January 10, 2009 |
MGM Mirage said it would write down the value of Mandalay Resort Group by $1.2 billion because cash flows at the casino company acquired in 2005 have weakened and buyers are paying less for gaming assets. The goodwill and trademark expense will be taken in the fourth quarter, MGM said in a regulatory filing. The Las Vegas-based company, controlled by billionaire Kirk Kerkorian and the Strip's largest casino operator, paid $7.67 billion for Mandalay.
November 6, 2008 |
News Corp. said its first-quarter net income fell 30% from a year earlier because of a large write-down and a drop in ad revenue at its TV stations. Net income at the company run by billionaire Rupert Murdoch fell to $515 million, or 20 cents a share. A year earlier, net income was $732 million, or 23 cents. Revenue rose 6.3% to $7.5 billion. Operating income fell 9% to $953 million, compared with $1.1 billion reported a year earlier. Analysts surveyed by Thomson Reuters expected first-quarter earnings per share to fall 2% to 23 cents on revenue of $7.7 billion, 8% higher than a year earlier.
October 31, 2008 |
CBS Corp. on Thursday reported a $12.5-billion third-quarter loss after slashing the book value of its billboards and radio and television stations. The broadcasting company's results underscored the trouble facing traditional media companies operating in a worsening economy. CBS and others that own local stations have been particularly hard-hit as advertisers, including car dealers and retailers, have dramatically curbed spending. For the quarter ended Sept. 30, CBS reported a loss of $18.
October 17, 2008 |
Southwest Airlines Co. posted its first quarterly loss in 17 years as a program that it had used in the past to cut fuel costs backfired amid the recent sharp drop in oil prices. The airline, one of the largest at Los Angeles International Airport, said Thursday that it incurred a loss of $120 million in the third quarter as it had to take an accounting charge to write down the declining value of a fuel-hedging program.
September 12, 2008 |
Washington Mutual says it will take another multibillion-dollar write-down for bad bets on mortgage securities but insists it has adequate capital to fund its operations amid concern about the thrift's financial stability. The Seattle-based bank expects its provision for bad loans in the third quarter to be $4.5 billion. Of that amount, $3.4 billion is for residential mortgages. Both totals are down from the second quarter of 2008. The company, like many other U.S. financial firms, has suffered from investments in risky mortgage securities and other assets.
August 14, 2008 |
Tribune Co., publisher of the Los Angeles Times, reported a second-quarter net loss of $4.53 billion after writing down the value of its publications. The loss compared with a profit of $36.3 million a year earlier and included a $3.83-billion expense to reflect the falling value of its newspapers, the Chicago-based company said. Sales fell 5.7% to $1.11 billion. Newspaper advertising sales tumbled 15%, Tribune said. The worsening advertising slump has made it harder for investor Sam Zell, who took Tribune private in December, to manage $12.5 billion in debt after the buyout.
July 15, 2008 |
Wall Street extended its slump into yet another week Monday as investors worried that even a safety net set up for mortgage financiers Fannie Mae and Freddie Mac won't head off further troubles in the financial markets. Investors' latest unease about the banking sector comes in a week when many financial names will issue quarterly reports -- and many of those are likely to have sizable write-downs on souring mortgage debt. The Treasury and the Federal Reserve said Sunday that they would aid Fannie Mae and Freddie Mac if needed.
June 18, 2008 |
Goldman Sachs Group Inc. gave to the market with one hand Tuesday -- and took away with the other. The investment banking titan comforted investors early on by reporting much-better-than-expected fiscal second-quarter earnings. That helped ease concerns about the financial sector that were aggravated last week by Lehman Bros. Holdings Inc.'s warning of a huge loss. But later in the day a team of Goldman analysts helped spark another sell-off in financial shares with a prediction that commercial banks might have to raise $65 billion more in capital this year to rebuild their balance sheets amid the ongoing stream of credit-related write-downs.
June 7, 2008 |
Regulators are examining American International Group Inc.'s accounting practices after derivatives tied to sub-prime mortgages led to record losses at the world's largest insurer. The Securities and Exchange Commission and the Justice Department are probing the way AIG valued credit-default swaps that wiped out profit for two quarters, the New York-based insurer said Friday. AIG had downplayed the potential for losses in December, then said Feb.
June 6, 2008 |
Sports apparel maker Quiksilver Inc. posted a wider quarterly net loss after writing down the value of its up-for-sale Rossignol ski equipment business. The net loss jumped to $206.2 million, or $1.59 a share, for the fiscal second quarter ended April 30, from $4.8 million, or 4 cents, a year earlier. Revenue increased 15% to $596.3 million. During the quarter, the company reclassified Rossignol as a discontinued operation and booked a noncash, pretax charge of $240.2 million.