Google earnings disappoint

Wed., Feb. 1, 2006

Associated Press The Spokesman-Review

Key Tronic earnings up 108 percent

A handful of Inland Northwest companies reported their earnings recently. They include:

Spokane-based Key Tronic Corp. on Tuesday reported earnings of $1 million, or 10 cents a share, for the second quarter of fiscal 2006. That's up 108 percent from earnings of $490,000, or 5 cents per share, in second quarter of fiscal 2005. The contract manufacturer reported total sales for the quarter of $45.4 million, compared to $44.3 million for the previous quarter and $51.2 million for the second quarter a year ago.

AmericanWest Bancorp., of Spokane, reported net income of $13.9 million, or $1.31 per share, for 2005, up 46 percent from income of $9.5 million, or 91 cents a share, the previous year. AmericanWest had assets of $1.1 billion at the end of 2005, up 5.7 percent from assets of $1 billion the previous year.

Northwest Bancorp., the Spokane-based parent company of Inland Northwest Bank, reported 2005 earnings of $2.2 million, or $1 a share. That's a 10 percent increase over income of $2 million, or 92 cents a share, the previous year. Northwest Bancorp. had assets of $245.5 million on Dec. 31, an 11.3 percent increase from the end of the previous year.

Sterling Financial Corp., parent company of Sterling Savings Bank, reported earnings of $61.2 million, or $1.75 a share, for 2005. That's a 9 percent improvement over earnings of $56.3 million, or $1.62 a share, the previous year. Sterling had assets of $7.56 billion at the end of 2005, a 9 percent increase from the previous year.

Google Inc.’s rapid financial growth decelerated in the fourth quarter as the online search leader’s profit fell below analyst expectation for the first time since its August 2004 initial public offering. The news rattled previously bullish investors, causing Google’s stock price to plunge by more than 15 percent.

The Mountain View, Calif-based company said Tuesday that it earned $372.2 million, or $1.22 per share, for the final three months of 2005. That represented an 82 percent increase from net income of $204.1 million, or 71 cents per share, in the previous year.

If not for a donation to launch its charitable foundation and stock compensation expenses, Google said it would have earned $1.54 per share. That missed the average estimate of $1.76 per share among 31 analysts surveyed by Thomson Financial.

Google released its results after the stock market closed Tuesday. Company shares plunged $66.93 — 15.5 percent — in after-hours trading after gaining $5.84 to close at $432.66 Tuesday on the Nasdaq Stock Market. The downturn wiped out roughly $20 billion in shareholder wealth.

Allstate Corp. on Tuesday said fourth-quarter earnings dropped nearly 9 percent on sizable catastrophe losses from Hurricane Wilma, which battered south Florida in October.

Allstate, the second-largest U.S. personal-lines insurer behind State Farm, also said it has settled about 75 percent of the property claims and 97 percent of the auto claims filed from Hurricanes Katrina, Rita and Wilma.

Allstate’s net income totaled $1.04 billion, or $1.59 a share, down from $1.14 billion, or $1.63 a share, a year earlier.

Merck & Co. said Tuesday its profit edged up 2 percent in the fourth quarter as drug sales leveled off and it set aside an additional $295 million for legal defense costs related to its withdrawn painkiller Vioxx.

Meanwhile, Wyeth reported it swung to a profit in the three months ended in December after taking a major charge in the year-ago period.

But while Merck exceeded analysts’ expectations, Wyeth’s performance fell short.

Merck said it earned $1.12 billion, or 51 cents a share, in the last quarter, compared with $1.1 billion, or 50 cents a share, in the year-ago period. Revenue was nearly flat at $5.77 billion versus $5.75 billion a year ago.

United States Steel Corp. said Tuesday higher tubular steel sales softened the impact of falling prices for the commodity overall on profit in the latest quarter.

Fourth-quarter earnings, reported Monday, were also hurt by costs related to maintenance and production delays at one of the steel maker’s major blast furnaces in Gary, Ind.

A shift in accounting techniques at the Pittsburgh-based company’s Slovak operation also weighed on profit, resulting in a one-time $35 million charge.

Net income, including the charge, dropped to $109 million, or 85 cents per share, from $451 million, or $3.46 per share, a year earlier.

Local journalism is essential.

Give directly to The Spokesman-Review's Northwest Passages community forums series -- which helps to offset the costs of several reporter and editor positions at the newspaper -- by using the easy options below. Gifts processed in this system are tax deductible.

Meet Our Journalists

Jesse Tinsley

Meet Jesse Tinsley. As a certified drone pilot, this veteran Spokesman-Review photographer often can be seen capturing beautiful aerial photographs of our region. Sometimes though, the job requires getting down with the dogs.
Jim Meehan

Jim Meehan is no stranger to Zag Nation. As the lead writer covering the Gonzaga men’s basketball team, he tells the stories behind the game and gets fans a bit closer to their favorite players.
Molly Quinn

There is no artist in Spokane like Molly Quinn. Her whimsical style is instantly recognizable to readers of The Spokesman-Review. She has painted gorgeous illustrations that instantly elevate the journalism accompanying it. She brings to life the stories that defy photography. She makes our pages better.
Rob Curley

Spokesman-Review editor Rob Curley loves to talk with people and learn about their lives, whether it's a best-selling author or a stranger he meets downtown on his walk to lunch. It's that inquisitive nature combined with a playful sense of storytelling that helps make our newspaper different than most.

Google earnings disappoint

Jesse Tinsley

Jim Meehan

Molly Quinn

Rob Curley

Amazon eyes $9 billion Globalstar deal to rival SpaceX's Starlink, FT reports

Everyone but Gen Z is saving less for retirement. What's happening?

Target leans into red shirts and khakis as it tries to elevate shopping experience