Schlumberger, a leading oil field services company,...
Schlumberger, a leading oil field services company, reported its net income fell 27% in the second quarter ended June 30, because of a slump in oil exploration, a major acquisition and depressed conditions in the semiconductor industry. The company said after-tax earnings were reduced by $17 million by expenses associated with the December, 1984, acquisition of Sedco, an offshore oil-exploration company. A reduction in oil exploration, related to falling oil prices, reduced overall profits from oil field services. Schlumberger said plant closings at its semiconductor business resulted in a non-recurring after-tax cost of $24 million.
Baxter Travenol Laboratories, which announced Monday a definitive merger agreement with American Hospital Supply, reported that its second-quarter profit fell 8%, despite a 6% sales gain. Baxter, which makes medical-care products and markets them internationally, attributed the second-quarter profit decline chiefly to competition. Domestic sales were up 11%, while sales from international markets fell 6%, reflecting weakness in foreign currency values, the company said. Meanwhile, Hospital Corp. of America, one of the world’s largest health-care companies, posted a 25% profit increase on a 16% sales gain in the second quarter. The second-quarter earnings included $26 million, or 29 cents a share, in connection with HCA’s exchange in May of stock for convertible debt in Beverly Enterprises, the world’s largest nursing-home company.
North American Philips, citing sluggish demand and weak prices for its products, said its second-quarter profit tumbled 59% from a year earlier as sales slipped 1.6%. Philips’ professional-equipment group, notably the medical- and defense-systems operations, “continued to experience profitable growth” in the latest quarter, Cees Bruynes, chairman and president, said in a statement. Consumer electronics “continued to suffer the effects of severe industrywide price competition resulting largely from Far Eastern imports and inventory imbalances,” Bruynes said.
The Great Atlantic & Pacific Tea Co. reported that 1985 first quarter operating profit was up 19% on a sales increase of 13% over the company’s 1984 first quarter. The Montvale, N.J.-based company attributed the improved results to the company’s continuing capital spending for remodeling, new store development and store acquisition. The firm said that the 1985 quarter included seven weeks of operation of the 93 Dominion Stores in Canada that were acquired April 29.
Scott Paper reported that its second-quarter profit rose less than 1%, despite revenue increasing 7% to a record $761.1 million. The company said said the increases were principally due to strong sales and earnings gains from Scott’s domestic and international sanitary paper- products businesses. Sales and earnings from the company’s printing and publishing paper business also continued strong, but declined modestly from 1984’s record second quarter.
Pfizer Inc. reported a 16% increase in net income for the second quarter of 1985 on a sales gain of 1%. Pfizer said the strength of the U.S. dollar continued to depress results. Excluding the impact of unfavorable currency translation, worldwide sales growth would have been 7% for the second quarter. Net income growth would have been 29% for the quarter. Changes in net sales by firm segments were: health-care (excluding sales of the divested dental division) up 2%, consumer up 9%, agriculture up 5%, materials science down 1% and specialty chemicals down 1%.
