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UAL CORPORATION REPORTS SECOND QUARTER FINANCIAL RESULTS

 CHICAGO, July 29 /PRNewswire/ -- UAL Corporation (NYSE: UAL), the holding company whose primary subsidiary is United Airlines, today reported a second quarter net profit of $22 million compared with a net loss of $91 million in the same period last year. Earnings per share of common stock were $.54 in the second quarter this year (after preferred stock dividend requirements) compared with a $3.80 per share loss in the second quarter of 1992.
 The corporation's operating revenues increased 13.0 percent from $3.140 billion in the second quarter last year to $3.548 billion this year, while operating expenses were up 7.1 percent from $3.233 billion to $3.464 billion. This year's operating profit of $84 million compared with an operating loss in the same period last year of $93 million.
 The company said United Airlines' unit revenue (revenue per available seat mile flown) was up 1.3 percent, from 9.22 cents in the second quarter a year ago to 9.34 cents this year. The increase resulted from a 1.3 percent increase in revenue passenger yield (the amount of revenue received for each revenue passenger mile flown) and an average load factor that was virtually flat with the same period a year ago. United's yield was 12.30 cents in the second quarter this year compared with 12.14 cents a year ago; load factor during the quarter averaged 67.4 percent compared with 67.3 percent last year.
 United's cost per available seat mile in the second quarter, at 9.09 cents, decreased 3.8 percent compared with the same quarter a year ago, primarily the result of a $400 million annualized cost reduction program implemented earlier this year.
 "Although we reported a small profit, our financial results in the second quarter were clearly unsatisfactory," said Stephen M. Wolf, UAL Corporation chairman and chief executive officer. "While considerable progress was made on a relative basis on cost reduction, long-term viability in the domestic market requires substantial further reduction in unit costs."
 "Our revenue performance during the quarter was impacted by fare discounting on both the North Atlantic and in U.S. domestic markets, as well as continued weak demand in the Pacific," Wolf said.
 For the first six months of the year, UAL Corporation reported a $115 million loss ($5.38 per common share after a preferred stock dividend requirement) before an extraordinary loss on debt retirement, compared with a loss in the same period a year ago of $199 million ($8.33 per common share) before the cumulative effect of accounting changes.
 Operating revenues for the first six months were up 12.6 percent, from $6.112 billion to $6.880 billion, while operating expenses were up 8.5 percent, from $6.373 billion to $6.917 billion. The operating loss in the first six months improved from a loss last year of $261 million to a loss of $37 million this year.
 UAL CORPORATION AND SUBSIDIARY COMPANIES
 Statement Of Consolidated Operations
 (Unaudited, in millions, except per share)
 Three months ended June 30 1993 1992 Percent Change
 Operating revenues:
 Passenger $3,164 $ 2,804 +12.8
 Cargo 231 196 +17.9
 Contract services and other 153 140 + 9.3
 Total 3,548 3,140 +13.0
 Operating expenses:
 Salaries and related costs 1,179 1,108 + 6.4
 Commissions 578 514 +12.5
 Aircraft fuel 443 404 + 9.7
 Rentals and landing fees 357 331 + 7.9
 Purchased services 253 239 + 5.9
 Depreciation and amortization 191 178 + 7.3
 Aircraft maintenance 98 82 +19.5
 Food and beverages 75 80 - 6.3
 Personnel expenses 62 66 - 6.1
 Advertising and promotion 41 54 -24.1
 Other operating expenses 187 177 + 5.6
 Total 3,464 3,233 + 7.1
 Earnings (loss) from operations 84 (93)
 Other income (expense):
 Interest expense (95) (80) +18.8
 Interest capitalized 13 24 -45.8
 Interest income 20 17 +17.6
 Equity in earnings of
 Covia Partnership 12 14 -14.3
 Miscellaneous, net (4) (26) -84.6
 Total (54) (51) + 5.9
 Earnings (loss) before income taxes 30 (144)
 Provision (credit) for income taxes 8 (53)
 Net earnings (loss) $ 22 $ (91)
 Net earnings (loss) per share $ 0.54 $ (3.80)
 Average shares used in per-share
 computation 24.2 24.1
 See accompanying notes.
 UAL CORPORATION AND SUBSIDIARY COMPANIES
 Statement Of Consolidated Operations
 (Unaudited, in millions, except per share)
 Six months ended June 30 1993 1992 Percent Change
 Operating revenues:
 Passenger $6,125 $ 5,455 +12.3
 Cargo 442 371 +19.1
 Contract services and other 313 286 + 9.4
 Total 6,880 6,112 +12.6
 Operating expenses:
 Salaries and related costs 2,343 2,205 + 6.3
 Commissions 1,160 1,050 +10.5
 Aircraft fuel 868 767 +13.2
 Rentals and landing fees 721 635 +13.5
 Purchased services 493 440 +12.0
 Depreciation and amortization 384 351 + 9.4
 Aircraft maintenance 198 165 +20.0
 Food and beverages 150 152 - 1.3
 Personnel expenses 128 128
 Advertising and promotion 76 102 -25.5
 Other operating expenses 396 378 + 4.8
 Total 6,917 6,373 + 8.5
 Loss from operations (37) (261) -85.8
 Other income (expense):
 Interest expense (190) (156) +21.8
 Interest capitalized 33 49 -32.7
 Interest income 36 32 +12.5
 Equity in earnings of
 Covia Partnership 15 20 -25.0
 Miscellaneous, net (30) (1)
 Total (136) (56)
 Loss before income taxes,
 extraordinary item and
 cumulative effect of
 accounting changes (173) (317) -45.4
 Provision (credit) for income taxes (58) (118) -50.8
 Loss before extraordinary
 item and cumulative effect of
 accounting changes (115) (199) -42.2
 Extraordinary loss on early
 extinguishment of debt, net of tax (19) --
 Cumulative effect of accounting changes,
 net of tax -- (540)
 Net loss $ (134) $ (739) -81.9
 Per share:
 Loss before extraordinary item and
 cumulative effect of
 accounting changes $(5.38) $ (8.33) -35.4
 Extraordinary loss on debt
 extinguishment (0.76) --
 Cumulative effect of accounting
 changes -- (22.48)
 Net loss $(6.14) $(30.81) -80.1
 Average shares used in per-share
 computation 24.2 24.0
 See accompanying notes.
 Consolidated Notes
 1. UAL Corporation is a holding company whose principal subsidiary is United Air Lines, Inc.
 2. Included in "Miscellaneous, net" were foreign exchange gains (losses) of $(2) million in the 1993 second quarter, $(14) million in the 1992 second quarter, $(24) million in the 1993 six-month period and $6 million in the 1992 six-month period. Included in the 1992 second quarter was a charge of $13 million to record the cash settlement of class action claims resulting from litigation relating to the use of airline fare data.
 3. The provisions (credits) for income taxes are based on estimated annual effective tax rates which differ from the federal statutory rate of 34 percent principally due to state income taxes and certain nondeductible expenses.
 4. In the second quarter of 1993, United retired $500 million of senior subordinated notes. The notes were scheduled to mature in 1995 and 1998 for $150 million and $350 million, respectively. An extraordinary loss of $19 million, net of tax benefits of $9 million, was recorded in the first quarter of 1993, based on United's stated intention to retire the notes.
 5. In the fourth quarter of 1992, UAL adopted SFAS No. 106, "Employers' Accounting for Postretirement Benefits Other Than Pensions," and SFAS No. 109, "Accounting for Income Taxes," effective Jan. 1, 1992. The effect of adopting SFAS No. 106 was a cumulative charge of $580 million, net of tax benefits of $345 million, and increases in operating expenses of approximately $19 million in the second quarter of 1992 and $38 million in the 1992 six-month period. The effect of adopting SFAS No. 109 was a cumulative benefit of $40 million and increases in the credit for income taxes of approximately $15 million in the second quarter of 1992 and $11 million in the 1992 six-month period. The statements of consolidated operations for the 1992 periods presented have been restated to reflect the adoption of these standards.
 6. UAL issued six million shares of convertible preferred stock in February 1993. The net earnings (loss) available to common shareholders for the computations of earnings per share included dividends on the preferred stock of $9 million in the second quarter of 1993 and $14 million in the 1993 six-month period.
 UNITED AIR LINES, INC. AND SUBSIDIARY COMPANIES
 Three months ended June 30 1993 1992 Percent Change
 Financial Summary (Unaudited)
 (in millions)
 Operating revenues $3,513 $3,098 +13.4
 Operating expenses 3,420 3,177 + 7.6
 Earnings (loss) from operations $ 93 $ (79)
 OPERATING STATISTICS
 Revenue passengers
 (in thousands) 17,678 16,399 + 7.8
 Revenue passenger miles
 (in millions) 25,334 22,619 +12.0
 Available seat miles
 (in millions) 37,601 33,610 +11.9
 Passenger load factor (percent) 67.4 67.3 +0.1 pt.
 Breakeven passenger load factor
 (percent) 65.4 69.2 -3.8 pt.
 Revenue per passenger mile (cents) 12.30 12.14 + 1.3
 Operating revenue per
 available seat mile (cents) 9.34 9.22 + 1.3
 Operating expenses per
 available seat mile (cents) 9.09 9.45 - 3.8
 Average price per gallon of jet
 fuel (cents) 65.3 64.9 + 0.6
 Number of aircraft in operating
 fleet at end of period 553 506
 Number of employees at end
 of period (thousands) 83.0 82.7 + 0.4
 UNITED AIR LINES, INC. AND SUBSIDIARY COMPANIES
 Six months ended June 30 1993 1992 Percent Change
 Financial Summary (Unaudited)
 (in millions)
 Operating revenues $6,793 $6,036 +12.5
 Operating expenses 6,807 6,280 + 8.4
 Loss from operations $ (14) $ (244) -94.3
 OPERATING STATISTICS
 Revenue passengers
 (in thousands) 33,335 30,270 +10.1
 Revenue passenger miles
 (in millions) 47,777 41,759 +14.4
 Available seat miles
 (in millions) 72,821 65,008 +12.0
 Passenger load factor (percent) 65.6 64.2 +1.4 pt.
 Breakeven passenger load factor
 (percent) 65.8 67.2 -1.4 pt.
 Revenue per passenger mile (cents) 12.58 12.81 - 1.8
 Operating revenue per
 available seat mile (cents) 9.33 9.29 + 0.4
 Operating expenses per
 available seat mile (cents) 9.35 9.66 - 3.2
 Average price per gallon of jet
 fuel (cents) 65.6 63.5 + 3.3
 Number of aircraft in operating
 fleet at end of period 553 506
 Number of employees at end
 of period (thousands) 83.0 82.7 + 0.4
 -0- 7/29/93
 /CONTACT: John Kiker, 708-952-4162, or Joe Hopkins, 708-952-5770; or (investors) Pamela Hanlon, 708-952-7501, all of United Airlines/
 (UAL)


CO: UAL Corporation ST: Illinois IN: AIR SU: ERN

TS -- NY057 -- 7522 07/29/93 12:26 EDT
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