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Continental Air 3Q climbs
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October 19, 1998: 9:47 a.m. ET
Carrier beats Street by penny a share while clouds gather on NWA deal
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NEW YORK (CNNfn) - Continental Airlines revenue pushed higher in the third quarter, but the carrier's proposed alliance with Northwest Airlines risks being put into a holding pattern, Continental said Monday.
Excluding special charges, Continental reported earnings of $150 million, or $1.94 per share, in the three months ended Sept. 30, up sharply from $114 million, or $1.48 a share, a year earlier.
Analysts surveyed by estimate tracking firm First Call Corp. had expected the company to report $1.93 earnings per share.
Including the charges, Continental earned $73 million, or 97 cents per share, in the quarter.
Revenue grew 12 percent to $2.11 billion from $1.89 billion a year ago.
For the first nine months, the carrier earned $321 million, or $4.15 per share before charges, on revenue of $5.57 billion, up from $316 million, or $4.06 per share, a year ago.
"Continental's flexible growth plan is generating both strong earnings momentum and cash flow," said Larry Kellner, executive vice president and chief financial officer.
The company said it expects negotiations to allow Northwest (NWAC) to cement the airlines' proposed alliance to wrap up soon.
In the event that the airlines don't reach an agreement with Air Partners and the Department of Justice, Continental said it anticipates the DOJ to challenge the transaction -- which includes provisions for Northwest to buy a controlling Continental stake -- by filing a lawsuit.
"At this point, we can't predict whether the Justice Department's concerns will be addressed by agreement or by litigation," Jeffery Smisek, Continental executive vice president and general counsel, said. "If there is litigation, we expect that the implementation of our global alliance will be delayed."
Continental A shares (CAI.A) gained 1-3/16 Friday to close at 39-5/16 while B shares (CAI.B) were unchanged at 39. 
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Continental Airlines
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