AOL Slips in Late Composite Trading

Author:
Publish date:

America Online

(AOL)

slid to 153 in late composite trading, down 2 from its New York close, after reporting third-quarter earnings of 11 cents a share. That beat the 34-analyst

First Call

estimate by 2 cents and topped the year-ago 4 cents. Those numbers don't include results from

Netscape

, which AOL acquired March 17 in a pooling-of-interests transaction, or other one-time items.

Revenue for the combined company climbed to $1.25 billion from $757 million a year ago. AOL's membership grew by 1.8 million subscribers in the quarter, bringing the total to 16.9 million (19 million including

CompuServe

). Daily average usage per user rose to 55 minutes from 46 minutes in the year-earlier quarter.

TheStreet.com

previewed AOL's earnings in a

story this morning.

In other postclose news (earnings estimates from First Call; earnings reported on a diluted basis unless otherwise specified):

Earnings/revenue reports and previews

Chronimed

(CHMD)

posted third-quarter earnings of 4 cents a share, 1 cent higher than the three-analyst outlook but below the year-ago 12 cents. The company also said it hired

PaineWebber

to explore business alternatives, including a merger or a sale of part or all of the company.

Cox Communications

(COX)

reported first-quarter earnings of 89 cents a share, including a pretax gain of $433.1 million on the sale of interest in

Telewest Communications

. The company did not provide operating results excluding the gain. The 11-analyst estimate was for an operating loss of 12 cents vs. a loss of 38 cents a year ago.

Interface

(IFSIA)

reported first-quarter earnings of 11 cents a share, down from 20 cents a year ago and a nickel shy of the six-analyst estimate. Additionally, the company said it expects full-year 1999 results of 65 cents to 75 cents a share vs. expectations for earnings of $1.

United Stationers

(USTR)

reported first-quarter earnings of 50 cents a share, including a $2.2 million loss on the sale of certain trade accounts receivable through an asset-backed securitization program. The company did not provide results excluding the gain. The seven-analyst estimate was for earnings of 49 cents a share vs. 44 cents a year ago.

Unum

(UNM) - Get Report

reported first-quarter earnings of 72 cents a share, in line with the 10-analyst estimate and up from the year-ago 65 cents. The company said it is getting out of the reinsurance business and will focus on disability and other special risk businesses.

West TeleServices

(WTSC)

posted first-quarter earnings of 22 cents a share, in line with the three-analyst forecast and above the year-ago 20 cents. But the company warned that

AT&T

(T) - Get Report

plans to reduce its outbound teleservices usage from the company, which probably will cut its 1999 revenue by $30 million.

In other earnings news:

Mergers, acquisitions and joint ventures

Bankers Trust

(BT)

shareholders voted in favor of the company's acquisition by

Deutsche Bank

. The merger is expected to close in the current quarter.

BB&T

(BBT) - Get Report

lowered the amount it will pay to acquire

Matewan BancShares

(MATE)

to $124 million from $157.9 million. BB&T attributed the move to its "due diligence review of Matewan."

Libbey

(LBY) - Get Report

said

Oneida

(OCQ)

rejected its $26.50-per-share acquisition offer.

Southern Union

(SUG)

upped its all-cash offer to buy

Southwest Gas

(SWX) - Get Report

to $33.50 a share from $32. Southern Union said its new bid beats

Oneok's

(OKE) - Get Report

offer to buy Southwest Gas by $108 million. Southwest Gas yesterday entered an agreement to be acquired by Oneok for $30 a share in cash.

Offerings and stock actions

Cullen/Frost

(CFR) - Get Report

set a 2-for-1 stock split.

Weyco

(WEYS) - Get Report

said it will buy back up to 500,000 of its shares.

Miscellany

Adac Laboratories

(ADAC)

named CEO R. Andrew Eckert chairman.

Alpharma

(ALO) - Get Report

said it has received approval from the

Food & Drug Administration

to market its Ipratropium Bromide inhalation solution for treatment of pulmonary disease.

Illinova

(ILN)

said its

Illinois Power

unit plans to restart its Clinton nuclear power plant after receiving permission from the

Nuclear Regulatory Commission

to do so. The plant has been closed since September 1996.

IMC Global

(IGL)

named President and COO Douglas Pertz to the additional post of CEO, effective Oct. 1. Pertz replaces Robert Fowler, who is also chairman. It was unclear whether Fowler would remain as chairman, and IMC couldn't be reached for comment.

Northrop Grumman's

(NOC) - Get Report

Integrated Systems and Aerostructures

unit received a $1.3 billion, five-year contract to make 22 E2-C Hawkeye 2000 early-warning and control aircraft for the

Navy

.

Staff reporters John J. Edwards III and Aaron L. Task contributed to this story

.