Disney Reports Healthy Gains

Walt Disney Co.--boosted by product sales related to animated films and comparison to a period affected by last year’s Gulf War--said Monday that its second-quarter net income rose 30%.

During the January-March quarter, the Burbank-based entertainment company earned $164 million, or 31 cents per share, compared to $127 million, or 24 cents per share, a year earlier.

“The numbers are slightly better than everyone expected,” said Lisbeth R. Barron, an entertainment-industry analyst in New York for the securities firm of S.G. Warburg & Co.

The biggest generator of Disney’s revenue continued to be its theme parks and recreation unit, which posted a 15% quarterly gain, to $774.1 million. Disney acknowledged that the gain was magnified because the corresponding quarter encompassed the Gulf War, when theme-park attendance was down.

Consumer products revenue rose 55% to $240 million; operating income rose 33% at $73 million. Disney Chairman Michael Eisner attributed the gains to film character merchandise, particularly “The Little Mermaid,” “101 Dalmatians” and “Beauty and the Beast.”

Helped by three films that did well at the box office--”Beauty and the Beast,” “The Hand that Rocks the Cradle” and “Father of the Bride”--Disney’s filmed entertainment group posted revenue of $641 million, up 5%.