EARNINGS
E.W. Scripps Co.: The Cincinnati- based media company said Tuesday that third-quarter profit declined 11 percent to $73.1 million, in part because of “weak advertising sales” from its joint operating agreement in Denver. Scripps said its newspaper partnerships, including ones in Denver, Cincinnati and Albuquerque, contributed a profit of $1.6 million during the quarter compared with a loss of $1.8 million a year earlier. For the improvement, Scripps cited lower depreciation costs relating to the construction of a new production facility in Denver. Scripps, owner of the Rocky Mountain News, and Denver-based ap, owner of The Denver Post, share revenues and business expenses for the News and The Post under a joint operating agreement, or JOA. The two papers maintain independent newsrooms.
Yahoo Inc.: The Internet bellwether said third-quarter profit slid 38 percent amid slowing revenue growth that has raised investor doubts about its strategy and execution. The Sunnyvale, Calif.-based company said Tuesday it earned $158.5 million, or 11 cents per share, for the three months ended in September. That compared with net income of $253.8 million, or 17 cents per share, in the same period last year. After subtracting commissions Yahoo paid its advertising partners, third-quarter revenue totaled $1.12 billion, slightly below analyst expectations.
Intel Corp.: The chipmaker reported a 35 percent decline in third-quarter profits and a 12 percent decline in revenues Tuesday but beat Wall Street’s tepid expectations and shipped record numbers of microprocessors for mobile devices and computer servers. Net income for the three months ended Sept. 30 was $1.3 billion, or 22 cents a share, compared with $2 billion, or 32 cents, in the same period last year. Revenue fell to $8.74 billion from $9.96 billion. Analysts had been expecting profits of $1.01 billion, or 17 cents a share, on sales of $8.62 billion.
International Business Machines Corp.: IBM handily topped Wall Street forecasts for the third quarter, with revenue growing 5 percent as strong sales of software and hardware helped offset more weak growth in the key computer-services business. The quarter’s net profit of $2.22 billion marked a 50 percent improvement from a year ago, thanks largely to a lower tax bill. Net income for the three months ended Sept. 30 amounted to $1.45 per share. In the same period last year, IBM earned $1.52 billion, or 94 cents a share, as the company absorbed a $525 million tax expense on foreign earnings that were repatriated to the United States. Wall Street analysts expected a per-share profit of $1.35.
Johnson & Johnson: The medical- products maker said third-quarter profit rose 9 percent on strong sales of prescription drugs and consumer products, as well as lower tax rates and administrative costs. J&J reported net income of $2.76 billion, or 94 cents per share, for the July-September period. Excluding $115 million in charges for two small companies, net income would have been $2.9 billion, or 98 cents per share. A year ago, net income was $2.54 billion, or 85 cents per share. Revenues totaled $13.3 billion, up 8 percent from $12.3 billion in 2005’s third quarter. Analysts surveyed by Thomson Financial were expecting income of 93 cents per share, or 5 cents less, and sales of $13.1 billion.
