GENERAL CINEMA <GCN> POOR SEASON LOWERS NET
General Cinema Corp said
lower attendence at its theatres against last year's record
Christmas season lowered its first fiscal quarter operating
earnings nine pct to 15.9 mln dlrs.
    "While we are not off to as good a start in fiscal 1987 as
we would like, business has picked up in the last few weeks,"
chairman Richard Smith said.
    He said that the company expected net pricing to be higher
and unit volume to improve in the remaining quarters of the
fiscal year.
    The company added that operating earnings in its theatre
unit will be higher in fiscal 1987 if the important summer
season film releases perform well.
    In addition, its other key business, General Cinema
Beverages, is expected to achieve record operating results for
the full year, Smith said.
    The company's superstar video business which rents video
cassettes in supermarkets continues to operate at an expected
loss, the company added.
    General Cinema said the financing costs associated with its
purchase of 3.5 mln Carter Hawley Hale Stores Inc <CHH> shares
for 177.9 mln dlrs, and its 89.7 mln sterling investment in
<Cadbury Schweppes PLC>, lowered first quarter net.
    But it said the loss was offset by a 2.5 mln dlr gain on
the sale of common shares of Sea-Land Corp, a unit of CSX Corp
<CSX>.
 Reuter
