Entries in Third Quarter (10)


Facebook Celebrates Positive Third-Quarter Earnings

Peter Foley/Bloomberg via Getty Images(MENLO PARK, Calif.) -- Facebook stock has disappointed lots of investors, but now its earnings have some smiling.

With a revenue of $1.3 billion, Facebook reported better-than-expected third-quarter earnings Tuesday, apparently because they're making money from ads on mobile devices. The social networking company's earnings were up 32 percent from a year ago.

Facebook founder and CEO Mark Zuckerberg celebrated the good news on a conference call with investors.
"We have a lot going on right now and I'm excited about the progress we're making," he said Tuesday.

Zuckerberg said that in years to come, he expects billions more smartphones to be in use than desktop computers.

"We already reach more than a billion people" each month, he added. Currently more than 600 million people share and connect monthly on the social networking site using mobile devices, he said in a company statement.

Zuckerberg noted the importance of finding ways to generate ad revenue on mobile devices. Eighty-six percent of Facebook's revenue came from advertising.

Copyright 2012 ABC News Radio


Sony Reports Net Loss of Over $2 Billion in Third Quarter

AFP/AFP/Getty Images(TOKYO) -- Sony's new CEO will have his work cut out for him when he takes over later this year.

The Japanese electronics and entertainment giant on Thursday said it suffered a net loss of over $2 billion in its third quarter, keeping Sony in the red for the fourth straight year.  The shortfall was a result of the floods in Thailand, which shut down two of Sony's factories, and a strong yen, which eroded the company's earnings abroad.

And the picture doesn't look much better for the rest of Sony's fiscal year. The company predicts a net loss of close to $3 billion -- up from its previous forecast of roughly $1.2 billion.

Sony hopes Kazuo Hirai will be able to turn the company around when he replaces CEO Howard Stringer in April.  Hirai, known for his work in Sony's gaming division, was announced as the new head of the company on Wednesday.

Copyright 2012 ABC News Radio


JPMorgan Profit Falls as Bank Earnings Season Opens

Chris Hondros/Getty Images(NEW YORK) -- As the Occupy Wall Street protest approaches its one-month anniversary, third-quarter earnings season opened with lower profit from JPMorgan Chase, the first of the major U.S. banks to report.

JPMorgan Chase said third-quarter profit fell 4 percent to $4.26 billion, or $1.02 a share, from $4.42 billion, or $1.01, a year earlier.  The bank was the most profitable in the U.S. last year, so its earnings are considered a barometer for the industry, which received a massive government bailout during the financial crisis that began in 2008.

"All things considered, we believe the firm's returns were reasonable given the current environment," Chief Executive Jamie Dimon said in a statement.

It is unclear how the Volcker rule, which proposes to ban banks with insured deposits from "high-risk," short-term trading with its own funds, will affect banks' financial results.  David Hilder, analyst with Susquehanna International Group, said Goldman Sachs and Morgan Stanley may exit the banking business if compliance regulations of the Volcker rule are implemented.  The rule is expected to be implemented next year.

Hilder said those two banks are less dependent on deposits as a source of funding than other banks.

"Once the Volcker Rule implementation regulations are final, we would expect both [Goldman Sachs and Morgan Stanley] to examine the feasibility, as well as benefits and costs, of exiting the banking system," he wrote in a research note on Tuesday.  "We would also expect to see more capital attracted to market-makers who are already outside the banking system."

Investment banking client activity may have slowed due to uncertainty in the global economy, especially in Europe; that slowdown has led to lower profit expectations for banks more heavily invested in the capital markets. Some analysts expect Goldman Sachs to report its first loss.  If the forecast is accurate, it would be Goldman Sachs' second quarterly loss since its initial public offering in 1999.

Copyright 2011 ABC News Radio


Nissan Reports 78 Percent Jump in Profits for Third Quarter

Photo Courtesy - Nissan North America(TOKYO) -- A day after Toyota reported a bad third quarter, Nissan announced the opposite news.

Nissan's latest financial report released Wednesday shows profits for the Japanese automaker jumped 78 percent in the third quarter, compared to the same time period the previous year.  Nissan said its net profit was 80.1 billion yen -- the equivalent of $972 million -- for the three months leading to the end of December.  During the same time last year, the automaker profitted 45 billion yen.

Nissan said strong sales in North America and Asia helped offset sluggish sales back home in Japan.

The company also raised its vehicle sales forecast for the full year -- up 19 percent from the previous fiscal year.´╗┐

Copyright 2011 ABC News Radio


Toyota's Nine-Month Profits Quadruple Despite Drop in Third Quarter

Photo Courtesy - Ted Aljibe/AFP/Getty Images(TOKYO) -- Toyota Motor Corporation released its latest financial report Tuesday, announcing its net income -- despite dropping close to 39 percent in the third quarter -- nearly quadrupled in the nine months leading to the end of 2010.

The Japanese automaker said its net income for the nine months leading to Dec. 31, 2010 went up to 382.7 billion yen from last year's total of 97.2 billion yen.

"Strong vehicle sales, especially in emerging markets such as Asia, Central and South America, and Africa, contributed to the increase in operating income in the nine-month period," TMC Senior Managing Director Takahiko Ijichi said.  "These regions are now increasingly representing one of the pillars supporting our earnings."

The increase comes after Toyota reported its net income dropped to 93.6 billion yen in the third quarter from 153.2 billion yen during the same time period the year before.

Forecasting the new fiscal year, Ijichi said, "In addition to an improving vehicle-sales outlook in Japan, Asia and Russia, the progress of our company-wide profit improvement activities, such as further reduction of variable costs and control over fixed costs, has exceeded our earlier expectations.  As a result, we now expect to overcome the rapid and acute yen appreciation and achieve a substantial increase in operating income.  One can therefore see that our earnings are firmly recovering."

Copyright 2011 ABC News Radio


Majority of Cities Saw Foreclosure Activity Increase in Third Quarter

Photo Courtesy - ABC News(NEW YORK) -- Sixty-five percent of the nation’s cities saw foreclosure filings increase in the past year.  That's according to new data released Thursday by RealtyTrac, which shows foreclosure filings for 200,000+ metro areas across the country during the third quarter of the year.

As has been the case for some time, the highest rates of foreclosure are in cities in California, Florida, Nevada and Arizona.

Ground zero for foreclosure activity continues to be Las Vegas, with one in 25 homes there subject to some type of foreclosure-related filing during the July to September time period.

Of note, nine of the top-10 metros for foreclosure activity saw foreclosure filings drop in the past year, but that trend is confounded when you look at the balance of the list.

In aggregate, more than 930,000 properties received some sort of foreclosure filing, down about one percent from the 2009 third quarter numbers, according to RealtyTrac. However, that slight reduction on the national level doesn’t mean the foreclosure crisis is abating.

The recent foreclosure sales moratoria are likely going to affect the broader residential real estate market in the fourth quarter, and possibly beyond.

Also, the underlying reasons for foreclosure have yet to be adequately addressed.  Unemployment and underemployment are at the root of many of the missed payments that are keeping millions of Americans from paying their home loans on time.

“The underlying problems that are causing homeowners to miss their mortgage payments -- high unemployment, underemployment, toxic loans and negative equity -- are continuing to plague most local housing markets,” said James Saccacio, CEO of RealtyTrac. “And these historically high foreclosure rates will continue until those problems are resolved.”

Copyright 2010 ABC News Radio


Ford to Invest $850 Million in Michigan Before Announcing Profitable 3rd Quarter

Photo Courtesy - Getty Images(DETROIT) -- Ford Motor Company Monday announced its plans to invest $850 million in Michigan between 2011 and 2013.  Ford Motor said the sizable investment is intended to create up to 1,200 new full-time jobs by 2013, and to make improvements to its vehicle fuel economy.

"We are pleased to work with state and local government leaders to find new ways to work together, invest in our people as well as Ford facilities, further improve our competitiveness and secure jobs in Michigan," said Mark Fields, Ford's president of the Americas.

This announcement comes just after Ford's recent $950 million investment to repurpose the Michigan Assembly Plant from a large SUV factory to a "state-of-the-art car plant."

Ford will also release its third-quarter financial earnings Tuesday, and the results are expected to be impressive.  In spite of the slowest auto market since 1982, Ford is expected a $1.37 billion profit for the three months ending in September.

Under the leadership of Alan Mulally, Ford has sold off unprofitable brands like Volvo, cut loose slow selling name plates such as Mercury and concentrated its attention on its core brands -- Ford and Lincoln.

Foot traffic in dealerships is up and the company, founded 107 years ago by Henry Ford, is on target for a profitable 2010.

Copyright 2010 ABC News Radio


American Airlines Reports First Profitable Third Quarter Since 2007

Photo Courtesy - PRNewsFoto | American Airlines(FORT WORTH, Texas) -- AMR Corporation, the parent company of American Airlines, Inc., reported its third quarter financial earnings Wednesday.  According to the report, the company netted $143 million in profits, marking its first profitable quarter since 2007.

The figures are significantly improved compared to a net loss for the company of $359 million for the third quarter of 2009.

"We are pleased to report our first profitable quarter, excluding special items, since the third quarter of 2007," said AMR Chairman and CEO Gerard Arpey. "While there is clearly much more work to do, our results show significant improvement in revenue and reflect our continued dedication to controlling costs."

Arpey also mentioned American Airlines having recently launched Joint Business in the trans-Atlantic with British Airways and Iberia, as well as a "forthcoming opportunity" with Japan Airlines in the Pacific. 

These new opportunities, along with the strengthening of its cornerstone hubs, has allowed American Airlines to announce the recall of 545 flight attendants and 250 pilots from furlough status earlier this month.

Copyright 2010 ABC News Radio


US Airways Reports Highest Third Quarter Revenue in the Company's History

Photo Courtesy - US Airways(TEMPE, Ariz.) -- US Airways Group, Inc. Wednesday released its third-quarter financial earnings.  According to the report, the airline recorded a net profit of $240 million, the highest third-quarter net profit in the company's history.  Additionally, the company reports that its employees earned $7 million during the quarter.

US Airways Group, Inc. Chairman and CEO Doug Parker stated, "Reporting a record third-quarter profit speaks volumes about the efforts of our 31,000 team members."

Parker noted that the last three years have been particularly challenging for the airline, but he is pleased with the company's "swift and decisive" response.

US Airways also recently announced that it will recall approximately 300 pilots and flight attendants from furlough status, which Parker says will supplement US Air's international flying in 2011 and accommodate normal attrition.

Copyright 2010 ABC News Radio´╗┐


Trade Group Reports Passenger Revenue Growth for Airlines

Photo Courtesy - US Airways(WASHINGTON) -- Airlines continue to make money and are charging you more to fly, according to the Air Transport Association.  The industry trade group announced that passenger revenue was up 19 percent in September 2010 compared to the same month last year.  Meanwhile, the average price to fly one mile rose 11 percent.

"Once again, the global economy is driving spending on air travel, with passenger revenue exceeding last year's depressed levels," said ATA President and CEO James C. May.  "The industry remains hopeful that the nation's economic recovery will progress in the months ahead."

Carriers began cutting capacity in 2008 in the face of a down economy and sky-high fuel prices.  They have held the line on adding flights back, which is one reason they are making money and charging more for tickets.

Airlines are expected to begin releasing their third quarter financial data Wednesday.  Some analysts have already predicted that this will be a very strong quarter for the airlines.

FareCompare CEO Rick Seaney told ABC News that he does not expect to see these kind of profits going forward, however. 

"Summer was a very special thing where a lot of people didn't take their trips last summer. ... Airlines are not putting back seats into their system because they're afraid of what's going to happen in the economy," Seaney says.

Copyright 2010 ABC News Radio

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