Disney Profit Climbs 18% in 4th Quarter

BURBANK —  Walt Disney Co.’s fiscal fourth-quarter profit rose 18% as its Florida theme parks and films such as “George of the Jungle” more than offset low ratings at the ABC television network.

Net income rose to $411 million, or 60 cents a share, from $349 million, or 51 cents, a year earlier. The results matched the average estimate of 10 analysts polled by IBES International Inc.

Big media companies are reaping the rewards of a robust economy and billions of dollars spent broadening their businesses. Disney’s earnings set a record this year, and chief competitor Time Warner Inc. made money three of the last four quarters after years of losses.

“These companies are now strategically complete,” said analyst Christopher Dixon at PaineWebber. “If the U.S. economy continues to be strong, they will be the beneficiaries.”

Disney’s shares, which touched an all-time high of $90.31 on Tuesday, closed up 25 cents at $89.25 on the New York Stock Exchange. The stock, which is included on the Dow Jones industrial average, has risen 28% so far this year.

“The stock is finally being recognized as a leader in entertainment,” said Barry Hyman, senior technical analyst at Ehrenkrantz, King, Nussbaum & Co., which owns Disney shares. “Fiscal 1998 should be another year of strong earnings and stock appreciation.”

Not all of Disney’s businesses are making money. ABC has been a drag on broadcast earnings. And the company has yet to figure out how to make the operations acquired as part of last year’s $19-billion purchase of Capital Cities/ABC Inc. mesh with traditional moneymakers such as theme parks and merchandising.

Burbank-based Disney also got a boost from cutting costs, which fell to 82.5% of sales from 83.8% a year ago.

Profit at the broadcasting division rose 0.8% to $241 million and was saved from a loss by the ESPN and Disney channels.