Earnings Reports for Jan. 31

ByABC News
February 1, 2001, 9:14 AM

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AOL Time Warner Reports 14 Percent Rise in Adjusted Earnings for Q4

AOL Time Warner, in the first combinedearnings report since completing its merger, said today thatits pretax earnings rose 14 percent in the fourth quarter from ayear ago.

The company cited strong performances at its America Onlineservice, cable television systems and publishing operations.Earnings from music, filmed entertainment and its TV networks werelower in the quarter.

Separately, the company said it plans to rename its CNNfn cablenetwork as CNN Money later this year, and will offer more personalfinance and small business coverage after the financial marketsclose.

AOL Time Warner said earnings before interest, taxes,depreciation and amortization rose to $2.4 billion compared with$2.1 billion a year ago. Revenues rose 8 percent to $10.2 billionfrom $9.46 billion a year earlier. The company reported year-agofigures as if AOL and Time Warner had already been merged at thattime.

On a per-share basis, the results amounted to a profit of 14cents a share, down from 48 cents a share last year. The resultswere in line with the expectations of analysts surveyed by FirstCall/Thomson Financial.

Including interest, taxes, preferred dividends and one-timeitems, AOL Time Warner said it lost $1.09 billion in the latestquarter in contrast to a loss of $201 million a year ago.

For the quarter, America Online added 2.1 million subscribers tobring its total to 26.7 million members by year-end. Its cablesystems division reported 16 percent growth in its profit fromoperations on a 13 percent increase in revenue.

Publishing earnings rose 9 percent on a 7 percent revenueincrease. The company's Time Inc. subsidiary is a major magazinepublisher with titles such as Time, Sports Illustrated and People.

In its filmed entertainment division, AOL Time Warner saidearnings fell 16 percent for the quarter as revenue increasedslightly. Strong gains in sales of DVD-format videos were offset byweak performing new films from New Line Cinema like "LittleNicky" and lower revenue from sales of TV shows for rerun ontelevision. Retail store sales also were weak. The company plans todivest its retail operations.

Music business earnings fell 10 percent to $178 million on flatrevenue. The lower results in both music and movies were in linewith a warning the company issued in December.

Earnings from its television networks including CNN, TurnerNetwork Television, TBS Superstation and Cartoon Network slippedless than 1 percent in the quarter as revenue rose 4 percent.

For the year, AOL Time Warner said its earnings before interest,taxes and charges rose to $8.4 billion, or 94 cents a share, from$7.0 billion, or 71 cents a share, in 1999. On a net basis, thecompany's loss widened to $4.4 billion in 2000 from $2.5 billion in1999. Full-year revenues rose 11 percent to $36.2 billion from$32.5 billion.

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Clorox Second-quarter Profits Down on Sales Decline

Household productsmaker Clorox said today net income fell 7.5 percent,before special charges, in line with its recent warning, assales declined across many of the company's product lines.

The Oakland, Calif.-based maker of Clorox bleach, Gladplastic bags and Kingsford charcoal, said net income was $74million, or 31 cents a share, before the charges, compared with$80 million, or 33 cents a share, a year ago.

Analysts on average forecast earnings of 30 cents a share,according to market research firm First Call/Thomson Financial,though the average estimate was 38 cents a share before thecompany issued a profit warning in December.

At that time, the company also said it would take $150million to $200 million in one-time charges in calendar year2001 as a result of actions to enhance margins and assetutilization. Clorox said it would streamline manufacturing inorder to cope with strains from its $2 billion acquisition ofFirst Brands and slowing markets.

In the second quarter, unit volume dropped 2 percent, whilesales fell 6 percent to $899 million. The drop in sales came ascustomers shifted away from higher priced products, while thecompany also took higher reserves to cover products it couldnot sell. In December, the company said it would write downinventory for a home dry-cleaning product and a premium BlackFlag insect spray that had not sold as well as planned.

Foreign currency weakness also cut into sales. About 17percent of the company's sales came from outside the UnitedStates.

Weakness in Brita water filtration, Glad plastic bags,Kingsford charcoal and cat litter all dragged down sales.BACK TO TOP

Philip Morris Misses Expectations

Tobacco and food giant Philip Morris said today its fourth quarter profitsmissed Wall Street expectations by a penny.

New York-based Philip Morris, the world's largest tobaccocompany with the top-selling Marlboro cigarette brand, said itearned 87 cents per share, up from 77 cents a year earlier.

Analysts on average expected the company, which alsooperates Kraft Foods Inc. and the Miller Brewing Co., to earn88 cents per share, according to First Call/Thomson Financial,which tracks such data.

Philip Morris acquired Nabisco Holdings last month,adding well-known brands such as Oreo cookies and Ritz crackersto Kraft, the world's No. 2 food company behind Swiss giantNestle.BACK TO TOP