FedEx Earnings Dive 75%

Don't they know Obama wants to heap money on infrastructure?

(NEWSER) - Caterpillar Inc will cut 20,000 jobs—or 18% of its workforce—after posting a 32% drop in fourth-quarter income, the Wall Street Journal reports. “We were whipsawed in the fourth quarter,” said CEO Jim Owens. “Key industries were hit by a rapidly deteriorating global economy.” The manufacturer of heavy machinery is often seen as an indicator for various parts of the economy, particularly construction. More»

Though first-quarter profit beat expectations, a growth story is absent

(NEWSER) - The fact that 66% of American companies beat their first-quarter earnings expectations is good, writes Henry Blodget in Clusterstock, but not as good as it looks. A closer examination of the data shows that while profits increased, revenues did not, and “you can’t fire your way to prosperity.” Earnings show companies adjusting to recession—not pulling out of it. “Until companies start surprising on revenue, all this particular ‘green shoot’ shows is that companies are reacting quickly to the recession.” More»

Company blames slow economy, strong yen for 25% sales slump across the board

(NEWSER) - Slumping demand, a strong yen, and increased competition knocked Sony’s third-quarter profits off 95% from a year ago, reports CNN. Sony reported profits of $110 million for the quarter ended Dec. 31, down from $2.2 billion a year ago. Sony’s gaming segment was hit especially hard, with its popular Playstation logging a 32% decline. Overall, sales were down 25%. More»

(NEWSER) - Microsoft surprised the street today by releasing its earnings early, and they weren’t pretty. The software giant’s revenues inched up only 2%, below earlier guidance, and its net income dropped 11%. More alarming, the company said it was slashing 5,000 jobs, starting with 1,400 today, which amounts to 5.5% of its workforce. “We are not immune to the effects of the economy,” said Steve Ballmer. More»

'Dismal' housecleaning quarter much worse than expected

(NEWSER) - New Wachovia CEO Robert Steel moved aggressively to staunch the bank's losses by taking a massive $8.9-billion hit in the second quarter and slashing its dividend to almost nothing, the New York Times reports. Steel had every reason to clean house, but analysts had predicted only a 78 cents-per-share loss. Instead, after $6.1 billion in writedowns, Wachovia lost $4.20 a share. More»