Arrow-right Camera
The Spokesman-Review Newspaper
Spokane, Washington  Est. May 19, 1883

Positive signals at Sirius


A Dodge Nitro equipped with Sirius Satellite Radio is displayed at the New York International Auto Show. Associated Press
 (Associated Press / The Spokesman-Review)
From Wire Reports The Spokesman-Review

Sirius Satellite Radio Inc. on Tuesday said its net loss slimmed substantially in the second quarter, as it added more than a half-million new subscribers and revenue grew by about 50 percent.

New York-based Sirius reported a net loss of $134.1 million, or 9 cents per share, compared with a loss of $237.8 million, or 17 cents per share, a year earlier.

On an adjusted basis, excluding stock-based compensation costs, Sirius lost 8 cents per share in the period. Revenue rose to $226.4 million from $150.1 million a year earlier.

Analysts polled by Thomson Financial on average expected a loss of 10 cents per share in the quarter on revenue of $228.3 million.

In other key metrics watched by investors, Sirius’ cost for adding each subscriber fell to $108 from $131 in the same period a year ago.

Hilton Hotels Corp. reported strong earnings growth Tuesday in the second quarter as it prepared to be acquired by the Blackstone Group.

The worldwide hotel and resort company reported net income of $165 million, or 40 cents a share, for the quarter ended June 30, up from $144 million, or 35 cents per share, in the same period last year.

Revenue increased to $2.085 billion from $2.005 billion in the year-ago period.

Excluding one-time items, earnings per share increased to 38 cents for the quarter, the company said.

The results beat expectations from analysts, who had been looking for earnings of 33 cents per share and revenue of $2.07 billion, according to Thomson Financial.

Worldwide, revenue per available room, a key measure in the lodging industry, grew 8.9 percent due to rate increases and strong demand, the company said.

•Shares of Sun Microsystems Inc. jumped more than 4 percent Tuesday, a day after the server and software maker posted its third profitable quarter in a row and showed it has made substantial progress from its long-lasting, brutal downturn.

Sun’s shares rose 21 cents, or 4.3 percent, to $5.10 Tuesday.

Sun’s fiscal fourth-quarter results were bolstered by lower expenses and increased adoption of its open-source operating system.

Sun earned $329 million, or 9 cents per share, for the quarter ended June 30. That compares with a loss of $301 million, or 9 cents per share, during the same period last year.

•Canadian aluminum maker Alcan Inc. said Tuesday its second-quarter earnings fell 4 percent due to increased energy, raw materials and operating costs.

The Montreal-based company, which recently accepted a $38-billion takeover bid by Australian miner Rio Tinto, reports in U.S. dollars.

It earned $438 million, or $1.18 per share, compared to $455 million, or $1.21 per share, in the comparable period in 2006. The company had 6.1 million fewer shares outstanding in the 2007 second quarter. But analysts’ consensus forecast was for earnings of $1.71 per share, before one-time items, according to Thomson Financial.

Avon Products Inc.’s profit fell 25 percent in the second quarter, weighed down by restructuring charges tied to its turnaround plan.

Its shares dropped more than 6 percent by early afternoon amid concerns about eroding operating margins and higher ad spending.

The direct seller of beauty products reported Tuesday that it earned $112.7 million, or 26 cents a share, in the quarter ended June 30, down from $150.9 million, or 33 cents a share, in the year-ago period.

The results included $82 million in pretax costs related to restructuring and simplifying its product line. That compares with $49 million in pretax restructuring costs in the prior year.

•Life insurer MetLife Inc. on Tuesday said second-quarter profit ballooned 83 percent on robust investment income and strong earnings growth in the individual life insurance business.

After paying preferred dividends, net income surged to $1.13 billion, or $1.48 per share, from $617 million, or 80 cents per share, in the year-earlier quarter. Operating earnings per share, which exclude investments, were $1.72 versus $1.28 a year ago.

The results beat Wall Street expectations.