EARNINGS : Buyouts Push CBS Earnings Down 53%

CBS Inc. reported Wednesday that its second-quarter earnings fell 53% from a year ago because of weaker-than-expected ratings and a special charge related to staff reductions.

Earnings totaled $51.9 million, or 80 cents per share, for the quarter, down from $109.3 million, or $1.36 a share, for the second quarter of 1994, the company said. Sales rose 1% to $889.6 million from $882.7 million.

The second-quarter earnings included a pretax charge of $32.3 million, or 32 cents a share, for staff reductions, which included an early retirement program. CBS said that without the charge, earnings fell 18% to $1.12 per share.

“Despite a generally strong advertising climate, the television network’s weaker-than-expected ratings reduced its market share of national television advertising, affecting sales and profits adversely,” Chairman and Chief Executive Laurence A. Tisch said in a statement.

The New York-based company said network profits were also hurt by higher compensation paid to CBS’ affiliated TV stations for long-term affiliation agreements and by higher programming costs.

Although operating income for the CBS Television Network fell in the quarter, sales and profits rose for both the CBS Television Stations and the CBS Radio divisions.

For the first six months of the year, earnings fell 59% to $73.7 million, or $1.12 a share, from $178.6 million, or $2.21 a share, for the first half of 1994. Sales declined 16% to $1.79 billion from $2.13 billion.

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First Union Corp., which announced plans last month to acquire a New Jersey bank in the biggest bank merger to date, said its second-quarter earnings rose 8%, fueled by strong loan growth.

The Charlotte, N.C.-based financial holding company earned $249 million, or $1.45 a share, for the quarter ended June 30, up from $229.6 million, or $1.32 per share, for the 1994 second quarter.

Loans were up 8% to $60 billion compared to last year. Credit card, home equity and other consumer loans fueled the growth, the bank said.

Net interest income--interest earned from loans and investments minus interest paid on deposits and the bank’s own borrowings--rose to a record $836 million for the latest quarter, compared to $775 million last year.

For the six months ended June 30, First Union earned $486 million, or $2.77 a share, up from $452 million, or $2.59 a share, for the period last year.