Clean Harbors falls, beats estimates

Time Warner investors are hopeful incoming chief executive Jeff Bewkes, who takes over Jan. 1, will move aggressively to boost the company's stock price, which is at about the same level as five years ago. (Diane Bondareff/Associated Press)

Clean Harbors Inc., which provides environmental and hazardous waste management services, said yesterday third-quarter profit fell 39 percent from a prior-year quarter boosted by a tax benefit.

But the results beat Wall Street predictions and the company issued a strong fourth-quarter revenue guidance.

After the payment of preferred dividends, Norwell's Clean Harbors earned $12.9 million, or 63 cents per share, compared with $20.9 million, or $1.02 per share, for the same quarter in 2006. Revenue rose 15 percent to $245.5 million from $213.9 million in the year-ago period.

Analysts polled by Thomson Financial expected a profit of 57 cents per share on $238.5 million in revenue. (AP)

Hefty marketing spending weighed down earnings at Sara Lee Corp., as the food maker posted a 40 percent decrease in fiscal first-quarter profit.

Higher marketing and advertising expenses, which rose 21 percent, cut into profit as the company worked to boost sales.

In the quarter ended Sept. 29, net income fell to $200 million, or 28 cents per share. That's down from $333 million, or 44 cents per share, a year earlier, when results included a 10-cent boost from discontinued operations. Revenue at the Downers Grove, Ill., company rose 8 percent to $3.13 billion, up from $2.89 billion in the first quarter of 2007.

The performance topped Wall Street forecasts, but investors questioned whether the company's efforts to increase sales were sustainable at a time when commodities are nearing record highs.

Analysts surveyed by Thomson Financial expected earnings per share of 27 cents and revenue of $3.12 billion. (AP)

Rupert Murdoch's News Corp. reported a 13 percent decline in earnings from a year ago, when results were lifted by gains from investment sales.

The company, which is close to completing a deal to acquire Dow Jones & Co., publisher of The Wall Street Journal, for $5 billion, earned $732 million in the three months ended in September, down from $843 million a year ago.

Earnings per share came in at 23 cents, a penny ahead of analysts' expectations as reported by Thomson Financial and below the 27 cents per share in the year-ago period. Revenue rose 19 percent to $7.07 billion. Operating income rose 23 percent to $1.05 billion.

News Corp. credited the gains to strong box office results from "The Simpsons Movie" and "Live Free or Die Hard," as well as higher earnings from cable TV networks and a return to profitability at Sky Italia, a satellite broadcaster.

Newspaper profits fell 25 percent as the company recorded accelerated depreciation in its British operations largely because presses there will have to be replaced earlier than expected to make way for new color printing facilities. Circulation revenue grew slightly while advertising revenue fell slightly. (AP)

Weak results from AOL tempered an otherwise strong quarter at Time Warner Inc., the company reported, as gains from cable TV and the latest Harry Potter movie helped the media conglomerate meet Wall Street expectations.

The company, which also owns HBO, Warner Bros., CNN, and Time magazine, earned $1.09 billion in the three months ended in September, down 53 percent from the same period a year ago. Revenue rose 9 percent to $11.68 billion from $10.75 billion.

Excluding one-time gains and discontinued operations, earnings rose to 24 cents per share, in line with estimates of analysts surveyed by Thomson Financial, from 19 cents a year ago.

Investors are hopeful that incoming chief executive Jeff Bewkes, who takes over Jan. 1, will move aggressively to boost the company's stock price, which is stuck at about the same level as five years ago.

The largest gain came from Time Warner Cable, which posted 28 percent higher profit as it absorbed new subscribers from bankrupt Adelphia Communications and signed up more customers for premium services.

AOL reported a 23 percent drop in profit, as higher advertising revenue wasn't enough to offset more declines in subscription sales. (AP)

American International Group Inc., the world's largest insurer, said third-quarter profit dropped 27 percent, hurt by tight credit and the ailing US housing market.

AIG's $872.3 billion investment portfolio lost $864 million, its credit swap portfolio lost $352 million, and its mortgage insurance business lost $215 million.

Those declines dampened net income, which fell to $3.09 billion, or $1.19 per share, in the July to September period, from $4.22 billion, or $1.61 per share, in the same period last year.

Adjusted to exclude certain items, earnings totaled $3.49 billion, or $1.35 per share, versus $4.02 billion, or $1.53 per share, last year.

The results fell short of estimates. Analysts surveyed by Thomson Financial projected, on average, profit of $1.62 per share on revenue of $29.91 billion. (AP)