Earnings reports/April 18, 2009

Richmond-based firms: Media General

Richmond-based Media General Inc. yesterday reported a wider first-quarter loss as advertising sales continued to falter in the economic downturn.

Media General, which owns the Richmond Times-Dispatch, reported a loss of $21.3 million, or 96 cents per share, compared with a loss of $20.3 million, or 92 cents per share, in the first quarter of 2008. The recent results included severance expenses of $4.5 million, or 20 cents per share.

The company also announced it would freeze its pension plan effective May 31. That follows several other cost-cutting moves the company has made in response to a steep downturn in advertising. Media General eliminated 300 jobs during the week of March 31, which is expected to save the company $10 million this year.

Revenue declined 18 percent to $159.5 million for the first quarter. That was partially offset by a 14 percent reduction in total operating costs. The company expects to reduce operating costs by 15 percent this year compared with 2008.

First-quarter revenue and profit were down in the company's publishing and broadcast divisions on lower advertising sales. Its interactive media division, which includes its Web sites, posted a 24.5 percent increase in revenue for the quarter and a narrower $1.1 million loss compared with a $2.7 million loss in the same period of 2008.

"Our focus on new products and services, targeted online sales campaigns, new revenues from our Internet partnerships with Yahoo and Zillow, and our interactive advertising services businesses such as DealTaker.com are enabling us to transform our business model in the world of digital and mobile communications," said Marshall N. Morton, president and chief executive officer.

Media General publishes 22 daily newspapers, more than 250 weekly newspapers and other publications, and owns 19 network-affiliated television stations. Its interactive media operations include Web sites and portals associated with its newspapers and television stations and three interactive advertising services companies.

Its shares fell 30 cents, or 10.1 percent, to close at $2.67 yesterday on the New York Stock Exchange.

-- John Blackwell

Dow industrial firms: Citigroup

Citigroup reported its smallest quarterly loss since 2007, but its problems are far from over.

The bank's first-quarter results were buoyed largely by strong revenues from bond trading, but that burst of activity is not expected to continue. Citigroup also said it's still facing loan losses that are expected to increase throughout this year.

Citigroup posted a first-quarter loss to common shareholders of $966 million after massive loan losses and dividends to preferred stockholders. Before paying those dividends, which were tied to a private stock offering in January 2008, the bank earned $1.6 billion.

The results topped analyst forecasts. The company reported a loss per share of 18 cents, which was narrower than the 34 cents analysts predicted, according to Thomson Reuters. A year ago, Citigroup suffered a loss of more than $5 billion, or $1.03 a share.

Citigroup's revenue doubled in the first quarter from a year ago to $24.8 billion thanks to strong fixed-income and other trading in its investment bank.

Citigroup stock slipped 36 cents, or 9 percent, to close at $3.65.

-- The Associated Press

General Electric

General Electric Co.'s first-quarter earnings fell 36 percent on sharply lower profits at its troubled finance arm, but the results beat Wall Street forecasts.

GE reported net income of $2.74 billion, or 26 cents per share, after paying preferred dividends. That fell from $4.30 billion, or 43 cents per share, a year earlier.

Earnings from continuing operations also were 26 cents per share. That surpassed the 21 cents per share forecast by analysts.

Overall revenues, including a 20 percent drop at GE Capital, fell 9 percent to $38 billion, with sales down or flat in every division except GE's energy business.

Shares rose 12 cents to close at $12.39 yesterday.

-- The Associated Press

Major area employer: BB&T Corp.

BB&T Corp. posted a 37 percent decline in first-quarter profit, as loans that were overdue or written off as unpaid surged and the regional bank put aside more cash to cover souring credit.

But the results beat Wall Street expectations.

For the three months ended March 31, BB&T said net income after paying preferred dividends fell to $271 million, or 48 cents per share, from $428 million, or 78 cents per share, in the 2008 quarter. Analysts polled by Thomson Reuters, on average, expected profit of 31 cents per share.

Shares in BB&T rose $2.35, or 11.1 percent, to close at $23.42.

-- The Associated Press