The Spokesman-Review Newspaper
The Spokesman-Review Newspaper The Spokesman-Review
Spokane, Washington  Est. May 19, 1883
Current Temperature
37°F
Current Conditions
Overcast clouds
View complete weather report
Subscribe now

Rumors Bite Into Apple Profits

From Wire Reports

Earnings reports

With takeover rumors scaring off buyers, Apple Computer Inc. declared Thursday it is not discussing a merger with anyone.

The company also said the financial loss it had previously forecast for the first three months of the year would be greater than the $69 million loss it suffered in the last three months of 1995.

A key reason, Apple said, was the “adverse impact of such rumors and speculation on customer buying decisions.” But new Chief Executive Officer Gil Amelio expressed hope for reviving the third-largest personal computer maker.

“I fully expect that our customers’ grandchildren will be buying Apple products,” Amelio said.

The statement ended nearly a week of silence that had started to cause more speculation about the direction of the company. For nearly a month, Apple had reportedly been talking to Sun Microsystems Inc. about a buyout, though neither company said for sure.

In other earnings reports Thursday:

Westinghouse Electric Corp. said it lost $7 million in the fourth quarter, partly due to interest costs from the purchase of CBS Inc.

The loss, which amounted to 2 cents a share, compared with a loss of $107 million, or 30 cents a share, in the same period of 1994.

The latest quarter included 37 days of income from CBS, including $59 million in costs related to the purchase of the broadcasting company. Those costs reduced earnings by 8 cents a share.

Excluding special items, the company’s profits fell 16 percent to $117 million, or 26 cents a share, from $139 million, or 32 cents a share.

Colgate-Palmolive Co. reported that fourth-quarter earnings fell 11 percent, partly because of the peso devaluation and recession in Mexico.

Earnings for the quarter ended Dec. 31, were $122.5 million, or 80 cents per share, vs. $137.1 million or 91 cents per share a year earlier. Sales rose to $2.15 billion from $1.996 billion, an increase of 11 percent due to overseas growth.

For the year, Colgate earned $172 million, or $1.04 per share, on sales of $8.36 billion, vs. $580.2 million, or $3.82 per share, on sales of $7.59 billion.