CNN/Money  
graphic
News > Companies
graphic
Earnings: Merrill Lynch, MGM, Coke
Brokerage firm says profit rose despite drop in revenue; Coke meets estimates; MGM's profit dips.
April 16, 2003: 1:59 PM EDT

NEW YORK (CNN/Money) - Merrill Lynch said its first-quarter profit climbed due to additional cost cuts and strong results in its debt business as revenue fell at the brokerage firm.

Coca-Cola said it swung to a profit in the first quarter and met Wall Street's estimates following a loss a year earlier as shipments increased at the No. 1 soft-drink firm.

Meanwhile, casino operator MGM Mirage posted a dip in quarterly profit as Las Vegas suffered the economic downturn that has kept some of the biggest gamblers away from the desert destination.

Companies in this roundup

American Standard; Altria; Bank of New York;

Baxter International; Caterpillar;

Coca-Cola; Comerica; Delphi;

EMC; Ford; General Dynamics;

Harley-Davidson; Illinois Tool Works; J.P. Morgan;

Lear Corp.; Maytag; Merrill Lynch;

MGM Mirage; Northwest Airlines; Textron;

Rockwell Collins; United Health; Wachovia

--

Merrill Lynch

NEW YORK (Reuters) -- The nation's largest brokerage firm said its first-quarter profit rose as strength in debt market results helped offset a decline in revenue.

New York-based Merrill (MER: Research, Estimates), which has spent much of the past two years slashing costs in an effort to boost results, reported net income of $685 million, or 72 cents a share, for the quarter. That was up from $647 million, or 67 cents, a year earlier. Net revenue dipped to $4.9 billion from $5.1 billion from last year.

Wall Street expected Merrill to earn 61 cents a share in the quarter, according to First Call.

--

Coca-Cola

ATLANTA (Reuters) -- The world's largest soft drink company reported a jump in net income despite the impact of economic weakness in North America and its other major markets. For the first quarter, it earned $835 million, or 34 cents a share, including one-time charges, compared with a loss of $194 million, or 8 cents a share, in the year-earlier period.

Excluding charges, Coca-Cola (KO: Research, Estimates) earned 37 cents a share in the latest quarter. Analysts' estimates ranged from 36 to 41 cents a share and averaged 37 cents, according to research firm First Call.

Revenue rose to $4.5 billion from $4.08 billion a year earlier. Coke's unit case volume, a key measure of financial health in the beverage sector, grew 4 percent in the quarter. (more details)

--

MGM Mirage

NEW YORK (Reuters) -- MGM (MGG: Research, Estimates), which owns the Bellagio and other high-end Las Vegas casinos, said first-quarter earnings were $51 million, or 33 cents per share, down from $82 million, or 51 cents, in the year-ago quarter.

Excluding one-time items, such as preopening expenses and property transactions, MGM earned 40 cents per share, down from 52 cents a year ago, when the company had an unusually high win rate at its tables.

The year-ago results included a 5-cent-per-share gain for the capitalization of interest.

Analysts had a mean estimate of 39 cents per share. The company in January had predicted profit between 35 and 40 cents, below the consensus at the time of 48 cents per share.

--

Northwest Airlines

CHICAGO (Reuters)--The No. 4 U.S. airline said its quarterly loss more than doubled to $396 million, adding to what analysts expect will be one of the worst quarters in aviation history amid the war in Iraq and the advent of the SARS virus in Asia.

Northwest (NWAC: Research, Estimates) said its loss amounted to $4.62 per share in the first quarter, compared with a net loss of $171 million, or $2.01 per share, a year earlier. Operating revenue rose 3.2 percent to $2.25 billion. The carrier cut its schedule by 12 percent and announced 4,900 temporary job cuts because of the war, taking a pretax charge of $78 million in the quarter. Excluding those charges, Northwest reported a loss of $318 million, or $3.71 per share.

Analysts' mean estimate, which excludes charges, forecast Northwest would report a loss of $4.75 per share for the quarter, according to First Call. The estimates, from more than a dozen analysts, ranged from a loss of $4.15 a share to a loss of $5.65. The consensus estimate had dropped in recent days as analysts revised forecasts downward. (more details)

--

Baxter International

CHICAGO (Reuters) -- Baxter (BAX: Research, Estimates), which makes vaccines, intravenous drug delivery systems and renal therapy products, said its earnings fell to $217.0 million, or 36 cents per share, in the first quarter from $253 million, or 41 cents, a year earlier.

The first-quarter results include a pre-tax charge of $13 million to reflect the decline in the market value of a minority investment.

The Deerfield, Ill.-based company stunned investors in March when it warned its earnings would not meet expectations for the third time in the past year.

Analysts, in turn, cut their forecasts, putting the mean estimate on Wall Street at 37 cents per share, according to First Call.

--

Lear Corp.

CHICAGO (Reuters)--The world's fifth-largest automotive parts supplier said its quarterly earnings rose, helped by new business and a stronger euro. The maker of seating, instrument panels and other interior systems said its first-quarter net income climbed to $67.9 million, or $1.01 a share, from $46.4 million, or 70 cents a share, in the same period a year ago.

Lear (LEA: Research, Estimates), based in Southfield, Mich., was expected to earn $1.00 a share, according to the average estimate of analysts polled by First Call. Sales rose 10 percent to $3.90 billion from $3.53 billion a year ago.

--

General Dynamics

NEW YORK (Reuters) -- The defense contractor said quarterly earnings slipped as weakness in its Gulfstream commercial aircraft businesses offset strength in combat arms division.

General Dynamics said first-quarter earnings were $221 million, or $1.11 per share, down from $229 million, or $1.13 per share, a year earlier.

Profits beat lowered analyst expectations. On average, analysts surveyed by market research firm Multex had expected the company to earn $1.02.

--

Textron

BOSTON (Reuters) -- The company said it swung to a profit in the first quarter, reversing a year-earlier loss from an accounting change, despite a downturn in its Cessna aircraft business.

Providence, R.I.-based Textron (TXT: Research, Estimates) reported net income of $66 million, or 48 cents a share, compared with a net loss of $431 million, or $3.04 a share, a year earlier.

First-quarter revenue rose slightly to $2.46 billion, even as revenue at Cessna, Textron's largest business, decreased $89 million, largely from fewer sales of Citation business jets.

--

Altria

NEW YORK (Reuters) -- The parent company of Philip Morris said its first-quarter profit fell as it kept spending to promote its cigarettes in a weak U.S. market. The company said it earned $2.19 billion, or $1.07 per share, compared with $2.37 billion, or $1.09 per share, a year earlier.

Analysts had expected New York-based Altria, which changed its name from Philip Morris Cos. Inc. in January, to earn $1.02-to-$1.10 per share, with a mean target of $1.06, according to tracking firm First Call. (more details)

--

J.P. Morgan

NEW YORK (CNN/Money) -- The investment bank reported an unexpected gain in first-quarter earnings as the nation's No. 2 bank topped the most optimistic Wall Street expectations for the period.

New York-based J.P. Morgan (JPM: Research, Estimates) earned $1.4 billion, or 69 cents a share, up from $1.15 billion, or 57 cents, before special items a year earlier. Analysts surveyed by First Call expected earnings per share of 51 cents, with a range of EPS estimates of 45-to-60 cents. (more details)

--

Bank of New York

NEW YORK (Reuters) -- Bank of New York (BK: Research, Estimates) said quarterly profit fell 19 percent from a year earlier, hurt by weaker trading volume, falling stock prices, pension costs and the expensing of stock options.

The nation's 15th-largest bank reported first-quarter net income fell to $295 million, or 41 cents per share, from $362 million, or 50 cents, a year earlier. The results were in line with analysts' average outlook, according to First Call.

The bank said it set aside $230 million, equal to 32 cents per share, for loan losses, mainly for airplane leases.

--

Ford

NEW YORK (CNN/Money) -- The world's second-largest automaker surpassed the most optimistic Wall Street forecasts for the first quarter, reversing year-earlier losses, and said it is on the path to top estimates for the year as well. Ford reported earnings of $896 million, or 45 cents a share. Analysts surveyed by First Call were looking for earnings per share of 22 cents in the quarter, with a range of 15-to-30 cents. The company posted an operating loss of $108 million, or 6 cents a share, excluding special items a year earlier.

The company said it expects to earn 10 cents a share in the second quarter, below analysts' estimates of 13 cents a share, but it said it is on track to earn 70 cents a share for all of 2003, which would be well above the First Call consensus forecast of 44 cents.

Ford's (F: Research, Estimates) revenue rose to $40.9 billion from $39.9 billion a year earlier. (more details)

--

Caterpillar

CHICAGO (Reuters) -- The construction equipment maker said its first-quarter earnings rose on improved operating efficiency and price realization, and higher volume. The Peoria, Ill.-based company reported net income of $129 million, or 37 cents a share, up from $80 million, or 23 cents, a year earlier.

Caterpillar's (CAT: Research, Estimates) sales increased to $4.82 billion from $4.41 billion a year ago. Analysts' estimates had ranged from 9 to 48 cents a share, with an average forecast of 25 cents, according to First Call.

--

United Health

CHICAGO (Reuters) -- The biggest U.S. health insurer said its quarterly profit rose 37 percent, aided by a big jump in premium revenue. The Minneapolis-based company posted first-quarter net income of $408 million, or $1.29 per share, up from $295 million, or 92 cents, a year earlier.

According to First Call, analysts on average expected earnings of $1.24 per share, as of April 15. For 2003, the average of analysts' estimates is $5.21 per share. United Health's (UNH: Research, Estimates) revenue rose 16 percent to $6.98 billion.

--

Delphi

DETROIT (Reuters) -- The world's largest automotive parts supplier posted a quarterly profit of $127 million, reversing a year-earlier loss that was due to restructuring charges. Troy, Mich.-based Delphi (DPH: Research, Estimates) reported first-quarter earnings of 23 cents per share, compared with a loss of $51 million, or 9 cents per share, in first quarter 2002.

The results were in line with analyst estimates of 15-to-25 cents per share, with an average of 22 cents, according to research firm First Call. In January, Delphi said it expected first-quarter earnings of $120 million to $130 million, or about 21-to-23 cents per share.

--

Wachovia

NEW YORK (Reuters) -- The bank said quarterly profit rose 13 percent from a year earlier, helped by rising deposits and improved loan credit quality, but fell a bit short of analysts' estimates. The fifth-largest U.S. bank, based in Charlotte, N.C., said it earned $1.02 billion, or 76 cents per share, in the first quarter, compared with $907 million, or 66 cents, a year earlier.

The profits are at the lower end of the 76 to 78 cent range Wachovia (WB: Research, Estimates) had forecast last month, excluding merger and restructuring charges. The bank said at the time it expected to boost full-year per share earnings at least 10 percent from $2.77 a year ago. Analysts polled by First Call on average expected earnings of 77 cents per share.

--

Harley-Davidson

CHICAGO (Reuters) -- The motorcycle maker reported a higher quarterly profit as shipments of its famed motorcycles rose despite the sputtering U.S. economy. The company said its net income in the first quarter increased to $186.2 million, or 61 cents a share, from $119.9 million, or 39 cents, a year ago.

Wall Street expected 50 cents a share, with estimates ranging from 48 to 54 cents, according to a First Call. Milwaukee-based Harley-Davidson (HDI: Research, Estimates) raised its 2003 production target for Harley-Davidson brand motorcycles by 1,000 units to 290,000 units. First-quarter revenue rose 20 percent to $1.11 billion from $927.8 million a year ago.

--

EMC

NEW YORK (Reuters) -- The data storage firm reported a first-quarter profit compared with a loss a year earlier as it used cost cuts to combat a downturn in demand for technology. The company, based in Hopkinton, Mass., said it had a profit of 2 cents per share, compared with a loss of 3 cents per share a year earlier. Last week it told investors to expect a profit of at least 1 cent per share.

Revenue totaled $1.38 billion, up from the year-earlier $1.3 billion. EMC had forecast revenue of $1.35 billion-to-$1.4 billion. EMC (EMC: Research, Estimates) said it sees second quarter earnings of 3 cents per share.

--

Maytag

CHICAGO (Reuters) -- The third-biggest U.S. home appliance maker said it will cut 500 jobs as it tries to reduce costs, as first-quarter profit fell on weak sales of its Hoover vacuum cleaners and faltering demand for its high-priced appliances. The job cuts are equal to 8 percent of the company's salaried positions. Newton, Iowa-based Maytag employs 20,900 salaried and nonsalaried workers.

The maker of Jenn-Air, Amana and other brand-name appliances said net income fell to $34.5 million, or 44 cents a share, compared with $56.8 million, or 74 cents, a year ago. Earnings for the most recent quarter included a charge of $9.4 million, or 8 cents per share, for the closing of the company's manufacturing plant in Galesburg, Ill.

Maytag (MYG: Research, Estimates) also incurred about $3.5 million of costs associated with previously announced product recalls. Excluding restructuring charges, analysts' earnings estimates ranged from 52 to 61 cents per share, with a mean of 57 cents, according to research firm First Call.

--

Rockwell Collins

CHICAGO (Reuters) -- The aerospace equipment firm said quarterly profit rose slightly because strong gains in the defense business more than offset weakness in some commercial airplane market products. Rockwell Collins, which makes defense communications equipment and in-flight entertainment systems, reported a fiscal second-quarter profit of $59 million, or 33 cents per share, up from $58 million, or 31 cents per share, a year earlier.

Analysts' mean estimate was 31 cents per share, according to First Call. Sales rose to $618 million from $608 million a year earlier for the Cedar Rapids, Iowa, company. Looking ahead, Rockwell (COL: Research, Estimates) said it expects earnings per share of $1.33 to $1.38 for fiscal 2003 and revenue of about $2.55 billion. Analysts on average expect $1.32 per share, according to First Call.

--

American Standard

CHICAGO (Reuters) -- The manufacturing firm said its first-quarter profit rose 12 percent on strong sales of home air conditioning and truck and bus brake systems. The Piscataway, N.J.-based company, which makes plumbing fixtures and automotive braking systems, posted a profit of $63.8 million, or 87 cents a share, up from $57.0 million, or 78 cents a share, a year ago.

Analyst estimates ranged from 85 to 89 cents per share, with a mean of 87 cents, according to research firm First Call. Sales rose 11 percent to $1.95 billion.

American Standard (ASD: Research, Estimates) also said it expects sales growth of 5 to 7 percent and earnings of $1.78 to $1.88 in the second quarter, due to ongoing weakness in the industrial sector, which cuts into demand for commercial air conditioning parts.

--

Illinois Tool Works

CHICAGO (Reuters) -- The manufacturer swung to a profit in the first quarter although stronger international sales were partly offset by slow North American demand for specialty systems.

Illinois Tool Works (ITW: Research, Estimates), which makes products including specialized fasteners, laminate countertops, food-service equipment and Space Bag storage bags, reported net income of $195.4 million, or 63 cents a share, compared with a year-earlier net loss of $23.4 million, or 8 cents a share.

Earnings before special items and discontinued operations rose to $199.5 million, or 65 cents a share, from $194.4 million, or 63 cents a share, a year earlier. Analysts had expected operating earnings of 65 cents per share.

Sales increased to $2.31 billion from $2.20 billion.

Results were in line with Illinois Tool's March 17 forecast that it would earn between 62 and 66 cents a share from continuing operations.

--

Comerica

NEW YORK (Reuters) -- The Midwest regional bank said its quarterly earnings fell as it made less money from loans. The Detroit, Mich.-based bank earned $176 million, or $1.00 per share, down from $214 million, or $1.20, a year earlier.

Comerica (CMA: Research, Estimates) has been hurt as the weak economy and rising unemployment have slowed loan growth and led more people to miss loan repayments.  Top of page




  More on NEWS
JPMorgan dramatically slashes Tesla's stock price forecast
Greece is finally done with its epic bailout binge
Europe is preparing another crackdown on Big Tech
  TODAY'S TOP STORIES
7 things to know before the bell
SoftBank and Toyota want driverless cars to change the world
Aston Martin falls 5% in its London IPO




graphic graphic

Most stock quote data provided by BATS. Market indices are shown in real time, except for the DJIA, which is delayed by two minutes. All times are ET. Disclaimer. Morningstar: © 2018 Morningstar, Inc. All Rights Reserved. Factset: FactSet Research Systems Inc. 2018. All rights reserved. Chicago Mercantile Association: Certain market data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved. Dow Jones: The Dow Jones branded indices are proprietary to and are calculated, distributed and marketed by DJI Opco, a subsidiary of S&P Dow Jones Indices LLC and have been licensed for use to S&P Opco, LLC and CNN. Standard & Poor's and S&P are registered trademarks of Standard & Poor's Financial Services LLC and Dow Jones is a registered trademark of Dow Jones Trademark Holdings LLC. All content of the Dow Jones branded indices © S&P Dow Jones Indices LLC 2018 and/or its affiliates.

Most stock quote data provided by BATS. Market indices are shown in real time, except for the DJIA, which is delayed by two minutes. All times are ET. Disclaimer. Morningstar: © 2018 Morningstar, Inc. All Rights Reserved. Factset: FactSet Research Systems Inc. 2018. All rights reserved. Chicago Mercantile Association: Certain market data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved. Dow Jones: The Dow Jones branded indices are proprietary to and are calculated, distributed and marketed by DJI Opco, a subsidiary of S&P Dow Jones Indices LLC and have been licensed for use to S&P Opco, LLC and CNN. Standard & Poor's and S&P are registered trademarks of Standard & Poor's Financial Services LLC and Dow Jones is a registered trademark of Dow Jones Trademark Holdings LLC. All content of the Dow Jones branded indices © S&P Dow Jones Indices LLC 2018 and/or its affiliates.