January 26, 2011 in Business

Earnings roundup

 

• When Verizon Communications Inc. launches its version of the iPhone on Feb. 10, it will be with a $30 “unlimited data” plan. Rival AT&T Inc. stopped signing up new customers to its unlimited plan last summer. Verizon said it is confident it can launch the iPhone without problems, something that has tripped up AT&T a few times, when the year’s new model is launched. Verizon also provided a financial outlook for the year that indicated that the subsidies for the iPhones probably won’t drag down results as much as analysts had expected.

Yahoo Inc.’s fourth-quarter earnings more than doubled, but the Internet company’s crumbling revenue showed that it’s still struggling to cash in on the online advertising boom. Signaling the financial funk will persist into this year, Yahoo predicted its net revenue during the first quarter will decline by 4 percent to 10 percent from last year.

U.S. Steel Corp. cautiously expects business to improve in the first three months of this year after a rough second half of 2010. The nation’s largest steelmaker by sales said rising steel prices and greater demand from most of its customers should offset higher costs for raw materials like scrap metal and coal.

• Luxury handbag maker Coach Inc. said Tuesday that its fiscal second-quarter net income rose 26 percent, helped by a strong holiday season in North America and strong sales in China. Coach began offering more bags under $300 during the recession, but CEO Lew Frankfort said Monday that customers are beginning to buy more expensive handbags.

Johnson & Johnson’s revenue was down nearly 6 percent in the fourth quarter and 0.5 percent in 2010, its second straight annual decline. That hasn’t happened since the Depression. Net income fell 12 percent in the fourth quarter. A costly series of recalls of consumer products was compounded by the weak global economy and pricing pressures from Western governments and big customers such as hospitals. J&J expects 2011 earnings per share of about $4.85, well below analysts’ expectations.


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