DreamWorks Swings to Profit

The ogre in the animated blockbuster “Shrek 2” continued to produce an abundance of green for DreamWorks Animation SKG Inc. during the fourth quarter, while the comedy “Shark Tale” did swimmingly at the box office.

The Glendale-based maker of computer-animated films Thursday said it earned $192 million, or $1.99 a share, thanks to “Shrek 2” DVD sales and the theatrical performance of “Shark Tale.”

A year earlier, DreamWorks lost $36.6 million, or 48 cents a share. Revenue more than tripled in the fourth quarter to $495.7 million.

The results came as DreamWorks released two films in a single year, unusual for an industry where the complicated logistics are such that companies at best can usually hatch only one.

“People here are really jazzed,” said DreamWorks Animation Chief Executive Jeffrey Katzenberg. “We knew when we set out to do this we were taking on a lot and it would be a real challenge to do it. But we can deliver a quality product twice a year.”

For 2004, DreamWorks earned $333 million, or $4.05 a share, compared with a loss of $187.2 million, or $2.41 a share. Revenue more than tripled to $1.08 billion.

DreamWorks said “Shrek 2” generated more than $360 million in revenue for the fourth quarter alone. “Shark Tale” brought in $316 million worldwide -- $62 million of it in fourth-quarter revenue. “Shark Tale” is expected to sell 20 million home video units worldwide, exceeding analyst expectations.

DreamWorks’ shares closed at $38.35, up 65 cents, on the New York Stock Exchange.

The fourth-quarter results were released after the market closed.

DreamWorks faces increasing competition from other Hollywood studios, with five computer-animated films scheduled for release this year. Katzenberg predicted there was plenty of room for all.

“People are talking about a flood of product into the marketplace,” he said. “We are barely seeing a dribble. If there were 60 of these movies [a year] then we should start to have this conversation, but with six or seven or eight, I don’t really think it’s an issue.”

DreamWorks will release the animal-themed comedy “Madagascar” on May 28 featuring the voices of Ben Stiller and Jada Pinkett Smith. In October, the company releases “Wallace & Gromit,” a stop-motion film made by Aardman Animations, the creators of “Chicken Run.”

Investors will be looking to “Madagascar” to outperform “Shark Tale,” which ended up grossing $161 million in domestic box office.

“The stock is going to reflect the success of Madagascar, I have no doubt about that,” said Anthony DiClemente, an analyst with Lehman Bros. “The pressure is on ... but zoo animals are good for the box office.”