Wynn’s Predicts Profits Gain but Not to ’86 Level

After reporting a dismal 92% drop in first-quarter earnings last month, John F. Lillicrop, president and chief executive officer of Wynn’s International, told shareholders Thursday that although he expects improved second-quarter earnings, they will not equal profits posted a year ago.

“When I look at . . . the first month of the second quarter, it looks a lot better than in January,” Lillicrop said at the automotive parts and air-conditioning maker’s Fullerton headquarters during an annual stockholders’ meeting.

Lillicrop largely attributed Wynn’s earnings drop--to $92,000 from $1.2 million--to the costs of distributing air-conditioning products manufactured by Wynn’s Japanese partner, Diesel Kiki, through Wynn’s Climate Systems Inc., a Texas subsidiary.

The $8-million deal to supply auto maker Hyundai with the Japanese product did not bring in enough income to offset Wynn’s Climate Systems’ distribution-related overhead, Lillicrop said. Additionally, the Climate Systems unit’s sales fell 9% during the first quarter.

For the second quarter of fiscal 1986, Wynn’s International posted a 31% earnings increase to $1.95 million during a record money-making year for the company.

Also at Thursday’s meeting, shareholders for the second consecutive year overwhelmingly rejected a proposal that the company adopt the Sullivan principles, the government-sponsored guidelines calling for companies with business in South Africa to promote racial equality and to work to help improve the quality of life of nonwhite workers there.

Wynn’s International officials have said that with no more than 60 sales agents in South Africa, the company has limited ability to “improve the quality of its employees’ lives outside the work environment.” Wynn’s also objects to a provision that calls for an auditor from the Sullivan organization to monitor its activities to ensure that it is living up to the principles.