World Business Quick Take

Agencies

Thu, Jan 22, 2015 - Page 15

TECHNOLOGY

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.

INTERNET

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.

BANKING

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.

AIRLINES

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.

HEALTHCARE

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.

BEVERAGES

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.