AMC Reports $15-Million ’84 Profit, First Since 1979

American Motors Corp. said Monday that it earned $15.5 million in 1984, its first profitable year since 1979.

AMC President Jose Dedeurwaerder said “the company has reason to be proud,” and noted a one-year “$274-million turnaround” in continuing operations.

But analysts noted that the magnitude of the earnings lagged behind the record-breaking totals posted at the Big Three auto makers.

AMC’s 1984 earnings compared to a loss of $146.7 million in 1983. Revenue rose to $4.2 billion from $3.3 billion.

In the fourth quarter, AMC earned $3.1 million, compared to $7.4 million in 1983. Revenue slipped to $1.061 billion from $1.097 billion.

Dedeurwaerder said AMC’s Jeep sales rose 90% in 1984 from the previous year. That was a payoff in AMC’s investment in smaller, more fuel-efficient Jeeps and a successful broadening of the vehicles’ target audience to include families, women and more-affluent buyers.

But the business of selling small cars sagged in 1984 and took AMC’s fortunes with it.

While the Big Three raised prices and enjoyed brisk sales of more profitable, larger cars, AMC suffered a 1.6% loss in car sales from 1983 to 1984 and cut its prices.

In the meantime, the company--which is 46% owned by the French car maker Renault--slipped from a ranking as the No. 4 U.S. auto maker to No. 5 behind American Honda Motor Co. Inc.

“AMC barely managed to squeak out a profit last year and this year can only be worse,” said David Healy, an automotive industry analyst at Drexel Burnham Lambert Inc. in New York.

“Look at their (car) sales numbers. And Jeep volume has leveled off,” Healy said.

AMC’s 1984 profit included a provision of $5.4 million paid into AMC’s employee investment fund, the company said.

AMC plans to introduce a pickup truck this year and a mid-size car in 1987.

Whittaker’s 1st-Quarter Net Income Drops Sharply

As expected, Whittaker Corp. reported sharply lower fiscal first- quarter net income. The Los Angeles-based company posted net income of $5.7 million, down from 1984’s $14.9 million.

Revenue for the three months ended Jan. 31 declined to $276.4 million from $349.8 million a year earlier.

Whittaker President and Chief Executive Joseph F. Alibrandi said the substantial decrease in first-quarter earnings was attributable to the May, 1984, completion of Whittaker’s large Saudi Arabian health-care program. He said that operating profit from the balance of the company had increased significantly.

Itel Reports Profits for Year, 4th Quarter

Itel Corp. reported 1984 net income of $1.3 million and revenue of $194.9 million, compared to 1983 net income of $17.7 million on revenue of $173.3 million.

The positive 1983 results were based on 8 1/2 months of operating under the protection of Chapter 11 of the U.S. Bankruptcy Code during the year.

The San Francisco-based company’s 1984 fourth-quarter net income was $8 million on revenue of $49.7 million, compared to a net loss of $1 million on revenue of $46.1 million in the fourth quarter of 1983.

Itel had recorded net losses totaling $6.7 million during the previous three quarters of 1984.

William P. Twomey, president and chief executive of Itel, noted that the fourth quarter of 1984 was the company’s first profitable quarter since completing its reorganization in September, 1983.