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Starwood Hotels & Resorts Worldwide, Inc. reported EPS from continuing operations for the second quarter of 2009 of $0.72 per share compared to $0.56 in the second quarter of 2008. Excluding special items, which net to a benefit of $90 million in 2009 and zero in 2008, EPS from continuing operations was $0.22 for the second quarter of 2009 compared to $0.56 in the second quarter of 2008. Excluding special items, the effective income tax rate in the second quarter of 2009 was 26.5% compared to 28.3% in the same period of 2008.
Special items in the second quarter of 2009 totaled $90 million of net benefits ($0.50 per Share) primarily related to a $120 million deferred tax benefit partially offset by impairment charges of $26 million and restructuring charges of $4 million.
Income from continuing operations was $131 million in the second quarter of 2009 compared to $107 million in 2008. Excluding special items, income from continuing operations was $41 million in the second quarter of 2009 compared to $107 million in 2008.
Net income was $134 million and EPS was $0.74 in the second quarter of 2009 compared to $105 million and EPS of $0.56 in the second quarter of 2008. Frits van Paasschen, CEO said, “Despite an estimated $10 million impact from H1N1 during the quarter, we were able to beat expectations based on our continued focus on managing costs and driving revenue. Economic times like these afford us the opportunity to realign the organization around a sustainably lower cost base while continuing to invest in our brands and global growth opportunities. So while the current environment remains extremely challenging, we are committed to our long-term growth strategy and by the end of 2009, 60% of our 1,000 hotels will have been opened or renovated during the past three years. We also executed on several transactions during the quarter that in the aggregate allowed us to raise nearly one billion dollars, further strengthening our already strong balance sheet.”
Theodore is the Co-Founder and Managing Editor of TravelDailyNews Media Network; his responsibilities include business development and planning for TravelDailyNews long-term opportunities.
