CBS - CBS REPORTS $12.46-BILLION QUARTERLY LOSS

CBS REPORTS $12.46-BILLION QUARTERLY LOSS

CBS, whose stock has plummeted 40 percent in October and is down nearly twice as much over the year, reported a third-quarter loss of $12.46 billion, including a $14.1-billion non-cash charge that reflected the diminished value of "intangible assets" because of the economic downturn. The company relies heavily on income from advertising, which many companies are reining in, particularly the automotive sector, traditionally one of CBS's leading clients. During a conference call with investors on Thursday, CBS CEO Les Moonves vowed to strengthen the company's "financial footing" by cutting costs. Nevertheless, he insisted, "We have not seen a great slowdown in national advertising. ... We do not have that fear of falling off the cliff." And CBS CFO Fred Reynolds, while acknowledging that Detroit had reduced its advertising on the network, suggested that it had been replaced by ad buys by German and Japanese auto companies. He said that CBS's "biggest advertiser" is now Toyota.

31/10/2008