Santa Fe Southern Loses $137.9 Million in 1986
Santa Fe Southern Pacific said Friday that it had a net loss of $137.9 million for 1986, primarily because of a $914.1-million pretax charge in the fourth quarter resulting from a previously announced restructuring of the Santa Fe Railway and Southern Pacific Transportation Co.
In 1985, Santa Fe Southern recorded net income of $469.6 million. Revenue fell to $5.6 billion in 1986 from $6.3 billion the year before.
The 1986 results were also affected by a net gain of $120.9 million from discontinued operations resulting from the sale of Kirby Forest Industries and a $130.6-million expense from “impairments” in petroleum operations during the third quarter, the company said.
In the fourth quarter, Santa Fe Southern reported a net loss of $261.8 million, compared to net income of $137.3 million in the same period of 1985. Fourth-quarter revenue slipped to $1.5 billion from $1.55 billion.
Santa Fe Railway reported operating income of $170.8 million, before restructuring costs of $312.8 million, compared to operating income of $145.5 million in 1985. Revenue fell nearly 9% to $1.95 billion.
Southern Pacific Transportation Co. had operating income of $14.1 million, before restructuring costs of $601.3 million, compared to 1985 operating income of $14.6 million. Revenue was $2.3 billion, down 7.8%.
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