Hilton Hotels Reports 37% Drop in 4th-Quarter Net

Hilton Hotels reported that its fourth-quarter earnings were off 37.6%. A major factor was a substantially lower level of non-operating profit in the most recent period, compared to a year earlier.

But the company said it was also hurt by labor strikes against United Airlines and New York City hotels, sizable renovation costs at the Waldorf-Astoria in New York and the Capital Hilton in Washington, a depressed market in many cities and poor gambling returns in Reno.

For the three months ended Dec. 31, the company earned $28.7 million, or $1.16 per share, on revenue of $184.3 million, compared to a year-earlier profit of $46 million, or $1.79 per share, on revenue of $181 million.

The most recent period included an after-tax gain of $4.3 million from the sale of the Shamrock Hilton in Houston, while the 1984 fourth quarter included an $18.2-million after-tax gain from the sale of Avco Corp. stock.

Hilton said earnings from hotel operations were off 11% in the fourth quarter while gaming operations were down 17%.