Hilton Hotels’ Revenue Is Down 13% in 4th Quarter

The recession and tough competition in Las Vegas depressed Hilton Hotels Corp.’s 1991 net income by 25%, and operating profits continued to fall in the fourth quarter, the hotel-casino outfit said Tuesday.

During the October-December quarter, Hilton earned $29.6 million, or 62 cents per share, up 8% from $27.3 million, or 57 cents per share, during the same period in 1990. But the year-earlier quarter included an after-tax reserve of $6.5 million for potential losses on real estate.

Quarterly revenue declined 13%, from $325.6 million to $283.5 million.

For the full year, Hilton earned $84.3 million, or $1.76 per share, compared to $112.5 million, or $2.34 per share, during 1990. Revenue fell 1%, from $1.24 billion to $1.11 billion.

Barron Hilton, chairman and president, said the Gulf War, overbuilding throughout the hotel industry and a recession-caused downturn in travel had a “severe impact,” lowering occupancy levels and keeping room rates unchanged.

Gaming revenue fell 12%, mainly because of big reductions in volume and profits at the Las Vegas Hilton, he said.

Hilton said he was enthusiastic about the long-term potential of the company’s previously announced joint venture to develop a nationwide system of time-share resorts.

“It is our belief that Hilton will emerge from this recession in a strengthened competitive position,” he said.

* Motorola Inc.’s sales and earnings rose during the fourth quarter of 1991, despite sluggish U.S. and European markets, the company said.

Sales also improved for the full year, but profits slipped.

Fourth-quarter earnings totaled $126 million, or 96 cents a share, compared to $109 million, or 82 cents a share, a year earlier. Sales were up 4% to $3.04 billion from $2.93 billion.

For the year, earnings were $454 million, or $3.44 a share, compared to $499 million, or $3.80 a share, a year earlier. Sales increased to $11.34 billion from $10.88 billion.

The Schaumburg, Ill.-based company’s semiconductor, paging and cellular subscriber businesses did well in the final quarter, said Gary L. Tooker, president and chief operating officer.

Tooker said the company’s business continues to expand in Asia, even though it lagged elsewhere.

George Fisher, chairman and chief executive, said he sees little improvement in the European and U.S. economies during the first half of 1992, but there is a potential for modest growth in the final six months. The longer term is more promising, he said.

“World events in 1991 make us more confident than ever that we are in the decade of wireless communication,” Fisher said. “The emergence of market-driven economies in Eastern Europe and throughout the developing world indicates that the microelectronic revolution has only begun.”

Earnings, D10