Pixar Reports a Profit Increase of Nearly 90%

On the strength of its computer-animated blockbuster film “Monsters, Inc.,” Pixar Animation Studios said Wednesday that its first-quarter profit rose nearly 90%.

Pixar, headed by Apple Computer Inc. co-founder Steve Jobs, earned $15.6 million, or 30 cents a share, on revenue of $37.1 million in the quarter. That compares with earnings of $8.3 million, or 16 cents, on revenue of $16.2 million a year earlier. Analysts polled by Thomson Financial/First Call had estimated 23 cents a share for the Emeryville, Calif.-based company.

The strong numbers reflected box-office success for “Monsters, Inc.,” especially in foreign markets such as Japan. Since its November debut, the film has grossed $514 million in worldwide ticket sales. That makes it the most successful of a string of Pixar/Walt Disney productions that began with the 1995 hit “Toy Story.”

“The worldwide box-office success of ‘Monsters, Inc.’ cements Pixar’s position as the world’s most successful animation studio,” Jobs told analysts Wednesday.

Pixar and Disney last month announced plans for three more computer animated films: “Finding Nemo,” an underwater adventure (to be released in the summer of 2003); “The Incredibles,” an action adventure comedy (2004); and “Cars,” a comedy featuring cars as characters (2005).

Pixar makes the movies and Disney markets and distributes them. The companies split production costs and profit under a partnership that began in 1991.

The future of that relationship remains uncertain. Jobs told analysts that Pixar will green light its own fully financed film later this year. “We have no plans to negotiate any new deal with Disney or anyone else this year,” Jobs said.

The seven-picture deal expires in 2005, when Pixar could negotiate a better deal for itself or go independent.

Pixar raised its projections for 2002 earnings to $1.15 to $1.25 a share from the previous range of $1 to $1.20.

Its shares Wednesday closed at $41, up 94 cents, on Nasdaq.