Earnings Reports for Oct. 31

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Procter & Gamble Meet Estimates

Consumer products giantProcter & Gamble said today its net income in thefiscal first quarter rose 1 percent, including a restructuringcharge, as higher commodity prices and the lower euro weighed onresults. Earnings before the charge met analysts’ estimates.

The maker of Tide laundry detergent, Folgers coffee, Criscoshortening and a pantry full of other well-known householdproducts reported net income of $1.24 billion, or 88 cents adiluted share, before an $85 million charge in the quarter endedSept. 30. Earnings before the charge were equal to the 88 centsa share posted a year ago and matched the average analystforecast posted by market research firm First Call/ThomsonFinancial. Including the charge, net income was $1.16 billion,or 82 cents a diluted share, up from $1.15 billion, or 80 centsa share, a year ago.

Sales rose 1 percent to $9.97 billion compared to a year agoand would have risen 4 percent if not for currency factors. Theplunging euro lessens the value of European sales when they aretranslated into U.S. dollars.

The company said it expects second-quarter core earnings pershare in the range of 91 to 93 cents a share. Second-quartersales are expected to be slightly up excluding the impact offoreign exchange, with volume down in the low single digits.

At a Sept. 28 analysts’ meeting, Procter & Gamble ChiefExecutive Alan Lafley reiterated expectations for 7 to 10percent earnings growth in fiscal 2000. The company’s stock,which had been hammered by earnings warnings and other issuesfor most of the year, has risen about 19 percent since Lafleyreiterated that forecast and set conservative future targets.BACK TO TOP

Earthlink’s Loss Widens

Earthlink Network, theNo. 2 U.S. Internet service provider, said today itsthird-quarter loss widened but beat Wall Street’s estimate aspaying subscribers grew to 4.6 million.

Atlanta-based EarthLink, which recently formed a pact withJapanese ISP Nifty, said it lost $41.3 million, or 33cents a share, excluding merger and acquisition costs. WallStreet analysts expected EarthLink to post a loss of 37 cents ashare, according to First Call/Thomson Financial.

The company’s net loss for the quarter was $80.6 million,or 65 cents per share, compared to $52.5 million, or 45 centsper share, a year ago.

Revenues rose to $249.3 million from $177.8 million.Subscribers rose to 4.6 million, while broadband subscribersgrew 74 percent from the second quarter to 139,000.

Earthlink said it expects to have 4.7 million to 4.8million paying customers by the end of 2000, including anexpected increased of 65,000 broadband customers in the fourthquarter. The company expects to see fourth-quarter revenues of$290 million to $295 million and a loss of $47 million to $52million. Net loss for the fourth quarter should be 48 cents to53 cents per share before merger and acquisition costs —roughly in line with analysts’ current target of a loss of 49cents.BACK TO TOP