TRAVELERS POSTS 34% EARNINGS GAIN; AMID MERGER WITH CITICORP, NET PROFITS RISE ACROSS BOARD.

Byline: Deborah Adamson Daily News Staff Writer

Travelers Group Inc., which is in the midst of a merger with Citicorp to form the world's largest financial services company, said first-quarter earnings rose by 34 percent, led by gains in its Salomon Smith Barney securities unit.

Net income rose to $1.09 billion (91 cents a diluted share) for the quarter, which included an $86.5 million gain on Travelers' own investment portfolio. A year ago, first-quarter earnings were $815.1 million (67 cents), which included an $8.9 million gain on investments.

Profit from operations of its Salomon Smith Barney unit rose 22 percent to $502.8 million. Commercial Credit, its consumer lending unit, reported an earnings increase of 26 percent to $59.4 million.

Earnings at other Travelers units rose across the board, said the New York-based financial services firm.

AT&T Corp.: First-quarter profits rose 18 percent at the largest U.S. phone company's efforts to cut costs offset minimal revenue growth, hurt by a drop in consumer long-distance business.

Net income was $1.33 billion (81 cents a share) for the quarter, the second straight quarter of improving profit after three quarters of declines. It compares with earnings of $1.13 billion (69 cents) a year ago. Revenue rose slightly, from $12.55 billion last year to $12.63 billion in 1998.

Profit from continuing operations before charges rose to 77 cents a share from 67 cents a year ago. It beat analysts' expectations of 74 cents a share.

However, AT&T continues its struggle to raise revenues in the face of growing competition in its wireless and consumer long-distance business.

New Chairman and CEO C. Michael Armstrong seeks to boost sales by investing in high-growth businesses such as the Internet, wireless and international phone services. Revenue growth is expected to accelerate for the rest of 1998.

Meanwhile, AT&T's belt-tightening plans include cutting 18,000 jobs. In the first quarter, the company already cut 4,500 jobs. It expects 10,000 managers to accept a buyout package in the coming months.

Rockwell International: The Costa Mesa-based electronics company said second-quarter earnings fell 30 percent because of lower semiconductor prices and weaker sales of computer modems. Net income was $109 million (53 cents a share) compared with earnings of $155 million (71 cents) a year ago.

In March, Rockwell warned of lower earnings as customers put off buying its newest, 56 kilobyte per second modems because of a dispute over technology standards that wasn't resolved until late February. Prices also fell due to weak demand and excess inventories of personal computers.

However, revenue rose 2.2 percent overall, from $1.9 billion last year to $1.94 billion in 1998 as increased sales of chips used for wireless electronics and entertainment products offset falling prices and weaker modem sales.

In December 1998, Rockwell sold its defense and aerospace businesses to Boeing Inc. for $3.2 billion to concentrate on electronics.

Delta Air Lines: While other airlines are reporting stronger-than-expected results, the nation's third-largest carrier said third-quarter earnings rose only by 3.2 percent, hurt by an increase in expenses and weaker revenues from the critical Florida market.

Net income was $195 million ($2.45 a share) for the quarter, up from $189 million ($2.47) a year ago. Per-share figures reflect payment of preferred dividends. Revenue was $3.39 billion in the third quarter, down 1 percent from $3.42 billion a year ago. Florida represents 20 percent of its revenue.

Delta said revenues also were hurt by a stronger U.S. dollar against several European currencies, which makes its services more expensive.

Earnings for the year before include a pretax charge of $52 million for closing its Frankfurt, Germany, hub and adding other trans-Atlantic routes.

Whirlpool Corp.: Stronger appliance sales in North America offset a slump in Latin America, leading to a 74 percent increase in first-quarter earnings.

Net income rose to $80 million ($1.05 cents a share), up from $46 million (62 cents) a year ago. Revenues rose 24 percent, to $2.46 billion from $1.99 billion a year ago.

Excluding a one-time gain, earnings from continuing operations were $68 million (90 cents) for the quarter. It beat the analysts' estimate of 83 cents.

Rising sales and shipments in North America and cost-cutting efforts boost the bottom line for Whirlpool. However, Latin American sales - which is expected to make up 25 percent of this year's sales - fell because of a weak economy and a strong dollar.

Whirlpool expects North America shipments to rise about 2 percent in 1998.

The company's cost-cutting efforts, which include slashing 7,900 jobs worldwide over the next three years, have helped offset weak Asian and Brazilian markets.

The company's selling, general and administrative expenses fell to 16.9 percent of sales from 18.9 percent in the year-earlier period.