Magna Losses Will Exceed Previous Estimates

Magna Entertainment, which operates seven Thoroughbred tracks, reported Friday that its losses for the fourth quarter will exceed previous estimates. Rather than the previously estimated $0.04 to $0.05 per share loss, Magna said the revised estimate is a $0.11 to $0.12 per share loss for the fourth quarter and income of approximately $0.01 per share for the year.

In announcing the revised numbers Magna cited severance and other costs associated with the relocation of the company's head office from Santa Monica, California to Aurora, Ontario, Canada; delays with respect to the sale of certain non-strategic real estate assets in North America and Europe; and "to a lesser degree, higher than expected costs at certain racetracks."

The company said specifics will be provided when its results for the year ending Dec. 31 are announced Feb. 19.

"Going forward, the reorganization of our corporate office, the completion of the real estate sales referred to above as well as others during 2001, the impact of previously announced racetrack acquisitions late in 2000 and in the first quarter of 2001 and other measures are expected to produce improved earnings in 2001 and beyond'', said Jim McAlpine, president and chief executive officer.