EARNINGS

Locally based firms: Dominion Resources

Efficient operations in challenging markets were credited with higher fourth-quarter earnings, net and operating, for Richmond-based Dominion Resources Inc.

Net income for the three months that ended Dec. 31 was $348 million, or 60 cents a share, compared with $299 million net and operating income, or 52 cents a share, for the same period in 2007. Operating profit was $422 million, or 72 cents per share, in the 2008 quarter, attributable in part to lower outage costs.

Operating revenue rose 14 percent to $4.2 billion. Dominion uses operating results as its main performance measurement for its earnings outlook.

Dominion's businesses include Dominion Virginia Power, as well as natural gas utilities, interstate gas pipelines and power plants.

The stock closed yesterday at $36.21, up 52 cents.

Virginia Power will seek a rate increase this spring, the company said yesterday.

For the year, operating earnings for Dominion Resources were $1.83 billion, or $3.16 a share. A year earlier, operating earnings were $1.68 billion, or $2.56 a share.

-- Peter Bacqué

Altria Group

Altria Group Inc.'s fourth-quarter results improved as higher cigarette prices didn't deter smokers from buying.

The Henrico County-based parent company of cigarette maker Philip Morris USA, reported profit of $679 million, or 33 cents per share, for the quarter, compared with $2.19 billion, or $1.03 per share in the same period of 2007, when its operations included Philip Morris International. That unit was spun off in March.

Profit from continuing operations rose 5.7 percent, and revenue rose 3 percent to $4.65 billion as the company charged higher prices to offset drops in cigarette volume.

For 2008 profit fell 50 percent, reflecting the spinoff of the international business. Net income dropped to $4.93 billion, or $2.36 per share, from $9.79 billion, or $4.62 per share. Revenue rose 4 percent to $19.36 billion.

The company is cutting costs through an undisclosed number of job reductions. Altria said yesterday it expects to achieve $50 million more in cost reductions -- for a total of $300 million -- by combining operations.

Shares rose 4 cents to $16.84.

-- Staff and wire reports

Media General

Richmond-based Media General Inc. reported a net loss for the fourth quarter and for the year primarily because it lowered the value of its assets and saw a drop in advertising revenue.

The parent company of the Richmond Times-Dispatch also announced yesterday that it was suspending its quarterly dividend as weak economic conditions hurt advertising revenue.

Media General reported a net loss of $85.5 million, or $3.86 per share, for the quarter than ended Dec. 28.

The results include a non-cash pre-tax asset impairment charge of $130.4 million on the write-down of the value of Federal Communications Commission licenses and network affiliation agreements in its broadcast division.

Excluding that charge and other special items such as severance costs, the company reported a fourth-quarter profit from continuing operations of $8.6 million, or 39 cents per share. That compares with income from continuing operations in 2007 of $10.2 million, or 46 cents per share.

Revenue fell 11.9 percent to $207 million.

Profit in its publishing division declined 57.2 percent on lower advertising revenue.

Analysts polled by Thomson Reuters expected per-share earnings of 59 cents on revenue of $221.3 million. The earnings estimates typically exclude one-time items and charges.

For the year, Media General reported a net loss of $631.8 million, or a loss of $28.57 a share, compared with a profit of $10.7 million, or 47 cents.

Revenue fell 10.9 percent to $800 million, compared with $898.8 million in 2007.

Media General said its board suspended the 12 cents a share quarterly dividend because of the uncertain economic outlook. The board had reduced the quarterly dividend in September.

"While we regret having to take this action, this allows the company to direct additional cash flow to the reduction of our debt," said Marshall N. Morton, the company's president and chief executive officer.

Media General publishes 24 daily newspapers and about 275 weekly newspapers and other targeted publications. The company owns and operates 19 network-affiliated television stations, as well as Web sites affiliated with its newspapers and television stations.

Shares fell 68 cents, or 24 percent, to close at $2.16. -- John Reid Blackwell