Hilton’s Income Soars 58%; Mattel Up 19%
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Hilton Hotels Corp. said Tuesday that second-quarter earnings surged 58% on higher room rates at its luxury hotels and the purchase of casino company Bally Entertainment Corp.
Net income rose to $93 million, or 36 cents a share, from $59 million, or 30 cents, a year earlier. Revenue rose 35%, to $1.36 billion from $1 billion.
For the record:
12:00 a.m. July 24, 1997 For the Record
Los Angeles Times Thursday July 24, 1997 Home Edition Business Part D Page 3 Financial Desk 1 inches; 34 words Type of Material: Correction
Hilton Hotels--A story on Tuesday about Hilton Hotels Corp.’s second-quarter earnings misstated the direction of room rates at the company’s Las Vegas casino-hotels. Average room rates at the three properties rose during the second quarter.
The per-share results beat by 2 cents the average estimate of analysts.
The surge in profit came as Hilton pursues a $10.5-billion hostile takeover of ITT Corp., which owns the Sheraton hotel chain and the Caesars World casinos. Hilton especially wants to add ITT’s profitable luxury hotels to its portfolio.
Shares in Beverly Hills-based Hilton rose $1.63 to close at $30.44 on the New York Stock Exchange.
Strong demand enabled Hilton to boost room prices at its luxury and upscale hotels by an average of 8%. Hilton also benefited from its $3-billion purchase of Bally last year, although those gains were partly offset by lower room rates at its Las Vegas casinos.
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El Segundo-based Mattel Inc. said second-quarter earnings rose 19% on sales of Barbie dolls, Hot Wheels cars and other toys.
The largest U.S. toy maker said net income rose to $75.6 million, or 25 cents a share, from $63.4 million, or 21 cents, in the year-earlier period. That beat by a penny the average estimate of analysts.
Revenue rose 5.5%, to $972.7 million from $921.6 million.
Mattel said demand for its Sesame Street and Walt Disney Co.’s Winnie the Pooh brands of infant and preschool toys offset declining sales of Fisher-Price brand preschool toys.
Sales in the U.S. rose 10%. Overseas, sales fell 5% because of the strength of the dollar compared with other currencies. Excluding the effect of foreign exchange, international sales rose 1%.
At a Glance:
Netscape Communications Corp. reported second-quarter earnings before a charge that were in line with analysts’ expectations, on strong demand for its products. The Mountain View-based Internet software maker reported earnings before a charge of $8.8 million, or 10 cents a share, compared with net income of $5.8 million, or 7 cents, in the year-earlier period.
The company took a charge of $52.6 million to write off in-process research and development and other expenses due to acquisitions. After the one-time charge, the company reported a loss of $43.8 million, or 49 cents a share.
Santa Clara-based Bay Networks Inc. reported better-than-expected fiscal fourth-quarter earnings of $30.5 million, or 15 cents a share, compared with $55.1 million, or 28 cents, in the same quarter a year ago.
With a $148.5-million charge for an acquisition, Bay Networks had a loss of $118 million, or 59 cents, in the most recent quarter.
Pacific Enterprises, the Los Angeles-based parent of Southern California Gas Co., reported second-quarter net income of $57 million, or 70 cents per share, compared with net income of $56 million, or 67 cents, in the year-earlier quarter.
Avery Dennison of Pasadena reported second-quarter net income of $49.6 million, or 47 cents per fully diluted share, compared with net income of $41.6 million, or 38 cents, for the year-earlier period.
Los Angeles-based Sanwa Bank California said second-quarter net income rose 38% to $22.7 million, from $16.4 million in the year-ago quarter.
San Diego-based Qualcomm Inc. said fiscal third-quarter profit rose sixfold to $35.9 million, or 49 cents per share, after a one-time gain, compared with $1.51 million, or 2 cents, in the year-earlier period.
Western Atlas Corp., based in Beverly Hills, reported second-quarter income from continuing operations of $24.5 million, or 45 cents per share, compared with income from continuing operations of $21.7 million, or 40 cents, a year ago.
Tandem Computers Inc. of Cupertino said fiscal third-quarter profit almost doubled to $43.2 million, or 36 cents a share, from $23.3 million, or 20 cents, in the year-ago quarter.
Good Guys of San Francisco reported a fiscal third-quarter net loss of $4.1 million, or 30 cents per share, compared with a loss of $3.4 million, or 25 cents, a year ago.
CyberMedia Inc., based in Santa Monica, reported second-quarter net income before one-time charges of $1.8 million, or 14 cents per share, versus a loss of $1.2 million, or 15 cents, a year ago.
Borland International of Scotts Valley reported fiscal first-quarter net income of $79,000, or 0 cents per share, compared with a loss of $21.8 million, or 60 cents.
StorMedia Inc. of Santa Clara reported a second-quarter net loss of $20.9 million, or $1.17 per share, contrasted with net income of $7.8 million, or 42 cents, a year ago.
S3 Inc. of Santa Clara said second-quarter net income fell 74% to $2.3 million, or 5 cents a share, compared with $8.8 million, or 18 cents, a year ago.
Naturade Inc. reported fiscal third-quarter earnings of $34,362, or 1 cent per share, compared with $188,883, or 7 cents, a year ago.
* MORE EARNINGS: D3, D4
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