Beckman Profits Dip for Second Year in Row

Suffering from a sluggish domestic market, Beckman Instruments Inc. on Wednesday reported net earnings of $36.2 million for 1990, down 15.7% from $41.9 million last year and marking the second year of declining profits.

Fullerton-based Beckman, a manufacturer of medical diagnostic and bioanalytical research products, reported sales of $815.2 million for 1990, up 3.7% from $785.9 million the year before.

But the company said the slight sales gain from more aggressive international marketing was more than offset by higher costs, including a $10.3-million increase in its investment in research and development.

Also, Beckman noted that most of the increase in its 1990 sales revenue reflected a change in the exchange rate that gave its products sold overseas a higher dollar value.

In the fourth quarter, Beckman posted net income of $10 million on sales of $225.8 million. It had net income of $10.4 million on sales of $199.7 million in the 1989 period.

Jay Steffenhagen, Beckman’s manager of investor relations, said the company eliminated about 260 positions in 1990.

He also said Beckman, which has 7,100 employees worldwide, has been streamlining its manufacturing to be more cost effective.

But analysts said Beckman’s performance was below expectations.

“Clearly this was a disappointing year,” said Kenneth Kulju, a health care analyst with Rothschild Inc., a New York investment banker.

He added, however, that he believes that Beckman “is doing the best they can under adverse circumstances” that have prevailed since Beckman was spun off as an independent company.