Investment charges put AOL in red for quarter

NEW YORK >> AOL Time Warner Inc. reported a net loss of $1.8 billion for its fourth quarter today as the world's largest media company wrote down the value of some of its investments.

Earnings from operations rose in line with guidance issued earlier this month, despite a slumping advertising market.

The net loss reflected a $1.7 billion write-down in AOL's stakes in Time Warner Telecom Inc., a networking and telecommunications company, and in Hughes Electronics Corp. The figures also include $45 million in costs related to the merger of AOL and Time Warner.

Without the effect of those charges, the company reported a 14 percent increase in earnings before taxes, interest costs, depreciation and amortization, the indicator that analysts watch most closely.

That figure rose to $2.8 billion, or 33 cents a share, from $2.4 billion, or 28 cents a share, in the period a year ago. The latest earnings matched what analysts surveyed by Thomson Financial/First Call had been expecting.

AOL's shares tumbled as much as 10 percent early in the day on the New York Stock Exchange as investors became concerned that an advertising slump might last longer than expected. But the shares, which fell as low as $24, recovered much of the lost ground by the end of the day, closing down 30 cents at $26.40.

Nikkei index tumbles below 10,000 milestone

TOKYO >> Tokyo's main stock index dropped through the psychologically important 10,000-point level today for the first time since November as a broader measure of share performance hit a 17-year low. The U.S. dollar fell against the yen.

Tokyo stocks were undermined by waning confidence that recent mergers in the construction industry would boost the economy, while the resignation of Foreign Minister Makiko Tanaka also weakened investor sentiment. The benchmark 225-issue Nikkei Stock Average closed down 106.55 points, or 1.06 percent, to 9,919.48. The dollar bought 132.76 yen, down 0.28 yen from late yesterday in Tokyo and below its New York level of 133.42 yen overnight.