Corporate Earnings: Mixed Results in Q2

Strategic Insights -

Amazon.com Inc.'s second-quarter loss widened as it spent heavily to compete with rivals, while UAL Corp. and Trans World Airlines Inc. reported higher profits due to cost control and strong U.S. results. In contrast, US Airways Group Inc.'s earnings dropped due to the expiration of tax credits, and Mobil Corp.'s profits fell as the price of crude oil tumbled. Lucent Technologies Inc. reported a loss tied to expenses from the purchase of two companies, while Nabisco Holdings Corp. lost money due to restructuring charges and disappointing sales.

Key Takeaways:

  • Amazon.com Inc. reported a wider second-quarter loss due to increased spending to compete with rivals, with a net income of -$21.2 million and a revenue of $116 million.
  • UAL Corp. posted higher profits in the second quarter, with a net income of $418 million and a revenue of $4.44 billion, driven by lower fuel prices and strong U.S. results.
  • Trans World Airlines Inc. returned to profitability after a loss last year, with a net income of $19.5 million and a revenue of $883.5 million.
  • US Airways Group Inc.'s earnings dropped in the second quarter, with a net income of $194.3 million and a revenue of $2.3 billion, due to the expiration of tax credits.
  • Mobil Corp.'s profits fell in the second quarter, with a net income of $642 million and a revenue of $13.2 billion, due to the decline in crude oil prices.
  • Lucent Technologies Inc. reported a loss in the third quarter, with a net income of -$233 million and a revenue of $7.23 billion, due to expenses tied to the purchase of two companies.
  • Nabisco Holdings Corp. lost money in the second quarter, with a net income of -$200 million and a revenue of $2.13 billion, due to restructuring charges and disappointing sales.

Statistics:

  • Amazon.com Inc.'s second-quarter loss widened by -$14.5 million compared to the same quarter of the previous year.
  • UAL Corp.'s profits increased by $42 million in the second quarter, driven by lower fuel prices and strong U.S. results.
  • Trans World Airlines Inc. returned to profitability after a loss of $29.1 million in the same quarter of the previous year.
  • US Airways Group Inc.'s earnings decreased by $11.3 million in the second quarter, due to the expiration of tax credits.
  • Mobil Corp.'s profits fell by $208 million in the second quarter, due to the decline in crude oil prices.
  • Lucent Technologies Inc. reported a loss of $446 million in the third quarter, due to expenses tied to the purchase of two companies.
  • Nabisco Holdings Corp. lost $103 million in the second quarter, due to restructuring charges and disappointing sales.

Sources:

  • Amazon.com Inc. financial reports
  • UAL Corp. financial reports
  • Trans World Airlines Inc. financial reports
  • US Airways Group Inc. financial reports
  • Mobil Corp. financial reports
  • Lucent Technologies Inc. financial reports
  • Nabisco Holdings Corp. financial reports
  • Wire reports