Development Costs Push Noland Paper Into Red

Although its earnings for continuing operations showed a strong fourth-quarter increase, a one-time write-off of product development costs pushed the period’s earnings for Noland Paper Co. $212,000 into the red, the wholesale paper distributing company said.

Noland said operating earnings for the final three months of 1984 totaled $288,000 before the $500,000 write-off. For the same period last year, the Buena Park distributor posted a profit of $197,000, all from continuing operations.

For all of 1984, Noland posted a profit of $553,000, down 29% from the $777,000 in earnings posted for 1983.

The company said its fourth-quarter write-off stemmed from the cancellation of Noland’s joint venture to develop a beverage packaging system. Noland agreed to write off all of the patent and deferred costs against its 1984 income.

Despite its loss for the period, Noland’s sales for the fourth quarter of 1984 totaled $21.7 million, up 12% from $19.4 million in the same period of 1983.

Noland’s total 1984 sales revenue was $84.6 million, a 16% increase from the $73 million reported for 1983.