Marriott International, Inc. (MAR / NYSE) today reported diluted earnings per share of 42 cents for its 1999 second quarter ended June 18, an increase of 14 percent over 37 cents in the corresponding 1998 quarter.
Net income for the 1999 second quarter was $114 million, up 13 percent from $101 million in the preceding year. Sales were $2.0 billion, an increase of six percent versus the 1998 second quarter.
Second quarter profit comparisons are affected by costs of the company`s Year 2000 readiness efforts, and preopening expenses associated with new senior living communities. Excluding the impact of these items, diluted earnings per share increased 18 percent in the 1999 second quarter.
J.W. Marriott, Jr., chairman and chief executive officer of Marriott International, said second quarter results reflected strong performance for the company`s full-service and luxury hotel brands, both in the United States and overseas.
“Although REVPAR growth in the U.S. has slowed somewhat in 1999, we have continued to meet our earnings growth goals,” Mr. Marriott said. “Our hotel operators are doing an excellent job of controlling costs and achieving productivity gains, and we also are getting a major boost from new properties worldwide.
“We remain very optimistic about the company`s prospects for the balance of the year,” Mr. Marriott added. “Our brands are gaining market share, and are extending their lead over competitors in terms of customer and owner preference, revenue per available room and profitability.”
For the first half of 1999, Marriott International reported net income of $214 million and diluted earnings per share of 80 cents, up 13 percent and 14 percent, respectively, versus the 1998 period. Sales totaled $3.9 billion, an eight percent increase over the 1998 first half.