Disney Profits Drop 32%

The weak economy is truly catching up with Disney's business. The company reports a drop of 32% in profit for the last quarter, with weak business in its theme park, movies, and TV division.

Iger said the recession had hurt all of Disney's businesses in the three months to Dec. 27, from its theme parks to its broadcast networks.

Net income fell to $845 million, or 45 cents a share. In the same period a year earlier Disney earned $1.25 billion, or 63 cents a share.

Revenue fell 8% to $9.60 billion.

As a minor Disney stockholder, I am not surprised. I just want the company to not make any dumb moves to ride out this tough period. The fact that they are still making a profit and giving out dividends is good enough for me when compared to the banking and auto industry. There's also reason to be slightly optimistic. With all the aggressive promotion that Disney has been running for its theme parks, it appears that booking for the next 2 quarters is running ahead of last year.

Edit: look at how much money Time-Warner lost in its 4th Quarter! Compare to that, The Walt Disney Company is doing exceptionally well!

Zz.