Warner Communications Earnings Increase Strongly

Warner Communications, relishing its continued rebound from Atari losses of two years ago, reported a 42% earnings jump to $30.5 million for the three months ended March 31. Revenue increased 22% to $688.6 million.

Although Warner reported gains in each of its four business segments, the filmed entertainment unit turned in the best performance, with operating income of $45 million, up 11% from the first quarter of last year.

The earnings were reported at the company’s first shareholder meeting in nearly two years. Several meetings were postponed or canceled last year due to disagreements between Warner management and the company’s largest stockholder, Chris-Craft Industries, which controls nearly 30% of the voting shares.

In response to a shareholder’s question about their relationship, Chairman Steven J. Ross and Chris-Craft Chairman Herbert J. Siegel shook hands, amid some laughter. After the meeting, however, both men indicated that fundamental differences remain.

Siegel, in a brief interview, said that Chris-Craft is “still trying to get (Warner) to consider” a repurchase of some Warner shares. But Ross, questioned separately, said, “We’re not considering it.”