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Amazon loss in line
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October 23, 2001: 5:00 p.m. ET
Internet retailer posts third-quarter loss in line with expectations.
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NEW YORK (CNNmoney) - Amazon.com Inc. reported a narrower third-quarter loss, in line with Wall Street's expectations, as the world's biggest Internet retailer reaffirmed expectations for a fourth quarter profit despite lower sales after the Sept. 11 terrorist attacks.
Analysts currently anticipate a loss of 7 cents in the fourth quarter, which includes the crucial holiday period, according to earnings tracker First Call.
Amazon also anticipates fourth-quarter sales to be between flat and 10 percent growth, or between $970 million and $1.07 billion compared with a year ago. That's below analysts' expectations for $1.09 billion in sales, according to First Call.
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Amazon.com CEO Jeff Bezos chats with CNNfn's Jan Hopkins about the company's third-quarter.
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"We are ready for the fourth quarter. Reaching pro forma profit does not require heroics, just execution," Chief Financial Officer Warren Jenson said during a conference call with analysts Tuesday.
For the quarter ended Sept. 30, Amazon posted a loss excluding items of $58 million, or 16 cents a share, compared with a loss of $89 million, or 25 cents a share, a year earlier. Analysts on average anticipated a loss of 16 cents a share, according to First Call.
Revenue increased slightly to $639 million from $638 million, but lower than Wall Street forecasts of $650.3 million, according to First Call.
The company estimates the terrorist attacks on the World Trade Center and the Pentagon shaved $25 million-to-$35 million off sales in the quarter, Jenson said.
Amazon's (AMZN: Research, Estimates) stock gained 78 cents at $9.55 Tuesday. The stock dropped to $8.97 in after-hours trading following the announcement.
The company posted a net loss of $170 million, or 46 cents a share, compared with a net loss of $241 million, or 68 cents a share, a year earlier.
"We are pleased that our quarterly results were again in line with our guidance, and with our recent order trends," Jenson said. "We continue to expect pro forma operating profitability for the fourth quarter, and while there are no guarantees, we are well-positioned to achieve this important milestone."
CEO Jeff Bezos said the company had cut operating costs by 20 percent, clearing the way for lower prices to help drive sales.
U.S. sales posted a slight operating profit for the second straight quarter, the company said. The unit logged a $1 million profit in the third quarter compared with a loss of $29 million a year earlier.
The domestic books, music and DVD/Video segment posted a profit for the sixth consecutive quarter.
And "used" orders comprised 17 percent of total U.S. orders, compared with nil a year ago, the company said. The "used" section was launched last November.
The company added 2.9 million new customers worldwide, including 1 million new international customers.
International sites sales increased 58 percent in the third quarter to $138 million from $88 million a year ago. Fulfillment costs accounted for a smaller portion of net sales in the quarter at 13 percent compared with 15 percent a year earlier.
Revenue from the services division dropped 12 percent to $46.2 million. The division administers the partnership relationships with other retailers, allowing them to sell through Amazon's platform. 
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