Sales Down, Net Income Up for Quarter at Olson Industries

Olson Industries reported sales for its third quarter ended Sept. 30 of $29.1 million, down 3% from the same period a year ago. But net income was $84,000, or 8 cents a share, contrasted with a net loss for the same period a year ago of $700,000, or 65 cents per share.

For the first nine months of the year, sales for the Sherman Oaks-based egg distributor were $85.2 million, down 25% from the same period in 1984. Olson Industries reported a net loss for the nine months of $415,000, or 39 cents a share, against net income of $1.3 million, or $1.20 a share, during the corresponding period in 1984.

In a prepared statement, John W. Buffington, chairman and president of the company, said he expects egg prices to improve and predicted the company will show a profit for 1985. A drop in egg prices from record highs in 1984 accounts for the lower nine-month sales and earnings figures, according to the company.

Last week, Olson Industries announced it would shut down its Texas food-service subsidiary because of its poor financial performance.

Olson Industries also has been torn by a legal fight between brothers C. Dean Olson, 77, and H. Glenn Olson, 79, for control of the company they founded together more than 50 years ago.

A civil case filed by H. Glenn Olson in Superior Court in Los Angeles alleges that C. Dean Olson reneged on an agreement to divide jointly held assets. H. Glenn Olson also alleges that C. Dean Olson used funds from an egg farm owned by both brothers for personal investments, including buying Olson Industries stock. Trial of the case is scheduled to begin Wednesday.

C. Dean Olson has filed a cross-complaint accusing H. Glenn Olson of using funds from another jointly held egg farm for his personal investments.