Here is a look at more of Tuesday's top business stories:
Earnings surge 49 percent at Bank of America
CHARLOTTE, N.C., Jan. 22 (UPI) -- Bank of America Corp., the nation's third largest bank holding company, said its fourth quarter net income surged 49 percent to $2.06 billion, or $1.28 a share, from $1.39 billion, or 85 cents a share during the same period a year earlier.
Analysts on Wall Street had expected the lender to post a net income of $1.24 a share, according to Thomson Financial/First Call.
Bank of America said it took $231 million in losses in the quarter for loans to energy trader Enron Corp., whose massive bankruptcy, the largest ever, hurt many banks.
"Our three major business lines -- consumer and commercial banking, asset management and global corporate and investment banking -- in total increased their revenues by 8 percent last year," said Chairman and Chief Executive Ken Lewis.
"Their achievement allowed us to overcome significantly higher credit costs plus much lower equity market-related revenues and still increase operating earnings for the year," he said.
The lender said its revenues rose 10 percent to $8.9 billion in the fourth quarter from a year earlier.
Net interest income, or money the bank makes from lending, rose 16 percent to $5.50 billion, as lower U.S. interest rates failed to offset money Bank of America had to set aside to protect against problem loans.
The company also has been scaling back its balance sheet recently to end ties with corporate clients that only borrow money.
Non-interest income rose 2 percent to $3.40 billion on fees the bank earns from credit cards, servicing accounts and making mortgage loans to people. Higher bond underwriting fees also added to results.
Net charge-offs, or loans for which the company does not expect repayment, rose to $1.2 billion from $1.1 billion a year ago.
Earnings rise 18 percent at Johnson & Johnson
NEW BRUNSWICK, N.J., Jan. 22 (UPI) -- Johnson & Johnson, the diversified health-care company, said its fourth quarter net income rose almost 18 percent to $1.1 billion, or 36 cents a diluted share, from $936 billion, or 30 cents a share during the same period a earlier.
Before special charges, including remaining one-time costs associated with the company's acquisition of biotech firm ALZA Corp. last year, earnings per share for the fourth quarter were 39 cents a share.
Analysts on Wall Street had expected the company to post a net income of 39 cents a share, according to Thomson Financial/First Call.
Johnson & Johnson, a component of the Dow Jones industrial average, said its total sales rose 15 percent to $8.4 billion, despite negative foreign currency factors that cut revenues in overseas markets.
"I am delighted with our strong sales performance in 2001 and our continued ability to deliver double-digit earnings growth," said Ralph S. Larsen, chairman and chief executive officer.
"Of particular note are the strong performances of our Pharmaceutical and Medical Devices and Diagnostics businesses," Larsen said.
"Our investments in a broad range of innovative opportunities, both internally and outside the company, have allowed us to grow at an accelerated rate and provide a strong platform for growth in the future," he added.
The maker of Tylenol, Band-Aids, anemia drug Procrit and Neutrogena skin care products said global pharmaceutical sales jumped nearly 30 percent to $3.8 billion, fueled by a strong showing for anemia drug Procrit, whose sales climbed 4 percent, and by unusually strong wholesaler buying patterns.
Procrit is known as Eprex outside the United States. Excluding the impact of unusually heavy earlier inventory stocking, global sales of the product were up 25 percent in the quarter -- despite competition from Amgen Inc.'s recently launched longer-acting anemia drug called Aranesp for patients with renal failure.
The company said its medical devices unit delivered global sales of $2.86 billion, up 9 percent from a year ago, with a strong showing from its Cordis line of stents and other cardiovascular products.
Consumer products, which include Neutrogena skin care products and baby care products, saw its sales slip 0.4 percent to $1.71 billion.
Johnson & Johnson has more than 190 operating companies in 51 countries around the world, selling products in more than 175 countries.
Earnings decline at BellSouth
ATLANTA, Jan. 22 (UPI) -- BellSouth Corp., the nation's third largest local telephone company, said its fourth quarter net income dropped to $792 million, or 42 cents a share, from $1.12 billion, or 59 cents a share during the same period a year ago.
Excluding one-time charges, profits were $1.19 billion, or 63 cents a share, in fourth quarter 2001. These results exclude restructuring charges, foreign currency losses, and a write-down of its investment in Qwest Communications International Inc.
Analysts on Wall Street had expected BellSouth to post a net income of 60 cents a share, according to Thomson Financial/First Call.
Revenues, including those from its Cingular Wireless joint venture, rose 4.5 percent to $7.6 billion. Data revenues rose 24.9 percent to $1.2 billion.
Domestic wireless revenues increased 18.8 percent to $1.5 billion as Cingular Wireless, its joint venture with SBC Communications Inc., added 325,000 customers and ended the year with 21.6 million subscribers.
The company also reiterated it expects its 2002 earnings to increase 7 to 9 percent, and revenues to rise 5 to 7 percent.
Earnings rise at Freddie Mac
MCLEAN, Va., Jan. 22 (UPI) -- Freddie Mac, the giant home-loan agency, said quarterly profits rose as consumers refinanced their home loans and applied for new mortgages to capitalize on lower interest rates.
The congressionally chartered but shareholder-owned company prospered despite the recession in large part because falling interest rates dropped the popular 30-year fixed rate mortgage below 6.5 percent.
Freddie Mac profited from the difference between short-term and long-term interest rates and strong demand for housing.
The company said its fourth quarter operating profits rose to $853 million, or $1.14 a share, from $663 million, or 89 cents a share a year earlier.
Including certain accounting effects, the company's net income was $1.36 billion, or $1.87 a share in the fourth quarter.
Analysts on Wall Street had expected the company to post a net income of $1.12 a share, according to Thomson Financial/First Call.
"We ended the year with rock-solid financial strength, well-protected from economic volatility and positioned to produce mid-teens growth in 2002," said Chairman and Chief Executive Officer Leland Brendsel.
A surge in refinancing after the Federal Reserve cut interest rates 11 times last year has boosted profits at Freddie Mac, which buys loans from banks and other mortgage lenders and repackages them into securities for investors.
Losses widen at International Paper
STAMFORD, Conn., Jan 22 (UPI) -- International Paper Co., the world's largest forest products company, said its fourth quarter net loss widened to $572 million, or $1.19 a share, from a net loss of $371 million, or 85 cents a share during the same period a year earlier.
Fourth quarter net sales dropped to $6.3 billion from $7.2 billion last year.
International Paper, a component in the Dow Jones industrial average, said it expects its results, which rely heavily on the overall economy, to improve in 2002.
Profits in the company's coated paper and building materials segments dropped from third quarter levels amid a seasonally weak demand period and pressure on prices of pulp and lumber, the company said.
Results were also hit by lower sales volumes in its distribution business, which led to a $10 million loss. The unit, called xpedx, had been profitable in the third quarter.
Before special items, the firm reported profits of $58 million, or 12 cents a share, compared with $145 million, or 28 cents a share a year ago.
On that basis, Wall Street analysts had expected the company to earn 3 cents a share, according to Thomson Financial/First Call.
"Our earnings improved in the second half compared to first half performance, due in large part to our cost reduction programs and business and facility rationalizations. This positively impacted our results for the year," said John Dillon, chairman and chief executive officer.
"There is no doubt the company continued to face weak economic conditions during the fourth quarter; but we remain focused on key internal improvements, and we continue to manage our inventories. At year-end, our inventory levels were nearly 10 percent lower than a year ago," he said.
Looking ahead, Dillon said, "Although we expect a weak first quarter, we do expect to see improvement begin in the second quarter. While macro-economic factors will impact results, we expect our performance will improve in 2002."
Results decline at Air Products
LEHIGH VALLEY, Pa., Jan. 22 (UPI) -- Industrial gas and chemicals company Air Products and Chemicals Inc. said its first-quarter net income for the period ended Dec. 31, fell to $113.7 million, or 52 cents a share, from $135.6 million, or 62 cents a share during the same period a year earlier.
Analysts on Wall Street were expecting the company to post a net income of 54 cents a share, according to Thomson Financial/First Call.
The company also forecast operating full-year earnings at the lower end of its previous target of $2.35 to $2.45 a share and said second quarter earnings should be "about equal" to the first quarter's.
Analysts' average estimates are 57 cents a share for the second quarter and $2.40 for the year, according to First Call.
Air Products, which agreed to sell most of its packaged gas business to Airgas Inc. and an Airgas joint venture for $270 million earlier this month, said first-quarter revenues fell 11 percent to $1.32 billion from $1.48 billion a year earlier.
Sales were lower due to continued weakness in the global electronics market and in U.S. manufacturing, which led to lower volumes in most gas and chemical product lines.
Chairman and Chief Executive Officer John P. Jones said, "We anticipated a slow start to the year, and our operating results are consistent with that. While volumes remain soft, we continue improving our business fundamentals through capital discipline, cost reduction, margin expansion and portfolio management.
"For example, this month we announced an agreement to sell the majority of our U.S. packaged gas business, subject to regulatory approval. I am confident we are well positioned to capitalize on the pending economic recovery as a result of these actions to reinforce our growth businesses and refine our portfolio," he added.
Schlumberger posts lower results
NEW YORK, Jan. 22 (UPI) -- Schlumberger Ltd., the world's top oilfield services company, said its fourth quarter net income fell as oil and gas drilling activity slowed because of weakening prices for both fuels.
Net income fell to $185 million, or 32 cents a share, from $238 million, or 41 cents a share a year earlier.
Analysts on Wall Street had expected the company to post a net income of 33 cents, according to Thomson Financial/First Call.
Fourth-quarter earnings from oilfield service and drilling companies are expected to be mixed because the number of drilling rigs at work in North America was lower than a year ago but the number of rigs working in the rest of the world was higher.
Amazon.com posts profit
SEATTLE, Jan. 22 (UPI) -- Amazon.com Inc. said it posted a first net profit during the fourth quarter.
Amazon said its net profit, including charges like acquisition expenses, stock compensation and interest payments on debt, was $5.0 million, or 1 cent a share, compared to a loss of $545 million, or $1.53 a share during the same period a year earlier.
Revenues jumped to a record $1.12 billion from $972 million a year earlier.
The company also posted a pro forma net profit, a figure which includes interest but excludes other costs and is the figure watched by Wall Street analysts, of $35 million, or 9 cents a share, compared to a loss of $90 million, or 25 cents a share last year.
Analysts on Wall Street were expecting the company to post a pro forma net of between 4 and 8 cents a share.
Inventory turns, a key retailing metric that shows how fast a company can sell goods, rose to an annualized rate of 25, up nearly 40 percent from 18 a year earlier.
Marketing expense was also down 27 percent while fulfillment costs fell 17 percent.
Amazon also gave guidance for its current, first quarter, saying it expected sales to grow between 11 and 18 percent to between $775 million and $825 million, with a pro forma operating loss of between break even and $16 million.
Full-year revenues were seen growing by about 10 percent, with pro forma income from operations hitting about $30 million.
For all 2002 the company was expected to lose between 23 and 49 cents a share, with sales of $3.36 billion, according to Thomson Financial/First Call.
The company said its international segment, which covers Amazon units in Britain, Germany, France and Japan, was the star performer as sales there rose 81 percent to $262 million.
Services, Amazon's smallest but most profitable division, rose 3 percent to $98 million. Services includes deals such as booking online orders for other retailers like Toys R Us and Target.
