Now vs. Then
Internet search provider Google’s (NSDQ: GOOG) fourth-quarter net income rose to $2.54 billion from $1.97 billion the previous year on strong growth across multiple business lines. Total revenue, without deducting traffic acquisition costs, rose 26 percent year on year to $8.44 billion. Revenue from Google-owned sites grew by 28 percent in the quarter and accounted for 67 percent of total sales. Partner sites revenue grew by 22 percent.
Norfolk Southern Corp (NYSE: NSC) was named the primary eastern rail carrier for FedEx Corp’s (NYSE: FDX) revamped freight shipping operations. Financial details of the deal were not provided and executives from the rail carrier declined to estimate what effect the deal would have on the company’s future performance. Norfolk Southern’s fourth-quarter profit rose by 31 percent to $402 million, despite winter storms that affected the carrier’s network. The company has forecast stronger growth across most business lines in 2011.
Kimberly-Clark Corp (NYSE: KMB) will restructure its pulp and tissue business to contend with rising costs for wood pulp and oil. The maker of Kleenex tissues and Huggies diapers will streamline, sell or close five or six plants over two years, incurring a cost of $280 to $420 million. The firm’s fourth-quarter net income was flat at $492 million, as higher revenues in the personal care and tissue business lines offset rising costs. Full-year profits fell by 2 percent to $1.84 billion. The company raised its dividend by 6 percent and announced plans to buy back $1.5 billion worth of shares in 2011.
Verizon Communications (NYSE: VZ) recorded its most successful sales day in history as it commenced selling Apple’s (NSDQ: APPL) iPhone to existing Verizon subscribers. Verizon sold out of iPhone pre-orders in about 17 hours, indicating pent-up demand for the smartphone, which was previously only offered on AT&T’s (NYSE: T) network. Separately, Verizon authorized the repurchase of up to 100 million shares of common stock by senior company officers.
Stock Talk
Add New Comments
You must be logged in to post to Stock Talk OR create an account