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In refusing to play ball in contract renewal negotiations with Pixar Animation Studios, Walt Disney Company probably sabotaged what could have been a very profitable long-term relationship.

On Thursday, November 11, the Emeryville, CA–based digital production company reported a 70% surge in third-quarter net income compared to the same period a year earlier—$22.4 million vs $13.2 million. Revenue was up 47% to $44.5 million from $30.2 million in the third quarter of 2003.

The results didn't include profits from The Incredibles, Pixar's most recent release. The film opened Friday, November 12 and grossed an astounding $70.7 million in ticket sales its first weekend, better than the $70.3 million taken in the opening weekend of Finding Nemo in 2003. The film eventually grossed $339.7 million in the US alone.

With The Incredibles, Pixar has an unbroken string of six hits, beginning with Toy Story. The company is working on its next production, Cars, the last one to be distributed and released in co-operation with Disney.