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Previous: AMERICAN PRECISION INDUSTRIES INC, SC 13D, 1997-07-16 |
Next: ANTHONY C R CO, 15-12G, 1997-07-16 |
<PAGE> 1
SECURITIES AND EXCHANGE COMMISSION
Washington, D. C. 20549
_____________
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of earliest event
reported: July 16, 1997
AMR CORPORATION
(Exact name of registrant as specified in its charter)
Delaware 1-8400 75-1825172
(State of Incorporation) ( Commission File Number) (IRS Employer
Identification No.)
4333 Amon Carter Blvd. Fort Worth, Texas 76155
(Address of principal executive offices) (Zip Code)
(817) 963-1234
(Registrant's telephone number)
<PAGE> 2
Item 5. Other Events
AMR Corporation (the "Company") is filing herewith a press
release issued today by the Company as Exhibit 99.1 which is
incorporated herein by reference. This press release was issued
to report second quarter 1997 earnings and to announce that the
Company's board of directors has authorized management to
repurchase additional shares of its outstanding common stock.
Item 7. Financial Statements and Exhibits
The following exhibit is included herein:
99.1 Press Release
<PAGE> 3
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act
of 1934, the registrant has duly caused this report to be signed
on its behalf by the undersigned hereunto duly authorized.
AMR CORPORATION
/s/ Charles D. MarLett
Charles D. MarLett
Corporate Secretary
Dated: July 16, 1997
<PAGE> 4
EXHIBIT INDEX
Exhibit Description
99.1 Press Release
<PAGE> 5
Exhibit 99.1
Contact: Al Comeaux
Fort Worth, Texas (CDT)
(817) 967-1577
FOR RELEASE: Wednesday, July 16, 1997
AMR REPORTS SECOND QUARTER EARNINGS OF $302 MILLION
FORT WORTH, Texas -- AMR Corp., parent company of American
Airlines Inc., today reported second quarter net earnings of $302
million, or $3.26 per common share. The 1997 earnings top last
year's record earnings for the second quarter, which were $293
million, or $3.20 per fully diluted share.
"Although some residual revenue losses resulting from the
earlier threat of a pilot strike and the reimposition of the
domestic excise tax adversely impacted our results, our year-over-
year improvement reflects strong demand for summer air travel,
the excellent work our people are doing to provide high-quality
customer service, and some welcome and substantive improvement in
our operating performance," said AMR Chairman Robert L. Crandall.
"These factors, combined with the profitable growth of our
technology business, all contributed to our best-ever second
quarter."
AMR also announced that the company's board of directors
authorized management to repurchase up to an additional $500
million of its outstanding common stock over the next 24 months.
This represents approximately 5.26 million shares of common stock
at yesterday's closing price of $95.06.
This new stock repurchase authorization will be added to the
repurchase program authorized by the board in April for 5.75
million shares to offset dilution resulting from the issuance of
5.75 million options to American Airlines pilots. As of June 30,
approximately 33 percent of these shares had been repurchased, at
an average price of $95.16.
"During the last few years, we have used our substantial
free cash flow to strengthen our balance sheet and have now
regained investment grade status," Crandall said. "We are
continuing to generate free cash flow in excess of what we need
to fund our fleet expansion plans, and thus believe it makes
sense to return additional cash to our shareholders."
Repurchases, including block repurchases, are expected to be
made over the next 24 months in the open market or in private
transactions depending on market conditions, and may be
discontinued at any time.
###
<PAGE> 6
AMR CORPORATION
CONSOLIDATED STATEMENT OF OPERATIONS
(Unaudited) (In millions, except per share amounts)
<TABLE>
<CAPTION>
Three Months
Ended
June 30, Percent
1997 1996 Change
<S> <C> <C> <C>
Revenues
Airline Group
Passenger - American Airlines $3,641 $3,510 3.7
- AMR Eagle 256 266 (3.8)
Cargo 174 173 0.6
Other 221 210 5.2
4,292 4,159 3.2
The SABRE Group 447 410 9.0
Management Services Group 151 151 -
Less: Intergroup revenues (180) (170) 5.9
Total operating revenues 4,710 4,550 3.5
Expenses
Wages, salaries and benefits 1,556 1,497 3.9
Aircraft fuel 471 470 0.2
Commissions to agents 329 321 2.5
Depreciation and amortization 310 297 4.4
Other rentals and landing fees 227 223 1.8
Maintenance materials and
repairs 219 170 28.8
Food service 173 173 -
Aircraft rentals 143 162 (11.7)
Other operating expenses 694 651 6.6
Total operating expenses 4,122 3,964 4.0
Operating Income 588 586 0.3
Other Income (Expense)
Interest income 31 16 93.8
Interest expense (99) (123) (19.5)
Minority interest (10) - *
Miscellaneous - net (6) 1 *
(84) (106) (20.8)
Earnings Before Income Taxes 504 480 5.0
Income tax provision 202 187 8.0
Net Earnings $ 302 $ 293 3.1
Earnings Per Common Share
Primary $ 3.26 $ 3.35
Fully Diluted $ 3.26 $ 3.20
Number of Shares Used in
Computation
Primary 92 87
Fully Diluted 92 92
</TABLE>
* Greater Than 100%
<PAGE> 7
AMR CORPORATION
CONSOLIDATED STATEMENT OF OPERATIONS
(Unaudited) (In millions, except per share amounts)
<TABLE>
<CAPTION>
Six Months Ended
June 30, Percent
1997 1996 Change
<S> <C> <C> <C>
Revenues
Airline Group
Passenger - American Airlines $7,031 $6,797 3.4
- AMR Eagle 504 533 (5.4)
Cargo 338 336 0.6
Other 425 407 4.4
8,298 8,073 2.8
The SABRE Group 887 838 5.8
Management Services Group 312 308 1.3
Less: Intergroup revenues (361) (361) -
Total operating revenues 9,136 8,858 3.1
Expenses
Wages, salaries and benefits 3,096 2,984 3.8
Aircraft fuel 991 911 8.8
Commissions to agents 643 636 1.1
Depreciation and amortization 622 597 4.2
Other rentals and landing fees 445 439 1.4
Maintenance materials and
repairs 414 338 22.5
Food service 334 329 1.5
Aircraft rentals 287 326 (12.0)
Other operating expenses 1,367 1,311 4.3
Total operating expenses 8,199 7,871 4.2
Operating Income 937 987 (5.1)
Other Income (Expense)
Interest income 58 32 81.3
Interest expense (202) (269) (24.9)
Minority interest (22) - *
Miscellaneous - net (10) (5) 100.0
(176) (242) (27.3)
Earnings Before Income Taxes 761 745 2.1
Income tax provision 307 295 4.1
Net Earnings $ 454 $ 450 0.9
Earnings Per Common Share
Primary $ 4.92 $ 5.44
Fully Diluted $ 4.92 $ 5.04
Number of Shares Used in
Computation
Primary 92 83
Fully Diluted 92 92
</TABLE>
* Greater Than 100%
<PAGE> 8
AMR CORPORATION
BUSINESS SEGMENT FINANCIAL HIGHLIGHTS
(Unaudited) (In millions)
<TABLE>
<CAPTION>
Three Months
Ended
June 30, Percent
1997 1996 Change
Airline Group
<S> <C> <C> <C>
Revenues
Passenger - American Airlines $3,641 $3,510 3.7
- AMR Eagle 256 266 (3.8)
Cargo 174 173 0.6
Other 221 210 5.2
4,292 4,159 3.2
Expenses
Wages, salaries and benefits 1,345 1,306 3.0
Aircraft fuel 471 470 0.2
Commissions to agents 329 321 2.5
Depreciation and amortization 260 247 5.3
Other operating expenses 1,407 1,331 5.7
Total operating expenses 3,812 3,675 3.7
Operating Income 480 484 (0.8)
Other Income (Expense) (77) (105) (26.7)
Earnings Before Income Taxes $ 403 $ 379 6.3
Pre-tax Margin 9.4% 9.1% 0.3 pts.
The SABRE Group
Revenues $ 447 $ 410 9.0
Operating Expenses 354 329 7.6
Operating Income 93 81 14.8
Other Income (Expense) 3 (1) *
Earnings Before Income Taxes $ 96 $ 80 20.0
Pre-tax Margin 21.5% 19.5% 2.0 pts.
Management Services Group
Revenues $ 151 $ 151 -
Operating Expenses 136 130 4.6
Operating Income 15 21 (28.6)
Other Income (Expense) - - -
Earnings Before Income Taxes $ 15 $ 21 (28.6)
Pre-tax Margin 9.9% 13.9% (4.0) pts.
</TABLE>
* Greater Than 100%
<PAGE> 9
AMR CORPORATION
BUSINESS SEGMENT FINANCIAL HIGHLIGHTS
(Unaudited) (In millions)
<TABLE>
<CAPTION>
Six Months Ended
June 30, Percent
1997 1996 Change
Airline Group
<S> <C> <C> <C>
Revenues
Passenger - American Airlines $7,031 $6,797 3.4
- AMR Eagle 504 533 (5.4)
Cargo 338 336 0.6
Other 425 407 4.4
8,298 8,073 2.8
Expenses
Wages, salaries and benefits 2,679 2,607 2.8
Aircraft fuel 991 911 8.8
Commissions to agents 643 636 1.1
Depreciation and amortization 522 499 4.6
Other operating expenses 2,759 2,674 3.2
Total operating expenses 7,594 7,327 3.6
Operating Income 704 746 (5.6)
Other Income (Expense) (157) (239) (34.3)
Earnings Before Income Taxes $ 547 $ 507 7.9
Pre-tax Margin 6.6% 6.3% 0.3 pts.
The SABRE Group
Revenues $ 887 $ 838 5.8
Operating Expenses 686 641 7.0
Operating Income 201 197 2.0
Other Income (Expense) 4 (2) *
Earnings Before Income Taxes $ 205 $ 195 5.1
Pre-tax Margin 23.1% 23.3% (0.2) pts.
Management Services Group
Revenues $ 312 $ 308 1.3
Operating Expenses 280 264 6.1
Operating Income 32 44 (27.3)
Other Income (Expense) (1) (1) -
Earnings Before Income Taxes $ 31 $ 43 (27.9)
Pre-tax Margin 9.9% 14.0% (4.1) pts.
</TABLE>
* Greater Than 100%
<PAGE> 10
Airline Group
Operating Statistics
(Unaudited)
<TABLE>
<CAPTION>
Three Months Ended
June 30, Percent
1997 1996 Change
<S> <C> <C> <C>
American Airlines Jet Operations:
Revenue passenger miles (millions) 27,318 26,679 2.4
Available seat miles (millions) 38,738 38,440 0.8
Cargo ton miles (millions) 521 520 0.2
Passenger load factor 70.5% 69.4% 1.1 pts.
Breakeven load factor 60.0% 58.5% 1.5 pts.
Passenger revenue yield per
passenger mile (cents) 13.33 13.16 1.3
Passenger revenue per available
seat mile (cents) 9.40 9.13 3.0
Cargo revenue yield per ton
mile (cents) 32.88 32.74 0.4
Operating expenses per available
seat mile (cents) 9.15 8.84 3.5
Fuel consumption (gallons, in
millions) 697 687 1.5
Fuel price per gallon (cents) 65.3 66.0 (1.1)
Fuel price per gallon, excluding
fuel tax (cents) 60.4 61.3 (1.5)
Operating aircraft at period-end 644 637 1.1
AMR Eagle, Inc.:
Revenue passenger miles (millions) 652 675 (3.4)
Available seat miles (millions) 1,047 1,102 (5.0)
Passenger load factor 62.3% 61.2% 1.1 pts.
Operating aircraft at period-end 203 227 (10.6)
AMR Corporation
Average Equivalent Number of
Employees
Airline Group:
AA Jet Operations 80,300 77,200
Other 10,200 10,600
Total Airline Group 90,500 87,800
The SABRE Group 8,400 7,900
Management Services Group 15,500 14,800
Total 114,400 110,500
</TABLE>
<PAGE> 11
Airline Group
Operating Statistics
(Unaudited)
<TABLE>
<CAPTION>
Six Months Ended
June 30, Percent
1997 1996 Change
<S> <C> <C> <C>
American Airlines Jet Operations:
Revenue passenger miles (millions) 52,613 51,311 2.5
Available seat miles (millions) 76,258 75,994 0.3
Cargo ton miles (millions) 1,001 1,018 (1.7)
Passenger load factor 69.0% 67.5% 1.5 pts.
Breakeven load factor 61.4% 59.2% 2.2 pts.
Passenger revenue yield per
passenger mile (cents) 13.36 13.25 0.8
Passenger revenue per
available seat mile (cents) 9.22 8.94 3.1
Cargo revenue yield per ton
mile (cents) 33.31 32.50 2.5
Operating expenses per available
seat mile (cents) 9.27 8.91 4.0
Fuel consumption (gallons, in
millions) 1,370 1,350 1.5
Fuel price per gallon (cents) 69.9 65.0 7.5
Fuel price per gallon, excluding
fuel tax (cents) 65.0 60.2 8.0
Operating aircraft at period-end 644 637 1.1
AMR Eagle, Inc.:
Revenue passenger miles (millions) 1,254 1,311 (4.3)
Available seat miles (millions) 2,090 2,239 (6.7)
Passenger load factor 60.0% 58.6% 1.4 pts.
Operating aircraft at period-end 203 227 (10.6)
</TABLE>
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