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EARNINGS

CBS Profit Up 55% in Quarter

July 09, 1986|Associated Press

NEW YORK — CBS Inc. reported Tuesday that its second-quarter profit jumped 55% over the same period a year ago but said the gain was primarily a result of last year's weak performance.

Operating income rose 17%, an increase that CBS said stemmed mostly from the sale of its St. Louis television station and a lower tax rate.

The sale of KMOX-TV in St. Louis for $122.5 million to Viacom International completed a company program to dispose of assets to reduce the huge debt that it incurred in buying its stock last year, CBS said.

The company repurchased those shares as part of its successful strategy to thwart a hostile $5.41-billion takeover offer by Atlanta broadcaster Ted Turner.

CBS said its debt stood at $790 million as of June 30, down sharply from $1.44 billion at the end of the third quarter of 1985. The company declined to disclose how much of a gain it realized from the station's sale.

The company said net income for the three months ended June 30 came to $107.2 million, compared to $69.3 million a year ago.

In the second quarter of 1985, CBS had a one-time charge from the sale of its musical instruments business and losses from subsequently discontinued operations that cut net profit.

Income from continuing operations in the latest quarter increased to $106.9 million from $91.6 million.

Revenue of $1.22 billion was little changed from last year's $1.19 billion.

For detailed data and results of other companies, please see tables, Page 4.

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