Pacific Scientific Reports 41% Drop in Profits for 1990

Hampered by the cost of closing a plant in Puerto Rico, Pacific Scientific Corp., an aerospace and industrial products company, reported Monday that its net income dropped 41% to $1.4 million last year.

The Newport Beach firm’s earnings for its fiscal 1990 year ended Dec. 29 contrasted with net income of $3.4 million in 1989. Revenue rose to $183.9 million, up 8% from $169.6 million a year earlier.

For the fourth quarter, the company lost $2.4 million, contrasted with net income of $1.6 million a year earlier. Revenue for the latest quarter increased 4.5% to $46 million, from $44.1 million a year earlier.

The company attributed the fourth-quarter loss to problems at its Fisher Pierce division and to environmental cleanup costs at two former manufacturing sites. The company wrote down $5.5 million for expenses related to those problems.

Pacific Scientific is cleaning up a chemical spill on properties in Anaheim that it owned until late 1989. The spill involved trichloroethylene, a degreasing agent. The cleanup is expected to take four years.

The company announced in October that it would close a Fisher Pierce plant in Puerto Rico and lay off 165 employees. The plant’s work was moved to Weymouth, Mass., where the company hired replacement workers.

Edgar S. Brower, chairman and chief executive, said in a statement that the fourth-quarter problems were a “great disappointment.” He noted that each of the company’s divisions had improved operating results during the year except for the Fisher Pierce unit, which manufactures outdoor lighting control equipment and other products.

“We are stabilizing the problems at Fisher Pierce and expect the division to return to profitability in 1991,” he said. “For 1991, we anticipate that all divisions will be profitable, leading to a strong bottom line” despite the poor economy.