The Atlanta Constitution from Atlanta, Georgia • 32

BUSINESS The Atlanta Journal The Atlanta Constitution CS Tuesday, October 15, 1991 Hotels: Reservation plan a challenge Most beverage companies expect improved third-quarter earnings Bubbling earnings What analysts expect beverage company earnings to do: Coca-Cola Co. a rise of as much as 21 percent Pepsico growth of as much as 1 5 percent, excluding a big charge Anheuser-Busch a net gain of about 1 0 percent Coca-Cola Enterprises break even or a small loss Adolph Coors Co. little earnings growth No excitement "There's nothing to stimulate interest," said David Goldman, an analyst with Nomura Research Institute. In the third quarter, Coke is expected to earn between 65 cents and 70 cents a share, up from 58 cents a year earlier, Pepsico earnings will be hurt by continuing difficulties at its Frito-Lay Inc. unit.

Last month, Pepsi said it planned to take $62.3 million in charges, primarily from cutting 1,800 jobs at the snack unit. Pepsi's Taco Bell and Pizza Hut units are expected to have strong results, while earnings at KFC, formerly Kentucky Fried Chicken, will be hurt by costs related to the delayed introduction of a skinless chicken product. Partly on the strength of the other restaurant operations, though, analysts expect Pepsi to earn 42 cents to 47 cents a share, excluding the charges, com- FROM OUR NEWS SERVICES Major beverage companies, gulping down a difficult summer season in the United States, are expected to report mostly higher third-quarter earnings. Coca-Cola Co. will report an earnings rise of as much as 21 percent, industry analysts say, while Pepsico Inc.

earnings will grow as much IS percent; excluding a big charge. However, Coca-Cola Enterprises a big Coke bottler, had a difficult quarter, with earnings breaking even, or perhaps dipping into a small loss. Volume growth in the domestic soft drink market dominated by Coke and Pepsi is difficult to pinpoint, but it clearly continued to slow. Several analysts believe the market, hurt by the continuing effects of the recession and by a dearth of new products that could stimulate demand, was flat, or up only 1 percent or so. in poor condition, or in some cases, did not even exist Not as advertised "We had people who advertised that they had a luxury hotel, and in many cases the people found it was a prefab building on a lot somewhere," Mr.

Woody said. "Or in a trailer on a cow pasture." When the disappointed customers asked for refunds, many could not get them for many years because the reservation system was so inadequate. Less than two weeks after the fair opened, the situation was so bad that World's Fair officials abolished Knoxvisit and turned the reservation system over to a private company. A month after the fair closed, the private company PLMHotel-Motel filed for bankruptcy protection, blaming its problems on Knoxvisit, which it stated was "guilty of gross mismanagement resulting in utter chaos in administration of the reservation and accounting system." In the end, the $110 million fair drew 11 million visitors and 17 lawsuits related to hotel reservations asking for a total of $19 million in damages. "The mess was finally settled two or three years ago," said Mr.

Woody, "and they got cents on the dollar." But ACOG says the expertise it has tapped should keep that from happening in Atlanta. Many worked on plan "I can understand the comparisons because we, like the Knoxville group, don't have any experience in the hotel business," said Bob Brennan, ACOG spokesman. "But hoteliers all' over the state have helped us develop this plan, and it should be successful." That plan, created to prevent price gouging, will allow ACOG to set the rates and book 40,000 of the 65,000 rooms metro Atlanta expects to have by the time of the Games. It already has 27,000 rooms secured, Mr. Brennan said.

And it hopes to receive signed contracts from the rest of the hoteliers by month's end. "There shouldn't be any problems with the system," said Bob King, president of the Georgia Hospitality and Trade Association. "We will provide for cancellations and any visitor need that we anticipate. "The people from Ticketmas-ter and everybody in the industry is helping us," Mr. King added.

"We have some people in the association that had properties in Knoxville during the fair, and it was completely awful for them. They will do everything to make sure that doesn't happen again." Continued from CI preparing for a Super Bowl, we can handle major events," said Spurgeon Richardson, president of the Atlanta Convention and Visitors Bureau. "If the Olympic people were not confident that we could do that, we wouldn't have gotten the Games. "Atlanta is a much larger market than Knoxville, and we have much more experience in dealing with large numbers," Mr. Richardson added.

"The 1996 Olympics will be a win for our visitors and our hoteliers." Knoxville's intentions were good. The fair's developer, Knoxville International Energy Exposition created a central reservation system to help consumers across the country get through to all local hotels. And it gave smaller hotels a better chance at attracting businesses without spending a lot of money on advertising. Knoxvisit, a trade name for the Knoxville Tourist Bureau, ran the system without any lodging experience or assistance. After its first national advertisement, the reservation system was overloaded by the response.

And it lost many of the reservation records. Many of those who were able to make accommodations through the system, upon arrival, found that the rooms were either pared with 41 cents a share on an operating basis a year ago. For Coca-Cola Enterprises, soft-drink price wars aimed at lifting volumes will cut into profits. Analysts' estimates vary, from a loss of 2 cents a share, to perhaps a per-share profit of 4 cents a share. In the year-earlier quarter, Coca-Cola Enterprises earned 13 cents a share.

EARNINGS REPORT NCN3 NCNB Corp. reported third-quarter net income of $131.1 million, or $1.07 a share, compared with $57 million, or 51 cents a share, for the same period a year ago. The earnings included a securities gain of $69.8 million. For the first nine months, the Charlotte-based banking company reported net income of $401.7 million, or $3.44 a share. That compares with $334.5 million, or $3.06 a share, a year ago.

The company said non-performing assets were $1.11 billion, or 2.9 percent of all loans, leases and foreclosed properties. That compares with $1.05 billion, or 2.78 percent of related assets, at the end of the second quarter. NCNB set aside $125 million in the third quarter to cover possible loan losses, compared with Ed was still trying to get.tr (r facts straight The company said it was helped by strong sales of its building products, despite a decline in prices. "We expect difficult conditions during the remainder of the year with seasonal slowdowns in construction," Chairman Harry Merlo said in a statement. BF Goodrich BF Goodrich Co.

said Monday its third-quarter net income fell nearly 60 percent from the 1990 third quarter, when the company reported one-time gains that boosted earnings. Third-quarter 1991 net income totaled $20.7 million, or 73 cents a share, and compared with net earnings of $50.6 million, or $1.91 a share, in the third quarter of 1990. Sales amounted to $649.5 million, up 2.4 percent from 1990 third-quarter sales of $634.5 million. Genetics Institute Genetics Institute Inc. on Monday reported the first profitable quarter in its history, earning $4.3 million in the third quarter as revenue tripled.

Earnings for the quarter ended Aug. 31 translated to 21 cents a share, compared with a net loss of $5.7 million, or 48 cents a share, during the same quarter last year. Revenue during the quarter totaled $28.2 million, compared with $9.3 million in the same period last year. From staff and news services Financial Services unit, based in Duluth, reported profits of $44.1 million, against $43.6 million a year earlier. But the face amount of new life insurance sold by the former A.L.

Williams agency tumbled to $11.3 billion from $23.5 billion. Peter M. Dawkins, the unit's chief executive, attributed the sales decline to a variety of factors, including "not inconsequentially that Art Williams left and the degree of disruption attendant to that." Mr. Dawkins said the unit, which has 2.2 million policyholders, has taken steps to renew growth, including a new bonus program for agents. It also plans to sell insurance overseas.

In the nine months ended Sept. 30, Primerica said net income increased to $346.7 million, or $3.11 a share, from $274.1 million, or $2.38 a share, a year earlier. Revenue rose to $4.76 billion from $4.50 billion. Boise Cascade Boise Cascade Corp. on Monday reported a third-quarter loss of $14.3 million, or 47 cents a share, for the three months ended Sept.

30. That compared with a profit of $13.9 million, or 27 cents a share, for the same period a year earlier. Revenue for the quarter was $1.02 billion, down from $1.05 billion. Louisiana-Pacific Louisiana-Pacific Corp. said its third-quarter profit rose to $26.5 million, or 74 cents a share, from $21.2 million, or 57 cents a share, a year earlier.

Revenue slipped to $449.5 million from $450.9 million. $146.4 million for the same period last year and the same amount as set aside in the second quarter of 1991. NCNB said assets increased to 269.89 billion, compared with $69.22 billion in the same period last year. First Union First Union Corp. reported third-quarter net income of $68 million, or 61 cents a share, compared with $75 million, or 70 cents a share, a year earlier.

For the first nine months, the Charlotte-based banking company reported net income of $207 million, or $1.89 a share, compared with $225 million, or $2.09 a share, a year earlier. company said non-performing assets for the third quarter were $1.3 billion, or 3.84 percent of all loans, leases and foreclosed properties. That compares with $1.2 billion, or 4.4 percent of related assets, in the second quarter. First Union set aside $146 million in the third quarter to cover possible loan losses, compared with $35 million a year earlier and $114 million in the second quarter. First Union said assets rose to $49 billion, compared with $39.7 billion a year earlier.

NATIONAL EARNINGS I i. I I 'V i ill r0. i iJlL Lxsj, Now get the plain fax and more. With the HP LaserJet Eax. ft i'il i 5 11 i 1 1 1 I MMumm Primerica Primerica whose life insurance operations are based in Duluth, Monday said its third-quarter net income increased to $123.5 million, or $1.11 a share, from $94 million, or 82 cents a share, a year earlier.

Revenue climbed to $1.59 billion from $1.50 billion. The New York-based firm attributed the earnings increase, in part, to a threefold But that's not all. Now through December 31, 1991, when you buy an HP LaserJet Fax, you're invited to send us your best thermal fax horror story for a chance to win a free vacation for two to Cancun. To find out more about the HP LaserJet Fax and how you could win your day in the sun, call 1-800-955-1995, Ext. 60, for the name of the participating authorized HP dealer nearest you.

IIP Peripherals When it's Important to you. There's never been a better time to put an end to the horrors of working with curly, hard-to-read thermal faxes. Because now, you can team up any HP LaserJet printer with the HP LaserJet Fax and enjoy crisp, plain-paper faxes delivered right from your printer. You'll also be able to send complex faxes via the document feeder or directly from your PC. Make copies on your HP LaserJet printer.

And if you fax with someone who also has an HP LaserJet Fax, you'll be able to send and receive faxes that are identical to the originals. profit increase at its Smith Barney securities brokerage. The company's Primerica WW HEWLETT PACKARD COv ti 0 0 Os 0 EntriM miM be pmtnartcrd nn lucr Uun 11192. Offof vokt where prohlliKrd, IMcd or iwnrictfd by law. Offer flood only It prttclpUn(( KKhorted HPdetlmlnlhcAtUnUnKUotns.

Printed In the SA 9 I OIIIHI Hcwtctt-PuHavdCompwy m- vTT.m.i.Tf.