Fluorocarbon Reports Record Operating Earnings

Fluorocarbon Co. said Monday that it posted record operating earnings during the fiscal third quarter ended Oct. 31 and expects to report record year-end results.

The Laguna Niguel-based rubber and plastics molder said third-quarter operating earnings increased 26% to $1.5 million, compared with $1.1 million a year earlier. However, the 1984 quarter included $217,142 in earnings from the discontinued semiconductor group and a $607,000 insurance settlement resulting from a fire at one of the company’s plants in 1984, which brought final net income to $1.9 million.

Fluorocarbon’s third quarter revenues from continuing operations rose slightly to $27.6 million, compared with $25 million a year ago. The discontinued semiconductor operation provided an additional $5.6 millon in sales during the third quarter of 1984.

For the nine months ended Oct. 31, Fluorocarbon recorded earnings from continuing operations of $4.1 million, up 24% from $3.1 million during the same period in 1984. However a net gain on the sale of the discontinued operation, coupled with the $286,000 in income it provided during 1985, brought final net income to $5 million, compared with $4.2 million a year ago.

Nine-month revenues were $79.1 million, up 11% compared with $70.1 million in operating revenues a year earlier. During the first three quarters of 1985, discontinued operations accounted for $10.5 million, compared with $15.5 million in 1984.

While the company will not project fourth-quarter or year-end earnings, Peter Churm, Fluorocarbon’s chairman, said he expects 1985 to be the company’s best year both in terms of profits and revenues.

“The rest of the year looks good to us, but it is a very difficult situation to read,” he said, noting that while sales to some of the company’s markets, including the aerospace and automotive industries, were up in 1985, business in other markets such as the housing industry remains flat.