Snapple-Free Quaker Oats Co. Posts 18% Profit

In its first earnings report since ridding itself of Snapple Beverages, Quaker Oats Co. on Thursday said its second-quarter profit rose nearly 18% on strong cereal and Gatorade sports-drink sales.

For the three months ended June 30, Quaker Oats, the Chicago-based maker of Cap’N Crunch cereals, Rice-A-Roni and Aunt Jemima products, reported net income of $75 million, or 57 cents a share, compared with $63.6 million, or 47 cents a share, a year ago.

The results exceeded Wall Street expectations by a penny. Quaker’s stock jumped $2 to close at $47.13 on the New York Stock Exchange.

At a Glance:

Meanwhile, other major consumer product makers said second-quarter earnings rose as they blanketed the globe with their most recognizable brands.

Colgate-Palmolive Co. said net income rose 18% to $175.8 million, or 58 cents per share, for the quarter ending June 30. A year ago, Colgate posted profit of $148.9 million, or 49 cents per share.

Avon Products Co. said net income rose 11% to $95.2 million, or 72 cents a share, from $85.7 million, or 64 cents, a year earlier, matching the average estimate of analysts.

Church & Dwight Corp., the maker of Arm & Hammer baking soda products, said its net rose 19% to $7.3 million, or 31 cents. The results met or exceeded analyst expectations. A year ago, it reported quarterly net income of $6.1 million, or 31 cents.

Digital Equipment Corp. said fiscal fourth-quarter earnings more than doubled, beating estimates, although the beleaguered computer maker’s revenue dropped for the fifth straight quarter. Digital’s profit rose to $123.9 million, or 75 cents a share. A year earlier it earned $59.2 million, or 33 cents, before a charge.

Delta Air Lines named a temporary chief executive to replace Ronald W. Allen and said its fiscal fourth-quarter profit rose nearly 90% over figures that were depressed last year by a massive restructuring charge.

Delta earned $301 million, or $3.98 per share, up from $161 million, or $2.69 per share, a year earlier.

Maurice Worth was named acting chief executive.

Southwest Airlines said slightly higher fares and an increase in traffic boosted its second-quarter profit 10% to $93.8 million, or 62 cents a share, compared with $85.3 million, or 56 cents, a year ago.

And ValuJet Airlines reported a wider-than-expected second-quarter loss of $9.23 million, or 17 cents a share, compared with a loss of $9.57 million, or 18 cents, a year earlier. ValuJet was expected to lose 12 cents a share.

Xerox Corp. said second-quarter earnings rose 15% on higher sales of digital copiers, beating expectations, though the company warned that a rising dollar could hurt earnings later this year. Net income rose to $337 million, or $1 a share, from $293 million, or 85 cents, in the year-ago period.

Starbucks Corp. said fiscal third-quarter earnings rose a better-than-expected 55% to $14.6 million, or 18 cents a share, from $9.4 million, or 12 cents, a year ago.

Phillips Petroleum Co. said second-quarter profit fell 3.2% to $214 million, or 81 cents a share, from $221 million, or 84 cents, a year earlier.

Tosco Corp. said second-quarter earnings rose 16% to $67.1 million, or 43 cents a share, from $57.7 million, or 48 cents, in the year-ago quarter.

Sun Co. second-quarter profit more than doubled to $105 million, or $1.07 a share, compared with $50 million, or 50 cents, before a charge and earnings from discontinued operations in the year-ago period.

Southern Co.’s second-quarter profit fell 25% to $215 million, or 31 cents a share, from $287 million, or 43 cents, in the year-earlier period.

Baxter International Inc. said second-quarter profit from continuing operations rose 14% to $162 million, or 58 cents a share, from $142 million, or 52 cents, before a gain in the year-earlier period.

UST Inc. said second-quarter earnings fell 1.8% to $116.9 million, or 64 cents a share, from $119.1 million, or 62 cents, a year earlier.

R.R. Donnelly & Sons Co. said second-quarter earnings fell 27% to $37.7 million, or 26 cents a share, from $52 million, or 34 cents, in the year-earlier quarter.

Cheesecake Factory Inc. reported second-quarter net income of $2.4 million, or 22 cents per share, compared with $2.1 million, or 19 cents, in the year-ago period.

Silicon Graphics Inc. said fiscal fourth-quarter profits rose to $102.4 million, or 56 cents a share, contrasted with a loss of $48.7 million, or 30 cents, a year ago because of acquisition costs.

Gateway 2000 Inc. said second-quarter earnings rose 10% to $56.5 million, or 36 cents a share, up from $51.4 million, or 33 cents, in the year-ago period.

Quarterdeck Corp. reported fiscal third-quarter earnings of $1.1 million, or 2 cents per share, compared with a loss of $23.3 million, or 67 cents, in the year-earlier period.

AirTouch Communications Inc. said second-quarter earnings rose 69% before a gain to $103 million, or 18 cents a share, from $61 million, or 12 cents, a year earlier. After the tax-related gain of $16 million, or 3 cents a share, net income was $119 million, or 21 cents.

Dow Chemical Co. said second-quarter earnings fell 5.3% to $517 million, or $2.25 a share, from $546 million, or $2.20, in the year-ago quarter. The number of shares outstanding fell 7.2% to 229.9 million from 247.7 million.

MGM Grand Inc.’s second-quarter earnings rose 60% to $33 million, or 56 cents a share, from $20.6 million, or 41 cents, a year earlier.

Hollywood Park Inc. reported second-quarter earnings of $5.1 million, or 27 cents a share, compared with $4.8 million, or 25 cents, a year ago.

Adolph Coors Co. said second-quarter profit more than doubled due to an extraordinary gain to $51.0 million, or $1.36 a share, compared with $23.8 million, or 63 cents a share, a year earlier.

James River Corp. said second-quarter earnings jumped nearly 200% to $90.8 million, or 81 cents a share, compared with $30.5 million, or 18 cents, a year ago.

American International Group’s second-quarter profit excluding gains from investment sales rose 13.9% to $811.4 million, or $1.73 a share, from $712.6 million, or $1.51, a year earlier.

Perkin-Elmer Corp.’s fiscal fourth-quarter profit rose 40% to $38.6 million, or 85 cents a share, from $27.6 million, or 63 cents, a year earlier.

CalEnergy Co.’s second-quarter earnings rose 60% to $30.9 million, or 47 cents a share, from $19.3 million, or 35 cents, in the year-earlier period.

Dial Corp. reported second-quarter net income of $20.4 million, or 22 cents a share, compared with $19.3 million, or 22 cents, in the year-ago period, which included charges.

U.S. Surgical Corp. said second-quarter profit rose 22% to $33 million, or 44 cents a share, from $27 million, or 38 cents, in the year-ago period.

North Face Inc. reported second-quarter net loss of $2.0 million, or 17 cents per share, compared with a loss of $2.4 million, or 33 cents, a year ago.