Continuing a trend of higher earnings among...
Continuing a trend of higher earnings among most major banks, First Interstate Bancorp and Bankers Trust reported gains in second-quarter profits of 13.7% and 21%, respectively, although both made higher provisions for possible future loan losses. Los Angeles-based First Interstate, the nation’s eighth-largest banking firm, said earnings growth reflected higher net interest margins and substantial increases in commercial and installment loans and other interest-earning assets. New York-based Bankers Trust, the nation’s ninth-largest banking firm, said the improvement resulted from a strong performance in securities trading.
Sperry reported that its second-quarter profit more than doubled, while Burroughs and Control Data reported lower earnings. New York-based Sperry said the year-ago results included a $21.8-million write-down. Excluding the write-down, Sperry’s latest profit was up 23% from a year ago. Gerald G. Probst, Sperry’s chairman and chief executive, said the firm’s commercial-computer business turned in a strong performance in the latest quarter. Burroughs, based in Detroit, said its second-quarter profit fell 5.6% from a year earlier while revenues were up 1.1%. “These results were achieved in a soft business environment in the United States and in the face of the continuing adverse impact of a strong U.S. dollar,” said W. Michael Blumenthal, Burroughs’ chairman. Control Data, based in Minneapolis, said it earned $3.8 million, down 83.8% from a year earlier. Computer systems, computer services and financial services recorded revenue gains while revenue from its other business declined from last year’s level, the company said.
Gannett reported that second-quarter earnings rose 20% from a year earlier. Revenue was up 13%. The company said the improvement reflects “sustained strength in the company, particularly in the newspaper division.” Gannett reported that newspaper linage increased 6%, broadcast revenue 17% and outdoor-advertising revenue 4%.
B. F. Goodrich reported a $352.5-million net loss for the second quarter ended June 30. The company attributed the loss to its previously reported restructuring and related one-time charge of $365 million.
Beverly Enterprises reported a 25% increase in second-quarter earnings. The Pasadena-based health-care firm attributed the improvement to rate increases that it made in the first quarter along with some Medicaid rate adjustments.
Castle & Cooke, which recently completed a merger with Flexi-Van, reported a net loss of $28.6 million for fiscal 1985, down from last year’s $76.7-million loss. Revenue rose about $80 million to $1.6 billion. The 1984 loss included reserves and losses from discontinued operations totaling $94.3 million.
