Sony’s Big Cost Cuts, Gap’s Solid Quarter, and Other Hot Wall Street Action
Sony Corp. (NYSE:SNE): Sony is aiming to take a $250 million bite out of its entertainment costs over two years as a part of CEO Kazuo Hirai’s plan to lift profitability and maintain full ownership of the movie, TV, and music businesses. Sony will be cutting down its movies from Columbia Pictures and instead will be shifting its investments to television production and media networks while realizing more savings.
The Gap Inc. (NYSE:GPS): Shares of The Gap are trading down nearly 3 percent as earnings per share of 72 cents beat by 1 cent and revenues of $3.98 billion fell in line. Expenses fell 6 percent as sales growth remained stable, while online sales rose 20 percent to $589 million for the quarter. The company also approved a $1 billion share repurchase plan.
Rio Tinto PLC (NYSE:RIO): Rio Tinto Chairman Jan du Plessis says that China’s new economic blueprint is encouraging for mining companies and forecasts that demand from the country for commodities like copper and iron ore will continue to show strong gains over the next few years. He added that China would “undoubtedly” become the world’s largest economy as its population continues to rise, eventually overtaking the United States.
Time Warner Cable (NYSE:TWC): Shares of Time Warner Cable are on a tear as rumors that both Charter Communications and Comcast (NASDAQ:CMCSA) are exploring the idea of pitching bids for the provider. CNBC is reporting that ”Time Warner Cable makes it clear that Comcast is the preferred buyer,” and although antitrust issues will certainly pose concerns, many media analysts think that a Comcast-Time Warner mix makes more sense than Time Warner-Charter deal, Seeking Alpha reports.
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