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Disney Reports Earnings Drop

Entertainment giant Walt Disney reported a 27 percent slump in its earnings, after dealing with accounting charges and heavy losses from its film sector. Disney said net income in the July-September quarter was $379 million, or 19 cents a share, down from $516 million a year ago. Revenue was $7.73 billion, up slightly from last year`s earnings of $7.54 billion.

Disney`s DVD movie sales failed to meet expectations, with Disney-Pixar co-productions such as "The Incredibles" and "National Treasure" failing to match the success of last year`s "Finding Nemo", "Pirates of the Caribbean" and "The Lion King" platinum re-release.

At the moment, Disney`s hopes rest in part on a strong holiday film season, with "The Lion, the Witch and the Wardrobe" fighting for recognition among such fare as "Harry Potter and the Goblet of Fire", "Walk the Line", among others.