Williams returns to profit; helped by lower costs

TULSA, Okla. (Dow Jones/AP) _ Natural-gas company Williams Cos. Thursday said it returned to a profit in the first quarter, as cost reductions outpaced revenue declines. <br/><br/>Williams faced an easy

Friday, May 7th 2004, 12:21 pm

By: News On 6

TULSA, Okla. (Dow Jones/AP) _ Natural-gas company Williams Cos. Thursday said it returned to a profit in the first quarter, as cost reductions outpaced revenue declines.

Williams faced an easy comparison, as it took a substantial accounting charge in the same quarter last year.

The Tulsa-based company earned $9.9 million, or 2 cents a share, in the latest quarter, after the prior year's loss of $821.3 million, or $1.59 a share.

Income from continuing operations was $5.4 million, or 1 cent a share, compared with a loss of $39.3 million, or 9 cents a share.

Analysts surveyed by Thomson First Call had forecast, on average, earnings of 8 cents a share for the latest quarter.

The company's total revenue fell 36 percent, to $3.11 billion from $4.83 billion.

Chairman and Chief Executive Steve Malcolm said that compared to last year, the company has strengthened its balance sheet, sharply lowered interest expenses and produced positive cash flow.

Looking ahead, Williams reiterated its projected 2004 recurring earnings of between 17 and 40 cents a share, with consolidated segment profit of $1.1 billion to $1.4 billion and $1 billion to $1.3 billion in cash flow from operations.

First Call's projection is for earnings of 39 cents a share. In 2003, the company posted a loss of $504.5 million, or $1.03 a share, on revenue of $16.81 billion.