- The Washington Times - Friday, October 25, 2002

Two more companies restated earnings yesterday, boosting the number of large U.S. firms to make such a move.

Bristol-Myers Squibb Co. and Tyco International Ltd. both restated earnings yesterday after admitting to improperly reporting revenue.

AOL Time Warner Inc. said Wednesday it will restate two years of results, reducing revenue by $190 million. The company said sales at America Online, the Sterling, Va., Internet unit, were recorded improperly.

Bristol-Myers Squibb plans to restate more than $2 billion in revenue dating to 2000 after the pharmaceutical company improperly increased sales revenue by offering discounts to wholesalers.

Bristol-Myers, the world's fifth-biggest drug maker, said reduced demand from overstocked wholesalers helped push third-quarter profit down 75 percent. Net income before expected adjustments fell to $314 million from $1.25 billion a year earlier. Sales fell 12 percent to $4.2 billion.

U.S. regulators are investigating Bristol-Myers's accounting for sales incentives that left bloated inventories.

Investors called for a restatement.

Sales and earnings will probably be adjusted higher for 2002 and lower for 2000 and 2001, the company said. Bristol-Myers warned earlier this year that a restatement was possible, but "unlikely."

Tyco International restated $133 million in profits yesterday, primarily at its ADT security systems unit.

Tyco also reported a $1.7 billion quarterly loss yesterday.

Tyco, a conglomerate based in Bermuda and run from Exeter, N.H., is the world's largest maker of electrical connectors, industrial valves and undersea fiber-optic cable.

Former Tyco Chief Executive Dennis Kozlowski and ex-Chief Financial Officer Mark Swartz were indicted last month on charges of stealing $170 million from the company and running a $430 million stock swindle. They pleaded not guilty.

In other earnings yesterday:

•Nextel Communications Inc., the Reston wireless telephone carrier, said net income for the third quarter that ended Sept. 30 increased to $383 million (55 cents) from a loss of $150 million (27 cents) a year earlier.

•Duke Energy Corp., based in Charlotte, N.C., said net income for the third quarter ended Sept. 30 fell to $230 million (27 cents) from $796 million ($1.01) a year ago.

•Viacom Inc., owner of CBS, MTV and the Paramount movie studio, reported quarterly earnings of $640 million, compared with a $190 million loss for the same period a year ago.

•Wendy's International Inc., the hamburger chain based in Dublin, Ohio, said earnings for the third quarter ended Sept. 30 rose 16 percent to $60.9 million (52 cents) from $52.4 million (44 cents) a year earlier.

•Unocal Corp., the second-largest independent U.S. petroleum company, said profit fell 2.9 percent in the third quarter that ended Sept. 30 to $99 million (41 cents) from $102 million (42 cents) a year ago.

•Corvis Corp., the Columbia, Md., provider of intelligent optical networking solutions, said losses escalated 58 percent for the third quarter ended Sept. 30 to $127.4 million (31 cents) from $80.6 million (23 cents) a year earlier.

•Pepco Holdings Inc., the Washington energy company, said earnings surged 68 percent for the third quarter ended Sept. 30 to $115.2 million (80 cents) from $68.7 million (64 cents) for the like period a year ago.

•CSX Corp., the Richmond railroad company, said profits jumped 27 percent for the third quarter ended Sept. 30 to $127 million (60 cents) from $100 million (47 cents) in the previous year.

•MedImmune Inc., the Gaithersburg drug company, said losses rose 89 percent for the third quarter ended Sept. 30 to $36 million (14 cents) from a loss of $19 million (9 cents) a year earlier.

•VSE Corp., the Alexandria service provider to engineering, energy, environment, security and defense services markets, said profits climbed 22 percent for the third quarter ended Sept. 30 to $257,000 (12 cents) from $211,000 (10 cents) a year earlier.

•AES Corp., an Arlington independent power producer, posted significant losses for the third quarter ended Sept. 30, losing $314 million (58 cents) compared with profits of $3 million (1 cent) in the previous year.

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