BUSINESSWEEK ONLINE : MAY 3, 1999 ISSUE
COVER STORY Profit Woes? Not This Time Business Week's flash report on first-quarter 1999 earnings at 100 companies shows a deceiving drop of 19% on a 6% gain in revenues vs. 1998. Why? Look below the surface: Last year's first quarter included Ford Motor Co.'s $16 billion gain from its spin-off of Associates First Capital. Without Ford's results, earnings would have shown an 18% rise in 1999. CURRENT QTR. SALES QTR. PROFITS (MILLIONS) % CHG. (MILLIONS)       % CHG. INDUSTRIALS 280,520.0 +3 17,910.7 -46 ABBOTT LABORATORIES 3,299.0 +8 666.6 +13 AK STEEL HOLDING 632.2 +7 27.6 -3 ALCOA 3,984.7 +16 221.1 +5 ALLIEDSIGNAL 3,596.0 -1 335.0 +12 BOEING 14,392.0 +11 469.0 +838 BOISE CASCADE 1,611.2 +8 18.9 NM BRISTOL-MYERS SQUIBB 4,854.0 +9 1,066.0 +15 CASE 1,201.0 -13 -48.0 NM CATERPILLAR 4,867.0 +2 205.0 -52 COCA-COLA 4,428.0 -1 747.0 -13 COCA-COLA ENTERPRISES 3,269.0 +11 -61.0 NM COLGATE-PALMOLIVE 2,175.3 +1 208.9 +7 CONAGRA ***** 5,693.3 +4 171.4 +28 CORNING 902.1 +12 86.5 +39 CROWN CORK & SEAL 1,793.6 -5 29.5 -29 CUMMINS ENGINE 1,505.0 0 24.0 +243 DANA 3,380.6 +5 161.5 +15 EASTMAN KODAK 3,100.0 +6 191.0 -15 EXXON 26,884.0 -10 1,020.0 -44 FORD MOTOR 37,885.0 +4 1,979.0 -89 GENERAL ELECTRIC 24,165.0 +7 2,155.0 +14 GENERAL MOTORS 42,435.0 +6 1,820.0 +33 GILLETTE 1,939.0 -4 269.0 0 GOODYEAR TIRE & RUBBER 2,991.2 -3 25.5 -88 HASBRO 668.4 +38 13.8 +77 IBP 3,097.7 -4 56.9 +318 INGERSOLL-RAND 2,083.3 +4 121.1 +22 INTERNATIONAL PAPER 4,962.0 +2 44.0 -41 JOHNSON & JOHNSON 6,638.0 +15 1,128.0 +12 LILLY (ELI) 2,255.6 +8 451.4 -15 LOCKHEED MARTIN 6,188.0 0 268.0 0 MATTEL 692.1 -2 -17.9 NM NIKE ***** 2,176.7 -2 124.2 +70 OCCIDENTAL PETROLEUM 1,344.0 -21 -57.0 NM OWENS CORNING 1,130.0 -1 44.0 +450 PARKER HANNIFIN ***** 1,255.8 +5 76.5 -8 PFIZER 3,927.0 +29 815.0 +52 PHELPS DODGE 663.1 -17 0.5 NM PHILIP MORRIS 19,497.0 +6 1,787.0 +29 PITNEY BOWES 1,081.8 +11 142.3 +12 PPG INDUSTRIES 1,803.0 -6 123.0 -36 REYNOLDS METALS 1,068.0 -30 -10.0 NM TRW 3,096.9 0 58.6 -55 TYCO INTERNATIONAL **** 3,957.2 +25 459.3 +52 UNITED TECHNOLOGIES 5,442.0 +3 278.0 +21 VF 1,358.2 +2 85.6 +10 WEYERHAEUSER 2,665.0 +2 102.0 +20 WHIRLPOOL 2,486.0 +1 28.0 -59 SERVICES 81,475.5 +8 1 3,502.4 +30 AMR 4,483.0 -3 94.0 -67 BANK ONE NA NA 1,151.0 +23 BANKAMERICA NA NA 1,914.0 +44 BURLINGTON NORTHERN SANTA FE 2,190.0 +2 236.0 -11 CAPITAL ONE FINANCIAL 877.7 +53 82.4 +25 CHASE MANHATTAN NA NA 1,173.0 +62 CITIGROUP 14,070.0 +10 2,489.0 +15 CNF TRANSPORTATION 1,255.3 +15 42.3 +124 COLUMBIA/HCA HEALTHCARE 4,655.0 -5 322.0 +47 DOW JONES 462.1 -26 51.5 +48 ENRON 7,632.0 +34 253.0 +18 FDX ***** 4,098.4 +3 77.8 +506 FIRST UNION NA NA 706.0 -11 FLEET FINANCIAL GROUP NA NA 438.0 +36 HERTZ 1,033.0 +15 48.8 +38 MARRIOTT INTERNATIONAL 1,895.0 +10 100.0 +12 MBNA NA NA 186.0 +24 McGRAW-HILL 716.5 +2 24.4 +21 MERRILL LYNCH 8,851.0 -6 609.0 +18 MORGAN (J. P.) NA NA 600.0 +153 MORGAN STANLEY DEAN WITTER 8,405.0 +11 1,037.0 +50 NEW YORK TIMES 739.1 +2 61.4 -5 OFFICE DEPOT 2,622.9 +9 100.6 +24 PAINEWEBBER GROUP 1,923.3 +7 160.6 +33 SAFEWAY 6,113.2 +13 205.8 +25 SCHWAB (CHARLES) 951.6 +57 142.9 +110 SOUTHWEST AIRLINES 1,075.6 +14 95.8 +37 TIME WARNER 3,266.0 +4 138.0 NM UAL 4,160.0 +3 78.0 +28 WELLS FARGO NA NA 884.0 +29 TECHNOLOGY 59,125.2 +19 6,542.8 +55 ADVANCED MICRO DEVICES 631.6 +17 -128.4 NM APPLE COMPUTER **** 1,530.0 +9 135.0 +145 COMPAQ COMPUTER 9,419.0 +66 281.0 NM GENENTECH 322.4 +22 14.4 -65 HUGHES ELECTRONICS 1,451.8 +12 78.3 +46 IBM 20,317.0 +15 1,470.0 +42 INTEL 7,103.0 +18 1,999.0 +57 MICROSOFT ***** 4,331.0 +15 1,917.0 +43 MOTOROLA 7,232.0 +5 171.0 -5 SUN MICROSYSTEMS ***** 2,936.0 +24 261.2 +13 TEXAS INSTRUMENTS 2,039.0 -7 233.0 NM UNISYS 1,812.4 +10 111.2 +77 UTILITIES & TELECOM 33,127.6 +11 3,303.0 +5 AMERITECH 4,455.0 +8 732.0 +49 BELLSOUTH 5,973.0 +10 615.0 -31 COLUMBIA ENERGY GROUP 2,548.2 +38 150.4 +2 NEXTEL COMMUNICATIONS 663.8 +103 -439.4 NM QWEST COMMUNICATIONS 878.4 +396 4.8 NM SBC COMMUNICATIONS 7,317.0 +7 1,115.0 +15 SOUTHERN 2,400.0 -4 224.0 -7 SPRINT FON GROUP 4,172.2 +7 406.2 +14 U S WEST 3,182.0 +6 397.0 +1 UNICOM 1,538.0 -10 98.0 +81 EST. EPS       REPORTED (2/18) EPS DIFF. INDUSTRIALS 0.62 0.61 -0.01 ABBOTT LABORATORIES 0.43 0.43 -- AK STEEL HOLDING 0.34 0.46 +0.12 ALCOA 0.61 0.60 -0.01 ALLIEDSIGNAL 0.59 0.59 -- BOEING 0.41 0.50 +0.09 BOISE CASCADE -0.07 0.26 +0.33 BRISTOL-MYERS SQUIBB 0.52 0.53 +0.01 CASE -0.86 -0.68 +0.18 CATERPILLAR 0.84 0.57 -0.27 COCA-COLA 0.32 0.30 -0.02 COCA-COLA ENTERPRISES -0.16 -0.15 +0.01 COLGATE-PALMOLIVE 0.65 0.65 -- CONAGRA ***** 0.35 0.36 +0.01 CORNING 0.30 0.36 +0.06 CROWN CORK & SEAL 0.24 0.21 -0.03 CUMMINS ENGINE 0.58 0.63 +0.05 DANA 1.02 0.97 -0.05 EASTMAN KODAK 0.88 0.59 -0.29 EXXON 0.65 0.47* -0.18 FORD MOTOR 1.38 1.60 +0.22 GENERAL ELECTRIC 0.65 0.65 -- GENERAL MOTORS 2.66 2.68 +0.02 GILLETTE 0.25 0.24 -0.01 GOODYEAR TIRE & RUBBER 0.93 0.90* -0.03 HASBRO 0.05 0.07 +0.02 IBP 0.59 0.61 +0.02 INGERSOLL-RAND 0.68 0.73 +0.05 INTERNATIONAL PAPER 0.06 0.14 +0.08 JOHNSON & JOHNSON 0.81 0.82 +0.01 LILLY (ELI) 0.55 0.40 -0.15 LOCKHEED MARTIN 0.52 0.70* +0.18 MATTEL -0.04 -0.07 -0.03 NIKE ***** 0.38 0.44 +0.06 OCCIDENTAL PETROLEUM -0.10 -0.17 -0.07 OWENS CORNING 0.72 0.77 +0.05 PARKER HANNIFIN ***** 0.71 0.70 -0.01 PFIZER 0.62 0.62 -- PHELPS DODGE 0.00 0.01 +0.01 PHILIP MORRIS 0.80 0.73 -0.07 PITNEY BOWES 0.51 0.52 +0.01 PPG INDUSTRIES 0.89 0.70 -0.19 REYNOLDS METALS 0.65 0.03* -0.62 TRW 1.03 0.83* -0.20 TYCO INTERNATIONAL **** 0.65 0.69 +0.04 UNITED TECHNOLOGIES 1.20 1.13 -0.07 VF 0.68 0.69 +0.01 WEYERHAEUSER 0.31 0.21 -0.10 WHIRLPOOL 0.68 1.15* +0.47 SERVICES 0.66 0.79 +0.13 AMR 0.69 0.57 -0.12 BANK ONE 0.90 0.96 +0.06 BANKAMERICA 1.03 1.08 +0.05 BURLINGTON NORTHERN SANTA FE 0.55 0.50 -0.05 CAPITAL ONE FINANCIAL 1.21 1.18 -0.03 CHASE MANHATTAN 1.21 1.32 +0.11 CITIGROUP 0.79 1.07 +0.28 CNF TRANSPORTATION 0.50 0.74 +0.24 COLUMBIA/HCA HEALTHCARE 0.24 0.42* +0.18 DOW JONES 0.38 0.56 +0.18 ENRON 0.67 0.68 +0.01 FDX ***** 0.51 0.52 +0.01 FIRST UNION 0.93 0.73 -0.20 FLEET FINANCIAL GROUP 0.69 0.72 +0.03 HERTZ 0.37 0.45 +0.08 MARRIOTT INTERNATIONAL 0.37 0.38 +0.01 MBNA 0.23 0.22 -0.01 McGRAW-HILL 0.12 0.12 -- MERRILL LYNCH 1.01 1.44 +0.43 MORGAN (J. P.) 1.49 3.01 +1.52 MORGAN STANLEY DEAN WITTER 1.19 1.76 +0.57 NEW YORK TIMES 0.35 0.34 -0.01 OFFICE DEPOT 0.26 0.25 -0.01 PAINEWEBBER GROUP 0.70 1.01 +0.31 SAFEWAY 0.37 0.40 +0.03 SCHWAB (CHARLES) 0.26 0.34 +0.08 SOUTHWEST AIRLINES 0.24 0.27 +0.03 TIME WARNER -0.02 0.10 +0.12 UAL 1.08 0.44 -0.64 WELLS FARGO 0.50 0.53 +0.03 TECHNOLOGY 0.47 0.37 -0.10 ADVANCED MICRO DEVICES -0.09 -0.81* -0.72 APPLE COMPUTER **** 0.57 0.84 +0.27 COMPAQ COMPUTER 0.35 0.16 -0.19 GENENTECH 0.34 0.11 -0.23 HUGHES ELECTRONICS 0.12 0.20 +0.08 IBM 1.41 1.55 +0.14 INTEL 0.55 0.57 +0.02 MICROSOFT ***** 0.32 0.35 +0.03 MOTOROLA 0.24 0.28 +0.04 SUN MICROSYSTEMS ***** 0.35 0.32 -0.03 TEXAS INSTRUMENTS 0.62 0.58 -0.04 UNISYS 0.24 0.32 +0.08 UTILITIES & TELECOM 0.46 0.47 +0.01 AMERITECH 0.60 0.66 +0.06 BELLSOUTH 0.45 0.46* +0.01 COLUMBIA ENERGY GROUP 1.89 1.80 -0.09 NEXTEL COMMUNICATIONS -1.42 -1.66 -0.24 QWEST COMMUNICATIONS 0.00 0.01 +0.01 SBC COMMUNICATIONS 0.56 0.56 -- SOUTHERN 0.36 0.32 -0.04 SPRINT FON GROUP 0.90 0.93 +0.03 U S WEST 0.82 0.78 -0.04 UNICOM 0.37 0.44 +0.07 **** Second-quarter results ***** Third-quarter results NM = not meaningful NA = not available *EPS adjusted for special items DATA: STANDARD & POOR'S COMPUSTAT, A DIVISION OF McGRAW-HILL INC. EARNINGS ESTIMATE DATA PROVIDED BY I/B/E/S INTERNATIONAL INC., NEW YORK, NY. I/B/E/S IS A REGISTERED TRADEMARK OF I/B/E/S INTERNATIONAL INC. _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ BACK TO TOP					A Wiser Bull? COVER IMAGE: A Wiser Bull? TABLE: The Market Turns From Glamour To Grit CHART: Cyclicals Trump the S&P 500...Industry Comes Back...As Do Financials and Small Caps The Highfliers: From Vertigo to ``Only Very Volatile'' CHART: The Wild Ride for Net Stocks Commentary: Consider This: A Tech Slump May Spark a Hard Landing Boeing Breathes Easier TABLE: Forecast for Boeing: Partly Sunny TABLE: Profit Woes? Not This Time ONLINE ORIGINAL: How a Market Shift Could Realign the Mutual-Fund Stars INTERACT E-Mail to Business Week Online

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