Results lower at Boston Properties
Boston Properties Inc., the biggest US office real estate investment trust, said fourth-quarter earnings excluding items fell as it paid to convert some maturing debt into long-term loans.
Funds from operations attributable to the company increased to $89.9 million, or 64 cents a share, from $146.1 million, or $1.04, a year earlier, the Boston-based real estate investment trust said.
The REIT redeemed $700 million of senior notes due in 2013 and agreed to sell $850 million of new debt during the quarter, according to company statements. The maturing notes had a 6.25 percent interest rate, while the new ones, due in 2021, have a 4.125 percent rate.
The company, led by billionaire Mortimer Zuckerman, is benefiting from its concentration on trophy skyscrapers in the top office markets, Jordan Sadler, an analyst at KeyBanc Capital Markets, said in a Jan. 13 research note.
Boston Properties last month paid $930 million for the John Hancock Tower, New England’s tallest building, in Boston’s Back Bay. Zuckerman, in an October interview, described the 790-foot skyscraper as “right in our sweet spot.’’
— Bloomberg News
Profit rises 61% for quarter at EMC
EMC Corp., the world’s biggest maker of storage computers, reported a 61 percent increase in fourth-quarter profit and predicted full-year earnings topping analysts’ estimates as companies upgrade their data centers.
Profit, excluding some costs, rose to 42 cents a share, the Hopkinton company said. Analysts estimated 41 cents, the average of projections compiled by Bloomberg. Sales increased 19 percent to $4.89 billion, topping the $4.79 billion average estimate.
Companies are spending more on information technology and investing in new storage computers to hold the increasing amounts of data and manage disaster recovery, according to Daniel Ives, at FBR Capital Markets.
The company said full-year sales will be $19.6 billion and profit, excluding some items, will be $1.46 a share. Analysts on average estimate full-year profit of $1.45 and sales of $19 billion.
— Bloomberg News
Yahoo earnings up, but revenue down
Yahoo Inc.’s fourth-quarter earnings more than doubled, but the Internet company’s crumbling revenue showed that it’s still struggling to cash in on the online advertising boom.
With less money coming into the company, Yahoo has laid off more than 700 workers in the past two months. The latest cutbacks came yesterday, with Yahoo laying off 100 to 150 employees, roughly 1 percent from a workforce that totaled 13,600 people at the end of December.
Signaling the financial funk will persist into this year, Yahoo predicted its net revenue during the first quarter will decline by 4 percent to 10 percent over last year.
Yahoo earned $312 million, or 24 cents per share, in the October-December period. That compared with net income of $153 million, or 11 cents per share, at the same time in 2009.
If not for charges incurred from 600 layoffs made last month, Yahoo said it would have earned 26 cents per share. Analysts surveyed by FactSet had predicted Yahoo would earn 23 cents per share.
Revenue for the period fell 12 percent to $1.53 billion, from $1.73 billion a year earlier.
After subtracting commissions, Yahoo’s net revenue totaled $1.2 billion — about $10 million above analysts’ estimates. The net revenue declined 4 percent from the previous year.
Investors focus on Yahoo’s net revenue because it reflects how much money the company has to run its business and wring out a profit.
— Associated Press
Losses narrow for Harley-Davidson
Harley-Davidson Inc., the biggest US motorcycle maker, rose the most in more than three months after its fourth-quarter loss narrowed and its financial services unit posted a profit.
The fourth-quarter net loss narrowed to $46.8 million, or 20 cents a share, from a loss of $218.7 million, or 94 cents, a year earlier, Harley said. The average estimate of nine analysts surveyed by Bloomberg was for a 30-cent net loss. The financial services unit had operating profit of $43.5 million compared with a $7.1 million loss a year ago.
Harley has cut expenses by renegotiating labor contracts at factories in Pennsylvania and Wisconsin and introduced bikes to appeal to new riders.
Fourth-quarter sales rose 21 percent to $1.08 billion. Harley said its gross margin, which measures gross profit as a percentage of motorcycle-product revenue, widened to 29.6 percent in the quarter from 20.3 percent a year earlier.
— Bloomberg News