Eisner Bullish on Disney’s Future

Speaking to Wall Street for the first time since the Walt Disney Co. board vowed to find his successor by June, Chief Executive Michael Eisner said Tuesday that he planned to leave the company so robust that it would thrive for years after he leaves.

“It’s in my interest that when I leave, the company is in good enough shape that it will take a decade to screw it up,” Eisner said at an investor conference hosted by Goldman Sachs in New York.

In a 40-minute question-and-answer session, Eisner delivered his characteristically upbeat assessment of Disney’s prospects, pointing to a recovery in theme parks, gains at the ESPN sports cable powerhouse and the company’s consumer products unit.

But even as he summarized Disney’s outlook, the topic of succession was on his mind.

“By the way, I am not going to succeed Sumner,” he joked, referring to Viacom Inc. CEO Sumner Redstone, who has said he would step down within two years. Eisner drew chuckles when he added: “Although, he is on the short list for Disney.”

Eisner announced last month he would resign at the end of his contract in September 2006, capping a tumultuous year in which he fended off a shareholder revolt by investors unhappy with his management and the company’s long-term performance.

On Tuesday, however, Eisner portrayed Disney as a company on the rebound. He repeated earlier forecasts that Disney earnings would rise by more than 50% in the fiscal year that ended Sept. 30, and that the company would enjoy double-digit earnings growth over the next several years.

Aiding the growth will be Disney theme parks, which are benefiting from an upsurge in tourism that plummeted after the Sept. 11 attacks, he said. “We’ve recovered from the hurricanes amazingly,” he said, referring to the recent spate of storms that walloped Florida.

Eisner also pointed to a turnaround in Disney’s licensed merchandise business -- whose new Princess line alone generated $2 billion in sales -- and improvements at the ABC-TV network. The network is enjoying its strongest fall debut in years, garnering strong ratings for such new shows as “Desperate Housewives” and “Lost.”

“There’s a lot of high-fiving going on at ABC,” Eisner said.

Eisner did not directly address Disney’s relationship with its longtime partner Pixar Animation Studios, creator of the blockbusters “Toy Story” and “Finding Nemo.” This year Pixar ended talks to extend its partnership with Disney. It has two more films to deliver under its current deal: “The Incredibles,” which debuts Nov. 5, and “Cars,” which is due next year.

With or without Pixar, Eisner said, Disney will make two more “Toy Story” movies. Disney aims to become a major player in the competitive computer animation business, he said. “It’s our legacy and our heritage.”

Disney shares rose 34 cents to $23.88 on the New York Stock Exchange, a 2 1/2 month high.