=20 ---------------------------------------------------------------------- This article was sent to you by someone who found it on SF Gate. The original article can be found on SFGate.com here: http://www.sfgate.com/cgi-bin/article.cgi?file=3D/news/archive/2003/10/16/f= inancial0802EDT0022.DTL ---------------------------------------------------------------------- Thursday, October 16, 2003 (AP) Continental Airlines swings to third-quarter profit (10-16) 05:02 PDT HOUSTON (AP) -- Continental Airlines, boosted by strong summer traffic and sale of its ExpressJet stock, swung to a profit of $133 million in the third quarter in contrast to a loss a year earlier. But its chief executive said the carrier still faces tough times ahead. Continental said Thursday its earnings amounted to $1.83 a share for the July-September quarter in contrast to a loss of $37 million, or 58 cents a share, a year ago. Revenue rose to $2.37 billion from $2.18 billion a year ago. Excluding the gain from the ExpressJet Holdings Inc. stock sale, Continental earned 49 cents a share for the quarter. Analysts surveyed by Thomson First Call expected earnings of 43 cents earnings per share. "Even after selling ExpressJet shares and receiving the government security fee reimbursement, we still have a year-to-date loss with a tough six month period ahead of us," chairman and chief executive Gordon Bethune said in a prepared statement. "We remain focused on being a long-term survivor by further reducing our costs to achieve a break-even position in 2004." The carrier completed disposition of 17 million shares of common stock of ExpressJet during the quarter. Continental contributed $127 million in cash proceeds and an additional $100 million of ExpressJet shares to Continental's defined benefit pension plan. ExpressJet provides Continental with all its regional service at the airline's hub airports in Houston; Newark, N.J.; and Cleveland. Continental's passenger revenue rose 7.4 percent from the same period la= st year. The company credited increased revenue from its regional Continental Expresss operations and improved mainline load factors. "Our continuing efforts to align our schedule, fleet and cost structure with today's weak revenue environment are beginning to produce results," said Jeff Misner, Continental senior vice president and chief financial officer. For the nine months ended Sept. 30, Continental lost $9 million, or 14 cents per share, compared to a loss of $342 million, or $5.36 a share, for the year-ago period. Nine-month revenue rose to $6.62 billion from $6.36 billion a year ago. On the Net: www.continental.com =20 ---------------------------------------------------------------------- Copyright 2003 AP