Earnings: AT&T, Wal-Mart, McDonald’s, Capital One

Dow industrial firms: AT&T

AT&T Inc.'s net income dipped as revenue from traditional landlines fell faster than the company cut costs. But AT&T pleased investors yesterday by showing that it is thriving in the wireless business, adding a record number of data-hungry iPhones to its network.

AT&T, the country's largest telecommunications provider, said it added 2 million wireless subscribers in the third quarter, matching the pace of a year ago despite a general slowdown in industry growth because most people already have a cell phone.

AT&T earned $3.19 billion, or 54 cents per share, from July through September. That was down 1.2 percent from the same period a year earlier.

AT&T's revenue fell 1.6 percent to $30.9 billion, matching analyst expectations.

Wal-Mart

Wal-Mart Stores Inc. CEO and President Mike Duke promised investors yesterday that the retailer's aggressive price-cutting will not hurt its stock price, even as the company issued a modest forecast for U.S. expansion this year and next.

"We absolutely will have price leadership while at the same time greater shareholder value," said Duke, who took the helm in February. "We will win in the area of retailing around the world."

Intent on keeping its reputation as a low-price leader, Wal-Mart announced Wednesday that it will cut prices weekly on top-selling items, from bananas to board games, and hold those cuts through the holiday season.

Company officials expect sales in the current fiscal year, which ends Jan. 31, to be 1 percent to 2 percent higher than in the last fiscal year. That is down from their original estimate of 5 percent to 7 percent.

The following year, they expect sales to accelerate 4 percent to 6 percent as the company benefits from opening new stores and from easing deflation and more favorable currency exchanges.

McDonald's

McDonald's Inc., a notable winner from the recession because of its inexpensive menu, cautioned yesterday that the company could post disappointing U.S. sales figures in October.

That first hint of weakness from a company that has managed to thrive as its competitors falter came as it posted a solid 6 percent profit increase.

"We're recession-resistant, not recession-proof," CEO Jim Skinner said. "Our business model operates well when our customers are doing well."

McDonald's strong recession performance continued in the third quarter as profit climbed to $1.26 billion, or $1.15 per share.

Meanwhile, revenue slid 3.5 percent to $6.05 billion, dragged down by fluctuating global currencies.

3M

3M Co., which makes everything from Post-It Notes to insect repellent, said yesterday that strong sales of health-care products in flu-wary Asia helped lift earnings past analyst expectations in the third quarter.

For the three months ended in September, net income slid to $957 million, or $1.35 per share, from $991 million, or $1.41, in the year-earlier period.

Excluding one-time items, 3M earned $1.37 per share, well above the $1.17 most analysts expected.

Revenue slipped 5.6 percent to $6.19 billion but still topped Wall Street's forecast of $5.77 billion.

Big local employers: Capital One

Capital One Financial Corp. yesterday posted its first quarterly profit in a year, boosted by sales in its investment portfolio and lower funding costs.

The McLean-based company, one of the largest U.S. credit-card issuers, had net income of $425.6 million, or 94 cents per share, compared with $374.1 million, or $1, in the year-ago quarter. The earnings topped analysts' estimates.

Net interest income from loans rose to $2.1 billion from $1.8 billion a year earlier. Noninterest income from fees and other sources declined to $1.6 billion from $1.7 billion.

UPS

Profits and sales were down for another quarter at UPS, but investors will look ahead to the upcoming holiday season to see if the world's largest shipping carrier -- and the U.S. economy -- are truly on the road to recovery.

Customers are shipping fewer and lighter packages, and in some cases going with slower and cheaper shipping options.

UPS, based in Atlanta, posted net income for the three months ended Sept. 30 of $549 million, or 55 cents per share. That is 43 percent lower than the profit of $970 million, or 96 cents, a year ago. Revenue dropped almost 15 percent to $11.2 billion from $13.1 billion.

Profit was ahead of Wall Street estimates, while the revenue figure matched expectations. Guidance for fourth-quarter earnings is also in line with analysts' forecasts.

Of local interest: PM International

Cigarette maker Philip Morris International Inc., which sells Marlboros and other U.S. brands abroad, said yesterday that its third-quarter profit fell nearly 14 percent as the stronger dollar shrunk profit earned in other currencies.

The company said it sold fewer cigarettes because its prices rose and the global economy remained weak.

The company said it earned $1.79 billion, or 93 cents per share, in the three months that ended in September. That is down from $2.08 billion, or $1.01, a year earlier, when earnings included a $169 million tax benefit.

Revenue, including taxes, fell 4.6 percent to $16.57 billion. Excluding excises taxes, revenue fell 5.3 percent to $6.58 billion.

Analysts expected profit of 91 cents per share on revenue of $6.71 billion. -- The Associated Press

Locally based firm: NewMarket

NewMarket Corp.'s profit improved in the third quarter on lower costs and improving shipment volumes.

The petroleum-additives company reported a profit of $56.7 million, or $3.72 per share, compared $16.5 million, or $1.07, in the third quarter of 2008.

Revenue fell to $417.8 million from $440.6 million. But the cost of goods and other expenses also declined, and the company reported that its petroleum-additives shipment volumes were up 14 percent in the third quarter from the second quarter and were down only 3 percent compared with the third quarter last year.

For the first nine months of the year, the company reported profit of $116 million, or $7.61 per share, compared with $53.9 million, or $3.48, in the same period of 2008. -- John Reid Blackwell

Community bank: Peoples Bank

Peoples Bank of Virginia reported third-quarter earnings of $573,000, or 27 cents per share, compared with $679,000, or 32 cents, in the same period a year ago.

Quentin L. Corbett, president of the bank, said the decrease primarily was caused by premium increases by the Federal Deposit Insurance Corp. and continued pressure on the interest margin.

Total assets were $275.1 million, up from $255.2 million a year earlier.

The bank has offices in Henrico County and Chesterfield County. -- Carol Hazard