Charter
While the coronavirus pandemic has been devastating to some sectors of the economy, Charter Communications — parent company of local cable provider Spectrum TV — reported steep increases in revenue and operating income during the second quarter of the year.
Charter, trading as CHTR on the NASDAQ, reported $3.63 in earnings per share in the second quarter, more than double the $1.39 it earned in the same period last year. Revenue in the second quarter of this year was $11.7 billion, up 3.1% over the same period last year.
The company reported second-quarter adjusted earnings of $4.5 billion, up 7.3% over the same period year ago. Net income came in at $766 million, again more than double the same period a year ago, when net income was $314 million.
According to barrons.com, Charter added 842,000 internet subscribers nationwide during the quarter, many of whom were signing up for internet service. The firm also managed to see growth in its cable television and telephone service, reversing a years-long slide in those two consumer bases. Charter added 102,000 new cable customers nationwide and 38,000 voice customers.
McDonald’s
McDonald’s last week reported that it has not fared as well during the pandemic.
The fast-food chain with multiple locations in Mount Airy and elsewhere in Surry County reported second-quarter net income of $483.8 million, or 65 cents per share, down sharply from $1.52 billion, or $1.97 per share, a year earlier. It also announced the upcoming closure of a number of locations.
“In many markets around the world, most notably in the U.S., the public health situation appears to be worsening,” CEO Chris Kempczinski told analysts last week during a conference call. “Nonetheless, I believe that Q2 represents the trough in our performance as McDonald’s has learned to adjust our operations to this new environment.”
The company said it expect to permanently close 200 locations around the United States this year. Most, the company said, had already been targeted in long-range plans for closure, but the pandemic has forced the company to accelerate those plans. More than half of those are lower sales volume locations inside Walmart stores.
Net sales dropped 30% to $3.77 billion, according to the company’s report. Outside the U.S., restaurant closures hampered sales, but 94% of locations had reopened to partial operations by the end of the quarter. Ozan said that markets with a higher percentage of drive-throughs are showing faster recovery.
Ford
Beleagured auto maker Ford Motor reported a strong quarter, spurred in part by a $3.5 billion gain on a previous investment in autonomous vehicle startup Argo AI, when the company reached an agreement with Volkswagon for the German automaker to buy a portion of Argo from Ford.
With the announced deal between Ford and VW, Ford reported a net income for the quarter of $1.1 billion. Without the one-time deal, the company reported an adjusted pretax loss of $1.9 billion, or 35 cents per share, in operating revenue. Still, Ford executives seemed pleased with the results. Prior to the release of the quarterly report, anaylts had largely forecast much steeper losses in adjusted revenue, some predicting a loss approaching $5 billion.
Company officials said they expect an adjusted pretax profit of between $500 million and $1.5 billion in the third quarter “as long as economic conditions remain favorable without production disruptions.”
General Motors
General Motors Company reported last week an $800 million loss on $16.8 billion in revenue during the second quarter of the year. The auto-maker said that represents a 13% decline in income and a 53% decline in revenue.
GM characterizes the earnings as “solid,” in light of “significant impacts to production and wholesales as a result of the COVID-19 pandemic.” Additionally, the Detroit-based automaker stated in its release announcing the figures that “the results reflect actions GM has taken over the past few years to be more resilient.”
“Clearly, the second quarter was a challenge, but we achieved near breakeven EBITA. in North America, despite losing 8 of 13 weeks of production. These results illustrate the resiliency and earnings power of the business as we make the critical investments necessary for our future,” GM CFO Dhivya Suryadevara told analysts.
Global GM sales fell about 24.3% to 1,466,229 units during the second quarter of 2020, caused by the impact of the coronavirus pandemic.
Source: https://www.mtairynews.com
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