SANTA MONICA, Calif., Feb. 26 (UPI) -- Metro-Goldwyn-Mayer Inc. issued a profit warning Tuesday, saying disappointing box-office results from recent film releases, including "Roller Ball" and "Hart's War," would lead to a net loss in the first quarter.
The Santa Monica, Calif., -based company also revised its full-year estimates, saying revenues should increase by 20 percent for the year instead of more than 20 percent as it had previously told investors.
"We remain confident in the balance of our 2002 film slate, and our other core businesses continue to exceed our expectations," said Dan Taylor, MGM's senior executive vice president and chief financial officer.
MGM said it expects a loss for the first quarter in the range of 35 cents to 37 cents per share. For the full year, the company expects to report a loss of between 46 cents and 48 cents per share.
Earnings before interest, taxes, depreciation and amortization, should be about flat for the year. The company had said it expected a 15 percent increase in EBITDA in 2002.
The company said its fiscal performance should improve during the year, leading to a net profit in the fourth quarter.
Shares of MGM lost 28 cents, or 1.62 percent, to close Tuesday at $16.96 on active volume of 217,500 shares traded on the New York Stock Exchange.
