clarinews@clarinet.com (02/02/90)
WASHINGTON (UPI) -- Marriott Corp., shedding its food businesses to concentrate on lodgings, reported Thursday substantially lower fourth-quarter net income of $1 million, or one cent a share, compared with $65 million, or 56 cents a share, in the same quarter of 1988. The company said net income for the year was $177 million, or $1.58 a share, compared with $232 million, or $1.95 a share, in 1988. The company, which operates Marriott, Courtyard and Fairfield Inns hotels and motels, said ``results were in line with projections made in conjunction with the December 1989 announcement of a major restructuring,'' including the planned sale of its Roy Rogers fast food chain as well as Big Boy and other family restaurants, and the sale of its Host airline catering business.'' ``With restructuring behind us, we believe we can grow at 15 to 20 percent per year from our 1989 profit base for continuing operations,'' chairman J.W. Marriott said. ``With the definitive agreement for the sale of our Roy Rogers division announced this week, we continue to make progress on completing our restructuring program.'' Marriott also said the months ahead could prove bumpy for the hotel and motel business. ``Overcapacity will be an ongoing problem in the lodging industry over the next two years, but we are confident that Marriott will continue to significantly outperform the industry,'' he said. Marriott's consolidated sales totaled $7,53 billion in 1989, up 14 percent from $6,62 billion in 1988, the company said. For the fourth quarter, income from continuing operations was $36 million, or 33 cents a share, compared with $52 million, or 45 cents a share, in the final quarter of 1988. For the year, income from continuing operations was $181 million down 4 percent from $189 million in 1988. Marriott said excluding a pretax gain of $231 million on the divestiture of the airline catering operations, and pretax restructuring charges of $256 million applicable to continuing operations, 1989 income from continuing operations rose 4 percent.