Sony's Profit Off 95% in Q4

Japanese Electronics maker sees profits tumble 72% for quarter

(NEWSER) - A strengthening yen and declining demand—especially from the US—for consumer electronics provided a one-two punch that knocked Sony profits down 72% for the third quarter, reports the New York Times. Sony shares slid to a 16-year low on Monday, and are down 67% for the year. 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»

(NEWSER) - FedEx net income plunged 75% in the third quarter, the company announced today, a bad sign for economists who consider the shipping giant a bellwether. FedEx also announced plans to cut $1 billion in costs, though it didn’t detail how many job cuts that might entail. The company has already lowered salaries, with CEO Fred Smith taking a 20% pay cut. Shares fell 5.9% in premarket trading, the Wall Street Journal reports. More»

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»

Global downturn, strong yen reverse earlier expectations

(NEWSER) - Sony announced today that it would go down to its first annual loss in 14 years, after having forecast just months ago that it would turn a profit. The Japanese electronics giant said it expected to lose $1.7 billion, the result of declining demand from the global recession. The BBC reports that Sony has also been hit hard by the strong yen: 80% of its sales come from overseas, and currently the Japanese currency is its highest against the dollar in more than 13 years. More»