Earnings: Disney | Federated |

Disney Posts Solid Growth

LOS ANGELES - (AP) - Strong DVD sales of "Chronicles of Narnia" and continued growth at its domestic theme parks drove higher third-quarter revenue and profits at The Walt Disney Co. (DIS).

The Burbank, Calif.-based media conglomerate reported gains in all four divisions, including its movie studio, which had been lagging of late and last month laid off 650 people in a worldwide restructuring.

Results also benefited from a one-time gain related to its acquisition of Pixar Animation Studios.

Disney reported net income of $1.13 billion, or 53 cents per share, compared with net income of $811 million, or 39 cents per share, in the same period last year.

The results handily beat analyst estimates of 44 cents per share as surveyed by Thomson Financial.

Revenue grew 12 percent to $8.62 billion from $7.72 billion last year.

The company also saw growth in its Media networks division, driven mainly by subscriber and advertiser growth at its ESPN cable channel.

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Federated Reports Rise In Profit

NEW YORK (Reuters) - Federated Department Stores Inc. (FD), parent of Macy's and Bloomingdale's, Wednesday said quarterly profit rose, helped by a cash refund, and it raised its earnings forecast for the second half of the year.

Federated, which completed its $11 billion acquisition of May Department Stores in August 2005, reported earnings of $317 million, or 57 cents per share for the second quarter ended July 29, compared with $148 million, or 42 cents per share, a year earlier.

The quarter included a benefit of 16 cents per share from a cash refund from the Internal Revenue Service.

Excluding May merger integration costs and inventory valuation adjustments and gains on the sale of credit receivables, earnings from continuing operations were 49 cents a share.

Analysts on average had been expecting 44 cents per share excluding special items, according to Reuters Estimates.

Quarterly revenue rose roughly 65 percent to almost $6 billion, but missed analysts' targets of $6.15 billion.

Sales at stores open at least a year, a key retail gauge known as same-store sales, rose 4.6 percent, compared with the company's forecast of an increase of 4 percent to 6 percent.

Federated said it expected earnings per share of 15 cents to 20 cents in the third quarter and $1.40 to $1.50 in the fourth quarter. Its previous forecast was $1.50 to $1.62 for the two periods combined.

The figures exclude merger integration costs and related inventory valuation adjustments.

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