Maxxam Reports Good Third Quarter, Racing Operations Slide

Maxxam, the owner of Sam Houston Race Park, reported a gain of $4.08 per share for its third quarter compared with a loss of $2.47 per share reported a year ago.

For the first nine months of the year, the diversified aluminum, forestry products, real estate, and racing company reported a net income of $52 million, $7.14 per share, compared with a loss of $1.5 million, 22 cents per share, for the same period a year ago.

Despite the improvement in overall performance, Maxxam (AMEX:MXM) reported an 18.4% decline in sales to $504.1 million, down from $618.3 million for the third quarter of 2000.

Net sales for Sam Houston Race Park increased slightly for the third quarter to $8.2 million from $8 million for the same quarter of last year. The increased sales, however, was offset by increased operating expenses and Maxxam's racing operations reported a loss of $300,000 compared to a year ago when it a profit of $500,000. For the first nine months of the year, Sam Houston reported a gain of $700,000 compared to a gain of $2 million for the first nine months of 2000.