Earnings: McDonald's, UPS, NY Times Co., AT&T

— -- A handful of companies including McDonald's, UPS and AT&T reported a drop in earnings for the second quarter on Thursday, despite having fared better than analysts predicted. The New York Times Co. unexpectedly posted a rise in profit.

AT&TT says its earnings fell 15% in the second quarter as it subsidized a record-setting launch of a new iPhone model, but as with other companies the profit beat Wall Street estimates.

The weak economy also continued to sap its landline business.

The country's largest telecommunications provider said Thursday it earned $3.20 billion, or 54 cents a share, in the April to June period. That was down from $3.77 billion, or 63 cents a share, a year earlier.

Analysts polled by Thomson Reuters were expecting earnings of 51 cents a share.

AT&T's revenue fell 0.6% to $30.7 billion, matching analyst expectations.

AT&T activated more than 2.4 million iPhones in the quarter, and more than a third of those activations for customers who were new to the carrier.

McDonald's MCD says its second-quarter profit dipped 8%, falling to $1.09 billion, or 98 cents a share, from $1.19 billion, or $1.04 a share in last year's quarter.

Analysts expected profit of 97 cents a share.

Revenue fell 7% to $5.65 billion because of the effect of translating foreign currency into dollars.

Same-store sales rose 4.8% globally and 3.5% in the U.S. The nation's No. 1 hamburger chain has benefited during the recession from consumers' desire for cheaper food.

The New York Times Co. NYT says its second-quarter profit climbed nearly 85%, bucking predictions of another loss even as ad revenue dove.

The publisher of The New York Times, The Boston Globe, The International Herald-Tribune and 15 other daily newspapers said Thursday that it earned $39.1 million, or 27 cents a share, from April through June. That compares with a profit of $21.1 million, or 15 cents a share, in the same quarter a year ago.

Excluding one-time items, the company said it would have earned 8 cents a share. On that basis analysts polled by Thomson Reuters expected a loss of 4 cents a share.

Times Co. revenue fell 20% to $561 million. Analysts were expecting $603 million.

3Mmmm, which makes Scotch tape, asthma inhalers and film used in LCD televisions, says its second-quarter profit fell 17% as the global recession cut sales of consumer electronics and products for carmakers.

But the Dow Jones industrial average component raised its full-year sales and earnings forecasts.

The company earned $783 million, or $1.12 a share, in the latest quarter, compared with $945 million, or $1.33 a share, in the same period a year earlier. The company recorded profit of $1.20 a share excluding special items.

Revenue slipped 15% to $5.72 billion.

Analysts expected profit of 94 cents a share on revenue of $5.41 billion.

UPSUPS, the world's largest shipping carrier, says second-quarter profit plunged 49% to $445 million as sales slipped 16.7%.

The Atlanta-based company's profit for the April-June quarter was equivalent to 44 cents a share, compared to a year-ago profit of $873 million, or 85 cents a share.

Adjusted earnings were 49 cents a share.

Revenue fell to $10.83 billion from $13.00 billion a year earlier.

Analysts surveyed by Thomson Reuters, who generally exclude one-time items, expected earnings of 49 cents a share on revenue of $11.02 billion.

UPS said it expects third-quarter earnings per share in a range of 45 cents to 55 cents, below the 59 cents analysts forecast.

"The economic environment continues to be difficult," said Kurt Kuehn, UPS' chief financial officer. "Declines in both our domestic and international businesses appear to be stabilizing but volumes will remain significantly below last year's levels."

The company has been cutting costs and jobs. An executive has said UPS cut 10,000 domestic jobs in the first quarter through attrition and part-time employees leaving and not being replaced.

XeroxXRX says its second-quarter profit tumbled 35% but topped Wall Street forecasts, as cost cutting helped offset another weak period for sales. It also projected third-quarter earnings below expectations.

Xerox says businesses continue to scrimp on technology spending, but a 17% decline in costs helped soften the decline in earnings.

The printer and copier maker says its profit came to $140 million, or 16 cents a share, compared with $215 million, or 24 cents a share, a year ago.

Revenue fell 18% to $3.73 billion.

Analysts polled by Thomson Reuters expected 11 cents a share on sales of $3.72 billion, on average.

"Assuming current economic conditions persist, we expect revenue will remain under pressure during the balance of this year," said new Xerox CEO Ursula Burns.

The company expects third-quarter earnings of 10 cents to 12 cents a share, compared with the average forecast of 14 cents. For the full year, Xerox projected a profit of 50 cents to 55 cents a share. Analysts surveyed by Thomson Reuters are looking for 51 cents.