Walt Disney Co. reported expected weaker fourth-quarter earnings as consumers tightened their wallets in the face of a slowing economy. Net income dropped to $760 million, or 40 cents a share, from $877 million, or 44 cents, a year earlier, the Burbank, Calif.-based company reported. However, involvement in the Lehman Brothers Holding Inc. bankruptcy compounded those weak numbers.
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Revenue was hit hard by declining attendance to its theme parks as
well as advertising cuts in its media divisions. Another big hit to
Disney's earnings was a $92 million bad-debt charge it incurred from
the bankruptcy of Lehman Brothers.
To put things in perspective, excluding the charge and other special items related to the Lehman bankruptcy, Disney would
have earned 43 cents a share in the latest three months. - Gerald Magpily
See Disney press release (pdf)
See Dealscape: Mickey and friends at Disney may hit unemployment line
