Earnings briefs for May 5, 2004

Wednesday, May 5, 2004 | 11:12 a.m.

Broadcaster's profit rises

SAN ANTONIO -- Clear Channel Communications Inc., the largest U.S. radio broadcaster, said first-quarter profit rose 64 percent, helped by higher prices for advertising on the company's billboards.

Net income increased to $116.5 million, or 19 cents a share, from $71 million, or 12 cents, a year earlier, the San Antonio- based company said Tuesday in a statement. Sales rose 11 percent to $1.97 billion.

Sales at Clear Channel's outdoor advertising unit rose 16 percent as larger markets such as Miami and Atlanta recorded increases. The outdoor unit, Clear Channel's fastest-growing last year, is getting a boost as advertisers seek alternatives to television and newspapers. Clear Channel also benefited from a 17 percent sales jump at its live entertainment unit.

Clear Channel operates radio stations in Las Vegas including KSNE 106.5 FM and KWNR 95.5 FM.

Revenue drives profit increase

CHICAGO -- Insurance brokerage and consulting company Aon Corp.'s profit rose 12 percent in the first quarter, boosted by higher revenue.

The Chicago-based company late Tuesday reported net income of $170 million, or 53 cents a share, which was up from the prior year's $152 million, or 48 cents a share.

Aon's income from continuing operations climbed to $192 million, or 60 cents a share from the previous year's $160 million, or 51 cents a share. The latest results beat projected earnings of 56 cents a share that were forecast, on average, in a Thomson First Call survey of analysts.

Sales fall at phone company

DENVER -- Qwest Communications International Inc., the fourth-biggest U.S. local-telephone company, had a first-quarter net loss of $310 million after customer defections drove down sales.

The net loss was 17 cents a share, compared with net income of $152 million, or 9 cents, a year earlier, Denver-based Qwest said Tuesday in a statement. Sales declined 3.9 percent to $3.48 billion from $3.62 billion.

The number of local lines in service fell 4.9 percent, faster than in the preceding quarter, as some customers defected to wireless carriers. Chief Executive Richard Notebaert, unlike his counterparts at the nation's three largest local-phone companies, doesn't have a wireless unit to cushion the losses, which have contributed to three years of declining sales.

Utility owner turns profit

SAN FRANCISCO -- PG&E Corp., owner of California's largest utility, said first-quarter net income was $3.03 billion after the state approved an asset-value increase, compared with a bankruptcy-related loss of $354 million last year.

Net income was $7.21 a share, compared with a loss of 93 cents in the first quarter last year, San Francisco-based PG&E said in a statement Tuesday. Revenue rose 28 percent to $2.72 billion, from $2.13 billion a year earlier.

The California Public Utilities Commission in December approved increasing the value of PG&E's assets, including distribution lines and power plants, as part of the company's bankruptcy settlement. The settlement allowed PG&E to emerge from bankruptcy with investment-grade ratings.

Loss widens on sale of unit

EL SEGUNDO, Calif. -- DirecTV Group Inc., the biggest U.S. satellite-television service, said its first-quarter loss widened to $638.8 million because of expenses related to the sale of its commercial-satellite unit and a change in accounting practices.

The net loss of 46 cents a share compares with a loss of $50.9 million, or 4 cents, a year earlier, the El Segundo, Calif.-based company said in a statement Tuesday. Sales rose to $2.51 billion from $2.06 billion.

DirecTV said it had $478.6 million in non-cash expenses related to its agreement last month to sell PanAmSat Corp. to Kohlberg Kravis Roberts & Co. and $310.5 million in costs related to a change in how the company counts marketing expenses and costs to upgrade its systems.

Drug store owner boosts sales

PROVIDENCE, R.I. -- CVS Corp. reported a first quarter profit today nearly 25 percent higher than in the same period last year, boosted by sales of pharmacy products and goods at established stores.

The drug store operator reported a profit of $244.6 million, or 59 cents a share, in the three months ended ended April 3, up from $196.3 million, or 48 cents a share, in 2003.

Revenue at the Woonsocket-based company rose to $6.82 billion from $6.31 billion reported during the same period in 2003.

Sales at stores open at least a year rose 6.4 percent for the period, while pharmacy same store sales increased 8.3 percent, the company said.

Last month, CVS announced it would purchase 1,260 stores in the Eckerd drug chain, mostly stores in the southern United States. The company said today it expects to close the deal in June. The deal is subject to review by federal regulators.