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Earnings Reports from Major Companies Show Mixed Results in 4th Quarter

Strategic Insights

— 2 min read

Major corporations in various industries such as transportation, electronics, soft drinks, and technology reported their fourth-quarter earnings, revealing a mixed bag of results. While some companies exceeded analysts' expectations, others experienced declines in earnings or revenue. Northwest Airlines Corp., Plexus Corp., and International Business Machines Corp. reported positive earnings, while Coca-Cola Enterprises, Rockwell International Corp., and Cargill Inc. saw losses.

Key Takeaways:

  • Northwest Airlines Corp.'s fourth-quarter profit more than tripled, beating analysts' estimates, due to cost-cutting measures and reduced fuel costs. The airline's profit from operations rose to $114.7 million, or $1.06 a diluted share, from $26 million, or 19 cents a share, in the same quarter a year ago.
  • Plexus Corp.'s net sales rose 10% in the first fiscal quarter ended December 31, 1997, to $95.9 million, and its net income increased to $3.7 million, or $0.23 per diluted share.
  • International Business Machines Corp. reported a 3.4% rise in its fourth-quarter profits, driven by strength in computer services, albeit weakened by consumer demand in Asia. The company earned $2.09 billion, or $2.11 a share on a diluted basis.
  • Coca-Cola Enterprises saw its loss widen in the fourth quarter due to sales fluctuations in new markets entered through acquisitions. The company reported a loss of $19 million, or 5 cents a diluted share.
  • Rockwell International Corp.'s fiscal first-quarter earnings fell 42 percent due to declining semiconductor sales and a charge for its acquisition of Hughes-Avicom International's in-flight entertainment business.
  • Cargill Inc. experienced a 74% drop in its first-half earnings, attributed to tight grain and oilseed supplies and excess capacity in the food processing industry.
  • Monsanto Co. reported a significant increase in sales of its Roundup herbicide and pharmaceutical products, leading to more than doubled earnings in the fourth quarter.

Statistics:

  • Northwest Airlines Corp.'s revenue rose to $2.49 billion from $2.34 billion in the year-ago quarter.
  • Plexus Corp.'s net sales increased to $95.9 million in the first fiscal quarter ended December 31, 1997, from $87.4 million in the comparable quarter.
  • International Business Machines Corp.'s profits rose to $2.09 billion, or $2.11 a share on a diluted basis, from $2.02 billion, or $1.93 a diluted share, in the year-ago period.
  • Coca-Cola Enterprises' loss was $19 million, or 5 cents a diluted share, compared to a loss of $12 million, or 4 cents, when adjusted to include companies acquired in the past year.
  • Rockwell International Corp.'s revenue rose to $1.98 billion in the latest quarter from $1.85 billion a year earlier.
  • Cargill Inc.'s earnings dropped 74% to $124 million in the first half, from $486 million in the same period the previous year.
  • Monsanto Co.'s revenue rose to $1.82 billion from $1.45 billion in the year-ago period.

Sources:

  • Northwest Airlines Corp.
  • Plexus Corp.
  • International Business Machines Corp.
  • Coca-Cola Enterprises
  • Rockwell International Corp.
  • Cargill Inc.
  • Monsanto Co.

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