Earnings: Time Warner, Honda/Nissan, ArcelorMittal, US Steel

Some earnings report:


timwarnerTime Warner’s income fell 34% from last year with an income of $519 million, or 43 cents a share, down from $792 million, or 66 cents a share, last year.  Despite lower numbers, they beat analyst expectations of  earnings of $0.37.

Revenue was $6.81 billion, lower by 9% from last year.  This was also lower than expectations of $6.97 billion. One contributor was the weak America Online operations, whose spin off is expected to be completed by end of the year, along with its publishing business and filmed entertainment segment.

CEO Jeff Bewkes said of the spin off: “We’re on track to spin off AOL to our stockholders around the end of the year. Separating AOL will benefit both companies – enabling Time Warner to concentrate fully on our core content businesses and improving AOL’s operational and strategic flexibility.”

More HERE (PDF).


Largest steelmaker in the world ArcelorMittal reported a twice as bad a bottomline as was expected by analysts.  Net loss was at $792m versus expectations of $385m.  This number was significantly affected by charges related to inventory write-downs ($0.9bn) and work-force reductions ($0.3bn). This reflects a per share loss of $0.57, which though higher than last year is still better than Q1’s loss of $0.78.

EBITDA was 85% lower than last year but 38% higher than Q1 – $1.22bn against last year’s $8.05bn and last quarter’s $883m. Revenue for Q2 was lower by 60% to $15.2bn from last year’s Q2 number of $37.8bn.  However, the same is higher by less than half a percent from Q1 after shipments for the steel company has increased from Q1’s 16 tons to the latest quarter’s 17. Working capital rotation days improved from 115 to 98 days.

Mr. Lakshmi N. Mittal, Chairman and CEO, ArcelorMittal, said:

“In recent weeks we have started to see some initial signs of recovery, as a result of which we are now planning to re-start production at some facilities. Provided there are no further unexpected economic deteriorations, we should see continued gradual improvement throughout the second half of the year, with full recovery remaining slow and progressive.”

Read the rest of the report HERE.


Another steelmaker reports a loss, this time from US Steel, of $392 million, or $2.92 per share. This is an improved result from last quarter’s $439m loss, or #3.78 per diluted share, but still a 360 from an income of $668m from last year.

Despite an improved quarter-on-quarter numbers, shipments of 2.9 million tons was a decrease of 9 percent from Q1.  Net sales also decreased 23% to $2.1 billion. The company benefited from lower interest and other financial expenses, which includes forex gain, which went down from $71m in Q1 to just $9m in Q2.  Other items not included in segment numbers include a $45m pretax income from a favorable court ruling and another $34m from the recovery of federal excise taxes relating to payments on coal export sales between 1990 and 1992.

US Steel also provided in its earnings release a decent outlook for the rest of the year, via CEO John Surma:
“There are some signs that the destocking cycle has ended in the North American and Central European steel markets as increased customer orders across almost all industry segments have resulted in an extension of lead times. We have begun to bring up idled facilities in line with customer demand and we have implemented price increases in our Flat-rolled and USSE segments in the third quarter. Despite these signs of improvement, the outlook for overall demand remains uncertain and the timing and magnitude of sustained economic recovery remain difficult to forecast.”

Jump to the earnings release HERE (PDF).

And very briefly: NISSAN

Nissan today reported a net loss of ¥16.53bn in the three months ended June 30, a big change from 2008’s Q2 release of ¥52.80 billion earnings though better than Q1 for 2009.  This is also better than analyst’s expectation of a loss of ¥108.5 bn.

Sales sagged 36% to ¥1.515 trillion, from ¥2.347 trillion. Earnings forecast were left unchanged for the year.


Honda, another Japanese automaker, reported a 96% drop in its profits due to a slump in demand as well as the strength of its currency.  Numbers stand at ¥7.56 billion profit, lower from ¥173.4 billion last year but better than a net loss estimate by analysts of ¥56.4 billion. It is also better than the loss reported for the first quarter.

However, cost custs and robust sales of motorcycles in Asia are seen as strong drivers to a better full-year earnings target.


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