Whittaker Earnings Slip After Acquiring Company
Costs related to an acquisition caused earnings to decline at Whittaker Corp. in its fiscal year that ended Oct. 31.
Whittaker in Simi Valley, a maker of products for the electronics and aerospace industries, purchased Hughes LAN Systems, a computer networking firm, from Hughes Aircraft last April, creating a charge of $3.3 million against Whittaker’s earnings.
Mainly because of the acquisition, Whittaker’s sales in its final quarter jumped to $56.8 million from $38.7 million a year earlier.
Net income in this year’s fourth quarter rose to $4.2 million, or 44 cents a share, versus $3.5 million, or 37 cents a share, last year.
In the 12 months that ended Oct. 31, net income was $7.9 million, or 82 cents a share, on sales of $159.5 million. In the previous year, Whittaker had a net profit of $10.1 million, or $1.06 a share, on sales of $126.4 million.
Whittaker said its latest fourth-quarter results reflect the successful integration of Hughes LAN into Whittaker’s communications business. In addition, the aerospace unit produced strong results, the company said.
Thomas A. Brancati, Whittaker’s president and chief executive, said the company met its 1995 goals to invest in and bolster its communications business while continuing to expand the aerospace group.
“This was an investment year for the firm, and our results reflect that,” Brancati said.
He added that Whittaker is now well-positioned to increase both operating profits and revenues in 1996 by expanding its market share across all product lines. “We will continue to add new customers, serve a broader range of markets for our products and accelerate our push internationally.”
Whittaker recently established an aerospace group to oversee its aircraft components, defense electronics and industrial products businesses. The group accounted for $129 million, or 77% of Whittaker’s total sales, in fiscal 1995.
Whittaker Communications, the former Hughes LAN, had $30.5 million in sales and nearly broke even in its first six months as a Whittaker subsidiary. The unit lost $17 million in its last year under Hughes ownership, Whittaker said.
Addition of the former Hughes LAN Systems makes Whittaker the nation’s largest integrator of hospital-based computer networks, according to a company spokesman.
