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Pixar dumps Disney, seeking new partner; Avnet and Eastman Chemical reports earnings.
January 29, 2004: 5:57 PM EST

NEW YORK (CNN/Money) - Corporate earnings took the back seat after the closing bell Thursday as a monster-size announcement from Pixar about ending its partnership with entertainment powerhouse Disney Co. rocked Wall Street.

Pixar Animation Studios (PIXR: Research, Estimates) said late Thursday it had broken off talks with Disney (DIS: Research, Estimates) to extend their lucrative movie distribution deal that has resulted in such blockbusters as "Toy Story," "Monsters, Inc." and "Finding Nemo."

The computer animation studio said it would look for another partner and would begin talks with other companies to distribute its films starting in 2006.

The move was a huge blow to Disney, which reaped a financial and critical bonanza from the partnership and has struggled with its own strategy for animation. Their deal includes two more films in production.

"After 10 months of trying to strike a deal with Disney, we're moving on," said Pixar Chief Executive Steve Jobs. Disney, however, said Pixar's final deal terms for a renewed and extended film distribution deal were unfavorable.

Both company stocks fell on the news. Disney stock fell in after-hours trading to $23 from $24.45 at the close on the New York Stock Exchange.

Shares of Pixar initially rose after the announcement but then lost all gains and fell to $61.90 from Thursday's close of $64.20.

In earnings news, Avnet (AVT: Research, Estimates), one of the largest distributors of computer products and electronic components, posted a quarterly net profit after a year-earlier loss, driven by higher software sales.

The Phoenix-based company also said after the closing that it sees third-quarter revenue above Wall Street views.

Avnet posted fiscal second-quarter net income of $8.9 million, or 7 cents a share, compared with a year-earlier net loss of $58.7 million, or 49 cents, including charges of 55 cents a share.

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Excluding charges, Avnet said it would have had a profit of 21 cents a share.

Eastman Chemical (EMN: Research, Estimates), maker of soda bottle plastic, reported a fourth-quarter profit after a year-ago loss, boosted by a gain from the sale of assets in its inks and coatings business.

The Kingsport, Tenn., company posted net income of $10 million, or 13 cents a share, compared with a loss of $13 million, or 16 cents, a year earlier.

Earnings reports scheduled for release on Friday include ones from AK Steel (AKS: Research, Estimates), Archer Daniels Midland (ADM: Research, Estimates), T. Rowe Price (TROW: Research, Estimates), U.S. Steel (X: Research, Estimates) and Wendy's International (WEN: Research, Estimates).

Investors will also keep an eye on some big-name earnings due next week. International Paper (IP: Research, Estimates) will report on Monday; Colgate-Palmolive (CP: Research, Estimates), Sprint (FON: Research, Estimates) and Cisco Systems (CSCO: Research, Estimates) are scheduled for release on Tuesday; Pixar will show off its quarterly numbers on Wednesday.  Top of page




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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.