WRAP: TRIBUNE Q3 BEATS STREET, TO SELL TIMES MIRROR UNIT
The No. 3
newspaper publishing company in the United States, said Friday that
third-quarter earnings came in ahead of expectations, driven by record results
in broadcasting and online operations, and announced it will sell its Times
Mirror Magazines unit to Time Warner Inc. for $475 million. Profit from
continuing operations was 22 cents per share, a penny above the Wall Street
consensus estimate, but 31.2% below the 32 cents a share posted a year ago, as
Tribune's recent acquisition of the Times Mirror Co. diluted bottom-line results
for the quarter by 12 cents a share. Operating revenues grew 89% year-over-year
to $1.36 billion from $717.4 million last year, while on a pro-forma basis,
revenues edged up 3% year-over-year to $1.4 billion from $1.3 billion. Tribune's
pro-forma results assume that the company's acquisition of Times Mirror Co.,
which closed earlier this year. Earnings
before interest, taxes, depreciation and amortization, or EBITDA, came in at
$351 million based on continuing operations during the third quarter, up 61.7%
from $217 million last year. Pro-forma EBITDA grew 4% to $351 million from $338
million year-over-year.
Tribune's stronger-than-expected third-quarter results were driven by record
results at the company's broadcasting unit and solid double-digit revenue gains
at Tribune Interactive, its online operations. In a statement, Tribune Chairman,
President and Chief Executive John Madigan expressed optimism about his
company's future growth. "With our valuable media businesses and financial
strength, Tribune is well positioned for growth," he said. For the fourth
quarter, Tribune continues to be comfortable with an earnings-per-share range of
35 cents to 40 cents a share from continuing operations, excluding non-operating
items, the company said. The current analysts' consensus estimate lies at 37
cents per share, as polled by First Call Corp. For the full year, Tribune
expects profits to come in at between $1.30 and $1.35 per share. The First Call
projection is for $1.30 per share. Tribune's Broadcasting and Entertainment
unit, which was not affected by the Times Mirror acquisition, saw revenues reach
$365 million, up 7% from the year-ago result of $341 million. The unit's
operating profit rose 4% to a third-quarter record of $101 million. Television
revenue grew 10% to $293 million. Tribune's publishing division saw its
third-quarter pro forma revenues edge up 1% to $982 million from $973 million,
while pro forma operating profit fell to $164 million from $171 million on
higher newsprint prices. The company's interactive unit, which runs its online
operations, reported that third-quarter revenues more than doubled
year-over-year to $13 million from $6 million. Operating losses at the unit
widened to $11 million from $8 million. On Friday, Tribune also announced it has
reached an agreement with entertainment giant Time Warner Inc.'s Time Inc.
publishing unit for the purchase of Times Mirror Magazines, a Tribune unit that
publishes special interest and leisure-oriented magazines. Tribune will sell
Times Mirror Magazines to Time Inc. for $475 million in cash, a price above most
observers' expectations and, according to a report in Friday's edition of The
Wall Street Journal, above the bids from other publishing companies, some of
which valued the unit at close to $350 million. Chicago-based Tribune has
broadcasting interests that include 22 television stations, TV programming unit
Tribune Entertainment and a 25% stake in the WB network. In addition, Tribune
owns the Chicago Cubs baseball team. Shares of Tribune fell 62 cents to $35.81
in morning trade on the New York Stock Exchange. End
[slug: TRIBUNE-EARNS]
The Bridge ID for this story is 05971
HONEYWELL CONFIRMS THAT UTC HAS TERMINATED MERGER DISCUSSIONS; HONEYWELL
CONSIDERING ALTERNATIVE PROPOSALS
Honeywell (NYSE: HON)
today confirmed that United Technologies has terminated its merger discussions
with Honeywell, and that Honeywell is considering alternative proposals.
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ERICSSON SHARES SLASHED AFTER PROFIT WARNING
Ericsson, the world's third-largest
handset maker, on Friday reported earnings that were in line with estimates, but
lowered its growth forecasts for the fourth quarter, sending its stock
reeling.
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WRAP: COCA-COLA BEATS Q3 EARNINGS FORECASTS AS SALES VOLUMES GROW
Soft-drink giant Coca-Cola Co.
earned more than analysts expected in the third quarter, the company said
Friday, as growing sales volumes overseas more than made up for flat sales in
North America. The world's largest soft-drink maker reported operating profit of
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WRAP: ANTI-CHOLESTEROL DRUG ZOCOR HELPS MERCK BEAT PROFIT FORECASTS ...
(Update1
(adds closing share price)
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WRAP: TRIBUNE Q3 BEATS STREET, TO SELL TIMES MIRROR UNIT (UPDATE1)
(adds closing share price)
The No. 3 newspaper
publishing company in the United States, said Friday that third-quarter earnings
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UTC TERMINATES MERGER DISCUSSION WITH HONEYWELL
United Technologies
Corp. (NYSE: UTX) announced that Honeywell International, Inc. has advised
United Technologies that it is considering an alternative merger proposal
received this morning. United Technologies has terminated its merger discussions
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Strong sales of the anti-cholesterol drug
Zocor and the arthritis medicine Vioxx helped Merck & Co. Inc. surprise
investors with third-quarter earnings per share nearly 7% higher than analysts
expected. The Whitehouse Station, N.J.-based company said Friday that earnings
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