Drop in Travel Widens Continental’s Net LossContinental...
Drop in Travel Widens Continental’s Net Loss
Continental Airlines Inc., the fifth-largest U.S. carrier, said its first-quarter loss widened as war in Iraq hurt demand for travel and pushed up fuel prices.
The net loss increased to $221 million, or $3.38 a share, from $166 million, or $2.61, in the same quarter last year, the company said. Sales rose 2.5% to $2.04 billion.
Continental said average fares fell because of the war and terrorism fears. Asian travel also declined on the outbreak of severe acute respiratory syndrome, or SARS. The airline said fuel prices rose 64% as war raised fears of oil supply disruptions.
Bookings were recovering in most markets, Continental President Larry Kellner said, except for flights to Asia.
Shares of Houston-based Continental rose 80 cents, or 14%, to $6.49 on the NYSE.
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Motorola Inc. rode a continued modest recovery in its cell phone business to a $169-million profit in the first quarter -- its third straight quarter in the black after a two-year slide. Net income rose to 7 cents a share, contrasted with a net loss a year earlier of $449 million, or 20 cents. Sales fell 2% to $6.04 billion.
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* Seagate Technology of Scotts Valley, Calif., said fiscal third-quarter profit declined 9.8% because of costs to develop products and falling prices on its older models. Net income fell to $174 million, or 37 cents a share, from $193 million, or 45 cents, in the year-earlier quarter. Sales dropped 4.2% to $1.62 billion.
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Handspring Inc., a Mountain View, Calif., maker of hand-held computers, said its third-quarter loss more than tripled and sales dropped for a sixth straight quarter. The loss widened to $90.4 million, or 62 cents a share, from $23.7 million, or 18 cents, a year earlier. Sales fell 48% to $30.8 million.
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Insurance company Conseco Inc., which filed for Chapter 11 bankruptcy protection in December, said it had a 2002 net loss of $7.84 billion, about $400 million more than it estimated two weeks ago.