2 Valencia-Based Firms Report Lower Profits

Newhall Resources and Newhall Investment Properties, two Valencia-based companies that are about to end their days as independent entities, reported lower profits for the second quarter.

Newhall Resources said its earnings for the three months ended June 26 fell to $292,000, or 7 cents per partnership unit, from $539,000, or 12 cents per unit, a year earlier. Its revenue edged up to $1.29 million from $1.28 million.

For the first half of 1988, Newhall Resources’ net income rose to $1.34 million, or 31 cents per unit, from $1.28 million, or 29 cents per unit, a year ago. Six-month revenue climbed to $3.35 million from $2.76 million.

Newhall Investment, meanwhile, reported second-quarter profit of $8.7 million, or $1.96 per unit, down from $15 million, or $3.37 per unit, as operating revenue fell to $427,000 from $1.59 million.

In the first half, Newhall Investment’s earnings fell to $11.7 million, or $2.64 per unit, from $16.8 million, or $3.78 per unit. Six-month revenue dropped to $894,000 from $3.05 million.

Newhall Resources was formed in 1983 to develop oil and gas assets that were spun off from Newhall Land & Farming Co., a real estate and agriculture concern that is developing the community of Valencia.

However, Newhall Land is in the process of repurchasing Newhall Resources, which announced last week that the merger price was revised down to $28.7 million from $30.7 million because of income distributions made to Newhall Resources’ investors.

Newhall Investment also was formed in 1983 to sell real estate properties that were spun off from Newhall Land. Those sales are nearly complete, and Newhall Investment said last week that it expects to dissolve the partnership by October.

All three companies are organized as limited partnerships whose investment units are publicly traded on the New York Stock Exchange.