For those of you who think Disney's economic status is really just a 'figment'...
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Disney plunges 9% after profit news
By Jon Friedman, CBS.MarketWatch.com
Last Update: 4:27 PM ET Aug. 2, 2002
BURBANK, Calif. (CBS.MW) -- Shares of Walt Disney plunged 9 percent after the entertainment and media giant reported a 31 percent drop in profits in the third quarter and warned that light theme-park business will probably hurt its fourth-quarter results.
Disney, a Dow 30 component (DIS: news, chart, profile), fell $1.52, or 9 percent, to $15.31.
Late Thursday afternoon, Disney executives said the company's theme-park business continues to grope with the impact of the Sept. 11 terror attacks and the U.S. recession.
Disney Chief Financial Officer Thomas Staggs called the decline in theme-park attendance the "principal driver" that could disrupt the company's fourth-quarter results.
Quarterly net income for Disney was $364 million, or 18 cents a share, down from $527 million, or 25 cents, a year earlier. Disney's results were generally in line with what Wall Street had expected.......
........In the theme-park sector, revenue tumbled 5 percent to $1.8 billion, as operating income dropped 17 percent to $467 million from last year's $560 million.
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So... Disney's not joking when they say they had to make cuts for economic reasons. Check out their 3rd quarter statement here:
http://disney.go.com/corporate/investors/financials/pdfs/2002_q3.pdf - for more understanding about why Disney has had to cut back hours, close some attractions, etc.
They're seriously hurting. So those of you who choose to 'send a message' with your wallet, are not going to make matters better, you'll just make them worse.
If you want to make things better in the long run, go and enjoy - it's still Disney and plenty of magic is there. So are the discounts. The quicker attendance gets back to normal, the sooner things can go back to the way they were. Don't shoot yourself in the foot by staying away until recovery happens. If everyone did that, there would be no WDW. What a shame that would be.
Tara