Xerox, Transamerica Report Gains; GlenFed Further in Red
Xerox Corp. said Thursday that its earnings rose 24% in the third quarter, primarily due to a onetime U.S. tax credit of $23 million taken in its core document-processing business.
The copier company said it earned $150 million, or $1.28 a share, compared to $121 million, or $1.07 a share, in the third quarter of 1992. Revenue remained flat at $3.6 billion, the company said.
Xerox said income from document processing, which accounts for most of its earnings, rose 25% in the third quarter to $148 million, largely because of the tax credit.
Without the credit, document-processing income would have shown a 6% rise, the Stamford, Conn.-based company said. Income from financial services and insurance operations--businesses from which Xerox is disengaging itself--was unchanged at about $2 million.
Without counting the tax credit, the results were slightly above analysts’ expectations, but the stock market pushed Xerox sharply higher.
On the New York Stock Exchange, Xerox rose $5.75 to $76.375 a share.
Transamerica Corp. said its third-quarter net income rose 58%, largely on the back of its life insurance and real estate units and a onetime tax benefit.
Including investment gains, tax resolutions, a tax rate increase and special charges, the San Francisco-based company’s net income was $138.9 million, or $1.70 a share, up from $87.4 million, or $1.04 a share, a year ago.
A onetime tax benefit of $94.2 million for the quarter will be offset by the tax rate increase, debt refinancing in the fourth quarter and other charges taken in the third quarter, the company said.
Income from Transamerica’s life insurance operations rose to $60.4 million during the quarter, up 21% from $49.8 million a year ago. Real estate services income rose 20% to $21.9 million, from $18.1 million.
Revenue rose to $1.3 billion in the quarter ended Sept. 30, from $1.2 billion a year earlier.
Glendale Federal Bank reported that its loss widened in the first quarter of fiscal 1994 from a year earlier, due primarily to provisions for losses in its loan portfolio that reflect continuing economic and real estate difficulties in California.
The Glendale-based bank posted a net loss of $19.9 million, or 63 cents a share, for the quarter ended Sept. 30, compared to a $16.8-million net loss for the 1993 period. The bank said its recent recapitalization resulted in a “significant change in the capital structure of the bank and its former parent, GlenFed Inc., so comparative per-share figures for prior periods are . . . not meaningful.”
