HARTFORD, CT— According to a Reuters report, The Walt Disney Co.s top executives, who are under pressure from a weak stock price, Tuesday sought to restore some luster to The Magic Kingdom by telling shareholders tough times may be over at theme parks. Walt Disney World in Florida and Disneyland in southern California have seen attendance fall sharply since the Sept. 11 attacks, and Disneys ABC broadcast television network has been hammered by the worst advertising market since World War II. The two factors have stifled earnings growth and while executives, including Chief Executive Michael Eisner, could not provide shareholders with insight as to advertisings future at Disneys annual meeting here, they did say recent economic indicators gave them hope that tourism was looking up. “Our parks and resorts segments is showing the gradual signs of improvement in attendance and advance reservation bookings we had hoped it would,” CFO Tom Staggs said at the annual meeting. “We expect that the worst is behind us, and we are beginning to see signs that the economy is coming back.” He cited improving fourth-quarter U.S. gross domestic product and the Conference Boards Consumer Confidence Index. Staggs said his expectations for the remainder of fiscal 2002 had not changed since Disney issued first-quarter earnings earlier this month. At that time, he warned operating profits would be off 15% for the final three fiscal quarters. Eisner reiterated statements that Disney would be well positioned when the economy recovers. He said he intended to return struggling ABC to the top of the ratings heap. SOURCE: Reuters
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