Roundup: Capital One, Marriott, Six Flags
From staff and wire reports
*Marriott International of Bethesda said first-quarter profit sank 34 percent, to $121 million, as travelers cut back. Revenue gained almost 4 percent, to $2.95 billion, but revenue per available room in the United States grew just 2.3 percent. The key indicator in better times was 9 percent or better. Internationally, REVPAR grew 18.5 percent.
*Capital One of McLean said first-quarter profit fell 19 percent, to $548.5 million, due to more borrower defaults. The lender expects $6.7 billion of loan losses in the year through March 2009 as the lender's outlook "significantly deteriorated" because of the slowing U.S. economy.
"There's been clear evidence of a steadily weakening economy throughout the quarter," Chief Financial Officer Gary Perlin told investors and analysts in a conference call.
Capital One set aside $1.79 billion for failed loans and to build loss reserves in the first quarter.
Profit in Capital One's U.S. card unit fell 8.8 percent to $491.2 million as loan defaults rose to 5.85 percent from 3.72 percent. Capital One expects a default rate in the "low six percent range" for the next six months, rising beyond that in the fourth quarter of 2008.
*Six Flags, controlled by Daniel Snyder, said first-quarter sales rose 35 percent, to about $68 million, and attendance increased 19 percent, to at least 1.4 million, helped by an earlier Easter holiday. Spending per guest rose 13 percent to $38.95, reflecting higher admissions, food, games, parking and other income, according to the statement.
April 17, 2008; 6:16 PM ET
Previous: Three Banks, One Struggling Economy | Next: Early Briefing: Deal With Ex-Fannie Executives Near
Please email us to report offensive comments.
Posted by: Darryl Steyn | April 28, 2008 11:14 PM
The comments to this entry are closed.