Allied-Signal Reports Turnabout in Quarter

Allied-Signal Corp. reported a profit of $69 million in the fourth quarter in contrast with a loss of $660 million a year earlier when it took a huge restructuring charge.

The advanced technology company attributed the improvement to increased sales and last year’s cost reduction program.

Revenue in the final quarter of 1986 rose to $3.04 billion from $2.62 billion in 1985.

The earnings improvement for the quarter resulted from increased revenue from aerospace avionics, engine systems and automotive products as well as improved results from home furnishing fibers and specialty products, according to Edward L. Hennessy Jr., chairman and chief executive.

Allied, based in Morris Township, N.J., said net income for all of 1986 totaled $605 million on revenue of $11.8 billion. Last year, the company lost $279 million largely due to a $750-million writeoff from the divestiture of 35 businesses under the name of Henley Group.

Hennessy said the company had “profitable, leadership positions” in its three core businesses--aerospace, automotive and engineered materials--and added that each business “is well-positioned for growth through research and capital spending.”