NEW YORK (Reuters) - Verizon Communications (VZ) Tuesday reported a 26 percent rise in second-quarter revenue on strong growth in its wireless business, but earnings fell on costs related to its acquisition of MCI.
Net income fell to $1.6 billion, or 55 cents per share, from $2.1 billion, or 75 cents per share, in the year-earlier quarter, which excludes MCI's results but includes a special gain from the sale of operations in Hawaii.
Revenue rose to $22.7 billion from $18.1 billion.
Excluding special items, Verizon earned 64 cents a share. Analysts had expected 62 cents a share, on revenue of $22.82 billion.
Verizon, like most other telecommunications companies, is increasingly dependent on wireless and Internet services for growth as more customers switch to cell phones and cable television providers' telephone services.
Verizon's joint venture with Vodafone Group Plc., Verizon Wireless, said in July that it added 1.8 million net retail customers in the second quarter.
Verizon Wireless revenue grew 18 percent in the second quarter from a year earlier, to $9.3 billion.
Verizon, which bought long-distance operator MCI in January, has said it wants to eventually gain full control of Verizon Wireless by buying Vodafone's stake.
Verizon has also been expanding its "FiOS" fiber-optic network to deliver high-speed Internet and video services to customers.
But investors have been concerned about the cost of deploying FiOS, and the company's shares are down 1.2 percent from a year ago even after a recovery in the past few months. They closed at $33.82 on Monday.
CHICAGO (Reuters) - Archer Daniels Midland Co. (ADM), the largest U.S. food processor, Tuesday said quarterly profit more than doubled on strong results from oilseed processing and ethanol.
Earnings rose to $410 million, or 62 cents per share, in the fourth quarter that ended June 30, compared with $195 million, or 30 cents per share, a year earlier.
The latest results include special credits and gains of $56 million and charges of $59 million. The year-earlier figures include an asset impairment charge of $40 million.
Analysts on average were expecting 52 cents per share before one-time items, according to Reuters Estimates.
Revenue rose 1 percent to $9.55 billion. Analysts were expecting $9.78 billion.
ADM, based in Decatur, Illinois, is one of the world's largest grain and oilseed processors. The company turns corn, soybeans, wheat and cocoa into food ingredients, animal feed and industrial materials.
ADM shares have outperformed the food processing sector this year, rising 77 percent compared with a 12 percent gain in the Dow Jones U.S. Food Producers Index . ADM shares hit an all-time high of $46.70 in May fueled by the company's investment in crop-based fuels such as ethanol and biodiesel.
NEW YORK (Reuters) - Eastman Kodak Co. (EK) Tuesday posted a wider second-quarter net loss, hurt by slack film sales, and said it would shift the manufacturing of its digital cameras to Flextronics International Ltd.
The world's top maker of photographic film said the net loss widened to $282 million, or 98 cents a share, from $155 million, or 54 cents a share, a year earlier.
Excluding one-time costs from restructuring, inventory and other special items, the loss was 19 cents a share.
Analysts were expecting a profit of 22 cents a share, according to Reuters Estimates.
Analysts have found it difficult to measure Kodak's overall health due to constant restructuring over the past three years, which has seen some units growing and adding workers, while others are cutting operations and jobs.
Revenue fell 9 percent to $3.36 billion.
Since late 2003, Kodak has been beefing up its digital products, hoping to outpace the decline in demand for film, historically its main revenue source. At the same time, it is shrinking its costs by cutting up to 25,000 jobs and trimming manufacturing assets.
Kodak shares closed on Monday at $22.25 on the New York Stock Exchange. The stock is down only about 4.5 percent this year, but has tumbled 25 percent over the past four months.
NEW YORK (Reuters) - Sirius Satellite Radio Inc. (SIRI) Tuesday reported a larger second-quarter net loss, but said the number of net new subscribers increased from a year earlier.
The company also raised its full-year 2006 financial outlook. It now expects to end the year with revenue of $615 million and 6.3 million subscribers, up from an earlier expectation of more than $600 million in revenue and 6.2 million subscribers.
The No. 2 pay satellite radio service behind XM Satellite Radio Holdings Inc. said its net loss widened to $237.8 million, or 17 cents per share, from $177.5 million, or 13 cents a share, a year earlier.
Revenue nearly tripled to $150.1 million.
Wall Street expected the company to post a loss of 15 cents per share and revenue of $147.3 million, according to Reuters Estimates.
CHICAGO (Reuters) - Burger King Holdings Inc. (BKC), the world's second-largest hamburger chain, posted a quarterly loss Tuesday in its first report as a stand-alone public company, weighed down by a management termination fee and other charges.
Shares of Burger King plunged as much as 19 percent to their lowest level since the company went public in May. The shares were down $2.29 at $12.96 in morning trade on the New York Stock Exchange, compared with its IPO price of $17 a share.
Burger King said comparable sales grew by 1.7 percent in the quarter, excluding the effects of currency exchange rates.
Comparable sales in the United States and Canada rose by 2 percent. Sales in Europe, the Middle East and Asia/Pacific edged up by 0.2 percent, hurt by a decline in Britain on concerns about obesity and food-borne illnesses and increased competition by rivals offering healthier menu choices, the company said.
While same-store sales rose, they paled in comparison to larger rival McDonald's Corp.. In its latest quarter, McDonald's posted a 5.5 percent rise in comparable sales, with a 6.3 percent rise in Europe.
Burger King said it lost $9 million, or 7 cents per share, in its fiscal fourth quarter ended June 30, compared with a profit of $2 million, or 2 cents per share, a year earlier.
The latest quarter included a one-time management termination fee of $30 million, related to the company's initial public offering, and other charges related to its restructuring.
Burger King said fourth-quarter operating income fell 42 percent to $14 million.
The company said it expects to benefit from customers choosing lower-priced restaurants in a tough economic climate.
In a statement, Chief Executive John Chidsey said the company's value menu is performing above expectations, and believes "this is especially relevant in today's economy as consumers are being more cautious with their nonessential spending."
Burger King's value menu includes items such as the Whopper Jr. sandwich and small orders of french fries and onion rings.
"We believe the company will benefit as consumers choose quick service restaurants, like Burger King, rather than more expensive fast casual and casual dining restaurants," Chidsey said.
Revenue rose 6 percent to $533 million.
Burger King has more than 11,100 restaurants worldwide, of which about 90 percent are owned and operated by franchisees. McDonald's has 13,700 restaurants in the United States alone, and more than 30,000 overall.
Burger King said it plans to open more than 430 restaurants in fiscal 2007, including 250 in Europe, the Middle East and Asia Pacific.
Chidsey also said that expanding into early morning and late night hours is a "a very promising opportunity" for the chain, especially in the United States.
Rival Wendy's International Inc. (WEN) promotes its late-night hours in the United States, while McDonald's (MCD) has seen growth in recent years with additions to its breakfast menu, such as the McGriddle sandwich.
Burger King said it plans to encourage more restaurants to move to those competitive hours during fiscal year 2007.
Miami-based Burger King was bought by private equity firms Texas Pacific Group, Bain Capital and a Goldman Sachs Group Inc. affiliate in 2002 for about $1.5 billion from British drinks company Diageo Plc