Page 25 - ATD23Jan2016
P. 25
BUSINESS A25
Saturday 23 January 2016
GE tops 4Q earnings though industrial revenue slips
TOM MURPHY ing for per-share earnings booked an additional $175 in the fourth quarter grew 1 cent to $2.38 billion in the
AP Business Writer of 49 cents and revenue of million in profits this quar- percent, not counting ac- quarter. But the conglom-
General Electric topped $35.91 billion, according to ter on a breakup fee after quisition gains, erate’s oil and gas operat-
Wall Street expectations a survey by FactSet. its attempt to sell the unit ing segment dropped 16
for the fourth quarter and Revenue from the com- to Electrolux in Sweden fell and GE’s backlog grew percent to $4.36 billion and
reaffirmed its target for pany’s industrial segment through. to $315 billion after an $11 was down 14 percent for
2016, but its shares slipped slipped 1 percent to $31.4 Overall, GE recorded $6.28 billion deal in November the year.
in afternoon trading as the billion. General Electric has billion in net income at- to acquire the power and The company built up its
company’s industrial rev- refocused on its industrial tributable to common transmission division of oil and gas drilling services
enue declined. roots, making massive tur- shareholders, a 22 percent French manufacturer Al- operations in recent years
The industrial conglomer- bines and other complicat- increase over the same stom. through acquisitions, and
ate on Friday reported ed equipment, while selling quarter last year. “We believe in the strength investors applauded the
earnings of 52 cents per off its operations in its finan- Chairman and CEO Jeff Im- of our business model and moves when oil prices and
share, excluding the finan- cial wing as well as its appli- melt said in a printed state- that there is enough growth consumption were rising.
cial operations it’s shed- ance division. ment from the company out there to deliver in 2016,” But an extended plunge
ding, on $33.9 billion in rev- It recently sold its appli- that GE “executed well in a Immelt said. has hurt the business and
enue. ance unit to China’s Haier slow-growth environment.” Revenue from GE’s energy forced drillers to cut back
Wall Street had been look- Group for $5.4 billion. It He pointed out that orders management operating on new exploration.q
segment jumped 20 per-
Starbucks US sales jump 9 percent over holiday quarter
SEATTLE (AP) — An alleged A man sits inside a Starbucks, in New York. Starbucks Corp. reported quarterly financial results, cations, down from 5 per-
war on Christmas by Star- late Thursday, Jan. 21, 2016. cent in the prior quarter.
bucks apparently didn’t The company noted there
dampen the chain’s holi- (AP Photo/Mark Lennihan) was a “dramatic decline in
day sales, but its outlook consumer and tourist activ-
going forward fell short of only its logo for the holidays. snowflakes and Christmas Asia and Europe. In the ity across Western Europe”
Wall Street expectations. That was a change from ornaments. unit that includes Europe, after the terrorist attacks in
The Seattle-based compa- past years, when the com- Its performance overseas the Middle East and Africa, Paris in November.
ny says sales rose 9 percent pany’s holiday cups were wasn’t as strong, slowing Starbucks said sales rose 1 “We have quite recently
in its flagship U.S. market decorated with reindeer, in the units encompassing percent at established lo- begun to see the effects of
and 8 percent globally dur- that region’s resilience and
ing the final three months recovery,” the company
of the year. The increase said in an email.
at home and abroad was For its Asia region, Star-
the result of a mix of higher bucks said sales rose 5 per-
customer traffic and in- cent, down from 6 percent
creased spending. the previous quarter. The
Over the holidays, the company said it did not
company said $1.9 billion expect a material impact
was loaded onto Starbucks from the attacks this month
gift cards. It said 1 in 6 in Indonesia that resulted in
American adults received temporary store closures.
a Starbucks gift card over During a conference call
the holidays, up from 1 in 7 with analysts Thursday, Star-
a year ago, and 1 in 8 two bucks CEO Howard Schultz
years ago. also expressed confidence
The strong results came in the company’s long-
despite an online backlash term investment in China,
from some corners when where it already has about
Starbucks unveiled its mini- 2,000 stores and plans to
malist red cups bearing have 3,400 by 2019. q
Delta posts $980 million 4Q profit on lower fuel prices
DAVID KOENIG many flights while fuel is executive vice president And fuel prices are still go- provide insurance against
AP Airlines Writer relatively cheap, which is of revenue management. ing down. rising energy prices but cost
DALLAS (AP) — Cheaper pushing fares lower. “We see demand as very Delta expects to pay about money when oil prices fall.
jet fuel thanks to falling oil But Delta officials said strong.” $1.20 to $1.25 per gallon for Delta’s fuel-hedging loss
prices helped Delta Air bookings for this spring are Meanwhile, Delta and its fuel in the first quarter, an was a far smaller $54 mil-
Lines earn $980 million in ahead of last year’s pace Delta Connection affiliate even better deal than the lion in the fourth quarter of
the fourth quarter despite because lower gasoline saved nearly $2.8 billion, or $1.85 it paid in the fourth 2015.
lower revenue than a year and heating bills mean nearly 65 percent, on fuel quarter. Excluding what it termed
ago. that consumers have more compared with late 2014. Atlanta-based Delta’s net one-time items, Delta said
Delta forecast another de- money to spend. The company now spends income for the fourth quar- it would have earned $1.18
cline in a key revenue mea- “They seem to be will- less on fuel than it does on ter contrasted with a loss of per share, a penny below
sure through the first three ing to re-invest that into labor — the cost of salaries $712 million a year earlier, the average forecast from
months of 2016. That could airline purchases but at and benefits rose 9 percent when the airline took a $1.2 analysts surveyed by Zacks
add to investor concern slightly lower fares,” said to become Delta’s largest billion write-down in the Investment Research and
that airlines are adding too Glen Hauenstein, Delta’s single expense. value of fuel hedges, which FactSet.q
