Disney has suffered an 82 per cent fall in quarterly earnings.
It predicts a grim start to 2002 due to the impact of the US terror attacks and the economic downturn.
The company has reported quarterly earnings of £43.3 million, down from £239 million last time.
It said the US terror attacks are leading to fewer visitors at its parks and resorts but believes things will improve after next summer.
Disney chairman and chief executive Mr Michael D. Eisner said: "We know that there are certain factors we can control and influence, and others over which we have little to no control".
Disney expects its operating income in the first quarter of 2002 to be "somewhat less than half" that of the same period this year.
The company predicts an improved business climate over the last nine months of 2002, although it still expects like-for-like income over this period to suffer falls of between 10 and 15 per cent.
It said the impact of the September 11th atrocities is likely to be most significant in some of its Media Networks operations and in its Parks & Resorts division.
PA