NEW YORK - (AP) -Time Warner Inc. (TWX), the world's largest media company, swung to a profit of $1 billion in the second quarter compared with a loss of $409 million in the same period a year earlier when it recorded a charge for settling securities litigation.
The company, whose properties include AOL, HBO, Warner Bros. and the Time Inc. magazine publisher, earned 24 cents per share versus a loss of 9 cents per share in the year-ago period.
Exlcuding one-time items, the earnings were equivalent to 20 cents per share, a penny better than analysts polled by Thomson Financial had been expecting.
Revenues edged up 1 percent to $10.7 billion from $10.6 billion.
On an operating basis, income before depreciation and amortization rose 7 percent to $2.7 billion as strong gains in cable TV, cable networks and filmed entertainment offset weaker results at AOL and magazine publishing.
In the year-ago period, the company took a $3 billion charge for legal reserves related to settling securities litigation in the wake of the sharp tumble in the company's share price following AOL's deal in 2000 to buy Time Warner.
Separately, the company also announced changes in its AOL division, saying it would make its software, e-mail and other parts of the service free to high-speed Internet users. The move is part of AOL's strategy to refocus on online advertising in a shift away dialup from Internet access subscriptions.
CHICAGO (Reuters) - Procter & Gamble Co. (PG) posted a higher fiscal fourth quarter profit on Wednesday, as sales of Tide laundry detergent and other products overshadowed inventory concerns at Gillette.
The maker of Crest toothpaste, Duracell batteries and a host of other products earned $1.90 billion in the fiscal fourth quarter, compared with $1.5 billion a year earlier.
Earnings per share fell to 55 cents from 56 cents, as the company had issued shares as part of the Gillette acquisition in October.
Analysts' average profit forecast was 54 cents per share, according to Reuters Estimates. Cincinnati-based P&G in June forecast earnings of 52 cents to 54 cents a share.
In May, P&G said it was grappling with inventory challenges at Gillette. At that time, Chief Financial Officer Clayt Daley said that he expected significant inventory reduction in Gillette's razor business in developing markets into early fiscal 2007, as P&G moves that business from Gillette's distributors to its own.
Shares of P&G, a component of the Dow Jones industrial average, fell 3.5 percent during the quarter, while the overall index was nearly flat.