Hughes Reports Narrower Loss Than Expected

Hughes Electronics Corp. on Wednesday reported a third-quarter loss as rising sales at its DirecTV unit, the largest U.S. satellite-television service, were more than offset by higher costs and interest expenses.

Hughes’ loss from operations was $29.6 million, or 13 cents a share, compared with net income of $42.9 million, or 11 cents, in the year-ago period. Sales rose 32% to $1.99 billion from $1.51 billion.

The El Segundo-based company, a unit of General Motors Corp., had higher depreciation and amortization costs related to its recent purchases of satellite-based broadcasters Primestar Inc. and U.S. Satellite Broadcasting Co. The third-quarter loss was narrower than analysts expected, as DirecTV added 160,000 customers in September alone, more than analysts had forecast.

Hughes was expected to have a loss in the third quarter of 16 cents, the average estimate of analysts surveyed by First Call Corp.

GM’s H Class shares, which track Hughes’ earnings, dividends and outlook, rose 81 cents to close at $65.94 on the New York Stock Exchange.

At a Glance

Other earnings, excluding one-time gains and charges unless noted:

* Edison International, the eighth-largest U.S. power company, said third-quarter profit rose 18% as electricity sales from its power plant unit more than doubled. Net income rose to $255 million, or 73 cents a share, from $216 million, or 60 cents, a year earlier. Edison was expected to earn 72 cents, the average estimate of analysts. Revenue rose 7.4% to $2.96 billion from $2.76 billion.

* City National Corp., a Beverly Hills-based bank with $6.3 billion in assets, said third-quarter profit rose 11% to $28.1 million, or 60 cents a share, from $25.4 million, or 53 cents, a year earlier. It was expected to earn 56 cents a share.

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Additional earnings: C3, C5