Henley Group, which is continuing its acquisition...

Henley Group, which is continuing its acquisition bid for Santa Fe Southern Pacific, on Monday reported a $278-million net loss for 1987.

Henley said “strong operating results” were overcome by investment losses, higher financing costs, charges against intangible corporate assets and other non-cash charges.

The La Jolla-based company reported a $426-million net loss for 1986. Revenue for 1987 rose $3.5 billion from $3.2 billion during 1986.

Henley reported a $197-million net loss and $863 million in revenue for the fourth quarter ended Dec. 31. It reported a $354-million net loss and $825 million in revenue during the fourth quarter of 1986.

“Our businesses continued the improvement that began in 1986 with the restructuring and regrouping of most units,” according to Henley Chairman Michael Dingman.

Henley’s fourth-quarter and year-end totals included “realized and unrealized investment losses totaling $112 million and $102 million, respectively,” according to company spokesman Norm Ritter.

Henley also reported “higher interest expense related to additional borrowings for the acquisition of 15.1 million shares” of Santa Fe stock and “other investments,” Ritter said.

Henley has been trying to bolster its stake in Santa Fe, a Chicago-based company that owns transportation, development and energy businesses.