Gencorp 2nd-Quarter Net Soars on Asset Sale

Gencorp Inc. said Wednesday net income soared in its second quarter of this year, as gains on the sale of its WOR-TV station in Secaucus, N.J., to MCA Inc. offset operating losses and the cost of fending off a hostile takeover attempt.

Gencorp said its profit in the three months ended May 31 totaled $187 million, including $212 million from the sale of the television station, compared to $37 million a year earlier. Revenue rose 27% to $450 million.

The Akron, Ohio-based company also stated it had one-time costs of $57 million from a restructuring program undertaken to fend off a $2.2-billion takeover earlier this year.

Gencorp said it had a loss of $25 million from continuing operations, against a $16-million profit a year earlier, and lost $2 million from discontinued operations, against a $20-million profit last year.

Income from discontinued operations declined because of the restructuring costs, lower income at its General Tire unit and the sale of WOR-TV in April.

Gencorp put General Tire up for sale to help recover costs of the stock buyback. Gencorp’s other businesses include the production of plastics and industrial goods through its DiversiTech General unit and defense contracting through its Aerojet General business.

For the first six months of its fiscal year, Gencorp had net income of $204 million, including the $212-million gain, compared to $56 million.

Revenue rose to $752 million, about $122 million more than it reported a year earlier.