Yahoo: The Internet company’s latest financial results show it is still losing ground in the battle for online advertising.
The fourth-quarter breakdown announced Tuesday showed the company earned $296 million, or 24 cents per share, in the October-to-December period. That is down 5 percent from $312 million, or 24 cents per share, a year earlier. The earnings matched analysts’ estimates.
Fourth-quarter revenue dropped 13 percent from the previous year to $1.32 billion.
After subtracting commissions, Yahoo’s revenue totaled $1.17 billion. That was $20 million below analyst projections.
Yahoo Inc. recently hired former PayPal executive Scott Thompson as CEO in its latest attempt at a turnaround. Thompson is the fourth CEO in less than five years to try to snap Yahoo out of a financial funk.
Yahoo predicted its net revenue in the first quarter will range from $1.02 billion to $1.1 billion. The mid-point of that target works out to $1.06 billion, unchanged from last year’s first quarter.
Verizon: The telecommunications company sold 4.3 million iPhones in the fourth quarter, helped by the launch of the 4S model. In total, it sold a record 7.7 million smartphones.
A big pension charge led to a $2 billion loss for the quarter, but revenue rose 7.7 percent to $28.4 billion.
Verizon subsidizes every smartphone sold, and iPhones more than most. It makes the money back over the life of a service plan, but judging by AT&T’s results over the last four years, being able to sell the iPhone is not a path to riches.
Johnson & Johnson: A slew of charges for recalls, product liability, litigation and an acquisition dragged Johnson & Johnson’s fourth-quarter profit down to barely a tenth of what the health care giant made a year ago, and some recalled products won’t be back till year’s end. But higher sales overseas boosted revenue enough to end an unprecedented two-year decline.
After a series of product recalls and other problems overshadowed the past two years, the maker of Tylenol, prescription drugs and medical devices managed to beat Wall Street’s forecast for adjusted profit and came in just below its revenue forecast.
The New Brunswick, N.J.-based company said Tuesday that net income was $218 million, or 8 cents per share, down from $1.94 billion, or 70 cents a share, a year earlier. Revenue rose 4 percent to $16.26 billion, up from $15.64 billion in 2010’s fourth quarter.
Kimberly-Clark Corp.: The company reported fourth-quarter earnings of $1.01 per share on revenue of $5.18 billion. Adjusted earnings were $1.28 per share. Analysts polled by FactSet expected earnings of $1.30 per share on revenue of $5.21 billion.
The company continues to see soft demand in North America. Sales of personal care items fell 5 percent in the region during the quarter. Kimberly-Clark anticipates 2012 adjusted earnings between $5 and $5.15 per share. Analysts predict earnings of $5.23 per share.
Siemens AG: Industrial equipment maker Siemens AG said Tuesday that net profit fell 17 percent to $1.89 billion in the final quarter of 2011 because of delays in major wind-power and rail projects, and as the uncertain global economic outlook hurt orders.
Chief executive officer Peter Loescher said the result showed that troubles on financial markets from Europe’s debt crisis “have left their mark on the real economy” through weaker demand.
Siemens’ fortunes are a clue to demand in the global economy, since the company is active far beyond its German home in the United States, Asia and the developing world.
The company sees a “mild” recession in the eurozone and a pickup in the second half of the year. Loescher said that the economic environment would remain difficult in the second quarter and then improve.
Harley Davidson: The company posted a fourth-quarter profit from continuing operations of 24 cents per share. Analysts polled by FactSet expected adjusted earnings of 25 cents per share. Motorcycle and related product revenue rose 12 percent to $1.03 billion, slightly higher than average analysts’ predictions of $1.01 billion.
Global motorcycle sales rose 11 percent during the quarter and included a 12 percent jump in U.S. sales.
Harley said the sales increase was partially a result of improved U.S. consumer confidence, but cautioned that its 2012 sales could be affected by the continued economic uncertainty, especially in Europe.
Coach Inc: The luxury bag maker said Tuesday its fiscal second-quarter net income rose about 15 percent, topping analyst expectations, on strong demand for its handbag and accessories during the holidays and growth in its men’s and international business.
Luxury sales have grown faster than other retail sectors as the affluent continue to spend.
Coach plans to expand in Asia, develop its digital initiatives and grow its men’s business to $1 billion over the next three to five years to drive sales.
McDonald’s: Budget-conscious diners continue to flock to McDonald’s, but investors are beginning to worry about the fast food giant’s higher prices and upcoming expenses.
After the company reported Tuesday that net income jumped 11 percent in the fourth quarter on Tuesday, CEO Jim Skinner said his company can perform well in any economy.
But Skinner also noted that the struggling global economy, volatile costs for ingredients and low consumer confidence present a challenge for the world’s biggest burger chain.
In the fourth quarter, McDonald’s net income of $1.38 billion translated to $1.33 per share, beating the $1.29 predicted by analysts polled by FactSet. Revenue jumped 10 percent to $6.82 billion, slightly above expectations of $6.81 billion.
Europe is now its biggest revenue maker, accounting for 40 percent of sales.
The U.S. accounts for 32 percent of revenue, down from 34 percent five years ago. The region encompassing Asia, the Pacific, the Middle East and Africa makes up 22 percent of sales, up from 14 percent five years ago.
DuPont: Chemical and plastics maker The DuPont Co. said Tuesday that increases in raw material costs and taxes and a drop in volumes outpaced a 14 percent increase in prices in the fourth quarter, and its net income fell.
DuPont reported net quarterly income of $373 million, or 40 cents per share, compared with $376 million, or 40 cents per share, in 2010’s fourth quarter. Its revenue rose 14 percent to $8.4 billion. Analysts were expecting revenue of $8.52 billion.
Chairwoman and CEO Ellen Kullman said the quarter’s volume declines don’t reflect macroeconomic conditions. Instead, customers are conserving cash and destocking, she said.
For the full year, DuPont earned about $3.5 billion, or $3.68 per share, compared with $3.05 billion, or $3.28 per share, for 2010.
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