Disney posts surprise uptick in 4Q net income

By RYAN NAKASHIMA

LOS ANGELES

The Walt Disney Co. posted a surprise 18 percent increase in fourth-quarter earnings Thursday in a sign the company is beginning to emerge from an advertising market hit hard by the recession.

The better-than-expected results, announced amid an executive overhaul, came despite overall ad revenues still being down and the movie studio still posting a loss, though with a slight uptick in revenue there.

Net income rose to $895 million, or 47 cents per share, as revenue at its cable, broadcast and movie studio units rose, more than offsetting declines at its parks and consumer products units.

Overall revenue rose 4 percent to $9.87 billion in the fiscal fourth quarter that ended Oct. 3.

Excluding one-time items, earnings per share came to 46 cents, handily beating analyst estimates by a nickel.

"Although last year was a difficult one due in part to the weak global economy, I'm pleased with the way our businesses have responded to the downturn," Chief Executive Robert Iger said in a statement.

Earlier Thursday, Disney said it would switch the roles of a couple of its high achievers at the end of the year, after recasting executives at the struggling studio.

Chief Financial Officer Tom Staggs, 49, will become chairman of Walt Disney Parks and Resorts. Jay Rasulo, 53, the current parks chairman, will assume the part of chief financial officer.

Disney recently overhauled executives and operations at the studio, which had seen five straight quarters of declining revenue, and after the fourth-quarter uptick still posted a 16 percent decline in revenue for the full year.

Shares jumped $1.15, or 4 percent, to $30.27 in after-hours trading Thursday following the earnings release, after closing down 24 cents at $29.05.

For the full year, revenue fell 4 percent to $36.15 billion and net income fell 25 percent to $3.31 billion, or $1.76 per share.

(CORRECTS revenue figure to $9.87 billion, sted $9.89 billion.)