A day after Disney/Pixar announced that CARS would be pushed back from November 2005 to June 2006 to maximize profitability, DreamWorks said it would now release SHREK 3 in May 2007 rather than November 2006.

The company’s stock fell in late trading after the news. However, DreamWorks Animation SKG Inc. reported third quarter earnings in line with analyst expectations. In its first report since going public in October, DreamWorks reported net income of $20.3 million. Adjusting for income taxes that would have been recorded if the company had historically been a taxable corporation historically, the studio earned $13.7 million, or 18 cents a share.

Revenue from the theatrical release of SHREK 2 plus home video income totaled $241.3 million in the quarter ended Sept. 30. The Glendale-based studio said it had a net loss of $35.9 million, or 47 cents per share, in the same period last year on a $47.9 million in revenues.

DreamWorks still plans to release its next 3D-animated film, MADAGASCAR, on May 27, 2005.

The subsequent release schedule consists of:
* WALLACE & GROMIT: TALE OF THE WERE RABBIT -- Oct. 7, 2005
* OVER THE HEDGE -- May 19, 2006
* FLUSHED AWAY -- Fall 2006
* SHREK 3 -- May 2007