The problems faced by social networking site MySpace is over. The company posted a collapse in its financial results for the year. During the current financial year revenue will fall to 109 million dollars, said authoritative blog about technology techcrunch.com, citing confidential documents of News Corp. – Owner of MySpace. These data were made available to potential buyers of the network, writes techcrunch.com. This statement may be true, given that in November 2010 News Corp. announced the first official to seek a buyer for MySpace. In fiscal 2011 the maintenance of the network will cost 274 million dollars, ie 2.5 times more than the revenue J. Thus, according to official documents, MySpace will net loss of 165 million dollars. At the time MySpace was the star among social networks, which was why News Corp. it acquired in 2005 for 580 million dollars. With the rise of Facebook, however, started the problems for new acquisition by Rupert Murdoch. While in 2007 over 180 million Internet users have an account on MySpace, to February 2011 the number was 63 million. Accounting and revenue – in 2008 if MySpace had sales of $ 900 million, now the amount is 8-9 times lower. Already in 2009, the company launched a massive staff cuts, and last autumn completely changed the concept and went from a “social network platform for entertainment. Managers wanted to attract a larger audience with more music, films and shows.
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The history of United Parcel Service is an old and well known symbol of the American dream come true. The company was founded in 1907 by 19-year James Casey, who take $ 100 borrowed from a friend to rely on business communication and consignments. It is now UPS – the biggest company in the world supply of small parcels. The company has 1.8 million daily customers who use its services and goods sent to 6,210,000 recipients in more than two hundred countries worldwide. The UPS’s core business is the delivery of packages and documents worldwide to determine the time. The company operates in three segments – supply in the U.S., international supply chain and supply and shipping. In 2010, UPS delivered about 15.6 million packages every day, including businesses and individuals worldwide. Total is 3.9 billion shipments throughout 2010 So far so good, but what could be interesting for a company the caliber of UPS, when it has long been the attention of traders and the largest institutional investors in the world as Vanguard, State Street Advisors, BlackRock Institutional Trust, T. Rowe, Wellington Management, Janus Capital Management, Fidelity Management and others who have long had stored piles of its shares.
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The biggest credit card operator in the world Visa please its shareholders with an increase in its profit by 51% in the fourth fiscal quarter due to increased use of cards by consumers, so that it brings more revenue from transaction processing. For the quarter ended September 30, San Francisco-based company posted net profit of 774 million dollars or 1.06 dollars per share. A year ago, the positive financial result was the amount of 514 million dollars, or 69 cents a share. After excluding one-time revenues and expenditure of earnings per share amounted to 95 cents. This proved to be more than projected by analysts polled by Thomson Reuters, 94 cents a share. The revenues of Visa for the quarter increased by 13% yoy to 2.12 billion dollars from 1.88 billion a year ago. Market forecasts were for earnings of 2.09 billion dollars. The number of transactions processed by Visa cards increased by 16% to 12.1 billion dollar equivalent of payments increased by 14% to 802 billion dollars. The value of credit card consolidation increased by 16 per cent.
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The Russian group Rusal, which is the largest aluminum producer in the world, announced twice larger than expected profit for the second quarter after commodity prices rose this year due to increased demand from rapidly growing Asian economies. For best quarterly results contribute and increase the market value of the share of Rusal in Russia’s largest mining company Norilsk Nickel. Rusal net profit for the three months ended June 30 amounted to 1.02 billion dollars, or 7 cents a share, compared with a loss of 230 million dollars, or 2 cents a share, a year ago. Market analysts predicted a smaller net profit of 393 million dollars. Profit for first half of the year amounted to 1.27 billion dollars compared with a loss of 868 million dollars a year ago. Moscow-based company that is controlled by Russian billionaire Oleg Deripaska, increase its production this year after aluminum rose by more than 50%. Its price has risen to an average of 2,130 dollars per tonne on the London Metal Exchange in the first half of this year from 1,422 dollars per tonne a year ago, according to Rusal. According to company management demand of aluminum in Russia jumped 50 percent this year and another 30% next.
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The major airlines have made a profit of 3.9 billion dollars in the second quarter of 2010 show to the International Air Transport Association IATA. This indicates that the sector is in much better financial position compared to same period last year. Then the 47 largest airlines, the results of which are monitored by International Air Transport Association IATA, registered a loss of 881 million dollars. Main tribute to the strong performance had stable fuel prices and the gradual recovery of demand in recent months. With the strong performance are North America and Asia-Pacific region, the results of European airlines have been supported by sales of assets for 1.3 billion dollars. The profits of the airline companies, increased after the summer season in Europe, Asia and North America, which caused serious profits for the airlines. The companies removed the losses after the Iceland vulcano and realized high increase of the profits, which is also good sign for economy recovery. For the same period last year 47 leading airline suffered a loss of 881 million dollars.
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The second largest European car company PSA Peugeot Citroen returned to profit in the first half of the year with the help of government incentives for the automotive sector, which stimulated sales in Europe this year. Net profit of the French company for the period from January to June amounted to 680 million euros, compared with a loss of 962 million euros a year ago. The revenue for its first half year increased by 21% yoy to 28.40 billion euros, which contribute to programs of European governments to encourage purchases of cars and the release of several new models. Market analysts had expected the Paris-based company to net profit of 416.7 million euros based on sales of 28.3 billion. For the whole year management expects operating profit of 1.5 billion. Data of the Association of European Automobile Manufacturers show that in the first half of the year the market share of PSA Peugeot Citroen in Europe increased by 0.8 percentage points to 13.7 per cent. CEO of PSA Peugeot Citroen hopes Philip Vary by market penetration in developing countries to reduce dependence on sales in Europe, which are nearly two-thirds of all revenues of the company.
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The crude oil company BP announced that the head of the operation to contain and clean the spill in the Gulf of Mexico Bob Dudley will serve as CEO from 1 October. Her former manager Tony Hayward submitted his resignation after the company accumulated a loss of 17 billion dollars for the second quarter along the colossal cost of 32 billion dollars to clean the oil stain in the Gulf of Mexico and compensate the victims of the incident, Reuters reported. It was caused by the sinking of oil rig Deepwater Horizon in late April, which killed 11 people and caused the largest environmental disaster in U.S. history. To cover losses, BP plans to sell assets for 30 billion dollars. This is three times more than the original plans of the oil company to obtain $ 10 billion through the sale of its deposits. If you exclude the cost of 32 billion dollars oil spill along, BP would have issued a profit of 5 billion dollars and 8.9 billion operating cash flow, which is 31 percent more annually. BP has recently sold its deposits in the U.S., Canada and Saudi Arabia, the independent oil and gas company Apache against the amount of 7 billion dollars. They are estimated to be about 2% of energy reserve company.
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The largest commercial bank in Germany Deutsche Bank reported 48 percent profit increase for first quarter, thanks to the good performance of the investment division of a financial institution. The positive financial result of the bank is 1.76 billion euros or 2.66 euros a share for 1.19 billion reported January-March 2009 analysts’ expectations were more modest profit of 1.33 billion. The investment bank division has doubled its profits tax shouting to 2.6 billion due to the trade in shares and debt instruments. Agency sign that Bank of America and JP Morgan reported record profits of banking investment. Write-offs of assets were EUR 241 million. against EUR 1.5 billion a year ago. Although data reach an inhabited the company’s shares fell to 67 cents to 54.68 EUR at 10:32 local time.
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Ford Motor, which is the only company of American carmakers in the U.S. avoided bankruptcy last year, announced a profit of 2.1 billion dollars for the first quarter. Excluding one-off costs and earnings per share profit was 46 cents in expectations for 31 cents. The reported profit was higher than market expectations. The company reported fourth quarter earnings, which is the longest positive series since 2005. For the period January to March 2009, the Company reported a loss of 1.43 billion dollars. In its communication to the media, the company stated it expects this year to take account of stable earnings and this will happen one year before the deadline of Chief Executive Alan Mullan.
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Largest producer of healthcare products worldwide Johnson & Johnson reported 29 percent profit growth for first quarter of this year, which is a sign that the company continues to recover from the crisis, which affected its operations last year, forward AP. Much of the growth of profit, however, due to the effects off, bearing the company 910 million dollars in revenue from the liquidation fee. Its sales have also increased – by 4% yoy to 15.63 billion dollars. U.S. sales decreased by 5% over the past 12 months, while its revenues from international markets increased by 14.4 per cent. Nearly two-thirds of this increase is due to changes in exchange rates over the past year. The net profit of Johnson & Johnson for the first quarter amounted to 4.53 billion dollars or 1.62 dollars per share, compared with a positive result of 3.51 billion dollars or 1.26 dollars per share for the same period 2009. If one-off effects are excluded, the positive financial result increased by 3.1 percent to 3.6 billion dollars or 1.29 dollars per share. This was more than economists forecast profit of 1.27 dollars per share and revenue of 15.6 billion dollars. Relatively good financial results for the company’s first quarter was marred by the projections of its management, which reduced its forecast for the entire 2010 to U.S. $ 4.8 earnings per share compared to previous 4.9 dollars.
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