Southwest Airlines Profit Soars 65%
Southwest Airlines Co. said fourth-quarter profit rose 65% as the largest low-fare carrier flew more passengers, used contracts to lessen the effect of higher fuel prices and increased fares.
Net income grew to $154.7 million, or 29 cents a share, from $93.8 million, or 18 cents, in the year-earlier quarter, on a 22% rise in revenue to $1.47 billion, the Dallas-based company said.
The earnings were a penny higher than the average forecast of 28 cents by analysts polled by First Call/Thomson Financial.
The airline also said it would change the color scheme of its planes, adding a “canyon blue” top strike to its traditional red, orange and gold. In addition, it will add new, all-leather blue and gold seats to the planes’ cabins.
At a Glance
Other earnings, excluding one-time gains or charges unless noted, include:
* Abbott Laboratories said fourth-quarter earnings rose 13% to $753.4 million, or 48 cents a share, meeting expectations, with help from cost-cutting. The drug company, which also makes the Ensure nutritional drink and medical tests, said sales rose 6.8% to $3.70 billion.
* Golden State Bancorp, holding company for California Federal Bank and the nation’s second-largest thrift, said fourth-quarter profit rose 5.5% to $89.3 million, or 63 cents a share, as people opened more checking accounts and took out more mortgages. The results met analyst expectations.
* Minnesota Mining & Manufacturing Co. said fourth-quarter profit edged up 0.7% to $447 million, or $1.12 a share, well below the $1.20 analysts expected, on reduced demand for its products, which range from Scotch tape to electrical insulation. Sales rose 2% to $4.1 billion.
* Rockwell International Corp. said profit fell 15% to $134 million, or 73 cents a share, because of weakening demand for its automation products, but the results beat analyst forecasts of 68 cents. Revenue rose 2.4% to $1.7 billion. The company also said it expects fiscal 2001 earnings to beat estimates due to better-than-expected results in its control systems business in the first quarter.
* Washington Mutual, the nation’s largest thrift, said after markets closed that fourth-quarter earnings rose 10% to $496.9 million, or 94 cents a share, beating the average Wall Street estimate of 91 cents. Results were boosted by a 30% surge in non-interest income.
The company, which said it expects 2001 will be “a very strong year,” raised its quarterly dividend to 31 cents a share from 30 cents.
