THE VIRGINIAN-PILOT
Copyright (c) 1996, Landmark Communications, Inc.
DATE: Thursday, October 17, 1996 TAG: 9610170313
SECTION: BUSINESS PAGE: D6 EDITION: FINAL
LENGTH: 58 lines
CSX Corp.'s profits rose 9.9 percent in the third quarter, the Richmond-based transportation giant said Wednesday. Strong performances at its railroad and container shipping units accounted for a $222 million third-quarter profit, up from $202 million a year ago. On a per-share basis, earnings rose to $1.04 from 96 cents. The company's quarterly revenue increased 1.7 percent to $2.65 billion. CSX agreed Tuesday to buy Conrail for $8.4 billion. CSX operates rail lines that reach in to Portsmouth and Newport News, and a Portsmouth marine cargo terminal serving its shipping line, Sea-Land Service Inc.
Conrail Inc., which CSX Corp. has agreed to buy in an $8.4 billion merger, made $138 million in the third quarter. That's a 19 percent gain from the $116 million it made in the same period last year. Per-share earnings rose to $1.58 from $1.31. Philadelphia-based Conrail operates a railroad with a near monopoly serving most Northeast markets, including New York and Boston. The railroad's third-quarter revenues increased 1.1 percent to $933 million from $923 million. Conrail's third-quarter gain was driven in large part by a rising volume of intermodal cargo, shipments of truck trailers, and containers that can be readily moved between ships, trucks and rail cars.
Profits at GTE Corp. rose nearly 9 percent in the third quarter, buoyed by strong sales at its wireless, long-distance and Internet businesses. Earnings for the three months ended Sept. 30 were $756 million, or 78 cents per share, compared with $695 million, or 72 cents per share, during the same period a year ago. Revenues were up 7 percent to $5.34 billion.
General Dynamics' profits fell nearly 34 percent in the third quarter of 1996 compared with the same time last year. The defense contractor reported earnings of $68 million, or $1.08 per share, a decrease from net earnings of $91 million, or $1.45 per share, in 1995.
Compaq Computer Corp., the world's fifth-largest computer company, said its profits rose 43 percent on a 25 percent sales increase. The Houston-based company's profit was $350 million for the period ended Sept. 30, compared to $245 million for the same quarter last year. Earnings per share were $1.26, compared with 89 cents for the same 1995 period. Analysts had been expecting a $1.07 per-share profit.
Wachovia Corp. reported an 8.8 percent increase in net income for the third quarter of 1996 to $164.6 million, up from $151.3 million in the same period a year ago. On a fully diluted per-share basis, net income was 97 cents, compared with 87 cents a year earlier, an increase of 11.5 percent.
Time Warner Inc. said Wednesday it narrowed its loss by 37 percent in the third quarter, helped by box-office success for ``Twister'' and higher cable television fees. The company lost $91 million, or 43 cents per share, in the quarter ended Sept. 30. A year earlier, the company lost $144 million, or 41 cents per share. This year's loss per common share increased because the company paid higher preferred dividends.
Sears, Roebuck and Co. earnings jumped 22.4 percent in the third quarter, largely on the strength of increased credit revenues. Sears reported Wednesday it earned $279 million, or 68 cents a share, in the third quarter, up from $228 million, or 56 cents a share, in the same period last year. Revenue rose 7.5 percent to $9.07 billion from $8.44 billion in the third quarter of last year.
- Staff and Associated Press by CNB