Insurance Charge Cuts Into BankAmerica Income

BankAmerica Corp. said Wednesday that third-quarter earnings fell 3%, as a one-time charge for deposit insurance ate into gains from trading and other non-lending businesses.

The nation’s third-largest bank said net income fell to $683 million, or $1.75 a share, from $704 million, or $1.72, in the same quarter last year.

Before the $82-million charge tied to the recapitalization of a federal thrift insurance fund, earnings at San Francisco-based BankAmerica were $731 million, or $1.88 a share.

The results exceeded Wall Street’s expectations of $1.82 a share before the charge.

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Two of the nation’s largest airlines reported stronger third-quarter profits, boosted by higher prices and higher demand for seats.

AMR, parent company of American Airlines, said its third-quarter profit increased 23% to $282 million, or $3.06 per share. A year earlier, the company earned $229 million, or $2.96 a share.

Continental Airlines reported profit of $18 million for the quarter. That represents an 84% decrease from the same period last year, but only because of one-time charges.

The Houston-based airline recorded a $77-million after-tax charge to replace some of its aircraft. It also recorded a $6-million after-tax extraordinary charge to pay off debt early.

After deducting special charges, the airline earned 25 cents a share. That compares with $111 million, or $1.34 cents a share, for 1995.

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Northrop Grumman said its third-quarter earnings rose 15% as sales of electronics products surged.

The Los Angeles-based aerospace company said net income was $70 million, or $1.21 a share, up from $61 million, or $1.25 a share, a year earlier. Per-share earnings fell amid a 17% increase in shares outstanding.

Results beat analysts’ average estimate of $1.13 a share.

At a Glance:

Sears Roebuck earnings jumped 22.4% in the third quarter, largely on the strength of increased credit revenue. Sears reported that it earned $279 million, or 68 cents a share, up from $228 million, or 56 cents, in the same period last year.

Compaq Computer’s third-quarter earnings rose 43% to $350 million, or $1.26 a share, from $245 million, or 89 cents, in the year-ago quarter.

GTE’s net income rose 8.8% in the third quarter to $756 million, or 78 cents per share, in the third quarter, compared with $695 million, or 72 cents, a year ago.

General Dynamics’ third-quarter earnings rose 9.6% to $68 million, or $1.08 a share, from profit on continuing operations of $62 million, or 99 cents, in the 1995 quarter.

HF Ahmanson said third-quarter profit from operations rose 12% to $73.2 million, or 56 cents a share, before a one-time charge tied to recapitalization of a federal savings and loan insurance pool. That’s up from $65.6 million, or 44 cents, in the year-ago period.

CSX said its third-quarter earnings rose about 10% to $222 million, or $1.04 a share, up from $202 million, or 96 cents, in the same period last year.

Conrail’s third-quarter earnings rose 19% to $138 million, or $1.74 per share, from $116 million, or $1.44, in the year-ago period.

Merck said third-quarter earnings rose a better-than-expected 16% to $1.0 billion, or 83 cents a share, up from $861.9 million, or 70 cents, a year earlier.

Johnson & Johnson said third-quarter earnings rose an expected 20% to $750 million, or 56 cents a share, from $623 million, or 48 cents, in the year-earlier quarter.

Schering-Plough said third-quarter earnings rose a slightly better-than-expected 15% to $291.7 million, or 79 cents a share, from $252.6 million, or 68 cents, a year ago.

Bausch & Lomb’s profit plunged 67% in the third quarter to $14.4 million, or 25 cents a share, down from $43.5 million, or 75 cents, in the same period last year.

Fleet Financial Group said earnings rose 10% in the third quarter to $295 million, or $1.02 per share, up from $268 million, or 96 cents, in the year-ago period.

Computer Associates reported that fiscal second-quarter profit rose 31% to $223.4 million, or 59 cents per share, in the three months ended Sept. 30, compared with $170.9 million, or 45 cents, last year.

Harrah’s Entertainment said third-quarter earnings fell slightly to $44 million, or 43 cents a share, from $44.4 million, or 43 cents, a year earlier.

ITT Industries reported a third-quarter profit of $43.7 million, or 36 cents per share, contrasted with a loss of $54.2 million, or 46 cents, a year ago.

Rubbermaid said its third-quarter earnings fell 8.3% to $46.1 million, or 31 cents a share, from $50.3 million, or 32 cents, a year earlier.

Harley-Davidson reported record profit in the third quarter of $33.2 million, or 44 cents a share, up from $23.7 million, or 32 cents, a year ago.

Cirrus Logic said its fiscal second-quarter earnings fell 90% to $2.9 million, or 5 cents a share, from $33 million, or 47 cents, in the year-earlier period.

Callaway Golf reported net income for the third quarter of $38.4 million, or 54 cents per share, compared with $30.2 million, or 44 cents, a year ago.

BFGoodrich reported that its third-quarter earnings surged 96% to $64.6 million, or $1.19 per share, compared with $32.9 million, or 59 cents, for the 1995 period.

McGraw-Hill said net income for the third quarter rose 8.2% to $114.5 million, or $1.15 a share, from $105.8 million, or $1.06, a year earlier.

Cherokee reported fiscal first-quarter net income of $538,000, or 7 cents per share, compared with $2.8 million, or 45 cents, in the year-ago quarter.