Whittaker Has Operating Loss; Interest Costs Cited

Whittaker Corp. on Wednesday reported a $3.3-million loss from continuing operations for its fiscal second quarter on sales of $51.2 million.

In the same period of last year, Whittaker posted income from continuing operations of $3.3 million on sales of $45.5 million.

Whittaker recorded a $2.1-million loss from discontinued operations during the second quarter, which ended April 30, contrasted with a profit of $4.3 million in that category during the year-ago quarter.

A company press release blamed the downturn primarily on sharply higher interest expenses because of debt incurred in its 1989 recapitalization, which involved buying back stock and selling some parts of the business. The Los Angeles-based company now focuses on two areas: aerospace and biotechnology.

Because of an $80.5-million gain from the sale of discontinued operations, Whittaker reported net income for the second quarter of $75.1 million. Net income was $12.6 million in the same period last year.

Whittaker also announced that it has replaced a $432.5-million bank line of credit with a $140-million credit facility. Whittaker took a $7-million pretax writeoff in the second quarter of unamortized costs from the old loan. Whittaker is reducing its debt faster than the company had planned, a spokesman said.