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News > Companies
Cendant 3Q weighed down
November 4, 1998: 9:53 a.m. ET

Troubled marketing firm's profit cut by investment write-offs, probe costs
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NEW YORK (CNNfn) - Trouble-plagued Cendant Corp.'s third-quarter profits were reduced by write-offs for soured investments as well as its ongoing accounting-related investigation.
     As a result, the Parsipanny, N.J., company, which franchises hotel, rental car and real estate brands, said net income fell 45 percent in the latest quarter to $111 million from $203 million a year earlier.
     Revenues rose 23 percent to $1.46 billion in the latest quarter.
     The results translated to net income of 13 cents per share, reflecting a charge of 6 cents per share to cover the cost of investigating its former CUC International unit and a severance payment to Cendant's former chairman, who left in the wake of the scandal.
     Net profit also was cut $50 million, or 4 cents a share, by a non-cash write-off of Cendant's stake in Net Grocer, an Internet grocery that recently fired most of its staff after a failed bid to take the company public. The company also recognized a write down of goodwill from Cendant's National Library of Poetry acquisition.
     Excluding these charges, Cendant's operating profits totaled 24 cents a share in the third quarter, generally in line with expectations.
     Cendant stock (CD) was up 5/16 at 13-3/4 in early Wednesday trading. Back to top
     -- from staff and wire reports

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