Compaq’s Profit Down 51% for Quarter

Fourth-quarter earnings at Compaq Computer Corp. fell 51% and were down 71% for the year, but company officials said Tuesday that the results marked the beginning of a recovery for the embattled computer maker.

The Houston-based company posted income of $67 million, or 77 cents a share, in the three months ended Dec. 31, compared to $135 million, or $1.50 per share, for the same period of 1990.

Sales totaled $873 million, down 13% from $1 billion from 1990’s fourth quarter.

Compaq attributed the profit and sales declines to industry competition and the ailing economy.

“The results reported, while disappointing compared to a year ago, if you look at them versus the third quarter, they’re very encouraging,” Compaq Chairman Ben Rosen said in an interview, adding that the earnings in the most recent quarter were aided by the weakened U.S. dollar.