Boeing Profit Off 2%; Quake Claims Batter 20th Century

Boeing Co. earnings fell about 2% in the third quarter as orders for jet aircraft declined, and the company said Wednesday that it expects sales to remain depressed through 1995.

Earnings for the quarter ended Sept. 30 were $185 million, or 54 cents a share, on sales of $5.1 billion. A year earlier, earnings were $189 million, or 56 cents a share, on sales of $5.2 billion.

The Seattle company said higher debt costs and lower investment income also hurt earnings.

Although major travel markets are growing or showing signs of recovery, jet sales aren’t expected to recover next year, said Frank Shrontz, chairman and chief executive.

Woodland Hills-based 20th Century Industries, reflecting a sharp rise in projected earthquake losses along with the cost of an adverse court decision, reported a net loss of $114.3 million, or $2.22 a share, for the third quarter ended Sept. 30. The loss contrasts with a profit of $31 million, or 61 cents a share, a year earlier.

The parent of 20th Century Insurance Co. last month boosted its reserve fund for Northridge earthquake damage claims by $130 million, to reflect a revised gross estimate of $815 million in losses. In August, the California Supreme Court rejected 20th Century’s challenge to regulations enforcing Proposition 103. The insurer was left to pay $119 million in policyholder rebates and interest under the rate rollback law passed by voters in 1988. The company previously had reserved $51 million for the rebates.

Chief Executive Neil H. Ashley was upbeat about 20th Century’s prospects, however. He cited its definitive agreement with American International Group Inc., under which AIG will boost 20th Century’s capital by an initial $216 million in exchange for convertible preferred stock.

Glendale Federal Bank, reversing its deficit of a year ago, reported a $9.4-million first-quarter profit, with far smaller provisions for loan losses.

The savings and loan’s profit, equivalent to 12 cents a share, contrasts with a loss of $19.9 million, or 63 cents a share, during the July-September quarter of 1993.

That loss would have been $34 million except for a $14.1-million gain from the exchange of bonds of the thrift’s former parent, GlenFed Inc., for common shares of Glendale Federal.

Glendale Federal Chairman Steven J. Trafton said most operations improved during the latest quarter. Net interest income rose to $88.3 million from $71.3 million, while provisions for loan losses declined to $18.8 million from $42.2 million.

Avery Dennison Corp. said its net income rose 46% to $27.8 million, or 50 cents a share, in the quarter ended Oct. 1. Sales for the quarter totaled $733.7 million, up 15% from the same quarter of 1993. Excluding fluctuations in currency values, sales were up 13%.

Chief Executive Charles D. Miller said net income improved “due to stronger sales, new products and continued cost control.”

The Pasadena-based company makes pressure-sensitive adhesives and materials, office products, labels, tags and specialty chemicals.