Strong sales growth at Amazon, fails to prevent profit fall
Operating income was $197m in the fourth quarter, an increase of 20%, while operating income overall in 2006 decreased 10% to $389m. For the fourth quarter, sales in the media segment were up 25% to $2.5bn.
Sales in the international segments, including the UK, German, Japanese, French
and Chinese websites, were $1.78bn, up 37% from fourth quarter 2005. Excluding the favorable impact from year-over-year changes in foreign exchange rates throughout the quarter, international net sales growth was 28%. The segment’s operating income rose less dramatically, to $106m from $93m a year earlier.
Over the full year, sales across its international websites rose to $4.8bn, against $3.78bn in 2005. Operating income was flat at $270m.
"We had a record holiday season," Bezos said, "with accelerating revenue growth and significant sequential improvement in operating leverage."
For the first quarter of 2007, net sales are expected to be between $2.85bn and $3bn, Amazon reported. For the year, the company expects net sales between $13bn and $13.7bn.
Sales in the international segments, including the UK, German, Japanese, French
Over the full year, sales across its international websites rose to $4.8bn, against $3.78bn in 2005. Operating income was flat at $270m.
"We had a record holiday season," Bezos said, "with accelerating revenue growth and significant sequential improvement in operating leverage."
For the first quarter of 2007, net sales are expected to be between $2.85bn and $3bn, Amazon reported. For the year, the company expects net sales between $13bn and $13.7bn.
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