- The Washington Times - Wednesday, October 31, 2001

From combined dispatches
US Airways reported third-quarter losses of $766 million, far worse than what even the most pessimistic analysts had expected from the beleaguered airline.
The loss, which amounts to $11.42 per share, takes into account the $331 million the Arlington airline received from the federal government as part of a congressional bailout of the airline industry. Without that money, the airline would have lost $1.10 billion in the third quarter.
In the third quarter last year, US Airways reported a loss of $30 million, or 45 cents per share.
Perhaps no other airline was set back more from the September 11 attacks than US Airways. The airline is the largest carrier at Ronald Reagan Washington National Airport, which remained closed for weeks after the attacks and is still operating on a limited flight schedule.
Excluding unusual items, the company lost $433 million, or $6.45 a share. Analysts surveyed by Thomson Financial/First Call had predicted a loss of $4.36 per share.
Quarterly revenue fell 16 percent, from $2.38 billion in 2000 to $1.99 billion in 2001. After the attacks, the airline announced it would lay off 11,000 of its 46,500 workers. Last week, the airline reported that more than 2,000 workers had signed up for a voluntary-leave program.
Despite the losses, US Airways President Rakesh Gangwal said the company begins the fourth quarter with $1.04 billion in cash reserves compared with $1.25 billion at the start of the third quarter.
He expects the airline to finish the year with a cash balance of $800 million to $900 million. Those cash reserves will be critical for the airline to avoid bankruptcy.
Among other Washington-area companies reporting earnings:
Environmental Elements Corp., a Baltimore producer of air-pollution-control equipment, reported that net income for its second quarter ended Sept. 30 rose to $341,000 (5 cents per share) compared with a loss of $5.97 million (84 cents) for the like quarter the previous year.
Coventry Health Care Inc. of Bethesda reported that net income for the third quarter ended Sept. 30 grew 41 percent to $ 21.6 million (32 cents) from $15.4 million (23 cents) for the like quarter the previous year.
Equitable Bank of Wheaton reported that net income for the fourth quarter ended Sept. 30 grew 10 percent to $680,000, or (48 cents diluted) from $616,000 (46 cents) for the like quarter the previous year. Annual net income dropped 12 percent to $2.3 million ($1.68) from $2.6 million ($1.90) for the previous year. Total assets grew 27 percent to $477.9 million from $465.2 million for the like quarter the previous year.
Kate Royce contributed to this article.

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