Smith Intl. Posts $69-Million Loss in Gearhart Wake

Smith International Inc. of Newport Beach posted a $68.5-million loss on revenues of $747 million for the year ended Dec. 31, 1984. The Newport Beach oil services company had delayed reporting its earnings pending the recent settlement of its nearly yearlong battle for control of Gearhart Industries Inc. of Fort Worth.

The company, which has been hard hit by a slump in oil and gas drilling, reported a loss of $94.6 million on revenues of $697 million in fiscal 1983.

The fiscal 1984 figures include $121.9 million in unusual charges; $85 million was related to Smith’s unsuccessful attempt to acquire Gearhart, a high-technology oil services company. Another $36.9 million was written down to cover costs and loss relating to selling its mining equipment operations.

Earlier this week, Smith and Gearhart reached a definitive settlement in which Smith agreed to accept $80 million for its 5.3 million Gearhart shares, less than half of the $163 million it paid to buy the stock. The stock, along with additional Gearhart shares, will be offered for sale to the public through an offering filed with the Securities and Exchange Commission on Wednesday.