Western Union 1Q Profit Rises But Sales Fall

ENGLEWOOD, Colo. (AP) — Western Union Co. said Tuesday that its profit climbed 8 percent in the first quarter after a hefty restructuring charge weighed down prior-year results.

The money transfer agent also reiterated its full-year net income forecast in range of analysts' estimates.

Earnings were $223.9 million, or 32 cents per share, for the period ended March 31. That compares with $207.1 million, or 27 cents per share, a year ago.

Prior-year results included a $24 million restructuring expense.

Analysts surveyed by Thomson Reuters, whose estimates generally exclude one-time items, expected net income of 27 cents per share.

Aside from the restructuring charge's absence, Western Union managed to improve its performance by paring its expenses down to $860.3 million from $956.6 million a year earlier.

First-quarter revenue slipped to $1.2 billion from $1.27 billion, but still managed to surpass Wall Street's estimate of $1.18 billion.

Western Union had about $3 billion in outstanding debt and $1.5 billion in available cash at the end of the quarter. It does not have to worry about maturing debt for a while, with $1 billion due in 2011. Another $500 million is due in 2014, $1 billion is due two years after that and the remainder is due in 2036.