3 loss of 14 cents a share, down from a profit of 10 cents a share in the year-ago period despite revenue growth, missing analyst forecasts of a profit of 28 cents a share. On a continuing operations basis, the company gained 35 cents a share, up slightly from a profit of 33 cents a share a year-ago.

Playboy Enterprises ((PLA)), magazine publisher, posted Q3 earnings of 10 cents a share, up from a profit of 6 cents a share in the same period last year on revenue growth and a significant decline in interest expense following the refinancing of its debt. The company missed analysts’ forecasts for a profit of 11 cents a share.