Net Income at Capital Cities Falls 2.3% in 4th Quarter

Capital Cities/ABC Inc. said Monday that its fourth-quarter net income fell 2.3% on declines in print and television operations and the cost of its sale to Walt Disney Co.

The publishing company and owner of the ABC Television network said net income fell to $235 million, or $1.53 a share, from $240.6 million, or $1.56, a year ago.

The most recent quarter included a $69.5-million gain from the sale of a nonoperating investment and a settlement of taxes from previous years, and a charge of $57.3 million for the costs of its sale to Walt Disney.

The company said operating profit at its broadcasting division fell 11% to $362 million, mostly because of slower advertising sales at its TV stations. Revenue rose 4% to $1.76 billion.

Publishing operating profit fell 28% to $30.3 million, primarily because of higher newsprint costs. Revenue rose 4.5% to $296.7 million.

For the year, Cap Cities said net income rose 7.2% to $728.6 million, or $4.73 a share, from $679.8 million, or $4.42, the year before. Revenue rose 7.8% to $6.88 billion from $6.38 billion.

The sale to Disney is expected to close after approvals have been received by the Federal Communications Commission.