1987 Fiscal Year Profits Down at Ultrasystems

Officials of Ultrasystems Inc. told investment analysts at a meeting Wednesday in New York that the company’s $10.1-million write-off of non-recurring costs and investments in an ethanol refinery project was a major contributor to a 76% drop in net earnings during fiscal 1987, to $1.7 million from $7.1 million for the previous year.

The refinery, situated in North Dakota, was closed because of the falling price of ethanol--a gasoline additive used to boost octane--and will not be reopened until crude oil prices hit about $20 a barrel, the company said.

Additionally, Ultrasystems reported about $4 million in interest expenses for fiscal 1987.

Despite the lower net earnings, the Irvine-based power plant designer and builder posted record contract revenues of $155 million, up 4% from $149.1 million in its fiscal 1986. In addition, operating income for the fiscal year ended Jan. 31 climbed to $16.2 million, up from $6.2 million a year earlier, the company said.

Without the third-quarter write-off, Ultrasystems would have posted net income of $7.9 million for its fiscal 1987, company officials said.

Net income for the fourth quarter was up 49% to $2.1 million from $1.4 million for that period a year earlier, and revenue for the period rose 4.8% to $44.1 million from $42.2 million.