Earnings briefs for April 20, 2004

Tuesday, April 20, 2004 | 11:13 a.m.

Firm earns $1.3 bil. in first quarter

General Motors Corp. earned $1.3 billion in the first quarter, beating Wall Street estimates even though the results were down 13 percent from a year ago when the world's largest automaker had a big gain from the sale of its defense business. Its shares surged.

GM reported today it had strong results at its financing arm and improved business in Asia, but said automotive operations in North America and Europe continued to be hampered by intense pricing pressure.

The automaker said its earnings for the January-March period amounted to $2.25 a share, compared with $1.5 billion, or $2.71 a share, a year ago.

The latest results easily topped the consensus Wall Street forecast of $1.79 a share.

Revenue rose to $47.8 billion in the quarter from $47.1 billion a year earlier.

GM's year-ago results include a gain of $505 million, or 90 cents a share, from the sale of GM Defense. The year-ago results also exclude its former Hughes Electronics Corp. subsidiary, which was split off from GM late last year and is now reported as a discontinued operation.

Profit rises 51 percent

Bank One Corp. reported a 51 percent jump in first-quarter earnings today, another indication of its strong health as it awaits approval of its $58 billion merger into J.P. Morgan Chase & Co.

Bank One cited significant profit increases from all of its biggest segments: 22 percent in retail banking, 93 percent in commercial banking, 29 percent in the credit-card division and 82 percent in investment management thanks to its newly acquired Zurich Life unit.

Net income for the nation's sixth-largest bank rose to $1.23 billion, or $1.09 per share, up from $818 million, or 71 cents per share, for the same period a year earlier.

Excluding one-time items, earnings were 87 cents a share, easily topping the consensus estimate of 81 cents a share by analysts surveyed by Thomson First Call.

Toymaker's profit falls

Mattel Inc., the world's largest toymaker, said first-quarter earnings tumbled 73 percent instead of rising as forecast, because of higher transportation costs and lower Barbie sales. Shares had their largest drop in a year.

Net income fell to $9 million, or 2 cents a share, from $32.8 million, or 7 cents, a year earlier, the El Segundo, California-based company said today in a statement. Sales climbed 4.8 percent to $780.9 million because of a declining dollar.

Chief Executive Robert Eckert, 49, introduced several dolls including the $5.99 Cali Girl while U.S. sales of Barbie fell 15 percent amid competition from MGA Entertainment's Bratz. Eckert increased advertising as transportation costs rose.

Mattel was expected to earn 9 cents a share, the average estimate of 11 analysts surveyed by Thomson Financial.

Boise Cascade swings to profit

Boise Cascade Corp., which acquired OfficeMax Inc. in December, said it swung to a first-quarter profit, helped by cost cuts at the office-supply retailer and higher sales. The sale of timberland also boosted results for the fourth-largest U.S. maker of lumber and paper.

Net income was $63.5 million, or 66 cents a share, compared with a net loss of $27.5 million, or 53 cents, a year earlier, the Boise, Idaho-based company said today in a statement. Excluding a gain from the sale of 79,000 acres of Louisiana forest, profit was $26.9 million, or 26 cents a share.

Chief Executive George Harad, 59, is closing stores and firing workers to save $80 million this year as he integrates OfficeMax, the No. 3 U.S. office-supply retailer. Boise last year hired Goldman, Sachs & Co to review alternatives for its building- products and paper businesses.

The company was expected to earn 29 cents a share by 13 analysts surveyed by Thomson Financial. Sales climbed 91 percent to $3.53 billion.

Wireless company's sales rise 8.4%

Cingular Wireless LLC, the second-largest U.S. mobile-telephone company, said first-quarter revenue rose 8.4 percent to $3.9 billion as upgraded its network to offer new services.

Cingular, a joint venture of local-telephone companies BellSouth Corp. and SBC Communications Inc., said it added 554,000 customers in the quarter, bringing its total subscribers to 24.6 million, according to a statement.

BellSouth and SBC are seeking quick approval of Cingular's $41 billion acquisition of AT&T Wireless Services Inc., a transaction that will make Cingular the largest U.S. wireless-phone provider.

Average revenue per user fell 5.5 percent from a year earlier to $47.95, Cingular said. Operating income was $559 million, compared with $716 million a year earlier.

Drug giant's profit falls 50%

NEW YORK -- Pfizer Inc. reported today its profit dropped 50 percent as the world's largest drug maker continues to take charges related to last year's acquisition of Pharmacia Corp. But the results narrowly beat analysts' expectations and revenues jumped 47 percent.

For the quarter ended March 31, Pfizer earned $2.33 billion, or 30 cents a share, down from $4.67 billion, or 76 cents a share, in the year ago period.

The results included an after-tax, accounting charge of $1.51 billion for its acquisition of Pharmacia as well its purchase of drug company Esperion and two-animal health businesses. It also recorded merger-related costs of $126 million and other charges of $19 million.