Marriott 3Q profit slips

October 2, 2008 7:38:53 AM PDT
Marriott says its third-quarter profit dropped 28 percent, partly hurt by softening North American revenue per available room - a key measure for hoteliers - and weakening timeshare business amid the global economic downturn. Net income slipped to $94 million, or 26 cents per share, from $131 million, or 33 cents, a year ago. Excluding a $29 million tax planning charge, income from continuing operations totaled $123 million, or 34 cents per share.

Bethesda, Md.-based Marriott International says revenue rose 1 percent to $2.96 billion from $2.94 billion.

Analysts polled by Thomson Reuters forecast earnings of 32 cents per share on revenue of $2.95 billion.

Marriott warned 2009 will be difficult due to current economic and financial conditions. It forecast earnings between $1.48 and $1.60 per share, below analysts' average profit estimate of $1.85 per share.