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Hilton Hotels 1Q profit drops 9 percent on renovations at New York Property

Hilton Hotels 1Q profit drops 9 percent on renovations at New York Property

Hotel operator Hilton Hotels Corp. said Monday its first-quarter profit fell 9 percent on the cost of renovations at a New York property.
Earnings dipped to $95 million (euro69.83 million), or 23 cents per share, from $104 million (euro76.44 million), or 26 cents per share, during the same period a year ago.
Excluding nonrecurring items in both periods and assuming the Hilton International acquisition took place on Jan. 1, 2006, earnings per share were 20 cents, up from 15 cents in the previous year.
Analysts surveyed by Thomson Financial were looking for a profit of 18 cents per share.
The company said renovations at the Hilton New York hurt its results. Renovations are expected to continue at the Hilton New York, the Waldorf-Astoria and the Hilton Hawaiian Village in 2007. The Hilton San Francisco and Hilton Waikoloa Village were also challenged by soft group markets.
The current quarter's results included a $30 million (euro22.05 million) gain on asset dispositions and other items and an $8 million (euro5.88 million) loss on foreign currency translations.
Revenue for the quarter climbed 29 percent to $1.86 billion (euro1.37 billion) from $1.44 billion (euro1.06 billion) in the prior year.
Analysts had expected sales of $1.98 billion (euro1.46 billion).
Hilton lowered its full-year earnings and revenue outlook, in part due to the sale of the Nordic region's largest hotel chain, Scandic Hotels AB. Scandic is a mid-market hotel chain running 132 hotels with more than 23,000 rooms in nine countries in northern Europe.
The company said it now anticipates net income of between $1.18 (euro.87) and $1.24 (euro.91) per share on revenue between $8.07 billion (euro5.93 billion) and $8.15 billion (euro5.99 billion). It previously forecast a 2007 profit of $1.20 (euro.88) to $1.30 (euro.96) per share, on revenue of $8.89 billion (euro6.53 billion) to $9.05 billion (euro6.65 billion).
Analysts polled by Thomson Financial are looking for a full-year profit of $1.23 (euro.90) per share on sales of $8.44 billion (euro6.2 billion).
Hilton said its guidance excludes any nonrecurring gains or losses related to the Scandic sale, the impact of future asset sales, buybacks or other potential significant transactions.


Updated : 2021-06-14 01:48 GMT+08:00