Losses Grow for Pan Am’s Parent

Pan Am Corp., parent of Pan American World Airways, said Thursday that it lost $92.3 million in the fourth quarter, producing a full-year 1984 loss of $206.8 million.

In all of 1983, Pan Am recorded a $51-million deficit, which included a $58.6-million loss in the fourth quarter.

“While our 1984 results are clearly less than satisfactory, we believe we made substantial progress during the year in positioning the airline for the future,” Pan Am Vice Chairman Gerald L. Gitner said in a statement.

Pan Am, which derives about 35% of its operating revenue in foreign currencies, said the strength of the U.S. dollar continued to adversely impact earnings.

The dollar’s strength specifically put downward pressure on the airline’s yield, or average fare. Also, had the dollar remained constant, Pan Am said the airline’s 1984 revenue would have been $63 million higher.

Pan Am Corp.’s actual fourth-quarter revenue fell 4% to $892.2 million from $929.5 million. Full-year revenue was off 3% to $3.68 billion from $3.79 billion.

Pan American World Airways suffered a $220.2-million pretax loss in 1984, compared to a pretax loss of $74.6 million in 1983. The airline’s revenue slipped to $3.3 billion from $3.45 billion.

Despite the dollar’s impact, Pan Am said the airline’s average yield rose slightly in 1984, thanks to increased revenue from the airline’s higher-priced first class and Clipper Class seats, where Pan Am said it has focused its marketing efforts.

Mattel Posts Turnaround in Fourth Quarter, Year

Mattel Inc., rebounding from heavy losses last year in its former video-game unit, said its operating profits for its fiscal year and fourth quarter were sharply higher.

Chairman Arthur Spear credited the turnaround to the firm’s decision last year to shed its loss-plagued video division and all of its other units except for its traditional toy-making operations.

“We have achieved the best operating results in the history of Mattel Toys, and we look forward to sustaining this momentum in 1985 and beyond,” Spear said.

He said 1985 prospects already look good, noting that early shipments and advertising are the heaviest in the company’s history as a result of early production, stepped-up sales programs and wide acceptance of four new product lines.

The new products are She-Ra, the sister of HeMan in the Masters of the Universe toy series, Wheeled Warriors futuristic vehicles, the Heart Family dolls and the Angel Bunny series of 14 products for infants from birth to age 18 months.

For the entire year, the Hawthorne-based company had net income of $71.3 million on sales of $880.8 million, compared to the previous year, when it lost $394.1 million on sales of $633.4 million.

Last year’s earnings included income tax credits of $24.3 million and a securities-exchange gain of $2.2 million.

For the three months ended last Dec. 29, the company had a net profit of $19.9 million on revenue of $268.9 million.

The company recently changed its fiscal year. The latest fiscal year’s fourth quarter is most comparable to the previous fiscal year’s first quarter.

In the previous fiscal year’s first quarter, which ended Jan. 28, 1984, Mattel lost $171.3 million on revenue of $136.4 million.

For detailed data and results of other companies, please see tables, Page 14.