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Continental Airlines Trims First-Quarter Loss

From Wire Reports

Continental Airlines Inc. reported Wednesday that first-quarter losses narrowed sharply, attributing the improvement to cost-cutting efforts and an increase in passenger traffic.

The company lost $30.2 million, or $1.21 a share, in the three months ended March 31. That compared with a loss of $71.6 million, or $2.86 a share, during the same period a year ago. Revenues rose to $1.41 billion from $1.36 billion.

Continental said passenger traffic grew 2.8 percent in the quarter.

Another key factor in the improved performance, the carrier said, was a cost-cutting plan it launched in January. The plan includes scrapping the no-frills Continental Lite service and reducing the work force by about 10 percent this year.

In other earnings reports:

Phillips Petroleum Co. reported that first-quarter profits dropped 12.6 percent, largely because of $10 million in charges that included severance benefits for about 200 workers.

For the three months ended March 31, the Bartlesville, Okla.-based company earned $111 million, or 43 cents a share. That compares with $127 million, or 49 cents a share, for the same period last year.

Revenues rose 6.9 percent to $3.1 billion from $2.9 billion.

Anheuser-Busch Companies Inc. said earnings rose nearly 6 percent in the first quarter due to strong sales of beer.

Earnings for the quarter ending March 31 were $216 million, or 83 cents per share, compared with $204 million, or 76 cents per share, in the same period a year ago, the St. Louis-based brewer said.

Sales rose to $2.76 billion from $2.63 billion. In addition to a higher volume of sales, the company cited stronger sales by its packaging subsidiaries.

Pharmaceutical maker Marion Merrell Dow Inc. said that first-quarter profits fell 12 percent, citing expenses related to its acquisition of research firm Selectide Corp.

The company earned $75 million, or 27 cents per share, compared with earnings of $86 million, or 31 cents per share, in the same period a year ago.

Marion Merrell Dow took a one-time charge of $49 million for its purchase of Selectide, a Tucson, Ariz.-based company that specializes in technologies that speed drug testing and development.