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Earnings reports

United parent posts loss

UAL Corp. reports a $182-million operating loss days before it is to leave bankruptcy with its airline.

CHICAGO - Just days away from leaving bankruptcy, United Airlines' parent company reported a fourth-quarter operating loss of $182-million Friday, marking improvement but underscoring its inability to make a profit yet despite a three-year restructuring.

The nation's No. 2 airline and its parent, UAL Corp., plan to emerge from Chapter 11 on Wednesday.

The net loss was a record $16.9-billion for the fourth quarter and $21.2-billion for the year, virtually all noncash reorganization expenses. Most of those on-paper losses will be reversed within days, reflecting unsecured claims that will be settled for a fraction of the charges.

The company is expected to disclose a multibillion-dollar gain when it leaves bankruptcy next week, formally accounting for overturning many of the losses.

The October-through-December period was the company's 22nd consecutive quarter in the red.

Higher fuel costs contributed significantly to the operating loss, which nonetheless was a $388-million improvement over the same quarter a year earlier. The company said revenue gains and nonfuel cost reductions helped offset a $397-million increase in fuel costs.

The net loss amounted to $145.47 per share, compared with a net loss of $741-million, or $6.39 per share, a year earlier. Excluding reorganization and one-time items, the net loss was $297-million.

Revenue was $4.4-billion, up 10 percent from $4-billion for the fourth quarter of 2004.

"Although operating earnings for both the fourth quarter and the full year 2005 have improved significantly despite an increase in system fuel price of over 40 percent, we know we can do better," chief executive Glenn Tilton said. "We will continue to contain costs, apply sound revenue management and deliver consistent service to our customers."

For the full year, the net loss amounted to $182.29 per share, compared with a net loss of $1.72-billion, or $15.25 per share, in 2004.

United's current shares will be virtually wiped out when it leaves bankruptcy. The company's new stock will begin trading next week on the Nasdaq Stock Market under the symbol UAUA.

Guidant Corp.: The medical device company that recently agreed to be acquired by Boston Scientific Corp. reported Friday that its fourth-quarter profit fell 25 percent as a result of highly publicized product recalls that began over the summer.

Procter & Gamble: The world's biggest consumer products company said Friday that its second-quarter profit jumped 29 percent, driven by growth in most businesses and the October acquisition of razor and battery maker Gillette.

Chevron Corp.: The oil company's fourth-quarter profit climbed 20 percent, a company record that continued the most prosperous stretch in its 126-year history as it capitalizes on high fuel prices that are squeezing consumers and ruffling politicians.

Gannett Co.: The nation's largest newspaper publisher, whose papers include USA Today, reported a 9 percent drop in fourth-quarter earnings Friday, due to expenses from its swap of newspapers in Detroit and the absence of election-year advertising.

FPL Group Inc.: The Juno Beach utility holding company said Friday its fourth-quarter profit climbed 19 percent on a 22 percent jump in revenue, despite hurricane-related costs.

[Last modified January 28, 2006, 01:37:10]