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Host Marriott misses flight
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September 16, 1998: 8:52 a.m. ET
Food and beverage concession firm warns Northwest strike hurt 3Q profit
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NEW YORK (CNNfn) - Host Marriott Services Corp. said Wednesday the 13-day pilots strike at Northwest Airlines will cause its third-quarter earnings to fall short of expectations.
The food, beverage and retail concession company also said the economic problems in Asia have had a negative impact on its duty-free business.
Host Marriott said it expects to report third-quarter earnings of 50 cents to 51 cents a share. First Call consensus estimates forecast a profit of 56 cents a share.
The company said early estimates indicate the Northwest Airlines strike cost it 3 cents a share in earnings. Host Marriott said the strike hit it hardest at its hub operations for Northwest in Minneapolis/St. Paul, Detroit and Memphis.
Host Marriott closed more than half its units at those locations and laid off more than 800 workers during the strike.
The company also said the recent reduction in Asian travel has cut its earnings from its duty-free shops in key gateway airports in the United States.
Nonetheless, Host Marriott Chief Executive Officer Bill McCarten sounded a positive note amid the bad news.
"We expect the impact of the Northwest Airlines strike to be short term," McCarten said. "In spite of the impact of the strike and the Asian slowdown, our performance continues to be strong."
McCarten noted that Host Marriott expects to sign three new contracts within the next month as it enters the $2.5 billion shopping mall food and beverage market.
Host Marriott (HMS) shares closed at 11-3/16, up 3/16 in Tuesday trading. 
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Host Marriott Services
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