Time Warner Profit Up Sharply

Time Warner Inc. reported a fourth-quarter profit of $247 million, as it cut costs and a strong economy boosted cable television and magazine advertising.

Chairman and Chief Executive Gerald Levin’s drive to whittle down Time Warner’s $17-billion debt is paying off, as interest expenses fell $180 million in the quarter. He predicted record profit this year as the company holds down capital spending and cuts debt even more.

“The strategy of clearing the balance sheet is working,” said PaineWebber analyst Christopher Dixon. “There is every reason to believe they are on track for sustained growth of 12% to 15%.”

Time Warner stock rose $1.75 to $65.56 on the New York Stock Exchange, closing just below its 52-week high of $65.81.

In the year-earlier quarter, New York-based Time Warner reported net income of $59 million, or a loss of 3 cents after the payment of preferred stock dividends.

Time Warner’s debt, which has hampered its results since the late 1980s, fell about $850 million to $16.9 billion in 1997.