IBM profit fell 6% in Q4
IBM Corp’s profit beat analysts’ estimates in the fourth quarter, with adjusted earnings, excluding some items, dropping 6 percent from a year earlier to US$5.81 a share as the company focused on cutting costs, the company said in a statement on Tuesday. Revenue from continuing operations fell for the 11th-straight quarter, declining 12 percent to US$24.1 billion, the company said. IBM forecast operating earnings for this year of US$15.75 to US$16.50 a share — on the low end of analysts’ estimates, which predicted US$16.50 on average.
Netflix users, profits grow
Streaming video giant Netflix on Tuesday said its global membership swelled to 57.4 million at the end of last year, capping a quarter that also saw profits grow. Netflix said it added 4.3 million subscribers in the past quarter and 13 million for the year. Net profit for the quarter jumped to US$83 million compared with US$48 million a year earlier and US$59 million in the prior quarter. Revenue hit US$1.3 billion in the quarter compared with US$962 million a year ago.
Morgan Stanley profit rises
Morgan Stanley’s fourth-quarter profit rose as the investment bank recovered from huge legal expenses last year, but it suffered from the same trading slowdowns at other banks and fell short of Wall Street expectations. The bank on Tuesday said it earned US$1.05 billion, or US$0.47 a share, in the quarter, compared with US$95 million, or US$0.02 a share, a year earlier. Revenue totaled US$7.76 billion, down from US$7.84 billion in the same period a year earlier.
Delta falls on hedging hit
Delta Air Lines Inc reported a fourth-quarter loss because falling oil prices led it to write down the value of its fuel-hedging contracts, but the airline’s results were still better than Wall Street expected. The company on Tuesday reported a US$712 million loss after taking US$1.4 billion in special charges, mostly hedging losses. Excluding those items, Delta would have earned US$649 million, or US$0.78 per share.
Johnson sees 2015 profit dip
Johnson & Johnson, the world’s biggest maker of healthcare products, on Tuesday forecast lower earnings for this year, as competition cuts into revenue for some of its best-selling drugs. The shares slumped the most in three months. Adjusted profit this year is expected to reach US$6.12 to US$6.27 a share, the company said. That figure excludes an estimated charge of US$0.32 a share for intangible amortization costs. Incorporating that figure, this year’s earnings are expected to be US$5.80 to US$5.95 a share, compared with last year’s adjusted profit of US$5.97 a share.
SABMiller sales fall
SABMiller PLC, the world’s No. 2 brewer, reported an unexpected drop in third-quarter beer volume as sales were held back by falling demand in China and a decline in Colombia, its biggest market. So-called organic lager volume fell 1 percent in the three months ended Dec. 31, the London-based company said in a statement yesterday. SABMiller, the maker of Grolsch and Peroni beers, is among European consumer-goods businesses contending with a slowdown in Asia that has compounded sluggish growth in developed markets.
Polytronics Technology Corp (聚鼎科技) yesterday announced that it is buying Henkel AG’s thermal clad dielectric material (TCLAD) business division for US$26 million as the Taiwanese firm aims to improve its technology, product portfolio and revenue performance. Polytronics, headquartered in the Hsinchu Science Park (新竹科學園區), is a supplier of protection components and heat dissipation materials. The firm entered the metallic heat-dissipation substrate market in 2007 and developed a unique solventless production process. Its board of directors approved signing an agreement with Henkel to acquire the German chemical firm’s TCLAD division in the US. The purchase includes all assets and business interests, including equipment,
SIZE MATTERS: Medium-sized hotels that do not have the support of parent groups are more vulnerable and are forced to take action, a REPro Knight Frank researcher said About 50 hotels across Taiwan are seeking to exit the market as they succumb to the bleak business outlook amid international travel restrictions imposed to combat the COVID-19 pandemic. Yomi Hotel (優美飯店) on Minsheng E Road, Sec 1, in Taipei is seeking to transfer ownership with an asking price of NT$950 million (US$32.15 million) and a pledge for a lease contract that guarantees a 3 percent return. The budget hotel, with room rates that start from NT$1,400 per night, maintains normal operations, but has been struggling since March, when the government placed restrictions on inbound and outbound travel. Occupancy rates for hotels in
With the US dollar expected to weaken in the next 12 months due to near-zero interest rates, investors should consider purchasing US corporate bonds, Standard Chartered Bank Taiwan Ltd (渣打台灣銀行) said on Thursday. The bank said that the US Federal Reserve since last month has been buying bonds issued by US companies to curb default rates. The US dollar is forecast to be weaker against the pound, the euro and the yen, as well as the Canadian dollar, the Swedish krona and the Swiss franc, as the greenback lacks high investment returns after the Fed in March slashed the benchmark interest rate
A Bollywood actor’s face tattooed on his arm, Sandeep Bacche’s devotion shocks few in India where stars enjoy semi-divine status, but even there the hallowed silver screen might be losing its shine to streaming services and pandemic fears. “Whenever things get better and theaters begin operations, I will watch three movies a day for sure just as a way to celebrate,” said the Mumbai rickshaw driver, who is recovering from the virus himself. However, others might not join the party. With cinemas shut for months due to a COVID-19 lockdown, and little prospect they will reopen soon, frustrated Bollywood producers have turned to