P. M. BRIEFING : Norton’s Profits Drop 35%

Takeover target Norton Co. said today its first-quarter profits fell 35% mainly because of losses stemming from its operations in Brazil, which suffered a severe recession during the period.

Norton, a leading abrasives and engineering materials manufacturer, said net income totaled $17.2 million, or 89 cents per share during the quarter, compared with profits of $26.3 million, or $1.25 per share a year earlier.

Revenues totaled $414.4 million, up 7% from $388.2 million in the first quarter of 1989.

Last month Norton agreed to be acquired by France’s Compagnie Saint-Gobain, one of the world’s leading glass makers, for $1.8 billion or $90 a share. The move successfully staved off a $1.6-billion hostile bid by Britain’s BTR PLC.

Norton declined to comment on how the successful battle against BTR would affect earnings for the year. “We’re not commenting on the takeover costs,” company spokesman Francis Doherty said.