Aol Boosts Profits

America Online Inc. reported quarterly earnings of $184 million Wednesday as it trumpeted a deal to have its Internet software loaded onto computers sold by Gateway Inc.

The deal with Gateway, which will receive $800 million over two years, will allow AOL to reach more consumers in a time when it continues to expand its global reach, company officials said.

The announcement came as AOL released first-quarter earnings of 15 cents per diluted share. The $184 million was up from $50 million, or 4 cents per share, in the same period last year.

Analysts had been expecting earnings of 13 cents a share.

In other reports:

IBM’s third-quarter profit grew 14 percent as the e-commerce explosion drove demand for computer software and services, but the company’s stock plunged after a stern warning that hardware sales are being hit hard by Y2K fears.

Ambassadors International Inc. third quarter earnings rose 9 percent over year-ago levels as net revenues increased a substantial 15 percent.

Net was $4.9 million, or 50 cents per diluted share, compared with $4.5 million, or 44 cents, for the same period a year ago. Net revenues were $16.4 million.

For the first nine months of the year, the Spokane-based company earned $10.2 million, or $1.04 per share, compared with $9.4 million, or $1.06 per share, a year ago. Net revenues were $38.5 million.

President John Ueberroth said Ambassadors has instituted expense controls to slow increases that have outpaced revenue growth. But he added that the company, bolstered by a strong cash reserve, continues to look for acquisition targets and growth opportunities.

Ambassadors operates international educational travel programs for students and adults and provides arrangements for conventions and trade shows.

Record sawmill production helped boost Portland-based Crown Pacific Partners’ third quarter net income.

Net income was $8.6 million, or 28 cents per unit, a 27 percent increase from the same period last year. Revenue was a record $219.1 million for the quarter, the company said., The Portland-based company operates mills in Bonners Ferry and Coeur d’Alene and owns timberland in North Idaho.

Reynolds Metals Co. reported its third-quarter profit fell 26 percent as aluminum shipments declined, but the results beat the expectations of Wall Street analysts.

Northwest Airlines reported profits of $180 million, or $1.96 per share, compared with a $224 million, or $2.91 per share, strike-related loss last year.

Southwest Airlines reported a 2.3 percent drop in net earnings to $127 million, or 24 cents a share, from $130 million, or 24 cents a share, for the same quarter last year.