Corporate Earnings Report: Q4 1998

Strategic Insights -

Strong growth in services and robust US sales drove several major corporations to report higher fourth-quarter profits, despite a few setbacks. SBC Communications Corp., Ford Motor Co., and Southwest Airlines Co. all saw significant increases in earnings, while companies like Exxon Corp. and Continental Airlines faced challenges in the quarter.

Key Takeaways:

  • SBC Communications Corp. reported a 18% increase in net income to $756.0 million, driven by growth in services such as caller identification.
  • Ford Motor Co. reported a nearly 7% rise in fourth-quarter operating profit, despite a one-time charge that resulted in lower net income.
  • Southwest Airlines Co. reported a 25% increase in net income to $100.40 million, citing cheaper jet fuel as a major factor.
  • Excite Inc. narrowed its losses in the fourth quarter, with revenue jumping 163% to $54.1 million.
  • Exxon Corp. reported a drop in fourth-quarter earnings, citing weak prices for crude oil.
  • Sears, Roebuck & Co.'s fourth-quarter profits fell after a series of one-time charges and declining clothing sales.
  • Continental Airlines reported lower fourth-quarter earnings despite a record quarterly load factor.

Statistics:

  • SBC Communications Corp.:

+ Net income (millions): $756.0 (1998) vs. $642.0 (1997)

+ Earnings per share: 38 cents (1998) vs. 33 cents (1997)

+ Revenue (millions): $7.7 (1998) vs. $7.1 (1997)

  • Ford Motor Co.:

+ Net income (billions): $1.00 (1998) vs. $1.80 (1997)

+ Earnings per share: 84 cents (1998) vs. $1.45 (1997)

+ Revenue (billions): $37.90 (1998) vs. $40.00 (1997)

  • Southwest Airlines Co.:

+ Net income (millions): $100.40 (1998) vs. $80.50 (1997)

+ Earnings per share: 29 cents (1998) vs. 23 cents (1997)

+ Revenue (billions/millions): $1.05 (1998) vs. $975.60 (1997)

  • Excite Inc.:

+ Net income (millions): -$5.8 (1998) vs. -$13.0 (1997)

+ Earnings per share: 11 cents (1998) vs. 39 cents (1997)

+ Revenue (millions): $54.1 (1998) vs. $20.5 (1997)

  • Exxon Corp.:

+ Net income (billions): $1.53 (1998) vs. $2.50 (1997)

+ Earnings per share: 62 cents (1998) vs. $1.00 (1997)

+ Revenue (billions): $29.66 (1998) vs. $35.06 (1997)

  • Sears, Roebuck & Co.:

+ Net income (millions): $535.00 (1998) vs. $536.00 (1997)

+ Earnings per share: $1.39 (1998) vs. $1.35 (1997)

+ Revenue (billions): $12.16 (1998) vs. $13.10 (1997)

  • Continental Airlines:

+ Net income (millions): $66.0 (1998) vs. $73.0 (1997)

+ Earnings per share: 91 cents (1998) vs. 97 cents (1997)

+ Revenue (billions): $1.9 (1998) vs. $1.8 (1997)

Sources:

  • SBC Communications Corp.: Compiled from wire reports
  • Ford Motor Co.: Compiled from wire reports
  • Southwest Airlines Co.: Compiled from wire reports
  • Excite Inc.: Compiled from wire reports
  • Exxon Corp.: Compiled from wire reports
  • Sears, Roebuck & Co.: Compiled from wire reports
  • Continental Airlines: Compiled from wire reports