AMR Reports Biggest 1st-Quarter Profit Ever

AMR, the parent of American Airlines, on Wednesday reported the biggest first-quarter profit in its history, a result fueled by higher ticket prices and fuller airplanes. Trans World Airlines’ first-quarter loss narrowed 70% as its revenue increased and the company started flying some new routes.

Fort Worth-based AMR earned $157 million, or $2.02 per share, for the three months ended March 31. That compares with earnings of $37 million, or 48 cents per share, for the same period a year earlier. The results exceed an average earnings estimate of $1.24.

Separately, AMR said it will make Sabre, its lucrative computer reservations system, a separate division. Analysts said the airline may be preparing to sell or split off Sabre and its affiliated subsidiaries.

TWA’s first-quarter loss, which equaled 98 cents a share, compares with a net loss of $123 million for the first three months of 1995. The St. Louis-based company did not report earnings per share for last year’s quarter.

TWA President Jeffrey H. Erickson said the results are in line with the company’s expectations.

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BankAmerica and Fleet Financial Group said fees, lending and a cap on expenses boosted first-quarter profits.

At San Francisco-based BankAmerica, the third-biggest U.S. bank, profit jumped 18%, helped by tight expense controls and lower federal deposit insurance premiums. Net income rose to $720 million, or $1.79 a share, from $611 million, or $1.46, a year ago.

That exceeds the average forecast of $1.73 a share.

Boston-based Fleet, the 10th-largest bank, said earnings grew 16% as gains from the acquisition of Shawmut National Corp. offset lower lending revenue. As expected, Boston-based Fleet’s net income rose to $263.8 million, or 94 cents per fully diluted share, from $226 million, or 82 cents, for the same period last year. The bank did not release primary per-share earnings.

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In the aerospace sector, Los Angeles-based Northrop Grumman reported 13% higher earnings with improved defense-electronics performance helping offset losses on work for financially ailing Fokker Aircraft.

First-quarter net income was $61 million, or $1.23 per share, compared with $54 million, or $1.10 per share, a year earlier. Analysts had expected earnings of $1.19 a share.

Rockwell International reported 12% higher earnings. Net income for the second quarter was $214 million, or 98 cents a share. That was up from $191 million, or 88 cents a share, a year earlier. Analysts had expected earnings of 94 cents.

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At a Glance:

Coca-Cola’s profit rose 12% in the first quarter to $713 million, or 57 cents a share, compared with $638 million, or 50 cents a share, for the quarter last year. . . . Merck said earnings rose 14% for the first quarter to $863.8 million, or 70 cents a share, up from $757.4 million, or 61 cents, for the year-ago period. . . . Occidental Petroleum reported first-quarter net income of $134 million after a $30-million charge, or 35 cents per share, compared with $178 million, or 49 cents per share, for the period last year. . . . Black & Decker’s first-quarter profit rose 35% to $34.6 million, or 35 cents a share, compared with $25.7 million, or 27 cents, a year ago. . . . SBC Communications said its first-quarter profit rose 17% to a record $464 million, or 76 cents a share, from $395.2 million, or 65 cents, a year ago.

Teledyne reported first-quarter earnings fell 3% to $62.5 million, or $1.11 per share, compared with $64.3 million, or $1.16 per share, for the same period last year. . . . Allstate said its first-quarter earnings fell 25% to $342 million, or 76 cents a share, from $456 million, or $1.01, a year earlier. . . . Smart & Final reported first-quarter earnings rose to $4.2 million, or 20 cents per share, compared with $3.5 million, or 17 cents, a year ago.

Dial said its first-quarter profit rose 14% to $24.5 million, or 27 cents a share, compared with profit of $21.5 million, or 24 cents, a year earlier. . . . Colgate-Palmolive said its first-quarter net income fell 8.3% to $143.5 million, or 95 cents a share, compared with $156.5 million, or $1.05, a year ago. . . . Ball said its first-quarter profit fell to $9.6 million, or 32 cents a shares, down from $12.8 million, or 43 cents, for the year-ago quarter. . . . Harrah’s Entertainment said first-quarter profit rose to $32.9 million, or 31.5 cents a share, compared with $28.7 million, or 28 cents a share, last year.