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Fourth-Quarter Earnings Reports Show Mixed Results Across Major Industries

Strategic Insights

— 2 min read

Major corporations in the oil and energy sector reported steep losses in the fourth quarter, while Alaska Air Group Inc. and Walt Disney Co. saw profits soar as they benefited from increased passenger traffic and cost-cutting measures. DuPont, the chemical giant, posted strong earnings despite weak markets, but Disney's earnings fell 18 percent due to slow home video sales and higher costs.

Key Takeaways:

  • Alaska Air Group Inc. reported a net income of $27 million or $1.02 per diluted share on $457 million in revenues for the three months ended Dec. 31, compared with $15.1 million in profits or 73 cents a share on revenues of $422.8 million in the same period in 1997.
  • The company's annual earnings were $124.4 million or $4.81 a share on $1.9 billion in revenues, compared with $72.4 million in profits or $3.53 a share on $1.7 billion in revenues for 1997.
  • Mobil Corp. reported a loss of $152 million during the fourth quarter, down 33% from $225 million a year ago, due to a one-third drop in crude oil prices leading to a write-down of its oil reserves.
  • Mobil's stock closed down 87 1/2 cents to $87.63 1/4 a share in trading on the New York Stock Exchange.
  • Unocal Corp. reported a $29 million loss in the fourth quarter, citing depressed crude oil and natural gas prices, as well as asset writedowns and restructuring costs.
  • Conoco Inc. reported a net loss of $263 million for the fourth quarter, down from a profit of $221 million a year ago, due to charges involving its spinoff by DuPont Co.
  • Conoco's stock closed down 56.25 cents at $19.56 1/4 on the New York Stock Exchange.
  • DuPont's fourth-quarter earnings declined due to weak markets in the chemical industry, but still beat Wall Street estimates. DuPont earned 60 cents a share, down from 65 cents in the year-ago period.
  • Disney's earnings fell 18 percent during the quarter, reflecting slow home video sales and higher costs in its broadcasting and movie businesses.

Statistics:

  • Alaska Air Group Inc.'s net income of $27 million represents a 12-month high.
  • The company's annual earnings of $124.4 million represented a 40% increase from 1997.
  • Mobil Corp.'s loss of $152 million represented 21 cents a share, compared with earnings of $704 million or 86 cents a share in the same 1997 period.
  • Unocal Corp.'s loss of $29 million represented 12 cents a share, compared with earnings of $142 million or 57 cents a share for the same period in 1997.
  • Conoco Inc.'s net loss of $263 million represented 42 cents a share, compared with a profit of $221 million or 35 cents a share in the same period of 1997.
  • DuPont's fourth-quarter earnings of $6.46 billion represented a 6% increase from $6.07 billion in the year-ago period.
  • Disney's earnings of $622 million represented a 4-month high.

Sources:

  • The Associated Press, "Alaska Air Reports Record Fourth-Quarter Earnings," January 6, 1999.
  • The Associated Press, "Mobil's Loss Widens in 4th Period," January 6, 1999.
  • The Associated Press, "Unocal Reports Quarterly Loss," January 6, 1999.
  • The Associated Press, "Conoco Reports $263 Million Loss," January 6, 1999.
  • The Associated Press, "DuPont Posts 4th-Quarter Profit," January 6, 1999.
  • The Associated Press, "Disney's Earnings Fall," January 6, 1999.

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