Profits Rise Sixfold at Fairmont Financial
Fairmont Financial said its profits rose more than sixfold in its third quarter ended Sept. 30 over the corresponding period last year, largely because its earnings were boosted by tax benefits.
The Burbank-based insurance holding company reported net income of $1.3 million, or 42 cents a share, during the three-month period. That was up from $177,000, or 7 cents a share, in the third quarter of 1984.
For the record:
12:00 a.m. Nov. 20, 1985 FOR THE RECORD
Los Angeles Times Wednesday November 20, 1985 Valley Edition Business Part 4 Page 2 Column 4 Zones Desk 2 inches; 54 words Type of Material: Correction
An article on Tuesday incorrectly reported Fairmont Financial’s net income for the third quarter, which ended Sept. 30. It was $2.2 million, or 81 cents a share, up from $185,000, or 7 cents a share, for the same period last year. For the first nine months of the fiscal year, the company’s net income was $3.5 million, or $1.28 a share, up from $671,000, or 25 cents a share, in the year earlier.
The increase stemmed primarily from Fairmont’s use of $532,000 in tax-loss carry-forwards, which are previous losses that can be deducted from current taxable income.
For the first nine months of 1985, Fairmont’s profits increased 260% to $2.4 million, or 83 cents a share. Fairmont’s revenue rose 19% in the third quarter, to $19.7 million, and was up 9% for the nine-month period, to $53.6 million.
Fairmont is the holding company for Fairmont Insurance, which specializes in workers’ compensation insurance.
