Wednesday, October 26, 2011

Amazon's earnings fall 73% in third quarter

Amazon on Tuesday reported a drop from 73 percent quarterly profit, something that has precipitated the downfall of the company's shares by 17%.

The Internet's largest retailer announced a third quarter net profit of $ 63 million (45.3 million) or $ 0.14 (0.10 euros) per share, compared with a profit of $ 231 million (166.1 million euros) or $ 0.51 (0.36 euros) per share for the same period last year.

The numbers in the first nine months of the year are, however, more promising, as the company earned $ 454 million at that time, which is 38.3% less than the same period last year.

Thanks to Kindle Fire interest we are increasing the capacity to manufacture millions of units entered Amazon through September, however, of $ 30.646 million, 44% more than in the first nine months of 2010.

The results presented by Amazon are well behind forecasts of analysts , who expected a net profit per share of about 24 cents per share between July and September and revenues of 10,950 million dollars.

During the third quarter, the Seattle firm launched the Kindle Fire , a new electronic tablet, and in the first three weeks since its launch last September 28 have doubled orders.

"From the numbers we are seeing in the pre-Fire Kindle, we are increasing our capacity to manufacture millions of units of the planned ", said founder and CEO of Amazon, Jeff Bezos , to render accounts.

Meanwhile, for the fourth quarter, Amazon announced that it expects revenue of between 16,450 and 18,650 million , representing between 27% and 44% higher than same period last year.


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