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Roundup: Federated Investor's profit jumps 34%; Microsoft earnings dip; more

| Friday, Jan. 25, 2013, 12:01 a.m.

Federated Investors' profit up 34% in quarter

Federated Investors Inc., the mutual fund management company based Downtown, said quarterly profit jumped 34 percent to $49.6 million from about $37 million the year earlier. Per-share earnings of 44 cents compared with 36 cents. Revenue increased 13 percent to almost $245 million from about $216 million, mainly from a jump in investment advisory fees. Total managed assets increased 2.7 percent to almost $380 billion as of Dec. 31, including a record $52.7 billion in fixed-income assets. Money-market assets under management were flat at $285 billion, while equity assets increased 13 percent to $35 billion.

Microsoft's 2Q earnings dip

Microsoft's earnings for the latest quarter slipped 4 percent, despite a lift from its latest version of Windows. The fiscal second-quarter results announced Thursday are the first to include Windows 8. The program is a dramatic overhaul of the Microsoft Corp. operating system that powers most PCs. Windows 8 came out Oct. 26 with slightly more than two months left in Microsoft's fiscal second quarter. Although the Windows 8 sales haven't been as impressive as investors hoped, revenue in Microsoft's Windows division climbed 24 percent from the previous year. Microsoft earned $6.4 billion, or 76 cents per share, during the final three months of the year. That was down from $6.6 billion, or 78 cents per share, a year earlier. Revenue rose 3 percent from last year to $21.5 billion.

AT&T adds customers, posts loss

The introduction of the iPhone 5 helped AT&T attract more new customers in the holiday quarter than it has in three years, but it posted a big loss because of an annual adjustment to its pension obligations. AT&T Inc. Thursday said it added a net 780,000 new customers from October to December, its best result in three years. It activated 8.6 million iPhones — a record for any company. AT&T was the first company to introduce the iPhone in 2007, and has more iPhone users than any other carrier. Dallas-based AT&T's loss was $3.86 billion, or 68 cents per share. That compares with a loss of $6.68 billion, or $1.12 per share, a year earlier, also caused by an adjustment to pension and retiree benefit obligations. Revenue was $32.6 billion, up from $32.5 billion a year ago.

Earnings

• Southwest Airlines Co. said fourth-quarter earnings fell by nearly half on higher spending for fuel, labor and maintenance. The airline's revenue rose slightly, however, as the average fare climbed almost $8 higher than a year ago. Net income was $78 million, or 11 cents per share, down from $152 million, or 20 cents per share, a year earlier. Revenue ticked up 1.6 percent to $4.17 billion.

• FNB Corp., Hermitage, Mercer County, said quarterly net income jumped more than 22 percent to $29 million, or 21 cents a share, from $23.7 million, or 19 cents a share, a year earlier. The year-ago period included a $3.5 million gain from the sale of securities. Results also included a $1.7 million charge related to the 2012 closing of 20 branches connected to FNB's acquisition of Parkvale Financial Corp. last January. FNB's First National Bank operates about 90 branches in Western Pennsylvania.

• Apollo Bancorp Inc., Apollo, Armstrong County, reported quarterly net income increased nearly 14 percent to $353,000, or 71 cents a share, from $310,000, or 62 cents a share, the year earlier. Securities gains offset a decrease in net interest income. Total assets increased 3.4 percent to $151 million as of Dec. 31. Apollo Trust Co. operates five branches in Western Pennsylvania.

Other business news

• Attorney Bernadette Puzzuole was named interim president and CEO of the Pittsburgh Airport Area Chamber of Commerce on Thursday. She succeeds Sally Haas, who recently died after heading the organization for the past 14 years. Puzzuole, whose term begins Feb. 4 and lasts 12 months, is the chamber's immediate past chairman of the board.

— Staff and wire reports

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