AMD Misses Forecasts
Advanced Micro Devices reported fourth-quarter net income that narrowly trailed forecasts. The company joined its larger rival Intel Corp by saying the slowdown in PC sales would hurt first-quarter results.
AMD said net income more than doubled percent to $177.9 million, or 53 cents a share, from $65.1 million, or 21 cents, a year ago. Sales rose 21 percent to to $1.18 billion.
The Sunnyvale, Calif., company was expected to earn 55 cents a share, the consensus forecast as compiled by First Call/Thomson Financial.
In light of weak demand for personal computers and slowing worldwide economies, the chipmaker said it expects that normal seasonal weakness in first-quarter demand for PC processors coupled with the effects of excess PC inventories in distribution channels will hurt PC processor sales in the first quarter of 2001. BACK TO TOP
American Airlines' Parent Reports Drop in Profits
The Fort Worth, Texas-based AMR earned $47 million, or 29 cents per share, down from $209 million, or $1.37 per share, a year earlier.
Excluding one-time items in both quarters, the nation's No. 2 airline earned $56 million, or 34 cents a share, down from $87 million, or 57 cents per share a year earlier.
Analysts surveyed by First Call/Thomson Financial had expected AMR to earn 30 cents per share.
Revenue rose 8 percent, to $4.86 billion, from $4.49 billion a year ago.
"We had a challenging fourth quarter," chairman and chief executive Donald J. Carty said in a statement. "While demand for air travel was strong, severe weather across much of our system resulted in lost traffic and higher operating costs. And of course, fuel prices remained very high."
AMR said its average price per gallon for jet fuel rose 49 percent in the fourth quarter compared to a year earlier; for the full year, the airline spent 47 percent more on fuel than the previous period.
Still, Carty said, the company enjoyed strong revenue for all of 2000 — up 11 percent over 1999 — as airplane occupancy rose.
Carty said AMR — which announced agreements this month to buy the bulk of Trans World Airlines and parts of US Airways — is "cautiously optimistic" about the coming year's results despite signs of a slowing economy and uncertain fuel prices.
AMR took a $35 million charge on money the company spent to help employees buy home computers and a $26 million gain from recovering start-up costs in a venture with Canadian Airlines.
For the full year, AMR said its net earnings were $813 million, or $5.03 per share, on revenue of $19.70 billion. In 1999, AMR earned $985 million, or $6.26 per share, on revenue of $17.73 billion. BACK TO TOP
Softer Demand Takes Bite Out of Apple
Struggling Apple Computer Corp. posted a first-quarter loss significantly greater than Wall Street had expected.
For the three months ended Dec. 30, the company posted a loss of $247 million, or 73 cents a share.
Wall Street analysts surveyed by First Call/Thomson Financial were projecting a loss of 65 cents a share.
Taking into account one-time investment gains, Apple's loss was $195 million, or 58 cents a share.
Revenues for the quarter were $1 billion, down 57 percent from the $2.34 billion of the year-ago period. The Cupertino-based company has been suffering from sluggish sales, increased competition, and a glut of inventory — problems which some industry analysts predict will not improve in the current quarter.