Revamped Seagram Loses $55 Million in 3rd Quarter : Earnings: But newly acquired MCA shows improvement thanks to a couple of box office hits.

Seagram Co. said Wednesday that it posted a $55-million loss for the third quarter, stemming from costs related to a wide-scale revamping of its spirits and wine business.

But results for entertainment firm MCA Inc., in its first full quarter under Seagram control, showed improvement thanks to such hits as “Apollo 13” and “Casper.”

MCA’s filmed-entertainment unit posted a 32% rise in earnings before interest, taxes, depreciation and amortization are deducted.

Pretax earnings for MCA’s music operation, however, fell 43% due to such factors as start-up costs for a new label, the adoption of more conservative accounting methods and the charging of some debts owed by Wherehouse Entertainment, the Torrance-based music chain now operating under Chapter 11 of the U.S. Bankruptcy Code.

The main music label costs were for launching Rising Tide, which was to be headed by music veteran Doug Morris. He subsequently was named to replace Al Teller to run MCA’s music operations, and Rising Tide is expected to be absorbed.

Overall, MCA’s third-quarter pretax earnings came to $221 million, $139 million of that from the film and TV group, $21 million from music, $50 million from its theme parks and $11 million from publishing and other businesses.

“It was pretty much in line,” Seagram Chief Executive Edgar Bronfman Jr. said in an interview. “Films did well, and we knew music would be down.”

Bronfman said the film group should enjoy a good fourth quarter due to videocassette sales of “Casper” and “Apollo 13.”

Less clear is the studio’s financial prospects on the big-budget film “Casino.” The film opened well, but Bronfman acknowledged that “it’s a tough kind of movie to make a lot of money on.” Analyst Harold Vogel with Cowen & Co. said he believes the film could do well on video after its theatrical run.

Seagram bought 80% of MCA in June for $5.7 billion from Japan’s Matsushita Electric Industrial Co.

Seagram’s overall results for the quarter ended Oct. 31 were hurt by a $290-million charge due to a “re-engineering” of the company’s spirits and wine businesses.

Bronfman said the charge was “hundreds of things” being done to improve performance, rather than a few large actions. For example, he said, the company is consolidating 17 financial offices into one in Europe.

Seagram’s revenue rose 93% to $2.9 billion, mainly because of the inclusion of revenue from MCA and the juice business of Dole Foods.