Morgan Stanley Dean Witter & Co., whose brokerage and investment banking businesses have each been hurt by the stock market downturn, reported Thursday that second-quarter profits dropped 36 percent. For the three months ending May 31, net income fell to $930 million, or 85 cents a share, compared to $1.46 billion, or $1.26 a share, in the second quarter of 2000. Morgan Stanley managed to beat the consensus of analysts surveyed by Thomson Financial/First Call, who expected earnings would come in at 79 cents a share. The company's net revenue dropped 14.7 percent to $6.0 billion from $7.1 billion a year ago.
The Sherwin-Williams Co. on Thursday warned that its earnings in the second quarter will likely fall short of prior estimates due to lower sales and unfavorable currency exchange rates. The paint company said it expects earnings in the quarter from 55 cents to 60 cents per share and for the year from $1.75 to $1.90 per share. The Thomson Financial/First Call consensus of analysts was 62 cents for the quarter and $1.87 for the year. Sherwin-Williams earned $115.8 million, or 71 cents per share, in the second quarter of 2000. Micron Technology said plunging market prices prompted it to write down the value of its computer chip inventory this spring, generating the lion's share of a $313.4 million third-quarter loss. Semiconductor sales were barely half what they were a year ago, the Boise-based company reported. This spring's loss of 53 cents a share compared to a year-earlier profit of $274.8 million, or 50 cents a share.Micron wrote off $84 million in the second quarter in connection with the personal computer operation that has been sold to Gores Technology Group. But the $301.1 million loss on its continuing operations, the equivalent of 50 cents a share, was more than three times what Wall Street analysts were expecting.