Net Income Climbs 10% in Quarter at Signal Cos.

Signal Cos., based in San Diego, reported a 10% jump in second-quarter income to $79 million, even though revenue fell by 7% to $1.4 billion, compared to the same period a year ago.

For the first half of 1985, net income rose 9% to $145 million while revenue fell 7% to $2.8 billion.

“Outstanding” performances by the company’s aerospace, electronics and instrumentation lines led to increased revenues, Signal Chairman and Chief Executive Forrest Shumway said. He linked the drop in revenue to “a softening of the general economy and, in particular, in Signal’s engineering and construction markets,” which have turned in lackluster performances for several quarters in a row.

Signal is to be merged with Allied Corp., pending approval by U.S. Justice Department officials, who are examining the deal for possible antitrust violations.

Earlier this week, Signal’s Garrett Corp. subsidiary and General Motors’ Allison gas turbine division won a $263-million contract for the development of a new turbo-shaft engine for a new helicopter to be developed for the Army. Garrett and Allison are one of two teams competing for the 5,000 twin-engine helicopters to be produced during the 1990s.