Allied-Signal Blames Year Loss on Unusual Charges
Dragged down by $725 million in unusual charges absorbed during the fourth quarter, Allied-Signal reported a $279-million net loss for the year ended Dec. 31.
The company linked most of the charges to a corporate “streamlining” necessitated by the September merger of Morristown, N.J.-based Allied Corp. and San Diego-based Signal Cos.
“It was a meaningless quarter,” suggested Larry Lytton, a New York-based analyst with Drexel Burnham Lambert. “(The loss) will only mean something if it continues during 1986, and I don’t think it will.”
Allied-Signal reported net sales of $9.1 billion, after deducting $1.8 billion for the 30 businesses that are being spun off to Henley Group, which will be run from San Diego by former Signal Chief Executive Michael Dingman.
During 1984, Allied and Signal reported $488 million in combined net income and $9.5 billion in combined revenue. In the fourth quarter, Allied-Signal reported a $660-million net loss and revenue of $2.6 billion, up 13%.
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