CBS Reports 37% Slump in Operating Net for 4th Quarter

CBS Inc., which has just completed a tumultuous year that included a boardroom coup, said Tuesday its 1986 fourth-quarter operating income fell 37% due mainly to a steep decline in the broadcasting group.

Fourth-quarter operating net dropped to $40.9 million from $64.7 million on a 9% increase in revenue to $1.4 billion. For the year, profit fell 1% to $189.8 million on revenue of $4.75 billion.

In a statement, CBS Chief Executive Laurence Tisch noted: “The persistent weakness in the national advertising economy took a heavy toll on our television network.” Fourth-quarter profit from broadcasting dipped 79% to $16 million. For the year, the decline was 31%.

This performance offset improvements in magazines and the best year ever for the records group.

However, the company reported sharply higher net income for both 1986 periods because of the gain on the sale of its educational and professional publishing operations in December. These gains contrasted with the 1985 losses associated mainly with the discontinuation of toy, theatrical film and home computer software operations.