Pfizer Inc. The pharmaceutical giant's acquisition of Wyeth boosted its third-quarter revenue 39 percent, but hefty charges and a higher tax rate, both related to that $68 billion purchase, dragged its profit down 70 percent, the company said Tuesday. The New York-based maker of cholesterol blockbuster Lipitor and impotence pill Viagra posted net income of $866 million, or 11 cents per share. That's down from $2.88 billion, or 43 cents per share, a year earlier. Excluding one-time items totaling $3.51 billion, or 43 cents a share, Pfizer said net income would have been $4.37 billion, or 54 cents per share. That topped Wall Street expectations by 3 cents. Pfizer raised its 2010 profit forecast, to a range of $2.17 to $2.22 per share excluding one-time items, but it lowered the top end of its revenue projection by $1 billion, to a range of $67 billion to $68 billion. Revenue, while up from $11.62 billion in 2009's third quarter because of Wyeth's products, came up short of expectations at $16.17 billion. Analysts surveyed by Thomson Reuters were expecting, on average, revenue of $16.68 billion.
BP PLC The British energy giant Tuesday reported a 67 percent drop in third-quarter profit as it took an additional charge of $7.7 billion to cover costs related to the worst oil spill in U.S. history. Net income fell to $1.79 billion in the quarter from the same period a year earlier. On a sequential basis, however, the results marked BP's return to profit after it posted a $17.2 billion loss on charges of $32.2 billion in the second quarter. The additional $7.7 billion charge stemmed in large part from the later-than-expected capping of the ruptured well, BP said. It brought the company's estimate of the likely cost of the spill to $39.9 billion. Setting aside the rising bill, BP's operational results actually improved year on year. Adjusted replacement cost profit, which strips out one-time items and changes in the oil price, rose 18 percent to $5.5 billion, topping the consensus forecast of $4.6 billion. The earnings report was the first under new CEO Robert Dudley, above, who replaced gaffe-prone Tony Hayward Oct. 1.
Kellogg Co. The world's largest cereal maker said Tuesday that a drop in cereal sales, intense competition and the lingering impact of some of the largest food recalls in its history have made 2010 a disappointing year. Kellogg's third-quarter net income fell 6 percent and the company issued a cautious 2011 forecast. Kellogg, which also makes Eggo waffles, Keebler cookies and other foods, reported that it earned $338 million, or 90 cents per share, for the quarter that ended Oct. 2. That's down from $361 million, or 94 cents per share, a year ago. Revenue dropped 4 percent to $3.16 billion. Kellogg is still feeling the impact from a voluntary recall this June of 28 million boxes of Apple Jacks, Corn Pops, Froot Loops and Honey Smacks cereal after complaints that an unusual smell and flavor were making people sick. The company blamed the problem on excess chemicals in box liners it got from a supplier.
MasterCard Inc. The payments processor said increased use of credit and debit cards, especially overseas, helped lift its third-quarter profit by 15 percent. MasterCard recorded a net income of $518 million, or $3.94 per share, for the three months ended Sept. 30. That compares with $452 million, or $3.45 per share, in the year-ago quarter. Revenue rose 5 percent to $1.43 billion, from $1.36 billion last year. Analysts polled by Thomson Reuters, on average, were expecting profit of $3.54 per share, on revenue of $1.41 billion.
Archer Daniels Midland Co. The corn and soybean processor's first-quarter net income dropped 31 percent, pressured by rising commodity prices and a shifting supply of crops. Profit slid despite very strong volume and revenue. ADM, which also makes ethanol, posted net income of $345 million, or 54 cents per share. A year ago, net income was $496 million, or 77 cents per share. Analysts polled by Thomson Reuters expected 75 cents per share. Revenue for the period ended Sept. 30 rose 13 percent to $16.8 billion from $14.92 billion. That beat the $15.66 billion in revenue analysts expected.
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