PanAmSat Profit Plunges

PanAmSat Corp., the largest commercial-satellite operator, posted a 91% drop in first-quarter profit, which still beat analysts’ expectations, and warned that its second-quarter earnings will fall below Wall Street forecasts. PanAmSat, which is 81% owned by General Motors Corp.’s Hughes Electronics Corp., said net income fell to $4.9 million, or 3 cents a share, in the latest quarter. Analysts on average were expecting a loss of 7 cents. Revenue fell 31% to $205.2 million. PanAmSat attributed the decrease to one-time sales and lease revenue of $93.8 million that was recorded in the first quarter of 2000. There were no comparable transactions in 2001. PanAmSat said it expects second-quarter results to range from a loss of 2 cents a share to a profit of 2 cents a share. Analysts had predicted a profit of 7 cents. PanAmSat shares fell $1.53 to close at $33.62 on Nasdaq.