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Nintendo turns a profit Despite Wii U Lack of Success Nintendo turns a profit Despite Wii U Lack of Success

April 24, 2013 - Nintendo, the Japanese based game company just announced its quarterly results. The company said its profit for the recently ended first quarter of 2013 was $75.3 million. However, officials from Nintendo said the company has had to endure some very difficult times.

A statement from the company said weak sales of the company’s new hardware items has caused the company to not have the financial spark it has needed.

An operating loss increased due primarily from lower sales for the Wii U and Nintendo 3DS. Foreign exchange gains increased for non-operating income, ordinary income along with net income was smaller than had been forecasted.

Wii U is the first console for Nintendo since it launched the Wii. The Wii U sold over 3.45 million units and 13.42 million games. The Wii was able to out sell the new Wii U. The Wii had sales of 3.98 million and over 50 million games.

The Wii keeps being tinkered on by Nintendo and this year has released a smaller, cheaper version for the European market.

Nintendo said poor sales of the new Wii U were due to a lack of enough game titles. The initial sales boom of the Wii U was not maintained during the start of 2013 because of the delay in the development of new and different games for the hardware.

Nintendo announced it would increase the range of different games for its consoles and would release something prior to the end of the year involving Pokemon.

The net income for the quarter was only about 50% of what had been projected.

Profits up at GE despite Problems in Europe Profits up at GE despite Problems in Europe

April 19, 2013 - The largest industrial group in the U.S. by market capitalization, General Electric, reported a rise of 14% in profits for the first three months of 2013. That increase came even though results in its businesses in Europe were much worse than anticipated.

GE’s earnings per share were up 17% to 35 cents, which was in line with expectations by Wall Street analysts.

GE said that U.S. and emerging economies demand was in line with its expectations, but Europe continued to drop as the economic crisis in the region deepened. Revenue in the company’s industrial businesses fell 17%.

The CEO of GE, Jeff Immelt, said the water and power division of GE had suffered quite badly. He said more pressure was attributed to the water and power services in Europe. Because of that, Immelt said the company’s margins were negatively impacted.

Revenues from the water and power division fell by over 26% and GE’s profits in that sector dropped by 30%.

Overall, the group said its profits grew by 14% to $3.5 billion boosted in part from strong performances in aero-engines, which saw an increase of 9% to over $936 million and equipment for locomotives.

The company’s financial services sector, GE Capital, reported an increase of 9% in profits to $1.94 billion. That was helped by smaller tax charges and a profit of $690 million from real estate, up from just $56 million during the same three months in 2012.

The tax rate for the group fell to 12% from the rate of 17% during the same period a year ago. Immelt said the first half of 2013 would be a tough period for the water and power division partly because of the comparisons to last year when the demand for wind turbines from GE boomed in the United States, as developers placed orders prior to the a tax credit they feared would expire. That division, said Immelt, is expected to grow during the second six months of 2013.

Morgan Stanley Reports lower Revenue, but Higher Profits Morgan Stanley Reports lower Revenue, but Higher Profits

April 18, 2013 - Morgan Stanley saw a slowdown in its trading activity during the first three months of 2013, which caused the securities firm to have lower revenues. However, due to its cost controls the firm recorded higher profits.

Revenues for Morgan Stanley dropped to $8.5 billion in the first quarter compared to $8.9 billion during the same period a year ago. Advisory fees, equity trading and fixed income all traded lower during the quarter.

Morgan Stanley was able to exceed forecasts on revenue by analysts but missed in earnings. The company earned 50 cents per share for the first three months of this year, which was better than the same period a year ago when the company experienced a per share loss of 5 cents, but did not meet the analyst’s estimate of 53 cents per share.

Morgan Stanley’s net income for the quarter was $84 million, compared to a loss last year during the first quarter of $94 million.

Nevertheless, the adjust earnings per share of 61 cents, which takes out profit and loss that companies must record from swings in their own debt value, compared favorably with the estimates of analysts that were 56 cents per share.

CEO James Gorman, said the quarter showed the firm had solid momentum in all sectors. Gorman previously stated the industry would have to adjust to many new regulations by eliminating jobs and not handing out lavish bonuses.

Morgan’s wealth management announced revenues of more than $3.5 billion compared to last year’s figure of $3.3 billion. Morgan Stanley is set to pay the last 35% of its stake in the joint venture with Smith Barney for over $4.7 billion during June.

Bank of America Profits up But Short of Forecasts Bank of America Profits up But Short of Forecasts

April 17, 2013 - Bank of America Corp. enjoyed a strong first quarter increase in profits compared to the same quarter one year ago, when the bank had problems due to large charges that were debt-related.

The bank said its results were pushed by an increase it is brokerage income, higher fees in investment banking and an improvement in credit quality, which was in part offset by lower gains on debt securities sales and lower income from mortgage banking.

Profit at the bank was reported at $2.62 billion in comparison with one year earlier when it was just $653 million. On the basis of per share, which also includes preferred dividends’ payments, the bank showed a profit of $0.20 versus last year in the same quarter a profit of just $0.03.

Revenue for this quarter was up by over 5.5% to reach $23.5 billion. Analysts had the bank forecasted for earnings per share of $0.22 and revenue reaching $23.41 billion.

Bank of America two years ago embarked on a difficult retreat from the home mortgage business, but is now preparing a new run at that same market in the U.S.

However, Bank of America’s surge to take back the home mortgage business, comes at a time when peers like Wells Fargo and JP Morgan Chase reported results a week ago that showed a substantial slowdown in home lending.

As many of its peers have done, Bank of America is cutting costs to help offset less revenue. During the first quarter, expense that was noninterest dropped by 5.2% from the same quarter last year and fell by 1.1% from the last quarter of 2012 to settle at $18.1 billion.

Back at the end of 2011, the bank announced job cuts of 30,000 to reduce its costs by over $8 billion each year by the middle of 2015.

Profits fall at Darden Restaurants Profits fall at Darden Restaurants

March 24, 2013 - Third quarter profits fell at Darden by 18%, as the company dealt with lower sales in Red Lobster. Nevertheless, the performance still was able to beat expectations on Wall Street.

The company, based in Orlando, Florida, said on Friday that its sales at Olive Garden, LongHorn Steakhouse and Red Lobster restaurants that were open at least one year dropped by 4.6% combined.

That figure is an important gauge of a restaurant’s performance since it excludes those results at restaurant that was recently opened or had just closed.

Darden’s Restaurants Inc. has struggled to regain notoriety as more diners head to chains such as Panera and Chipotle, where they feel restaurant quality food is being served at lower prices. As the chain looks for different ways to keep up with the shifting trends, a pay at the counter concept began being tested at Red Lobster in two locations close to its headquarters.

For the quarter ended February 24, Darden’s profits were $134.4 million a per share value of $1.02. That was down from just over $164 million or a per share rate of $1.25 last year during the same period. Analysts had predicted that the restaurant would earn just $1.01 per share.

Revenue for the restaurant chain was up 5% to just over $2.66 billion from last year’s $2.16 billion during the same reporting period.

Revenue for Red Lobster was off 6% as it tried to contend with more expenses and weak sales at is U.S. restaurants open a year or more. Revenue at Olive Garden was up slightly and LongHorn Steakhouse revenue jumped by nearly 7% as the two chains earned money from newly opened restaurants.

Darden said bad weather this winter hurt its sales at some restaurants. The company held to its fiscal earnings forecast for 2013 of between $3.06 a share and $3.22 a share. Analysts are predicting earnings of $3.17.

HSBC Increases Dividend Despite Missing Earnings Targets HSBC Increases Dividend Despite Missing Earnings Targets

March 04, 2013 - On Monday, HSBC Holdings PLC announced it would pay higher dividends during this year after its asset sales helped bolster its capital position. However, the bank fell short of targets set for performance two years ago by Stuart Gulliver the CEO.

The bank said it had a 2012 net profit of $13.5 billion, which was down from the 2011 profit of $16.2 billion, in part due to paying a larger tax bill. The group’s bad loans dropped from $12.1 billion to $8.3 billion. That drop was driven by less charges in the consumer finance portfolio in the U.S., of home loans, credit cards and auto loans, which is being sold off.

The bank’s return on its equity was down from last year’s 10.9% to 8.4% short of the banks hope of between 12% and 15% that had been targeted for this year. The ratio of cost-efficiency that reflects expenses the business has worsened from 57% in 2011 to nearly 63% in 2012, which was above an average target set of 48% to 52%.

Bank officials said both of the targets had been affected by charges that reimbursed customers for defective products as well as regulatory payments the bank made that included a settlement of $1.9 billion for breaching money laundering laws in the U.S.

Return on equity also was hit by changes in HBSC’s debt’s fair value. Banks place accounting losses or gains on their own debt in order to reflect rises or falls in price if they decided to buy it back on the open market.

The capital position for HSBC improved nevertheless, after businesses and assets including its shares in Ping An, a Chinese insurer, has been sold off.

During the year, it paid dividends of $0.45 that totaled $8.3 billion and announced an increase in dividends for the first three quarters of this year by one cent per quarter to $0.10 for each of the quarter periods.

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