LG, Samsung Quarterly Earnings Up, While Mixed Economic Signals Persist
At Motorola the "success" was more modest. Its spring quarter earnings were up dramatically, despite lower mobile handset sales. The company's net profit for the quarter was $26 million (up 1 cent per share), compared with $4 million for the same period in 2008. Analysts and Motorola itself had expected a loss of 3 to five cents per share. Nonetheless, quarterly sales fell by 32% compared to a year earlier.
Adjacent industries are also dealing with turbulent times. For example, The Walt Disney Co. last week reported a 26% drop in its latest quarterly profit, which could affect its moves into new media ventures tied to digital home devices.
Meanwhile, the U.S. Commerce Department's quarterly report on Gross Domestic Product included a hopeful message that, "The small contraction in the economy in the second quarter is another indication that the recession will soon end." The Bureau of Labor Statistics said that - despite continuing unemployment growth - there is an overall upturn in economic indicators.