Ups Delivers Strong Report

United Parcel Service reported a 37 percent increase in net income for the final three months of 1999, its first quarter as a publicly traded company.

The Atlanta-based package delivery giant said Monday that fourth-quarter earnings were $661 million, or 56 cents a share, compared with $482 million, or 43 cents a share, a year earlier.

The fourth-quarter results were a penny above estimates from analysts surveyed by First Call/Thomson Financial.

In other reports Monday:

Higher log prices in Idaho and Ar- kansas helped the Potlatch Corp. boost fourth quarter earnings.

The company reported net earnings of $8.4 million, or 29 cents a share, compared with $3.9 million in the fourth quarter of 1998.

Increased shipments of lumber and oriented strand board led to a strong performance by the company’s wood products segment, offsetting lower earnings from the pulp and paper segment.

Year-end earnings were $40.9 million for 1999, compared with $37.2 million in 1998.

Union Carbide Corp. said its profits rose 40 percent in the fourth quarter because of strong sales and improved pricing in chemicals and polymers.

William Joyce, Carbide’s chairman and chief executive, said in a statement accompanying the report that earnings for the year 2000 should be higher than in 1999.

He added that “recent volatility in raw material prices, however, makes first quarter forecasting difficult” and said income in the January-March quarter likely will be lower than in the October-December period.

Gannett Co.’s earnings rose 14 percent in the fourth quarter on greater advertising revenues from newspapers, including the company’s main paper USA Today.

Trans World Airlines reported an operating loss for its fourth quarter, the sixth straight quarterly loss for the St. Louis-based carrier.

TWA’s quarterly operating loss was higher than the same period a year ago. For the three months that ended Dec. 31, TWA’s operating loss was $92.74 million, excluding special charges.

Airline analysts said the carrier’s loss was expected, but they remain concerned about the airline’s ability to contain its operating costs.

“Costs are still higher than they need to be,” said Thomas Longman, analyst with Arnhold & S. Bleichroeder. “TWA needs to have a cost advantage against their competitors, and at this point they do not.”

Hershey Foods Corp., the nation’s biggest candy maker, said fourth-quarter profits fell 11 percent from a year earlier.

The company, which makes Hershey’s chocolates, Reese’s Peanut Butter Cups, Twizzlers and other candies, has struggled since July, when it installed new computer and software systems designed to modernize distribution and warehousing, as well as avoid Year 2000 computer problems.

Staff writer Becky Kramer contributed to this report.