First Union Corp. reported yesterday that its third-quarter profit slid 19 percent, reflecting a decline in fee income for the Charlotte-based bank holding company.
The company posted net income of $802 million (84 cents a share), hitting Wall Street's projections. First Union earned $995 million ($1.01) during the same period last year, but the 1998 results included a one-time charge for the cost of buying CoreStates Financial Corp. Excluding that charge, the earnings drop was an even steeper 21 percent. First Union's stock closed yesterday at $35.81 1/4, down 3.2 percent, on the New York Stock Exchange.
Revenue from fees fell 5 percent in the quarter to $1.52 billion. Mortgages and other loans, a key driver of interest income, fell 3 percent, to $131 million.
Chief executive Edward E. Crutchfield said he was pleased with the results.
"Our performance in the third quarter of 1999 was solid and in line with our expectations," he said. "Our diversified business model continues to produce balanced results."
During the first nine months of the year, net income went up 17 percent, to $2.38 billion ($2.47) from $2.03 billion ($2.08). Excluding last year's merger-related costs, however, the earnings fell 10 percent from last year's $2.64 billion.
First Union is the sixth-largest U.S. banking company, with assets of $235 billion.
* Owens & Minor Inc. of Richmond, the largest distributor of medical and surgical supplies in the United States, reported net income of $7.1 million (21 cents a share) for its third quarter ending Sept. 30, up 8 percent from $6.6 million for the comparable quarter in 1998.
Revenue for the quarter was $811.9 million, up 6 percent from $768.4 million in the third quarter of 1998.
For the nine months ending Sept. 30, net income was $19.1 million (57 cents), up 41 percent from $13.5 million (36 cents) during the first nine months of last year. Revenue for the most recent nine months was $2.33 billion, down 2 percent from the comparable period in 1998.
The results reflect the acquisition of Medix Inc., a deal that was completed in July.
* Sodexho Marriott Services Inc. of Gaithersburg said it lost $4.3 million in its fourth quarter, mainly because of a seasonal slowdown in its education-related business.
The food service and facilities management company said it lost $7.7 million on a pro forma basis in the comparable quarter a year ago. The pro forma figure reflects the exclusion of $14 million in pretax costs related to the merger of Sodexho North America and Marriott Management Services, which combined to create the company in March 1998.
Sales in the quarter ended Sept. 3 rose 7 percent, to $1 billion, from $935 million in the year-earlier period.
For the year, Sodexho Marriott reported that its pro forma net income increased 82 percent, to $59.6 million, compared with $32.7 million in fiscal 1998. Annual sales on a pro forma basis rose 5 percent, to $4.5 billion from $4.3 billion.
* Capital One Financial Corp. said it had net income of $95.4 million (45 cents a share) in the third quarter, up 36 percent from $70 million (33 cents) in the same quarter in 1998.
For the nine months ended Sept. 30, the Falls Church-based financial holding company reported net income of $265 million ($1.26), up from $202 million (97 cents) for the first nine months of 1998.
* Media General, a Richmond communications company, posted net income of $30.4 million ($1.14 a share) in the third quarter, up from $14.5 million (54 cents) in the same period last year. The results reflected a one-time after-tax gain of $18.9 million (70 cents) from the sale of half the company's stake in Denver Newspapers Inc.
Without that sale, Media General posted $11.5 million in net income. Revenue dropped to $191.9 million, from $197.2 million in the year-ago period.
* F&M National Corp., a multi-bank holding company in Winchester, Va., earned $10.4 million (45 cents a share) in the third quarter, an 11.8 percent increase.
For the first nine months of the year, F&M earned $31 million ($1.34), an increase of 14.5 percent.
Assets of F&M were $2.9 billion on Sept. 30, an increase of 3.6 percent over 1998.
CAPTION: First Union Earnings (This chart was not available)