Cendant Earnings Climb 43% In Q1

NEW YORK— Cendant Corp.’s first-quarter net income rose about 43% as cost cuts and strong performances across its diverse businesses aided it through the post Sept. 11 travel slump. Net income for the company totaled $342 million, or $0.34 per share, compared with $239 million, or $0.26 per share, a year earlier. Excluding costs related to shareholder litigation and costs from acquisitions, Cendant reported first-quarter income of $349 million, or $0.34 per adjusted share, compared with $177 million, or $0.21 per adjusted share, a year earlier. Wall Street analysts had expected Cendant to earn $0.30 to $0.33 per share, with a consensus of $0.32 a share, according to research firm Thomson Financial/First Call. First-quarter revenue rose 84%, to $2.7 billion from $1.5 billion a year earlier. Looking ahead, Cendant said it sees full-year 2002 adjusted earnings of $1.36 per share, reflecting business strength and acquisitions. It expects earnings per adjusted share of $0.36 for the second quarter, $0.39 for the third quarter and $0.27 for the fourth quarter. Analysts estimates for the periods were $0.35, $0.38 and $0.30, respectively, according to First Call. For the full year they expect $1.34 per share. Cendant has recently bolstered its travel presence with acquisitions of travel services provider Galileo and timeshare operator Trendwest Resorts. SOURCE: Reuters