Starwood 1Q profit drops, but results top Street

[April 30, 2009]  WHITE PLAINS, N.Y. (AP) -- Starwood Hotels & Resorts says its first-quarter profit plunged 81 percent, but adjusted results beat analysts' estimates as deep cost cuts helped offset softening travel demand.

Like others in the sector, Starwood Hotels & Resorts Worldwide Inc. has been slashing expenses as business and leisure travel wanes during the recession.

The White Plains, N.Y.-based company says profit slid to $6 million, or 3 cents per share, down from $32 million, or 17 cents per share, a year ago.

Excluding a timeshare related charge and severance costs, earnings from continuing operations were 14 cents per share.

Revenue dropped 24 percent to $1.12 billion.

Analysts forecast earnings of 3 cents per share on revenue of $1.14 billion.

[Associated Press]

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