Lions Gate Says Earnings Fell 6.3%

Lions Gate Entertainment Corp., distributor of the Oscar-nominated film “Crash,” said fiscal third-quarter profit declined 6.3% as production and marketing costs increased.

Net income dropped to $3.14 million, or 3 cents a share, from $3.35 million, or 3 cents, a year earlier, the North Vancouver, Canada-based company said. Sales increased 21% to $231 million.

Lions Gate Entertainment, run by Chief Executive Jon Feltheimer, said expenses increased 25%, outpacing revenue gains.

Sales were helped by “Saw II,” which brought in $87 million in sales by Dec. 31. The studio’s “Crash,” about racial intolerance in Los Angeles, sold more than 3.8 million DVDs since its Sept. 6 release.

Shares of Lions Gate fell 15 cents to $8.82 before the results were announced.