American Pacific Corp. of Irvine has given up on a trio of unprofitable financial services operations and said Monday that the resultant losses boosted its red ink for fiscal 1984 to $2.8 million.
The real estate investment and chemical manufacturing company said discontinuing those subsidiaries, which dealt in insurance, profit-sharing program administration and pension plan management, cost the company more than $2 million.
The 1984 loss compares to a $952,000 loss in fiscal 1983 and is its fourth in a row.
The 1984 loss includes $1.1 million in actual losses on the discontinued operations and a $1-million charge for estimated losses related to the sale or disposal of the operations, American Pacific said in a prepared statement Monday.
American Pacific officials could not be reached for comment.
According to the company’s statement, however, American Pacific lost $690,000 on continuing operations for fiscal 1984, as opposed to an operating profit of $690,000, in the 1983 fiscal period.
The statement also said officials decided in December to end American Pacific’s involvement in the financial services sector, which it had been developing during the past three years. The decision resulted from continuing uncertainty over financial industry regulation and the losses from the company’s insurance and pension and profit-sharing subsidiaries.
American Pacific’s remaining operations are its real estate and chemical divisions. The chemical division makes specialized chemicals, particularly ammonium perchlorate, a major component of solid rocket fuel for the space shuttle program. The real estate division develops single-family residential property, primarily in Southern California, and holds interests in other real estate operations.