Time Warner Reports Its First Operating Profit : Earnings: Because of a preferred dividend requirement, however, the entertainment firm still ended the fourth quarter of 1991 with a net loss.

Time Warner Inc. on Monday reported its first quarter of operating earnings since the entertainment and media conglomerate came together two years ago--but because of preferred dividend requirements, the firm still suffered a net loss.

The New York-based company had operating earnings of $45 million in the fourth quarter of 1991, contrasted with a loss of $34 million in the same period in 1990. Revenue rose 3% to $3.39 billion from $3.29 billion a year earlier.

Because of the preferred dividend payout, however, the results translated into a loss of $1.16 per common share, compared to a loss of $3.08 a share a year earlier. On Wall Street, Time Warner shares fell 25 cents to $93.25 as investors expressed disappointment with the report.

For the year, the company lost $99 million, or $9.60 a share after preferred dividends, compared to a loss of $227 million, or $13.67 a share, a year earlier.

Revenue for the year rose 4.3% to $12.02 billion from $11.52 billion in 1990.

Time Warner reported record fourth-quarter performances at four of its five divisions--filmed entertainment, music, cable television systems and pay television. Earnings from publishing were down 10.8%.

Co-chief executives Steven J. Ross and N. J. Nicholas Jr. said the company “has never been stronger or better situated for growth,” although they stopped short of making predictions about future profit.

Lisbeth R. Barron, an entertainment analyst with S. G. Warburg & Co. in New York, said the report was in line with expectations.

“From an investment community standpoint, until the company shows solid net earnings to shareholders, it will have to be looked at on a cash-flow basis,” she said.

Time Inc. paid about $14 billion to buy a majority interest in Warner Communications Inc. in August, 1989, completing the merger of the two companies in early 1990.

The merger saddled the new company with a huge debt load. Through various measures, the company has cut its debt to $8.7 billion from $10.8 billion. Time Warner sold $2.7 billion in common stock last summer; in October, it sold a small stake in a partnership for $1 billion to two Japanese companies, Toshiba Corp. and C. Itoh & Co.

The debt payments and related amortization and depreciation costs have produced losses in every quarter since the merger.

Strong ticket sales for “JFK,” the controversial film about the assassination of President John F. Kennedy, and “The Last Boy Scout” boosted the quarter’s results, Time Warner said. Filmed entertainment earned $90 million before taxes and other items, up from $70 million in the 1990 quarter.

In the music sector, recordings by Natalie Cole, REM, Simply Red, Color Me Badd and others pushed operating earnings to $191 million from $175 million.

Earnings in cable--bolstered by gains in advertising, pay-per-view programs and basic subscriber fees--jumped to $225 million in the quarter from $204 million.

Earnings at HBO edged up to $47 million from $46 million in the quarter, despite a drop of 300,000 subscribers--to 26.6 million at year end--for the unit’s HBO and Cinemax pay-TV services.

The only division with lower operating earnings was publishing, where Time Warner has been cutting costs. Last year it laid off about 600 employees, or 10% of the staff, at Fortune, Life, Money, People, Sports Illustrated and Time.

* New York Times Co. said its profit nearly tripled in the fourth quarter but fell 27.5% for the year as the recession depressed advertising volume.

The publisher of the New York Times and 32 regional newspapers said it earned $34.6 million, or 45 cents per share, in the three months ended Dec. 31, compared to $12.2 million, or 16 cents per share, a year earlier.

Revenue for the quarter inched down to $452.5 million from $456 million a year earlier.

The 1991 results were boosted by 13 cents per share because of a tax settlement but were reduced by 9 cents per share due to magazine business restructuring and a new plant in New Jersey. The 1990 results were reduced by 8 cents a share for magazine restructuring.

The newspaper operating group had an operating profit of $49.2 million in the quarter, up from $32 million a year ago on slightly lower revenue.

The improvement in operating earnings was attributed to higher circulation revenue, lower newsprint costs and lower expenses.

For the year, the company earned $47.0 million, or 61 cents per share, down from $64.8 million, or 85 cents per share, a year ago.

Revenue for the year fell to $1.70 billion from $1.78 billion.

Earnings, D5