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Tuesday, 18 September, 2001, 21:21 GMT 22:21 UK
US companies warn on profits
United Airlines Boeing 777 aircraft
United Airlines will cuts its schedule following the attacks
A slew of US companies have issued profit warnings following the terrorist attacks on New York and the Pentagon.

Airline firms head the list but some well-known media firms have also added their name to the list, including the New York Times Co and newspaper giant E W Scripps.

Berkshire Hathaway, the Omaha, Nebraska, insurance giant, said it expects charges related to the 11 September attacks and also terminated a $500m bond deal with Finova Group.

World Trade Center rubble
Companies' profits have been directly affected by the attacks
Other insurance companies, including AIG, Chubb and PMA Capital also expect to be hard hit by claims for losses related to the attacks.

Cruise operator Carnival said its bookings are running 60% below its normal pace, and casino-operator Park Place has postponed its planned renovation of its flagship Caesar's Palace in Las Vegas.

Airlines hard hit

It was airlines, however, whose names outnumbered every other industry, with the largest names - Continental, Delta and United - lining up to issue profit warnings, lay-off announcements and flight cutbacks.

Struggling Midway Airlines announced last week it was calling it quits and smaller America Trans Air said it was furloughing 1,500 workers.

Among media companies, Dow Jones, publisher of the Wall Street Journal, whose office building was damaged in Tuesday's World Trade Center catastrophe, said the newspaper is at risk of missing third quarter ad estimates, which threaten the firm's bottom line.

E W Scripps also warned it sees lower third-quarter profits and yearly profits near the low end of its previous estimate of $2.05 to $2.18 cents a share, according to Zacks Investment Research.

The New York Times said it expects third-quarter profits to be "adversely affected" by the World Trade Center attacks.

New and old economy

The warnings spilled from various sectors of the US economy.

Ford Motor said supply problems caused by disruptions directly related to the attacks would impact its profits for the third quarter, which ends 30 September.

From the new-economy, software-giant Oracle said it expects licensing revenue to decline by 50% as a direct result of the attacks.

Hoteliers, such as Hilton, which has two properties near the World Trade Center, said its New York City properties make up in the "high teens" of the firm's overall profits.

Also, Fairmont Hotels and Resorts said it expects the attacks to affect its third-quarter profits.

Finance stocks American Express and Citigroup also chimed in saying their third quarter will suffer, and regional drug chain Duane Reade expects lower quarterly earnings as well.

Duane Reade lost a store that was located in the World Trade Center.

So far, nearly 30 companies have said the attacks would somehow impact their business.

See also:

18 Sep 01 | Business
US promises airline bail-out
06 Sep 01 | Business
Gap warns on profits
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