Several large corporations have just released less-than-rosy quarterly results. Here are a few lowlights:
American Airlines, belonging to AMR Corp.
(NYSE: AMR), reported a loss of more than half a billion dollars in its fourth quarter. CEO Donald Carty admitted that the status quo is unsustainable, and said severe cost cutting will need to happen soon if the airline is to survive.
J.P. Morgan Chase
(NYSE: JPM)has followed through on its earnings warning, reporting a loss of $387 million in its fourth quarter, largely due to charges related to its involvement in the Enron debacle (as well as other legal expenses). The company isn't on a great run lately, having lost $332 million a year ago on bad loans and Argentinean economic woes. In the latest quarter, Morgan's investment-banking business fell 30%, while trading income jumped 23%.
In a similar Enron-laden boat is Citigroup
(NYSE: C). The world's biggest financial services company reported earnings down 37% due to a combination of problems that include settling investigations into its stock research practices.
Also tainted by Enron and scandal surrounding its stock analysts is global banking giant Credit Suisse Group
(NYSE: CSR), which reported a $2.5 billion loss in 2002, the worst performance in its 148 years. Ouch.
Troubled conglomerate Tyco
(NYSE: TYC)reported positive first-quarter earnings of $635 million, but that's down nearly 50% from year-ago levels. The company has been under investigation for its accounting habits, and weak sales, rising pension costs, and debt-refinancing expenses are also pressuring its earnings.
Beleaguered telecommunication firm Lucent
(NYSE: LU)reported an 11th consecutive quarterly loss, totaling $389 million, which was at least narrower than its $465 million loss a year before. The entire telecommunications industry is in a slump, but Lucent expects near-term revenues to pick up and to turn a profit by September.
Lest you think no companies are profitable right now, rejoice. Paper giant Weyerhaeuser
(NYSE: WY)posted a quarterly gain, though it was due, in part, to a sale of timberlands and an insurance recovery more than its core operations.