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Irvine Firm Will Replace President of a Subsidiary : Reorganization: National Education Corp. cites disappointing earnings of unit.

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TIMES STAFF WRITER

National Education Corp., which publishes school workbooks, operates vocational schools and trains people on the job, said Tuesday that it will replace the president of one of its subsidiaries because of disappointing earnings in the second quarter.

Ronald Tapper, president of Naperville, Ill.-based National Education Training Group, has agreed to step down immediately, according to a statement by Jerome W. Cwiertnia, president and chief executive officer of the Irvine-based parent company.

Cwiertnia’s statement said the subsidiary, formerly Applied Learning International, “has not been maximizing its opportunities in the marketplace.” The subsidiary provides training services to employers. Cwiertnia could not be reached for comment Tuesday.

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Tapper will be replaced temporarily by Randall A. Lipton, a consultant specializing in corporate strategies, until a new president is appointed for the subsidiary, Cwiertnia’s statement said.

The company, which had revenue of $385 million for 1991, did not say what its second-quarter earnings will be but alerted investors that the numbers will be lower than anticipated.

National Education still expects to make a slight profit, however, contrasted with a loss of $1.32 million for the second quarter last year on revenue of $92.4 million.

After the announcements Tuesday, the company’s stock fell 50 cents a share on the New York Stock Exchange to close at $8.25.

One analyst said Tapper’s departure is among the final rumblings of a three-year reorganization the company has undertaken.

“I think they’re heading in the right direction, and this is probably a continuation of the restructuring,” said Jeffrey Kilpatrick, president of Newport Securities Corp. in Costa Mesa, which recently prepared an analysis of the company for its clients.

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National Education began the restructuring after a costly series of mix-ups involving several of its subsidiaries, especially Applied Learning International. Customers were either overbilled, undercharged or given services for free.

The company weathered two years of losses--$29.3 million in 1989 and $14.9 million in 1990--before reporting a profit of $5.4 million for fiscal 1991.

Besides providing on-the-job training, National Education operates schools under the names National Education Centers and International Correspondence Schools. It also leases laser-disc training programs to companies and publishes grammar school workbooks.

The company, which employs about 230 people in Irvine, also has subsidiaries in Scranton, Pa., and Austin, Tex.

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