Earnings Reports for Nov. 1

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Seagram Beats the Street

Entertainment giant Seagram reported first-quarter earnings before charges today that beat Wall Street expectations, boosted by growth in thecompany’s music and recreation operations.

The company, which is in a $24 billion merger with Frenchutilities and media group Vivendi, said its net income was $21million, or 5 cents a share before accounting charges, comparedwith a loss of $95 million, or 22 cents a share, in the sameperiod last year.

Analysts on average had expected the Montreal-based companyto post earnings of 3 cents a share, according to FirstCall/Thomson Financial.

Including charges, the company reported a fiscalfirst-quarter loss of $369 million, or 84 cents a share,compared with a loss of $124 million, or 29 cents a share, inits fiscal first quarter of 1999.

Seagram, which owns Universal Studios and Universal MusicGroup, said revenues fell 3 percent to $3.5 billion from $3.6billion in the same period last year.

Seagram will create Vivendi Universal with Vivendi and itscable TV unit Canal Plus. The deal, which has been cleared byU.S., Canadian and European Union regulatory bodies, joinsSeagram’s entertainment units with the expansive Internet andtelecommunications infrastructure being developed by the Frenchcompany. Seagram is also planning to sell off its famed drinksbusiness.BACK TO TOP

Aetna’s Profits Fall 14 Percent

Aetna, the No. 1U.S. health insurer, said today its third-quarterearnings fell 14 percent because of lower profits at its U.S.managed care business, but the results beat Wall Streetexpectations.

Hartford, Conn.-based Aetna said third-quarter operatingearnings, excluding one-time items, fell to $158.1 million, or$1.10 cents per share, from $184.1 million, or $1.21 per share,in the year-ago quarter. Net income including capital gains inthe period were $177.4 million, or $1.24 per share.

Analysts were on average forecasting 90 cents per share,according to the consensus estimate compiled by FirstCall/Thomson Financial.

Third-quarter revenue rose 15 percent to $8.13 billion,from $7.07 billion in the 1999 quarter.

Aetna said its U.S. Healthcare division, which providesmanaged health care, indemnity, dental and group insuranceproducts, reported an 84 percent decline in operating earningsto $77.0 million in the quarter, reflecting significantlyhigher medical costs for both the commercial and Medicare HMOproducts.BACK TO TOP