60% of Major Firms Post Profit Gains in Quarter

Sixty percent of the San Fernando Valley area’s largest publicly held companies posted improved earnings in their most recent fiscal quarters. High-technology companies in particular led the group with improved profits.

Of 50 companies reporting earnings, 30 posted higher profit or advanced from losses in the same quarter a year earlier to show a profit. Of those 30, eight companies reported a profits that was more than double that of a year ago. Earnings for 14 companies fell from a year earlier, whereas six companies lost money.

Companies included in the survey are situated in the area stretching from Burbank to Camarillo. Nearly all their fiscal quarters ended in November or December.

Among the largest companies, Walt Disney continued as the area’s standout performer. The entertainment company reported a 159% increase in profit, to $89.8 million, in the quarter ended Dec. 31, in part because of a strong showing by its theme park division.

But MCA, the Universal City entertainment conglomerate, reported a 58% drop in profit, to $21.6 million, attributed to a $50-million write-down of expected television earnings because of a softness in the television syndication market.

Tandon Results Rise

In the high-technology group, Tandon, the Chatsworth-based personal computer and disk-drive maker, reported a 20% rise in earnings, to $1 million, as computer sales rose.

Dataproducts, a computer printer maker in Woodland Hills that has been on a cost-cutting push over the last two years, said its profit climbed 108%, to $2.1 million. Micropolis, based in Chatsworth, is enjoying considerable success with its high-speed computer disk-drive products and reported a 129% jump in profits, to $5.1 million.

But earnings at Micom, a Simi Valley maker of computer communications equipment that has been suffering from the computer industry’s slump, fell 17%, to $3.5 million. Micom said it had lower profit margins in the quarter because of higher start-up costs for some new products.

Insurance company results were mixed. Burbank-based Fairmont, a firm being acquired by Transamerica Insurance Group in a stock deal worth about $150 million, posted a 33% increase in earnings, to $2.2 million, because it wrote more workers compensation premiums.

Zenith National Insurance, based in Encino, also specializes in workers compensation insurance. Zenith reported a twentyfold earnings increase, to $11 million, thanks to investment income, its reinsurance business and a workers compensation business it acquired in 1985.

Republic American Slips

But Republic American, another Encino workers compensation insurer, posted a 35% decline in earnings, to $6.4 million, in part because in the year-earlier period the company had significant profit from the sale of securities.

20th Century Industries, a Woodland Hills automobile insurer, on Monday reported fourth-quarter net income of $7.4 million, contrasted with a loss of $3.6 million a year earlier. In the quarter, the company’s investment income rose 39% from a year earlier, to $8.3 million.

The company’s year-earlier loss occurred when it added $12.8 million to its loss reserves, or money set aside for future insurance claims.

Lockheed, the area’s largest firm, said its earnings fell 14%, to $110 million, in the quarter ended Dec. 28. The Calabasas aerospace giant said earnings were hurt by higher interest costs attributed to its recent $1.18-billion acquisition of Sanders Associates of Nashua, N.H., plus the costs of developing an Air Force fighter plane.

TransTechnology, a Sherman Oaks aerospace and defense company, said its earnings rose 173%, to $3.5 million. The company continues to benefit from its acquisition last year of Lundy Electronics and Systems of Glen Head, N.Y.

SFE Technologies, a San Fernando electronics concern that has suffered from the slump in the electronics industry, posted a $2-million loss, the largest of any Valley company, compared to a $1.98-million loss a year earlier.

Valley Federal Gains

Valley Federal Savings of Van Nuys, the area’s largest savings and loan, reported a 31% increase in earnings, to $4.9 million, in the quarter. Independence Bank of Encino, the largest bank based in the Valley, showed a 20% increase in earnings, to $409,000. The bank said gains on the sales of securities helped increase profit.

Among the area’s fastest growing companies, Cherokee Group, a North Hollywood apparel maker, reported a 37% increase in profit, to $1.6 million. Amgen, a Newbury Park biotechnology firm, reported a 164% jump in net income, to $905,000.

Several major local companies completed their fiscal quarters in January and have yet to report results, including House of Fabrics, the Sherman Oaks-based chain of fabric stores; Redken, a Canoga Park hair care products firm, and Nu-Med, a hospital chain based in Encino. QUARTERLY PROFITS

Results are for quarters ended in November and December

Net Income Company (loss) % Change Amgen $905,000 +164% Dataproducts $2.1 million 108% Walt Disney $89.9 million +159% Fairmont $2.2 million +33% Lockheed $110 million -14 MCA $21.6 million -58% Micom Systems $3.5 million -17% Micropolis $5.1 million +129% Newhall Land $14.5 million 51% Republic American $6.4 million -35% Superior $2.1 million +14% TransTechnology $3.5 million +173% Valley Federal $4.9 million +31 Zenith National $42.2 million +1131% Zero $3.5 million -8%