Financial News Briefs

UnitedHealth posts higher 2Q results

Minneapolis (AP) – UnitedHealth
Group Inc., the nation’s second-largest health insurer, said Thursday that second-quarter
earnings rose 36 percent from last year, and the company forecast full-year profit
in line with Wall Street expectations.

Net income climbed to $809 million,
or 61 cents per share, from $596 million, or 47 cents per share, a year ago. Revenue
grew 28 percent to $11.11 billion from $8.70 billion last year.

The results
topped analysts’ expectations for profit of 60 cents per share on sales of $11.06
billion, according to a Thomson Financial survey.

UnitedHealth, which recently
agreed to acquire PacifiCare Health Systems in an $8.1 billion cash and stock
deal, said customer growth continued to strengthen across all of its businesses.
Operating margins improved to 11.8 percent from 10.9 percent in the year-ago period,
reflecting diversified growth and expense management.

Looking ahead, the
company said it now sees full-year earnings-per-share growth of about 25 percent,
with results projected to range between $2.45 and $2.47 per share. Third-quarter
profit is expected to come in at about 63 cents per share.

Analysts are
expecting UnitedHealth to post profit of 63 cents and $2.46 per share in the third
quarter and full year, respectively.

Tribune quarterly earnings double

Chicago
(AP) – Media company Tribune Co., which owns the Chicago Tribune and Los Angeles
Times newspapers as well as numerous television stations, said Thursday that second-quarter
earnings more than doubled from a year ago despite a 2.3 percent decline in revenue.
Its shares rose nearly 2 percent in early trading.

Net income rose to $231.3
million, or 73 cents per share, after preferred dividend payments for the three
months ended June 26 compared with $94.3 million, or 29 cents per share, a year
ago.

Excluding a gain of 13 cents a share, primarily from adjusting the
book value of derivatives holdings, profits topped analysts’ expectations of 58
cents per share, according to a Thomson Financial survey.

Revenue fell to
$1.46 billion from $1.5 billion last year, due to sluggish TV and newspaper advertising
sales and a drop in newspaper circulation. Analysts expected sales of $1.47 billion.

Revenue
at Tribune’s publishing unit, which includes 11 daily newspapers, slipped 1 percent
to $1 billion.

Newspaper advertising revenue grew 1 percent for the quarter,
hurt by lower revenue from Newsday, which had to drop ad rates in September after
a circulation scandal.

Tribune circulation revenue declined 9 percent to
$149 million from $165 million, due to volume drops at each of its newspapers,
the company said. Classified ad revenue grew 6 percent, helped by sharp increases
in help-wanted and real estate ads.

Revenue from Tribune’s broadcasting
and entertainment business fell 6 percent, from $450 million a year earlier to
$423 million. Television revenue was down 9 percent from a year ago, from $368
million to $335 million.

The Chicago-based company also owns 26 television
stations and the Chicago Cubs.