Earnings Reports for Aug. 17

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Agilent Increases Growth Forecasts

Agilent Technologies, spun off fromHewlett-Packard earlier this year, reported higher third-quarter earnings andsales today. It also increased its forecasts for sales growth next year.

The maker of test and measurement equipment earned $155 million, or 34 cents per share, or 33 cents per share onan unaudited pro forma basis. In the year-ago period, before it went public, it earned $135 million.

The earnings surpassed the forecasts of most analysts, who expected 20 cents per share.

Revenues increased to $2.67 billion from $2.09 billion last year.

Agilent also said it was increasing its forecasts for 2001, and now expects revenue growth of “at least” 20 percent, compared with an earlier forecast of 15 percent. It sees 2001 net earnings approaching 8 percent of net revenue.

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Fiber Optics Fuel CIENA’s ProfitsTelecommunications equipment maker CIENA posted better-than-expected third-quarter profits today as its customer base expanded and demand for fiber-optic networking products soared.

CIENA earned $28.2 million, or 19 cents a share, in its third fiscal quarter ending July 31, compared with a loss of $5.6 million, or 4 cents a share a year ago.

The results beat Wall Street expectations of 17 cents a share, according to research firm First Call/Thomson Financial, which tracks analysts’ expectations. Ciena’s revenues rose 80 percent to $233.3 million, compared with $128.8 million a year ago.

CIENA makes equipment that boosts the capacity of fiber-optic networks and products that direct traffic along communications networks. Sales of industry-leading optical networking products contributed to revenue growth and thecompany said it expects continued robust sales of its long-distance optical transport products.

Shares of CIENA have jumped about 200 percent so far this year. The company on Tuesday announced a two-for-one stock split.

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Seagram Reports Narrow Loss

Entertainment giant, Seagram, riding a revenue boost from its music unit as well as box-office hits Erin Brockovich and Gladiator, reported a fourth-quarter net loss today that was less than Wall Street had expected.

The company, which is in the process of merging with Frenchutilities group Vivendi, said its net loss widened to $128million or 29 cents per share compared with $53 million or 32cents, excluding an additional gain on the 1998 USA Networkstransactions. Including this gain, the company posted a netloss of $53 million or 13 cents per share last year. But WallStreet analysts polled by First Call/Thomson Financial had called on average for a fourth-quarter loss of 35 cents per share this year.

The Montreal-based company that owns Universal Studios andUniversal Music Group, said revenues rose to $3.7 billion inthe quarter from $3.5 billion a year ago and said musicdivision earnings before interest, taxes, depreciation andamortization (EBITDA) surged 56 percent to $217 million in thequarter. Universal Music Group’s EBITDA for the year exceeded$1 billion for the first time, the company said.

The movie sector returned to profitability, earning $5million of EBITDA this quarter compared with last year’s EBITDAloss of $69 million. The improved performance was due to thetheatrical success of the Julia Roberts film ErinBrockovich, as well as Gladiator and the submarine thriller U-571.

Seagram plans to create Vivendi Universal in a merger withmedia giants Vivendi and its cable TV unit Canal Plus. Lastweek, the European Commission asked for more information on theproposed $34 billion deal between before completing itsregulatory scrutiny. Vivendi and Canal Plus say they areconfident the EU will rule in favour of the tie-up with Seagrambefore the end of September.

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Limited’s Sales Up 20 Percent

The Limited reported today its second quarter earnings were up 20 percent partly because of strong sales in the Victoria’s Secret and Express clothing brands.

Profits for the quarter that ended July 29 were $77.6 million,or 17 cents per share, compared with $64.6 million, or 14 cents pershare, in the second quarter of 1999.

Through the first half of the company’s fiscal year, the companyearned $140.5 million, or 31 cents per share, an increase of 29percent versus the $109.2 million, or 23 cents per share, in thefirst half of its last fiscal year.