Marriott International, Inc. (MAR / NYSE) today reported diluted earnings per share of 36 cents for its 1999 third quarter ended September 10, an increase of 13 percent over 32 cents in the corresponding 1998 quarter.
Net income for the 1999 third quarter was $96 million, up 12 percent from $86 million in the preceding year. Sales were $2.0 billion, an increase of 11 percent versus the 1998 third quarter.
Third 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 15 percent in the 1999 third quarter.
J.W. Marriott, Jr., chairman and chief executive officer of Marriott International, said that the company`s solid third quarter performance represented a combination of increased profitability for established hotels, and contributions from new properties.
“Our flagship brand—Marriott Hotels, Resorts and Suites—continues to generate better-than-average sales growth, and is achieving higher house profit margins through tight cost controls and improved productivity,” Mr. Marriott said. “Ritz-Carlton, our luxury brand, had an especially strong summer, and our moderate price Courtyard hotel brand posted its best results of the year.
“We also are getting a major boost from new lodging properties worldwide,” Mr. Marriott added. “This year, the company will open nearly 250 new hotels representing well over 30,000 rooms, and we are continuing to replenish our pipeline of projects under development. Our brands are taking advantage of current industry conditions to gain market share, and we are well-positioned for further growth in 2000 and beyond.”
For the first three quarters of 1999, Marriott International reported net income of $310 million and diluted earnings per share of $1.16, up 12 percent and 14 percent, respectively, versus the 1998 period. Sales totaled $5.9 billion, a nine percent increase over the first three quarters of 1998.