Scrolling Headlines From Yahoo In Play
AAPL
CUPERTINO, Calif., July 21 /PRNewswire-FirstCall/ — Apple® today announced financial results for its fiscal 2009 third quarter ended June 27, 2009. The Company posted revenue of $8.34 billion and a net quarterly profit of $1.23 billion, or $1.35 per diluted share. These results compare to revenue of $7.46 billion and net quarterly profit of $1.07 billion, or $1.19 per diluted share, in the year-ago quarter. Gross margin was 36.3 percent, up from 34.8 percent in the year-ago quarter. International sales accounted for 44 percent of the quarter’s revenue.
n accordance with the subscription accounting treatment required by GAAP, the Company recognizes revenue and cost of goods sold for iPhone(TM) and Apple TV® over their estimated economic lives. Adjusting GAAP sales and product costs to eliminate the impact of subscription accounting, the corresponding non-GAAP measures* for the quarter are $9.74 billion of “Adjusted Sales” and $1.94 billion of “Adjusted Net Income.”
Apple sold 2.6 million Macintosh® computers during the quarter, representing a four percent unit increase over the year-ago quarter. The Company sold 10.2 million iPods during the quarter, representing a seven percent unit decline from the year-ago quarter. Quarterly iPhones sold were 5.2 million, representing 626 percent unit growth over the year-ago quarter.
“We’re making our most innovative products ever and our customers are responding,” said Steve Jobs, Apple’s CEO. “We’re thrilled to have sold over 5.2 million iPhones during the quarter and users have downloaded more than 1.5 billion applications from our App Store in its first year.”
“We’re extremely pleased to report record non-holiday quarter revenue and earnings and quarterly cash flow from operations of $2.3 billion,” said Peter Oppenheimer, Apple’s CFO. “Looking ahead to the fourth fiscal quarter of 2009, we expect revenue in the range of about $8.7 billion to $8.9 billion and we expect diluted earnings per share in the range of about $1.18 to $1.23.”
Apple will provide live streaming of its Q3 2009 financial results conference call utilizing QuickTime®, Apple’s standards-based technology for live and on-demand audio and video streaming. The live webcast will begin at 2:00 p.m. PDT on July 21, 2009 at http://www.apple.com/quicktime/qtv/earningsq309/ and will also be available for replay for approximately two weeks thereafter.
*Non-GAAP Financial Measures
During fiscal 2007, the Company began selling iPhone and Apple TV. Because the Company may provide unspecified features and additional software products to iPhone and Apple TV customers in the future free of charge, in accordance with GAAP the Company recognizes revenue and cost of goods sold for these products on a straight-line basis over their economic lives, with any loss recognized at the time of sale. Currently, the economic lives of these products are estimated to be 24 months. This accounting treatment, referred to as subscription accounting, results in the deferral of almost all of the revenue and cost of goods sold during the quarter in which the products are sold to the customer. Other costs related to these products, including costs for engineering, sales, marketing and warranty, are expensed as incurred. Further, the costs to develop any future unspecified features and additional software products that may eventually be provided to customers also are expensed as incurred. In contrast, the Company generally recognizes revenue and cost of goods sold for its other products, such as Macs and iPods, at the time of sale, as the Company does not provide future unspecified features or additional software products to those customers free of charge.
In July 2008, the Company began selling iPhone 3G, the second-generation iPhone, and at that time significantly expanded distribution by establishing carrier relationships in over 70 countries. Unit sales of iPhone 3G have been significantly greater than sales of the first-generation iPhone. During the first quarter of iPhone 3G availability ended September 27, 2008, 6.9 million units were sold, exceeding the 6.1 million first-generation iPhone units sold in the prior five quarters combined.
In June 2009, the Company began selling iPhone 3GS, the third-generation iPhone. Unit sales of iPhones continued to be significant in the quarter ended June 27, 2009, with 5.2 million iPhones sold. As a result, the amount of revenue and product cost related to those iPhone sales that the Company deferred for recognition in future periods under subscription accounting was substantial. While the GAAP results provide significant insight into the Company’s operations and financial position, management continues to supplement its analysis of the business using financial measures that look at the total sales, related product costs and resulting income for iPhones and Apple TVs sold to customers during the period. The presentation at the end of this press release includes the following non-GAAP measures: “Adjusted Sales,” “Adjusted Cost of Sales,” “Adjusted Gross Margin,” “Adjusted Operating Margin,” “Adjusted Net Income” and “Adjusted Diluted Earnings per Share.” These financial measures are not consistent with GAAP because they do not reflect the deferral of revenue and product costs for recognition in later periods. The above-mentioned non-GAAP measures are generated by adjusting the related GAAP measures solely to reverse the effect of subscription accounting. The Company uses these financial measures, along with other measures discussed below, to provide additional insight into current operating and business trends not readily apparent from the GAAP results.
Management uses Adjusted Sales to evaluate the Company’s growth rate, revenue mix and performance relative to competitors. Given the impact of iPhone unit sales during the quarter ended June 27, 2009, Adjusted Sales provides a meaningful measurement of the Company’s growth by reflecting amounts generally due to Apple at the time of sale related to products sold within the period. Further, eliminating the effects of deferred revenue (current sales deferred to future periods and prior sales being recognized currently) provides more transparency into the Company’s underlying sales trends. Management uses the non-GAAP measures of “Adjusted Cost of Sales,” “Adjusted Gross Margin” and “Adjusted Operating Margin” to measure the Company’s operating performance based on current period iPhone and Apple TV sales and to facilitate ongoing operating decisions. Additionally, because the Company recognizes engineering, sales, and marketing expenses as incurred, including expenses related to iPhone and Apple TV, management uses Adjusted Sales to evaluate returns on those costs, to manage year-over-year operating expense growth, and to budget future expenses. Furthermore, because they are considered meaningful indicators of current business performance, the non-GAAP measures “Adjusted Sales” and “Adjusted Operating Margin” are metrics that factor into the determination of management compensation beginning in fiscal year 2009. Finally, management uses the non-GAAP measures of “Adjusted Net Income” and “Adjusted Diluted Earnings per Share” to measure the Company’s operating performance based on current period iPhone and Apple TV sales, to facilitate ongoing operating decisions, and compare performance relative to competitors.
Management believes that these non-GAAP financial measures, when taken together with the corresponding consolidated GAAP measures and related segment information, provide incremental insight into the underlying factors and trends affecting both the Company’s performance and its cash generating potential. Management believes these non-GAAP measures increase the transparency of the Company’s current results and enable investors to more fully understand trends in its current and future performance.
Cautions on Use of Non-GAAP Measures
As noted previously, these non-GAAP financial measures are not consistent with GAAP because they do not reflect the deferral of revenue and product costs for recognition in later periods. These non-GAAP financial measures do not adjust for the costs associated with the Company’s intention to provide unspecified new features and software to purchasers of iPhone and Apple TV products. These costs are expensed as incurred under GAAP’s subscription accounting model, and are not adjusted in these non-GAAP financial measures. As such, these non-GAAP financial measures are not intended to reflect in a given period all of the costs of sales made in that period. Rather, the non-GAAP financial measures presented below are intended for the limited purpose of presenting performance measures that include the total sales, related product costs, and resulting income for iPhones and Apple TVs in the period those products are sold to customers.
Management believes investors will benefit from greater transparency in referring to these non-GAAP financial measures when assessing the Company’s operating results, as well as when forecasting and analyzing future periods. However, management recognizes that:
- these non-GAAP financial measures are limited in their usefulness and should be considered only as a supplement to the Company’s GAAP financial measures;
- these non-GAAP financial measures should not be considered in isolation from, or as a substitute for, the Company’s GAAP financial measures;
- these non-GAAP financial measures should not be considered to be superior to the Company’s GAAP financial measures;
- these non-GAAP financial measures were not prepared in accordance with GAAP and investors should not assume that the non-GAAP financial measures presented in this earnings release were prepared under a comprehensive set of rules or principles;
- these non-GAAP financial measures are not presented with comparable non-GAAP financial measures for prior periods, although management intends to continue to track and present these non-GAAP financial measures for future periods; and
- until management presents comparable non-GAAP financial measures for additional periods, these non-GAAP financial measures do not provide any information regarding trends in the Company’s performance and, as such, investors should not assume that the presentation of these non-GAAP financial measures reflects any positive or negative trends in the Company’s performance.
Further, these non-GAAP financial measures may be unique to the Company, as they may be different from non-GAAP financial measures used by other companies. As such, this presentation of non-GAAP financial measures may not enhance the comparability of the Company’s results to the results of other companies.
A reconciliation of each non-GAAP financial measure to the most directly comparable GAAP financial measure or measures appears at the end of this press release.
This press release contains forward-looking statements including without limitation those about the Company’s estimated revenue and earnings per share. These statements involve risks and uncertainties, and actual results may differ. Risks and uncertainties include without limitation the effect of competitive and economic factors, and the Company’s reaction to those factors, on consumer and business buying decisions with respect to the Company’s products; potential litigation from the matters investigated by the special committee of the board of directors and the restatement of the Company’s consolidated financial statements; continued competitive pressures in the marketplace; the ability of the Company to deliver to the marketplace and stimulate customer demand for new programs, products, and technological innovations on a timely basis; the effect that product transitions, changes in product pricing or mix, and/or increases in component costs could have on the Company’s gross margin; the inventory risk associated with the Company’s need to order or commit to order product components in advance of customer orders; the continued availability on acceptable terms, or at all, of certain components and services essential to the Company’s business currently obtained by the Company from sole or limited sources; the effect that the Company’s dependency on manufacturing and logistics services provided by third parties may have on the quality, quantity or cost of products manufactured or services rendered; the Company’s reliance on the availability of third-party digital content and applications; the potential impact of a finding that the Company has infringed on the intellectual property rights of others; the effect that product and service quality problems could have on the Company’s sales and operating profits; the Company’s reliance on sole service providers for iPhone in certain countries; war, terrorism, public health issues, and other circumstances that could disrupt supply, delivery, or demand of products; the continued service and availability of key executives and employees; unfavorable results of other legal proceedings; and the Company’s dependency on the performance of distributors and other resellers of the Company’s products. More information on potential factors that could affect the Company’s financial results is included from time to time in the Company’s public reports filed with the SEC, including the Company’s Form 10-K for the fiscal year ended September 27, 2008, its Form 10-Q for the quarter ended December 27, 2008, its Form 10-Q for the quarter ended March 28, 2009, and its Form 10-Q for the quarter ended June 27, 2009 to be filed with the SEC. The Company assumes no obligation to update any forward-looking statements or information, which speak as of their respective dates.
Apple ignited the personal computer revolution in the 1970s with the Apple II and reinvented the personal computer in the 1980s with the Macintosh. Today, Apple continues to lead the industry in innovation with its award-winning computers, OS X operating system and iLife and professional applications. Apple is also spearheading the digital media revolution with its iPod portable music and video players and iTunes online store, and has entered the mobile phone market with its revolutionary iPhone….
BXP
Funds from Operations (FFO) for the quarter ended June 30, 2009 were $166.7 million, or $1.33 per share basic and $1.32 per share diluted. This compares to FFO for the quarter ended June 30, 2008 of $141.0 million, or $1.18 per share basic and $1.16 per share diluted. FFO for the quarter ended June 30, 2009 includes (1) $0.10 per share on a diluted basis related to lease termination income, (2) a non-cash impairment charge of $0.05 per share on a diluted basis related to the Company’s investment in its Value-Added Fund, specifically its Mountain View, CA and San Carlos, CA properties, and (3) additional non-cash interest expense of $0.06 per share on a diluted basis related to the Company’s adoption of FSP No. APB 14-1. FFO for the quarter ended June 30, 2008 includes $0.03 per share on a diluted basis related to the additional non-cash interest expense associated with the Company’s adoption of FSP No. APB 14-1. The weighted average number of basic and diluted shares outstanding totaled 125,266,846 and 127,080,589, respectively, for the quarter ended June 30, 2009 and 119,752,889 and 122,775,797, respectively, for the quarter ended June 30, 2008. The weighted average number of basic and diluted shares outstanding for the quarter ended June 30, 2009 includes the impact of the Company’s public offering of 17,250,000 shares of common stock on June 10, 2009, as discussed below.
In the second quarter ended June 30, 2009, the Company recognized a non-cash impairment charge of approximately $7.4 million, or $0.05 per share diluted, representing the other-than-temporary decline in the fair value below the carrying value of the Company’s investment in its Value-Added Fund, which is an unconsolidated joint venture. In accordance with Accounting Principles Board Opinion No. 18 “The Equity Method of Accounting for Investments in Common Stock” (APB No. 18), a loss in value of an investment under the equity method of accounting, which is other than a temporary decline, must be recognized. As a result, the Company recognized a non-cash impairment charge on its investment in its Value-Added Fund.
Net income available to common shareholders was $67.2 million for the quarter ended June 30, 2009, compared to $75.5 million for the quarter ended June 30, 2008. Net income available to common shareholders per share (EPS) for the quarter ended June 30, 2009 was $0.54 basic and $0.53 on a diluted basis. This compares to EPS for the second quarter of 2008 of $0.63 basic and $0.62 on a diluted basis. EPS includes $0.03 and $0.04, on a diluted basis, related to gains on sales of real estate for the quarters ended June 30, 2009 and 2008, respectively.
The reported results are unaudited and there can be no assurance that the results will not vary from the final information for the quarter ended June 30, 2009. In the opinion of management, all adjustments considered necessary for a fair presentation of these reported results have been made.
As of June 30, 2009, the Company’s portfolio consisted of 146 properties comprising approximately 49.1 million square feet, including 7 properties under construction totaling 2.3 million square feet and one hotel. The overall percentage of leased space for the 138 properties in service as of June 30, 2009 was 92.0%.
Significant events during the second quarter included:
- On April 1, 2009, the Company placed in-service One Preserve Parkway, an approximately 184,000 net rentable square foot Class A office property located in Rockville, Maryland. The property is 20% leased.
- On April 21, 2009, the Company obtained construction financing totaling $215.0 million collateralized by its Atlantic Wharf development project located at 280 Congress Street in Boston, Massachusetts. Atlantic Wharf, formerly known as Russia Wharf, is a mixed-use project totaling approximately 815,000 net rentable square feet. Wellington Management Company, LLP has leased approximately 450,000 square feet of the office space in the development. The construction financing bears interest at a variable rate equal to LIBOR plus 3.00% per annum and matures on April 21, 2012 with two, one-year extension options.
- On April 30, 2009, Lehman Brothers, Inc., then the Company’s tenth largest tenant (by square feet) with approximately 437,000 net rentable square feet in the Company’s 399 Park Avenue property, rejected its lease in bankruptcy. The Company had previously established a reserve for the full amount of the Lehman Brothers, Inc. accrued straight-line rent balance in the third quarter of 2008. Lehman Brothers, Inc. paid rent through the month of April 2009 for all of its space and continued to occupy approximately 180,000 net rentable square feet through June 22, 2009, for which the Company received an aggregate of approximately $6.5 million in the quarter ended June 30, 2009. In addition, the Company has signed leases with tenants for approximately 37,000 net rentable square feet of the vacated space. Lehman Brothers, Inc. had contributed approximately $44.9 million per year on a contractual basis to the Company’s revenues from this lease.
- On May 31, 2009, a consolidated joint venture in which the Company has a 66.67% interest placed in-service the Offices at Wisconsin Place, an approximately 299,000 net rentable square foot Class A office property located in Chevy Chase, Maryland. The property is 91% leased.
- On June 1, 2009, General Motors Corporation filed a petition under Chapter 11 of the U.S. Bankruptcy Code with the United States Bankruptcy Court for the Southern District of New York. At that time, the Company leased approximately 120,000 square feet of office space to General Motors Corporation at 601 Lexington Avenue (formerly known as Citigroup Center). Rent commencement for the lease at 601 Lexington Avenue began on June 1, 2009 and the lease was to expire on May 31, 2019. However, on June 12, 2009, General Motors Corporation rejected the lease in bankruptcy effective as of June 30, 2009. The contribution from this lease, on a contractual basis, from July 1, 2009 through December 31, 2009, was projected to be approximately $6.6 million.In addition, the unconsolidated joint venture that owns the General Motors Building (of which the Company owns 60%) currently leases approximately 101,000 square feet of space to General Motors Corporation. General Motors Corporation currently occupies the space (other than approximately 7,000 square feet that is subleased to a third party) and the lease expires on March 31, 2010.
- On June 9, 2009, the Company used available cash to repay the mortgage loan collateralized by its Reservoir Place property located in Waltham, Massachusetts totaling approximately $47.8 million. There was no prepayment penalty associated with the repayment. The mortgage loan bore interest at a fixed rate of 7.00% and was scheduled to mature on July 1, 2009.
- On June 10, 2009, the Company completed a public offering of 17,250,000 shares of its common stock (including 2,250,000 shares issued as a result of the exercise of an overallotment option by the underwriters) at a price to the public of $50.00 per share. The proceeds from this public offering, net of underwriters’ discounts and offering costs, totaled approximately $842.0 million. The Company used a portion of the net proceeds to repay the outstanding balance of its revolving credit facility totaling $100.0 million and to repay its mortgage loan totaling approximately $30.1 million collateralized by its Ten Cambridge Center property, discussed below.
- On June 17, 2009, the Company announced that its Board of Directors declared a regular quarterly cash dividend of $0.50 per share of common stock for the period April 1, 2009 to June 30, 2009 payable on July 31, 2009 to shareholders of record as of the close of business on June 30, 2009.
- On June 26, 2009, the Company used available cash to repay the mortgage loan collateralized by its Ten Cambridge Center property located in Cambridge, Massachusetts totaling approximately $30.1 million. The Company paid a prepayment penalty totaling $0.5 million in connection with the repayment. The mortgage loan bore interest at a fixed rate of 8.27% and was scheduled to mature on May 1, 2010.
On July 16, 2009, the Board of Directors appointed Alan J. Patricof to the Nominating and Corporate Governance Committee. Mr. Patricof, who will continue to serve as the Chairman of the Company’s Audit Committee, joins Zoë Baird (Chair) and David A. Twardock as members of the Nominating and Corporate Governance Committee……
AMD
AMD reported revenue for the second quarter of 2009 of $1.184 billion. Second quarter 2009 revenue was flat compared to the first quarter of 2009 and decreased 13 percent compared to the second quarter of 2008.
“The AMD Product Company successfully executed its product and technology roadmaps in the first half of the year, including introducing the Six-Core AMD Opteron™ processor months ahead of schedule. While we increased cash, exceeded our revenue plan and reduced operating expenses in the second quarter, gross margin was disappointing,” said Dirk Meyer, AMD president and CEO. “New platform, microprocessor and graphics introductions planned for the second half of 2009 position us well to improve margins and meet our financial goals for the year.”
In the second quarter of 2009, AMD reported a net loss attributable to AMD common stockholders of $330 million or $0.49 per share, which includes the net favorable impact of $86 million, or $0.13 per share, primarily from the sale of inventory written-down in the fourth fiscal quarter of 2008 as described in the table below2. AMD’s operating loss was $249 million.
In the first quarter of 2009, AMD had revenue of $1.177 billion, a net loss attributable to AMD common stockholders of $416 million and an operating loss of $298 million. In the second quarter of 2008, AMD had revenue from continuing operations of $1.362 billion, a net loss attributable to AMD common stockholders of $1.195 billion and an operating loss of $569 million.
In the second quarter of 2009, AMD Product Company reported a non-GAAP net loss of $244 million and a non-GAAP operating loss of $205 million. In the first quarter of 2009, AMD Product Company reported a non-GAAP net loss of $189 million and a non-GAAP operating loss of $123 million3.
Second quarter 2009 AMD gross margin was 37 percent, including a positive impact of 8 percentage points due to a $98 million benefit from the sale of inventory written down in the fourth quarter of 2008. First quarter 2009 AMD gross margin was 43 percent, including a positive impact of 5 percentage points due to a $64 million benefit from the sale of inventory written down in the fourth quarter of 2008. Second quarter 2009 AMD Product Company non-GAAP gross margin was 27 percent compared to 35 percent in the prior quarter.
Current Outlook
AMD’s outlook statements are based on current expectations. The following statements are forward looking, and actual results could differ materially depending on market conditions and the factors set forth under “Cautionary Statement” below.
Considering current macroeconomic conditions, limited visibility and historical seasonal patterns, AMD expects its Product Company revenue to be up slightly for the third quarter of 2009…..
YHOO
SUNNYVALE, Calif.–(BUSINESS WIRE)–Yahoo! Inc. (NASDAQ:YHOO – News) today reported revenues of $1,573 million for the quarter ended June 30, 2009, a decrease of 13 percent from the second quarter of 2008. Excluding the impact of currency rate fluctuations, revenues for the second quarter of 2009 would have declined 8 percent from the second quarter of 2008.
Net income per diluted share for the second quarter of 2009 was $0.10, compared to $0.09 for the second quarter of 2008. Non-GAAP net income per diluted share for the second quarter of 2009 and 2008 was $0.16.
“I’m pleased with our results this past quarter. We established a clear, simple vision to be the center of people’s lives online, and we’re backing that vision with important initiatives to create ‘wow’ experiences for our users,” said Yahoo! chief executive officer Carol Bartz. “We’re confident that this vision will put us on the right path to growth and profitability long term. Our new homepage is a perfect example of our efforts to create innovative products aimed at increasing user engagement while offering the most compelling advertising proposition in the industry.”…..
AMLN
SAN DIEGO, July 21 /PRNewswire-FirstCall/ — Amylin Pharmaceuticals, Inc. (Nasdaq: AMLN – News) today reported financial results for the quarter ended June 30, 2009. The Company reported total revenue of $209.4 million for the quarter ended June 30, 2009, which includes net product sales of $197.5 million. Net loss, excluding a charge of $11.4 million associated with the Company’s sales force reduction in the second quarter, was $51.0 million, or $0.36 per share. Non-GAAP operating loss was $22.4 million for the quarter ended June 30, 2009, compared to $40.3 million for the same period in 2008. GAAP net loss was $62.4 million, or $0.44 per share, for the quarter ended June 30, 2009, compared to $66.6 million, or $0.49 per share, for the same period in 2008. At June 30, 2009 the Company held cash, cash equivalents and short-term investments of $644.4 million……
GILD
Gilead Sciences Announces Record Second Quarter 2009 Financial Results
– Record Total Revenues of $1.65 Billion, Up 29 Percent over Second Quarter 2008 –
– Record Product Sales of $1.57 Billion, Up 29 Percent over Second Quarter 2008 –
– Second Quarter EPS of $0.61 per Share –
– Second Quarter Non-GAAP EPS of $0.69 per Share –
- Press Release
- Source: Gilead Sciences, Inc.
- On Tuesday July 21, 2009, 4:05 pm EDT
FOSTER CITY, Calif.–(BUSINESS WIRE)–Gilead Sciences, Inc. (Nasdaq:GILD – News) announced today its results of operations for the quarter ended June 30, 2009. Gilead’s operating results include the results of CV Therapeutics, Inc. (CV Therapeutics) beginning on the acquisition date of April 15, 2009. Total revenues for the second quarter of 2009 were $1.65 billion, up 29 percent compared to total revenues of $1.28 billion for the second quarter of 2008. Net income attributable to Gilead for the second quarter of 2009 was $571.4 million, or $0.61 per diluted share. Net income attributable to Gilead for the second quarter of 2008 was $434.8 million, or $0.45 per diluted share. Non-GAAP net income attributable to Gilead for the second quarter of 2009, which excludes after-tax acquisition-related expenses, restructuring expenses and stock-based compensation expenses, was $648.9 million, or $0.69 per diluted share. Non-GAAP net income attributable to Gilead for the second quarter of 2008, which excludes after-tax stock-based compensation and purchased in-process research and development (IPR&D) expenses of $34.2 million, was $469.0 million, or $0.48 per diluted share…….
SYK
Second Quarter Highlights
- Net sales of $1,634 million were flat (0.1% decrease) on a constant currency basis (4.6% decrease as reported)
- Orthopaedic Implants sales increased 5.1% on a constant currency basis (0.2% decrease as reported)
- MedSurg Equipment sales decreased 7.7% on a constant currency basis (11.0% decrease as reported)
- Net earnings decreased 4.7% from $306 million to $291 million
- Diluted net earnings per share were unchanged at $0.73
“In a challenging environment, we were very pleased with the growth of our U.S. Orthopaedic Implant businesses, which accelerated from last quarter and showed strong year-over-year gains. This performance, combined with our heavy focus on controlling costs across the company preserved our diluted earnings per share results in the face of the steep short term slowdown in our MedSurg businesses, and the foreign currency headwinds in the quarter,” commented Stephen P. MacMillan, President and Chief Executive Officer.
Net sales were $1,634 million for the second quarter of 2009, representing a 4.6% decrease compared to net sales of $1,713 million for the second quarter of 2008, and were $3,236 million for the first half of 2009, representing a 3.3% decrease compared to net sales of $3,347 million for the first half of 2008. On a constant currency basis, net sales decreased 0.1% for the second quarter and increased 1.6% for the first half.
Net earnings for the second quarter of 2009 were $291 million, representing a 4.7% decrease compared to net earnings of $306 million for the second quarter of 2008. Diluted net earnings per share for the second quarter of 2009 were unchanged at $0.73 compared to the second quarter of 2008. Net earnings for the first half of 2009 were $572 million, representing a 4.0% decrease compared to net earnings of $596 million for the first half of 2008. Diluted net earnings per share for the first half of 2009 increased 0.7% to $1.44 compared to $1.43 for the first half of 2008.
Sales Analysis
Domestic sales were $1,047 million for the second quarter of 2009, representing a decrease of 0.5%, as a 9.1% increase in shipments of Orthopaedic Implants was offset by an 11.0% decrease in shipments of MedSurg Equipment. Domestic sales were $2,089 million for the first half of 2009, representing an increase of 0.2%, as a result of a 7.5% increase in shipments of Orthopaedic Implants offset by an 8.0% decrease in shipments of MedSurg Equipment.
International sales were $587 million for the second quarter of 2009, representing a decrease of 11.0%. The impact of foreign currency comparisons to the dollar value of international sales was unfavorable by $77 million in the second quarter of 2009. On a constant currency basis, international sales increased 0.6% in the second quarter of 2009, as a result of a 0.4% increase in shipments of Orthopaedic Implants and a 1.1% increase in shipments of MedSurg Equipment. International sales were $1,146 million for the first half of 2009, representing a decrease of 9.1%. The impact of foreign currency comparisons to the dollar value of international sales was unfavorable by $164 million in the first half of 2009. On a constant currency basis, international sales increased 3.9% in the first half of 2009, as a result of a 3.3% increase in shipments of Orthopaedic Implants and a 5.2% increase in shipments of MedSurg Equipment……
SBUX
SEATTLE–(BUSINESS WIRE)–Starbucks Corporation (NASDAQ: SBUX – News) today reported financial results for its third quarter ended June 28, 2009, provided its FY09 EPS target and introduced FY10 targets.
Fiscal Third Quarter 2009 Highlights include:
- EPS of $0.20 compared to $(0.01) in Q308
- Non-GAAP EPS of $0.24 compared to $0.16 in Q308, a 50% year-over-year increase
- Operating margin of 8.5% vs. negative 0.8% in Q308; Non-GAAP operating margin of 10.6% vs. 6.9% in Q308
- U.S. operating margin of 11.2% vs. negative 1.4% in Q308; Non-GAAP U.S. operating margin of 13.4% vs. 8.8% in Q308
- Net revenues of $2.4 billion, compared to $2.6 billion in Q308
- Cost savings of approximately $175 million, exceeding Q3 target of $150 million
- Comparable store sales decline of 5%, a sequential improvement from a decline of 8% in Q209
“The transformation of Starbucks business – including the success of our consumer-facing initiatives and the permanent changes to our cost structure – is delivering improvements in comparable store sales trends and is beginning to be reflected in our financial performance,” said Howard Schultz, chairman, president and ceo. “The entire Starbucks organization is committed to continually improving our customer experience as the roadmap to renewed growth and increasing profitability. At the same time, we will continue to innovate and differentiate, two perennial hallmarks of the Starbucks brand,” added Schultz.
“Excellent execution throughout our organization contributed significantly to our performance this quarter,” commented Troy Alstead, executive vice president and cfo. “Our store partners have embraced the cost disciplines and efficiency initiatives that are enabling us to expand our operating margin. In doing this, they have also delivered increased service speed, measurably improved customer service, customer satisfaction, and an overall enhanced Starbucks Experience.”
Consolidated company revenues for Q309 were $2.4 billion, compared to $2.6 billion in Q308. The sales decline resulted primarily from a five percent decline in comparable store sales.
Restructuring charges, nearly all due to previously announced store closures, impacted operating income and operating margin in Q309 by $51.6 million and 210 basis points, respectively. As a result, Q309 operating income totaled $204.0 million, representing an operating margin of 8.5 percent, compared to an operating loss of $21.6 million, and an operating margin of negative 0.8 percent in Q308. On a non-GAAP basis (excluding restructuring charges), Q309 operating income totaled $255.6 million, representing an operating margin of 10.6 percent, compared to non-GAAP operating income of $177.6 million and a non-GAAP operating margin of 6.9 percent in Q308. Non-GAAP results in Q308 exclude $199.2 million of restructuring charges specifically related to asset impairments for 600 underperforming company-operated stores in the U.S., and transformation-related costs.
Net earnings in Q309 totaled $151.5 million, compared to a net loss of $6.7 million in Q308, and diluted EPS for Q309 was $0.20, compared to $(0.01) in Q308. Non-GAAP net earnings totaled $179.9 million, and non-GAAP EPS was $0.24 for Q309, compared to non-GAAP net earnings of $115.8 million and non-GAAP EPS of $0.16 in Q308. Non-GAAP results for Q308 exclude approximately $0.17 per share in restructuring charges and transformation-related costs.
Cost Reduction Initiatives….
SY
DUBLIN, Calif. (AP) — Business-software maker Sybase Inc. said Tuesday its second-quarter profit climbed 26 percent, helped by lower costs and expenses.
The company also lifted its full-year earnings forecast, citing its better-than-expected results for the first half of the year.
Sybase earned $37.6 million, or 43 cents per share, compared with $29.8 million, or 33 cents per share, a year ago.
Excluding a stock-based compensation expense, restructuring costs and other items, profit was $49.4 million, or 56 cents per share.
Analysts surveyed by Thomson Reuters, whose estimates generally exclude one-time items, predicted net income of 52 cents per share.
Total costs and expenses dropped to $214.7 million from $231.6 million.
Revenue for the period ended June 30 dipped 2 percent to $278 million from $282.7 million mostly on the stronger dollar and a decline in services revenue.
The results managed to beat Wall Street’s estimate of $273.1 million.
Sybase increased its full-year earnings guidance to $1.67 to $1.71 per share, up from $1.64 to $1.68 per share. The company also raised its adjusted profit outlook to a range of $2.23 to $2.27 per share. Its prior forecast was for adjusted earnings of $2.20 to $2.24 per share.
In addition, Sybase boosted its yearly revenue outlook to a range of $1.11 billion to $1.12 billion, up from its previous forecast for revenue of about $1.1 billion.
Analysts expect full-year profit of $2.23 per share on revenue of $1.12 billion.
Shares of Sybase jumped $1.44, or 4.5 percent, to $33.83 in morning trading.
BLK
By Sree Vidya Bhaktavatsalam
July 21 (Bloomberg) — BlackRock Inc., the U.S. money manager that’s acquiring Barclays Global Investors, said second- quarter earnings dropped 20 percent because market losses reduced fees tied to the value of clients’ investments.
Net income fell to $218 million, or $1.59 a share, from $274 million, or $2, a year earlier, the New York-based company said today in a statement. Excluding some items, BlackRock beat the $1.56 per-share estimate of nine analysts surveyed by Bloomberg.
Fees from managing funds have fallen along with financial markets, which lost 31 percent from a year earlier as measured by the MSCI World Index. Income has increased at the BlackRock Solutions unit, which advises clients such as the U.S. government on asset values. Laurence Fink, BlackRock’s chairman and chief executive officer, agreed last month to buy Barclays Global, a deal that will double assets to $2.7 trillion and make the company the world’s biggest money manager.
“Earnings for asset managers are still down substantially from their peaks in 2007,” Robert Lee, an analyst with Keefe, Bruyette & Woods Inc. in New York, said in an interview before the results were announced. “For BlackRock, we’re seeing a continuation of the momentum exhibited in the past year.”
Lee expected BlackRock to earn $1.66 a share. He rates the shares “market perform.”
Net Deposits
BlackRock said it attracted $15.2 billion in net deposits into funds. Assets rose 7 percent from the prior quarter to $1.37 trillion. Revenue fell 26 percent from a year earlier to $1.03 billion, in line with analysts’ estimates.
Their estimates for BlackRock usually exclude items such as changes in the market value of co-investments the company makes with its clients and seed investments in its own funds….
BJS
HOUSTON (AP) — BJ Services Co. on Tuesday posted a net loss for its fiscal third quarter, citing declining demand for oil and natural gas amid economic weakness.
The oil services company reported a fiscal third-quarter loss of $32.3 million, or 11 cents per share, compared with earnings of $141.8 million, or 48 cents per share, during the same period last year.
The latest quarter’s results include $10 million in non-cash inventory write-downs, asset impairment charges of $7.2 million and about $6.4 million of employee severance costs.
Analysts polled by Thomson Reuters estimated a profit of less than a penny per share for the quarter ended June 30. Analysts typically exclude one-time items from their estimates.
Revenue slid 41 percent to $786.9 million from $1.33 billion. Analysts forecast revenue of $868 million.
BTU
NEW YORK (MarketWatch) — Peabody Energy Corp. /quotes/comstock/13*!btu/quotes/nls/btu (BTU 33.34, -1.49, -4.28%) said on Tuesday that its net income available to common shareholders was $79.2 million, or 29 cents a share in the second quarter, compared to $233 million, or 85 cents a share a year ago. Revenue in the quarter fell to $1.34 billion, from $1.53 billion a year ago. The company reported adjusted earnings per share of 49 cents, versus 50 cents a year ago. Analysts polled by Thomson Reuters had expected the company to earn 49 cents a share.
CAT
PEORIA, Ill. (AP) — Heavy equipment maker Caterpillar Inc. says its second-quarter profit fell 66 percent as the global recession continued to dampen sales of its machines and engines. But it boosted its 2009 profit outlook.
Caterpillar’s broad reach and diverse line of products — ranging from backhoes and bulldozers to turbines and cargo ship engines — make it a bellwether of the global economy.
The company says it earned $371 million, or 60 cents per share, for the three months ended June 30. Peoria, Ill.-based Caterpillar earned $1.11 billion, or $1.74 per share, during the same period last year.
Revenue slid 41 percent to $7.98 billion.
Analysts polled by Thomson Reuters had expected 22 cents per share on revenue of $8.86 billion.
MORE on CAT
DD
DOVER, Del. (AP) — Lower sales and restructuring charges helped drive chemical giant DuPont Co.’s profit down 61 percent in the second quarter, overshadowing a strong showing by its agriculture and nutrition business.
Its adjusted earnings still beat Wall Street expectations. DuPont shares rose 30 cents to $28.63 in premarket trading Tuesday.
The chemical maker, one of the nation’s biggest, called its performance as solid given current economic conditions, and CEO Ellen Kullman said the company’s efforts to reduce costs and increase productivity were paying off.
“Most markets remain dynamic and challenging, but the actions we are taking position DuPont well for the eventual economic recovery,” she said.
Wilmington-based DuPont said it earned $417 million, or 46 cents per share, in the three months ended June 30, down from $1.08 billion, or $1.18 per share a year earlier.
Overall revenue fell 24 percent to $7 billion from $9.3 billion a year ago and slightly below analysts’ forecast of $7.1 billion.
Excluding one-time items, adjusted earnings were 61 cents per share, beating Wall Street’s estimate of 53 cents a share.
The results reflected a $340 million pre-tax charge related to DuPont’s ongoing restructuring efforts. Dupont said in May that it would cut another 2,000 jobs, on top of 2,500 layoffs and elimination of about 10,000 contractor jobs it announced last fall.
DuPont said it has achieved about $600 million in cost reductions so far this year, more than half of its $1 billion goal. The company reaffirmed its 2009 earnings outlook range of $1.70 to $2.10 per share, excluding significant items.
But second-quarter results reflect continued weak demand in the automobile, construction and general industrial markets. Volumes declined in all major business segments and were down by double digits across all geographic regions.
Volume was down 27 percent in Europe, where negative currency effects helped push sales down by 38 percent. Higher local selling prices were unable to offset the negative effects of currency exchange rates in all overseas markets.
Sales declined by more than 20 percent in all business segments excluding the agriculture and nutrition unit, where higher selling prices led to a 3 percent increase in sales. The performance and material unit saw sales decline by 40 percent, which the company attributed to weak demand in major markets in all regions.
On the other hand, DuPont said the agriculture and nutrition unit’s earnings increased 15 percent to a record $580 million, driven by a 21 percent in seed sales.
FCX
- Net income attributable to common stock for second-quarter 2009 was $588 million, $1.38 per share, compared with $947 million, $2.25 per share, for second-quarter 2008. Net income attributable to common stock for the first six months of 2009 was $631 million, $1.54 per share, compared with $2.1 billion, $4.89 per share, for the first six months of 2008.
- Consolidated sales from mines for second-quarter 2009 totaled 1.1 billion pounds of copper, 837 thousand ounces of gold and 16 million pounds of molybdenum, compared with 942 million pounds of copper, 265 thousand ounces of gold and 20 million pounds of molybdenum for second-quarter 2008.
- Consolidated sales from mines are expected to approximate 3.9 billion pounds of copper, 2.4 million ounces of gold and 56 million pounds of molybdenum for the year 2009, including 910 million pounds of copper, 550 thousand ounces of gold and 15 million pounds of molybdenum for third-quarter 2009.
- Consolidated unit net cash costs (net of by-product credits) averaged $0.43 per pound for second-quarter 2009 compared with $1.25 per pound in the second quarter of 2008. Assuming average prices of $900 per ounce for gold and $8 per pound for molybdenum for the second half of 2009, consolidated unit net cash costs are estimated to average approximately $0.70 per pound for the year 2009.
- Operating cash flows totaled $1.2 billion for second-quarter 2009 and $896 million for the first six months of 2009, net of $973 million in working capital uses (principally related to customer settlements on provisionally priced prior year copper sales). Using estimated sales volumes and assuming average prices of $2.25 per pound for copper, $900 per ounce for gold and $8 per pound for molybdenum for the second half of 2009, operating cash flows for the year 2009 are expected to approximate $3.0 billion, net of $0.5 billion in working capital requirements.
- Capital expenditures totaled $375 million for second-quarter 2009 and $894 million for the first six months of 2009. Capital spending is expected to decline in the second half of 2009, reflecting the substantial completion of the Tenke Fungurume project. FCX currently expects capital expenditures to approximate $1.4 billion for the year 2009, including sustaining capital of $0.6 billion and $0.8 billion for major projects.
- Construction activities for the Tenke Fungurume project are substantially complete. Copper production commenced in March 2009 and 26 million pounds of copper cathode were sold during the second quarter. Commissioning of the cobalt circuit began during the second quarter. FCX expects to ramp up to full annual capacity approximating 250 million pounds of copper and 18 million pounds of cobalt in the second half of 2009.
- Total debt approximated $7.2 billion and consolidated cash was $1.3 billion at June 30, 2009…..
LMT
WASHINGTON (AP) — Lockheed Martin Corp. says it’s second-quarter earnings fell nearly 17 percent, as large pension expenses created by the financial crisis continued to dig into the defense contractor’s bottom line.
The Bethesda, Md.-based maker of fighter jets earned $734 million, or $1.88 per share. It made $882 million, or $2.15 per share last year.
Revenue rose about 2 percent to $11.24 billion.
Pension costs lowered earnings by 19 cents per share this period while one-time gains a year ago added 19 cents. The company said in January that pension expenses would be higher each quarter this year because of a drop in the retiree fund’s value.
The results still beat analyst expectations of $1.81 per share and revenue of $11.14 billion.
MRK
TRENTON, N.J. (AP) — Drugmaker Merck & Co. on Tuesday posted a 12 percent drop in second-quarter profit, due to lower sales of its cholesterol drugs and several vaccines, but still beat Wall Street’s conservative expectations.
The maker of asthma and allergy treatment Singulair and cervical cancer vaccine Gardasil said its net income was $1.56 billion, or 74 cents per share. A year earlier, net income was $1.77 billion, or 82 cents per share.
The company said it had restructuring charges and expenses related to its acquisition of Schering-Plough Corp. that totaled 9 cents per share. Excluding those one-time charges, earnings per share would have been 83 cents.
Merck said the strong dollar also was a factor, lowering revenue abound 6 percentage points to $5.9 billion. That was down from $6.05 billion in the second quarter of 2008.
Analysts polled by Thomson Reuters were expecting earnings per share of 77 cents and revenue of $5.84 billion.
The company said it still expects earnings per share this year of $2.84 to $3.09, or $3.15 to $3.30 excluding one-time items. That forecast includes pretax charges of roughly $500 million for restructuring and $300 million of costs related to the Schering-Plough deal.
Merck said its plan to acquire Schering-Plough, for $41.1 billion, is progressing as planned and on track to close in the fourth quarter.
The two companies already jointly sell the cholesterol drugs Vytorin and Zetia, both of which have seen sales steadily decline since January 2008, when concerns about their effectiveness and safety first surfaced. The drugs’ combined sales dropped 10 percent in the quarter, to $1 billion.
Merck’s top seller, Singulair, saw sales jump 16 percent to $1.3 billion. Two newer products, Januvia for type 2 diabetes and HIV drug Isentress, saw sales rise as well, to $462 million and $172 million, respectively.
Most other products, though, posted sales declines, including Gardasil, which has seen sales slide now that many adolescent girls have been inoculated, and two other vaccines, Rotateq for rotavirus and Zostavax for shingles.
For the first six months, net income was down 41 percent at $2.98 billion, or $1.41 per share. In the first half of 2008, net income totaled $5.07 billion, or $2.34 per share.
The first half of this year included a total of 16 cents worth of charges for restructuring and merger expenses.
DALLAS (AP) — Southwest Airlines Co. broke a string of three straight losing quarters by scratching out a small profit in the April-June period despite a downturn in travel.
Demand for business travel remains weak, and “we cannot predict a profitable third quarter,” said Chairman and CEO Gary C. Kelly.
Dallas-based Southwest said Tuesday it earned $54 million, or 7 cents per share in the quarter ended June 30, down sharply from a gain of $321 million, or 44 cents per share, a year earlier.
Excluding one-time items, Southwest said it would have earned $59 million, or 8 cents per share.
Analysts expected profit of 7 cents per share excluding items.
Revenue dipped 8.8 percent, to $2.62 billion, less than the 22.7 percent plunge Continental reported Tuesday.
Southwest’s traffic has held up better than at other airlines as it has lured passengers with fare sales.
Kelly called the second-quarter profit an enormous achievement in “without a doubt, one of the worst revenue environments for the airlines, ever.”
Since the recession deepened last fall, traffic on U.S. airlines has fallen every month compared with the year before. Companies have cut back sharply on business travel, which is a lucrative part of the airlines’ operations.
Unit revenue — sales per available seat miles, or capacity — fell 6 percent in the second quarter compared with a year ago, and Kelly warned that unless travel demand rebounds significantly, the third-quarter decline will be even sharper.
Like other airlines, Southwest gained from fuel prices that were much lower than a year ago.
Southwest said it still plans to cut capacity this year by 5 or 6 percent compared with 2008, but at the same time it is pushing into new markets, including New York’s LaGuardia Airport and Boston Logan.
SGP
BOSTON (MarketWatch) — Schering-Plough reported higher profit for its fiscal second quarter, but the drugmaker’s sales were hurt by foreign-exchange rates.
For the quarter, Schering-Plough earned $671 million, or 38 cents a share, compared with $462 million, or 26 cents a share, for the same period in 2008.
Excluding various items, Schering-Plough /quotes/comstock/13*!sgp/quotes/nls/sgp (SGP 26.05, +0.48, +1.88%) would have posted adjusted earnings of 46 cents a share.
Revenue for the Kenilworth, N.J.-based drugmaker fell to $4.65 billion from $4.92 billion.
A FactSet Research poll had pegged Schering-Plough as posting earnings of 45 cents a share on revenue of $4.64 billion.
Sales of the popular rheumatoid arthritis drug Remicade were $565 million. The product is marketed by Johnson & Johnson /quotes/comstock/13*!jnj/quotes/nls/jnj (JNJ 59.06, -0.17, -0.29%) in the U.S. and by Schering-Plough overseas.
Schering-Plough is slated to merge later this year with Merck & Co. /quotes/comstock/13*!mrk/quotes/nls/mrk (MRK 28.75, +0.81, +2.90%) , which also released its earnings report Tuesday.
UNH
MINNEAPOLIS (AP) — Health insurer UnitedHealth Group Inc. said Tuesday that its second-quarter profit more than doubled as the prior-year period was weighed down by large lawsuit settlements and thinner margins in its health care services business.
The largest commercial health insurer by revenue also raised the low end of its full-year earnings forecast.
The news may bode well for the sector, as UnitedHealth Group is the first large health insurer to report quarterly earnings, and analysts see its performance as a bellwether for the industry.
UnitedHealth Group earned $859 million, or 73 cents per share, for the period ended June 30. That’s up from $337 million, or 27 cents per share, a year earlier.
The year-ago period’s results included settlements in two class action lawsuits related to UnitedHealth’s former stock option granting practices that resulted in a pretax charge of $922 million, or 47 cents per share, for the quarter. Adjusted profit for the prior-year period was 67 cents per share.
Revenue rose 7 percent to $21.66 billion from $20.27 billion on increased premiums, which grew partly due to price increases. Services and products revenue also improved.
Analysts polled by Thomson Reuters forecast profit of 70 cents per share on revenue of $21.77 billion. Analysts’ estimates typically exclude one-time items.
The company reported a membership decline in its UnitedHealthcare segment, losing 150,000 people served through fee-based programs and 260,000 people in risk-based health benefit plans. UnitedHealth Group said attrition at continuing clients was prompted by ongoing economic concerns, making up three-fourths of the total membership drop-off.
UnitedHealth Group serves more than 70 million people nationwide.
The Minnetonka, Minn.-based company boosted the low end of its full-year profit outlook. It now sees profit in a range of $3 to $3.15 per share. Prior guidance was for earnings of $2.90 to $3.15 per share.
Analysts predict net income of $3.07 per share for the year.
Peers WellPoint, Aetna Inc. and Cigna Corp. will report their earnings results later this month.
UTX
NEW YORK (MarketWatch) — United Technologies on Tuesday said its second-quarter profit fell 23% due to the slump in commercial construction and aerospace markets.
For the recent quarter, the Hartford, Conn., conglomerate and Dow Jones Industrial Average component said it earned $976 million, or $1.05 a share, from $1.3 billion, or $1.32 a share, in the year-ago period.
Excluding one-time items, the company said it earned $1.21 a share, while analysts polled by FactSet Research were looking for earnings of $1.04 a share, on average.
The owner of Carrier heating and air conditioning, Otis elevators, Pratt & Whitney aircraft engines and Hamilton Sundstrand avionics, United Technologies said sales fell to $13.2 billion from $15.9 billion.
New equipment orders at Otis fell 42% in the quarter, including four points from the stronger dollar. Carrier’s commercial equipment orders plunged 26%, including six points from the stronger dollar. And at Pratt & Whitney, commercial spares orders were down 25% while Hamilton Sundstrand’s large engine business fell 14%.
“The year-over-year rate of decline in orders across the business appears to have stabilized, although orders remain lower than previously anticipated,” said Louis Chenevert, chairman and chief executive.
United Technologies lowered its full-year revenue guidance by $2 billion to $53 billion and reaffirmed the low end of its 2009 guidance of $4 to $4.50 a share.
Analysts are looking for earnings of $4.14 a share, on average, with sales of $54.2 billion.
Shares of United Technologies /quotes/comstock/13*!utx/quotes/nls/utx (UTX 54.00, -0.97, -1.77%) closed Monday at $54.97, up 2%. The stock has had a bumpy ride over the past year, plunging to a six-year low in March at $37.40 as the financial crisis deepened, threatening its customers’ order rates.
In March, United Technologies said it doubt an economic recovery would occur this year and announced it would slash its workforce by about 18,000 jobs, saving about $1 billion a year.
ATLANTA (AP) — Coca-Cola
(KO), the world’s largest beverage maker, on Tuesday posted a 43% increase in second-quarter profit, beating expectations as rapid overseas growth helped offset a sales decline caused by the stronger dollar.
Profit rose mostly because last year’s quarter was dragged down by big restructuring charges and asset write-downs.
The seller of Coke, Sprite and VitaminWater on Tuesday said it earned $2.04 billion, or 88 cents a share, in the three months ended July 3. That’s up from $1.42 billion, or 61 cents a share, a year earlier.
The company recorded significant one-time charges a year earlier that dragged down comparable profit 40 cents per share, compared with 4 cents a share in charges in the most recent quarter.
Excluding restructuring charges, write-downs and other items, Coca-Cola earned 92 cents a share in the most recent quarter. Analysts expected 89 cents a share.
Sales fell 9% to $8.27 billion, mostly hurt by the strong dollar. Wall Street’s revenue estimate was $8.66 billion. Companies that do significant business overseas are hurt by a stronger dollar as sales revenue is translated from local currencies into fewer dollars.
Overseas, case volume grew 5%, including 33% growth in India and 14% in China. In North America, case volume fell 1% but Coca-Cola gained slightly in its share of sales volume. Sales volume of Coke Zero grew 24%.
The company is on track to save $500 million a year by 2011 through restructuring, CEO Muhtar Kent said in a statement. More than half of the savings would be achieved by the end of the year, Kent said.
Comments »