P.M. BRIEFING : MCA Expects to Show Profit
Universal City-based MCA Inc., the film maker and distributor whose earnings have been boosted by a series of hits, said today it will take $53 million in charges against 1989 earnings but expects to post higher profits.
MCA’s Universal Pictures has produced recent box office hits like “Sea of Love,” “Parenthood,” “Do the Right Thing,” “Back to the Future II” and “Born on the Fourth of July.” MCA also runs the Universal Studios theme park in Los Angeles and expects to open another in Orlando later this year.
The company said it will sell its LJN Toys Ltd. unit and take a $30-million charge against 1989 earnings for the sale. MCA also said it would take a $23-million write-off for discontinued operations.
The company said that despite losses from LJN, it expects to report higher earnings for 1989.
In 1988, MCA earned $164.9 million, or $2.26 per share.
In early trading, MCA share prices were down 12.5 cents to $57.625.
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