DISNEY PROFITS RISE 3%\Rebound predicted after ABC merger.Byline: Russ n. sing. & 1. A Russian, or the Russians. 2. The language of the Russians. a. 1. Of or pertaining to the Russians. Britt britt n. Variant of brit. Noun 1. britt - the young of a herring or sprat or similar fish brit young fish - a fish that is young 2. Daily News Staff Writer Walt Disney Noun 1. Walt Disney - United States film maker who pioneered animated cartoons and created such characters as Mickey Mouse and Donald Duck; founded Disneyland (1901-1966) Disney, Walter Elias Disney Co. reported its first quarter of what is expected to be a year of lower earnings growth, due mostly to its pending acquisition of Capital Cities/ABC, company officials said Tuesday Tuesday: see week. . The Burbank-based entertainment giant reported that profits rose 3 percent for the first quarter ended Dec. 31, and is not expected to meet its stated earnings growth goal of 20 percent or more for the rest of 1996. Company officials say there are several reasons but its $19 billion purchase of Capital Cities is the largest factor. By 1997, Disney expects to resume its customary increase in earnings, said Stephen Bollenbach Stephen F. Bollenbach has been the Co-Chairman and Chief Executive Officer of Hilton Hotels Corporation since February 1996. Bollenbach graduated from the University of California, Los Angeles. External link
"The growth rate is really the same," Bollenbach said. "We have this period where earnings will stay flat for one year." Disney's financing of the Capital Cities deal forces the company to take a $400 million annual charge against earnings over the next 40 years to finance the deal. Disney and Capital Cities agreed on a merger in July in a transaction expected to create a company with $19 billion in annual revenue. The Capital Cities deal is not expected to be final until February. Disney reported net income of $496 million, or 93 cents a share for the first quarter, compared with $482 million or 91 cents a share for the like period a year ago. Revenue was $3.8 billion vs. $3.3 billion. Without the gain, Disney's earnings in the first quarter of this year would have risen 11 percent. In the most recent quarter, Disney took a loss of $22 million from its investment in Euro Disney. Disney owns about 40 percent of the theme park. Analysts have predicted that Disney will end up with earnings of $2.60 a share for the year, representing a 1 percent growth rate. Disney's earnings are projected to drop 5 percent during the current quarter as the effects of the Capital Cities purchase begin to take effect. Analysts said Disney should have no trouble returning to its 20 percent-plus growth rates Growth Rates The compounded annualized rate of growth of a company's revenues, earnings, dividends, or other figures. Notes: Remember, historically high growth rates don't always mean a high rate of growth looking into the future. next year. Some commented that Disney's showing thus far still is impressive. "It shows in a business where there's normal ups and downs ups and downs pl.n. Alternating periods of good and bad fortune or spirits. ups and downs Noun, pl alternating periods of good and bad luck or high and low spirits with movies and television revenues, (that) Disney has really stabilized sta·bi·lize v. sta·bi·lized, sta·bi·liz·ing, sta·bi·liz·es v.tr. 1. To make stable or steadfast. 2. their dominant position," said Dave Davis, analyst for Houlihan, Lokey, Howard & Zukin in Century City. |
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