Ashland Profits Zoom; Shamrock Holds Steady

Ashland Oil, the nation’s largest independent oil company, Tuesday posted a 182% increase in earnings for its second quarter on the strength of its improved refining margins toward the end of the period and on record chemical results. Diamond Shamrock reported that first-quarter net income remained steady from a year ago as earnings hit $59.1 million, compared to $59.5 million.

Ashland, based in Ashland, Ky., earned $14.1 million for the period ending March 31, compared to $5 million a year earlier. Sales and operating revenue, however, declined 10% to $1.8 billion from $2 billion.

Ashland Petroleum had operating income of $15.9 million in the latest quarter, up from $5.11 million a year earlier.

“We are particularly gratified by the improvement in Ashland Petroleum’s results, which were achieved despite severe margin compression early in the quarter,” Ashland Chairman John R. Hall said.

Ashland Chemical’s operating profits increased to a record $21.2 million for the quarter from $16.14 million the year before. Earnings from Ashland’s engineering and construction operations also rose.

Diamond Shamrock said sales in the first quarter were $954.7 million, down 16% from $1.1 billion in the same period a year ago.

“Despite the continued tough environment in the oil and gas business, all of our businesses continue to report solid performances, while our balance sheet remains very strong,” said William H. Bricker, Diamond Shamrock’s chairman and chief executive.

On a pretax basis, first-quarter results of $109.8 million included a gain of $24.5 million from the sale of the company’s interest in a Japanese joint venture in the agricultural chemical and animal-health field.

Tribune Co. Reports 66% Earnings Gain in Quarter Tribune Co. posted a 66% earnings gain in the first quarter, reporting profits of $16.6 million, compared to $10 million a year ago. The publisher of the Chicago Tribune said revenue rose 14% to $449 million from $394 million in last year’s period.

The Tribune Co. attributed the improvement to better results by its newspaper, newsprint and television operations.

“We are pleased with the improvement in the quarter, which typically produces the smallest earnings of the year,” said Stanton R. Cook, president and chief executive.

The company said newspaper publishing profits climbed 21% to $33.9 million, with strong gains recorded by the Chicago Tribune, the Fort Lauderdale News & Sun-Sentinel and the Orlando Sentinel. The newspaper division earned $28 million in the same period of 1984. Revenue increased to $332.8 million from $298.4 million.

The broadcasting and entertainment group posted a loss of $600,000 despite a 26% increase in revenue, which was $56.5 million. A year earlier, the group lost $1.2 million on revenue of $44.9 million. Sears Net Up 4.4% Despite Drop in Retail Profits Sears, Roebuck & Co. said that profit from its retail stores fell slightly in the first quarter, but increases by its real estate, insurance and financial-services division contributed to an overall 4.4% increase in income to more than $223 million, compared to the same period of 1984.

Edward R. Telling, chairman and chief executive, said retail sales were hurt by a slowdown in the economy and a highly competitive marketplace.

Sears said that, in the period ended March 31, it earned $223.3 million on revenue of $8.8 billion. A year earlier, the corporation earned $213.8 million on revenue of $8.4 billion.

Earnings per share were steady despite higher income because more shares were outstanding, Sears said.

Sears, the world’s largest retailer, said sales from its retail stores fell to $4.94 billion from $4.98 billion, and income from the division fell to $76.5 million from $81.6 million. Beatrice Posts 4th-Quarter Profit Due to Restructuring Beatrice Cos. said it earned $179 million in the fourth quarter ended Feb. 28, but nearly all of the income came from the restructuring that followed its acquisition last summer of Esmark Inc. Beatrice said the restructuring, which included the sale of several businesses that didn’t fit the corporation’s focus on food and consumer products, accounted for income of $177 million during the quarter.

James L. Dutt, chairman and chief executive, said income from continuing operations fell because of the absence of divested operations and higher marketing costs.

For the quarter, Beatrice had sales of $3.4 billion. A year earlier, the corporation earned $133 million on sales of $2.2 billion.

The Chicago-based company has been divesting businesses since last summer when it bought Esmark for $2.7 billion. A spokeswoman said the sale of more businesses was planned.

Income from the sale of those businesses contributed $414 million, or 84%, of the corporation’s annual income, Beatrice said. Data General 1st-Quarter Profit Down Over Year Ago Data General, a major computer maker, reported a drop in profit in the first quarter of 1985. The firm said profit was $9.1 million, while in the same period last year it was $14.2 million.

Sales in the first three months of this year totaled $320.2 million, compared to $273.9 million a year ago.

“While we find it very difficult to predict business levels due to the erratic character of demand over the last few months, we believe we may be able to report a modest increase in total revenues for the 1985 fiscal year,” President Edson D. de Castro said. People Express Attributes Loss to Expanding Routes People Express Airlines, saying it ran into some financial turbulence while trying to establish an expanded route structure, reported first-quarter losses of $18.8 million on revenue of $195 million.

In the first quarter of 1984, the Newark-based carrier said it earned $18,000 on revenue of $108.26 million.

The results represented the airline’s second consecutive quarterly loss. In the fourth quarter of 1984, People Express lost $9 million.

Airline officials, however, said the first-quarter results were “better than previously anticipated.”

“We are pleased that recent cost improvements along with March 1 price increases have resulted in a break-even load factor (percentage of filled seats) of slightly below 60%,” the airline said in a statement.

Spokesman Bob McAdoo attributed the losses to rapid expansion, including the addition of 14 new destinations since last June 1.

People Express, with a fleet of 68 jets and more than 4,000 employees, has 394 daily flights to 32 destinations. Bethlehem, Armco Pin Losses on Price Cutting Bethlehem Steel, citing continued price competition from imports, said it lost $62.1 million in the first quarter of this year, compared to a loss of $54.6 million in the first quarter of 1984.

At the Bethlehem annual meeting in Wilmington, Del., Chairman Donald H. Trautlein said earnings were stymied by Bethlehem’s reduced market share, as well as discounted prices that were below last year’s levels because of competition from “the continued surge of steel mill imports.”

Imported steel accounted for about 28% of the domestic market in the first two months of this year. During the same period in 1984, overseas manufacturers claimed 25% of the domestic market.

Aided by strong demand from the automotive and consumer markets, Bethlehem reported that steel shipments rose 17% in the first quarter over the fourth quarter of 1984, while raw steel production increased only 11%.

Bethlehem has posted losses for 12 of the last 13 quarters. Its only profitable quarter since late 1981 was the second quarter of last year, when it reported earnings of $24 million.

Armco, the nation’s fifth-largest steelmaker, also reported a first-quarter loss. The Middletown, Ohio-based company said it lost $22 million in the first quarter, compared to a profit of $56.3 million in the same period last year.

The company blamed high production costs and continued steel price discounting for the poor results.