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Marriott 3rd-quarter profit down 5.4 percent as revenue stagnates

Marriott 3rd-quarter profit down 5.4 percent as revenue stagnates

Marriott International Inc., the world's largest hotel company by revenue, said Thursday that third-quarter earnings slipped 5.4 percent as revenue stagnated and the company's synthetic fuels business posted a loss.
Marriott, whose brands include the Ritz-Carlton, Residence Inns and Renaissance Hotels, said net income for the quarter ended Sept. 8 fell to $141 million (euro111.16 million), or 33 cents per share, from $149 million, or 32 cents per share, in the year-ago period. The increase in per-share earnings was caused by fewer shares outstanding in the latest period.
Adjusted earnings from continuing operations, which exclude the company's synthetic fuels business, totaled $144 million (euro113.53 million), or 34 cents per share, in the latest period.
Revenue was about flat at $2.7 billion (euro2.13 billion). RevPAR, or comparable revenue per available room, rose 9.4 percent, while the average daily rate was up 9.1 percent. In North America, revenue per room increased 8.6 percent
Analysts polled by Thomson Financial were looking for earnings of 30 cents per share on $2.8 billion (euro2.21 billion) in revenue.
J.W. Marriott Jr., chairman and CEO, said, "We are pleased with the continued strong growth in the third quarter. And with strong meeting and business travel coupled with healthy holiday travel bookings to the Caribbean and other resort destinations, we are optimistic about our fourth-quarter performance."
Marriott forecast fourth-quarter earnings of 46 cents to 51 cents per share, excluding synthetic fuel unit results. RevPAR is estimated to rise 7.5 percent to 8.5 percent.
Analysts currently predict net income of 47 cents per share on revenue of $3.77 billion (euro2.97 billion).
For fiscal 2006, earnings from continuing operations are estimated between $1.59 and $1.64 per share, compared with Wall Street expectations for $1.57 per share. For 2007, the company forecasts earnings per share from continuing operations between $1.78 and $1.88, compared with the $1.87 per share consensus estimate.


Updated : 2021-06-18 02:25 GMT+08:00