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Non-Tech : GM - General Motors -- Ignore unavailable to you. Want to Upgrade?

To: porcupine --''''> who wrote (176)	1/20/1999 11:18:00 PM
From: porcupine --''''>	Read Replies (1) \| Respond to of 543

Hughes Electronics posts lower operating earnings Wednesday, January 20, 1999 08:14 PM LOS ANGELES, Jan 20 (Reuters) - Hughes Electronics Corp. on Wednesday reported sharply lower fourth-quarter earnings as losses abroad offset higher sales, spurred by record U.S. subscribers to its DirecTV satellite television system. El Segundo, Calif.-based Hughes said fourth-quarter profits, excluding one-time items, fell to $13.2 million, or 3 cents a share, from $27.8 million, or 7 cents, in the year-ago quarter. Revenues rose 5.7 percent to $1.79 billion from $1.69 billion a year ago, helped by record numbers of U.S. subscribers for DirecTV and higher sales of commercial satellites. Hughes attributed the weaker earnings to losses at Hughes Network Systems' international wireless telephone business and higher start-up costs for the first full year of operation of its 32 percent-owned DirecTV Japan. The company also cited higher operating losses at DirecTV in Latin America and higher operating costs related to the expansion of the PanAmSat satellite fleet. Including one-time items, Hughes' net income rose to $128.2 million, or 32 cents a share, compared with pro forma earnings of $70 million, or 18 cents a share, in the year-ago quarter. During the quarter Hughes recorded gains of $115 million, or 29 cents a share, from a favorable tax settlement, $62.8 million, or 16 cents a share, from the sales of Hughes-Avicom and $20.6 million, or 5 cents a share, from PanAmSat's early retirement of debt. For the full year, Hughes sales rose to $5.9 billion from $5.1 billion in 1997, with DirecTV generating the majority of the increase. Earnings for 1998, excluding one-time items, increased to $165.9 million, or 41 cents a share, vs. pro forma earnings of $110.2 million, or 28 cents a share, for all of 1997. After one-time items, 1998 net income fell to $271.7 million, or 68 cents a share, vs. $470.7 million, or $1.18 a share on a pro forma basis, in 1997. "Our revenues increased 16.3 percent for 1998," Chief Executive Michael Smith said in a statement. "And, excluding one-time items, earnings increased 50.5 percent." Smith said the U.S. DirecTV business enjoyed its best year ever for subscriber growth with full-year sales reaching $1.8 billion, up from $1.27 billion, as it added 1.15 million net new subscribers in the United States. (Nyse:GMH) Quote for referenced ticker symbols: GMH © 1999, Reuters