Delta Swings to Profit in Second Quarter
Wednesday July 18, 1:03 pm ET
By Harry R. Weber, AP Business Writer
Delta Posts $1.77 Billion Profit in Second Quarter
ATLANTA (AP) -- Delta Air Lines Inc., the nation's third-largest carrier, cited a 5.5 percent gain in sales as it reported Wednesday that it swung to a profit in the second quarter, which saw it emerge from bankruptcy after shaving billions of dollars in costs.
The Atlanta-based company's results beat Wall Street expectations when one-time items are excluded.
Also Wednesday, outgoing Chief Executive Gerald Grinstein told investors and analysts during a conference call that Delta's board will likely choose his successor by the end of the summer, at which point he will retire. He had initially said he planned to leave soon after Delta emerged from Chapter 11, but later extended that timeline. He said during the call the board is taking a deliberative approach to finding his replacement "given the magnitude of this decision."
The top internal candidates for CEO are Chief Financial Officer Ed Bastian and Chief Operating Officer James Whitehurst. No external candidates have been mentioned publicly.
Grinstein said during a conference call with reporters that Bastian and Whitehurst have not been distracted in their duties during the search.
"There may be more pins and needles on the outside than on the inside," Grinstein said. "The company is functioning very well internally."
Delta shares rose 18 cents to $21.37 in midday trading.
For the three months ending June 30, Delta said it recorded net income of $1.77 billion, or $4.49 a share, compared to a loss of $2.21 billion in the same period a year earlier. The corresponding per-share figure for the year-ago loss was not provided in Delta's balance sheet.
Excluding reorganization and related one-time items, Delta said it had a profit of $274 million, or 70 cents a share, in the second quarter. On a comparable basis, analysts surveyed by Thomson Financial were expecting a profit of 59 cents a share.
Story.
Wednesday July 18, 1:03 pm ET
By Harry R. Weber, AP Business Writer
Delta Posts $1.77 Billion Profit in Second Quarter
ATLANTA (AP) -- Delta Air Lines Inc., the nation's third-largest carrier, cited a 5.5 percent gain in sales as it reported Wednesday that it swung to a profit in the second quarter, which saw it emerge from bankruptcy after shaving billions of dollars in costs.
The Atlanta-based company's results beat Wall Street expectations when one-time items are excluded.
Also Wednesday, outgoing Chief Executive Gerald Grinstein told investors and analysts during a conference call that Delta's board will likely choose his successor by the end of the summer, at which point he will retire. He had initially said he planned to leave soon after Delta emerged from Chapter 11, but later extended that timeline. He said during the call the board is taking a deliberative approach to finding his replacement "given the magnitude of this decision."
The top internal candidates for CEO are Chief Financial Officer Ed Bastian and Chief Operating Officer James Whitehurst. No external candidates have been mentioned publicly.
Grinstein said during a conference call with reporters that Bastian and Whitehurst have not been distracted in their duties during the search.
"There may be more pins and needles on the outside than on the inside," Grinstein said. "The company is functioning very well internally."
Delta shares rose 18 cents to $21.37 in midday trading.
For the three months ending June 30, Delta said it recorded net income of $1.77 billion, or $4.49 a share, compared to a loss of $2.21 billion in the same period a year earlier. The corresponding per-share figure for the year-ago loss was not provided in Delta's balance sheet.
Excluding reorganization and related one-time items, Delta said it had a profit of $274 million, or 70 cents a share, in the second quarter. On a comparable basis, analysts surveyed by Thomson Financial were expecting a profit of 59 cents a share.
Story.
