Delta loss narrows

Delta’s ability to stay out of bankruptcy grew even more uncertain Thursday as the nation’s third-largest airline posted a $388 million second-quarter loss to push its red ink to just under $10 billion since early 2001.

“There are some things beyond our control,” chief executive Gerald Grinstein said, citing fuel and pension costs.

He said Delta would review those items in determining its future course. Fitch Ratings airline analyst Bill Warlick said Atlanta-based Delta would be forced into Chapter 11 if Congress didn’t enact meaningful pension reform by the fall.

Delta’s results beat Wall Street expectations, but Delta Air Lines Inc. shares fell 36 cents, or 9.2 percent, to close at $3.55 Thursday on the New York Stock Exchange.

Delta’s loss for the three months ending June 30 was equivalent to $2.64 a share, compared to a loss of $1.97 billion, or $15.70 a share, in the same period a year ago.

Communications

Nextel profit falls

Nextel Communications Inc. said Thursday its second-quarter profit sharply declined, largely due to an unfavorable comparison with the previous year’s quarter, when it received a hefty tax benefit.

The wireless communications provider, which is expected to be acquired soon by Sprint Corp. in a $35 billion deal, said it earned $524 million, or 46 cents per share, in the quarter ended June 30. That compares to net income of $1.34 billion, or $1.16 per share, in the year-earlier period.

Adjusted earnings – including the impacts of merger-related costs, a tax benefit and a special dividend – amounted to 47 cents per share in the second quarter, which beat the 44-cents-per-share estimate of analysts surveyed by Thomson Financial.

Pharmaceuticals

MGI Pharma buying owner of Aquavan

The owner of a sedative developed at Kansas University is being purchased by a Minnesota-based pharmaceuticals company.

MGI Pharma Inc. is buying Baltimore-based Guilford Pharmaceuticals Inc. in a deal worth about $177.5 million, the companies announced Thursday.

Guilford owns the rights to Aquavan, a sedative developed at Kansas University. MGI expects the product, once it secures approval from the FDA, to complement the company’s own Aloxi injection, which is used to treat post-operative nausea and vomiting.

MGI Pharma plans to acquire each of Guilford’s outstanding shares for $3.75, a 55.7 percent premium over Guilford’s closing price of $2.80 on Wednesday.

Guilford shares climbed 99 cents, or 41 percent, to close Thursday at $41.08 Thursday on Nasdaq. MGI lost $1.47, or 5.3 percent, to close at $26.10, also on Nasdaq.