Warner Music Losses down as CD and digital sales rise

WARNER MUSIC

Losses down as CD and digital sales rise

NEW YORK — Warner Music Group Corp., which went public in May and is home to big-name artists including Madonna, Green Day and Faith Hill, said on Thursday its fourth-quarter loss narrowed as strong sales in both digital music and traditional CDs helped boost revenue by 13 percent.

The company’s results, after being adjusted for one-time items and stock option costs, easily surpassed Wall Street’s expectations and sent Warner Music shares surging to a new 52-week high.

Shares of the company rose $1, or 5.5 percent, to close at $19.05 Thursday on the NYSE after earlier setting a new high of $19.30. Since going public in May, Warner shares have gained more than 15 percent.

New York-based Warner posted a loss of $30 million, or 21 cents per share, compared with last year’s fourth-quarter loss of $137 million, or $1.27 per share.

Revenue grew to $905 million in the quarter ended Sept. 30, up from $798 million.

DELTA

Carrier reports $1.14 billion loss

Delta Air Lines Inc., the nation’s third-largest carrier, said it lost a whopping $1.14 billion in the first six weeks of its bankruptcy case.

The Atlanta-based airline revealed the loss that amounted to $6.04 a share for the Sept. 15 to Oct. 31 period in a filing Wednesday night in U.S. Bankruptcy Court in New York. Delta filed for bankruptcy on Sept. 14.

Delta already had reported a third-quarter net loss of $1.13 billion for the three months ending Sept. 30.

It’s not clear from Wednesday’s filing how much of the new loss occurred during October and how much came during the last half of September. A spokeswoman said Thursday the company would not be able to break it down. Excluding reorganization items, Delta said its loss for the first six weeks of its bankruptcy case was $472 million.

The airline also said in its filing that it spent $2.61 billion in the first six weeks of its bankruptcy case, much of it on fuel, salaries and interest expense.

CATHAY PACIFIC

Airline will buy12 Boeing 777s

HONG KONG — Hong Kong airline Cathay Pacific Airways Ltd. said Thursday it has ordered 12 Boeing 777-300ER aircraft — its biggest single airplane order ever.

The company also said it will lease another four of the Boeing planes and three Airbus SA A330-300 aircraft from International Lease Finance Corp.

Cathay declined to say how much the deal with Chicago-based Boeing cost. The average list price for a Boeing 777-300ER is $239.5 million, but bulk orders are usually heavily discounted.

Cathay spokeswoman Carolyn Leung said the airline plans to use the Boeing 777 aircraft –to be delivered between Sept. 2007 and July 2010 — on long-haul routes.

The Airbus A330 aircraft, which will join Cathay’s fleet in 2008, will serve regional routes, she said.

Cathay said the Boeing planes will be powered by two General Electric Co. engines, while the Airbus aircraft will be powered by Rolls-Royce Group PLC engines.

–From news services