Thursday, April 29, 2004 | 9:10 a.m.
Film, cable help double profit
NEW YORK -- Time Warner Inc., the world's largest media company, said first-quarter profit more than doubled, fueled by growth at its film and cable-television businesses and cost cutting at America Online.
Net income rose to $961 million, or 20 cents a share, from $396 million, or 9 cents, the New York-based company said today in a statement. The results include Warner Music Group, which the company sold in the quarter. Revenue topped analysts' estimates, climbing 9.2 percent to $10.1 billion from $9.24 billion.
The results are Time Warner's fifth straight profitable quarter under Chief Executive Richard Parsons, driven by sales for the "Lord of the Rings" film trilogy, demand for high-speed Internet service at the cable unit and higher revenue from its cable networks. Time Warner raised its forecast for this year's profit growth to at least 10 percent.
Revenue rises on higher oil prices
DALLAS -- Exxon Mobil Corp.'s first-quarter profits fell 23 percent from a year ago, when the company had a huge gain from the sale of its stake in a German pipeline company. Revenue rose 6 percent on higher oil prices, and the company's profit beat Wall Street expectations.
Exxon Mobil, the world's largest publicly traded oil company, said today that it earned $5.44 billion, or 83 cents per share, in the January-March period. That was well ahead of the 75 cent estimate of analysts surveyed by Thomson First Call.
A year ago, the company earned $7.04 billion, $1.05 per share, including a $500 million gain from an accounting change and $1.7 billion from the sale of its interest in Germany's Ruhrgas AG. Without those items, the year-ago profit was $4.79 billion, or 71 cents per share.
Revenue in the most recent quarter rose to $67.6 billion, up from $63.8 billion a year earlier.
Reports beat expectations
BOSTON -- The Gillette Co. today reported a 43 percent increase in first quarter profits, beating analysts' expectations on strong sales of its shaving, battery and oral care products.
The company reported net income of $376 million, or 37 cents per share, in the January-March period compared to $263 million, or 25 cents per share a year ago.
Analysts surveyed by Thomson First Call expected earnings of 30 cents per share.
Boston-based Gillette said net sales were up 13 percent to $2.24 billion, from $1.97 billion a year ago. The company said favorable foreign exchange rates in Europe and Asia contributed 7 percentage points to the gain.
Crew shortage cuts into earnings
OMAHA, Neb. -- A train crew shortage and a charge of $35.8 million to pay for a court judgment hurt profits in Union Pacific Corp.'s first quarter, but demand for its services continued to grow, executives said today.
Burgeoning demand is more evidence of an improving U.S. economy, chief executive Dick Davidson said.
Union Pacific, which owns the nation's largest railroad, had net income of $165 million, or 63 cents per share, on revenue of $2.89 billion for the quarter ended March 31. Net income in last year's first quarter came to $429 million, or $1.67 per share, on $2.73 billion in revenue.
Sales can't beat 2003 tax gain
FORT LAUDERDALE, Fla. -- AutoNation Inc., the largest U.S. retailer of new and used cars, said first-quarter net income fell 53 percent as higher sales and reduced costs failed to offset a U.S. Internal Revenue Service settlement that boosted earnings by $127.5 million a year ago.
Net income fell to $87.3 million, or 32 cents a share, from $185 million, or 63 cents, a year earlier. Sales rose 7.6 percent to $4.8 billion from $4.46 billion, the Fort Lauderdale, Fla.- based company said today in a statement.
AutoNation's revenue growth is a sign that the company's inventory management systems are starting to produce results, Chief Executive Michael Jackson said in an interview.
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