Sunbeam’s Net Rises as Cost Cutting Continues

Sunbeam Corp. on Wednesday said first-quarter earnings were on track as it continues its sweeping cost-cutting plan designed by Chairman Al Dunlap that halved the company’s work force.

The maker of Oster blenders, Mixmaster mixers and other small appliances said profit from continuing operations rose to $20.6 million, or 24 cents a share, from $6.7 million, or 8 cents a share, a year earlier.

That beat Wall Street expectations of 22 cents a share. Sunbeam shares rose $1.875 to close at $33.50 on the New York Stock Exchange.

“The turnaround is on track,” said Constance Maneaty, a Bear Stearns analyst in New York, who said sales exceeded expectations.

In the latest quarter, a loss from discontinued operations of $13.7 million, or 16 cents a share, resulted in net income of $6.9 million, or 8 cents a share. A year ago, profit from discontinued operations of $10.7 million, or 13 cents a share, resulted in net income of $17.4 million, or 21 cents a share.

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Quaker Oats Co. posted a staggering first-quarter loss of $1.1 billion after taking a hit on the sale of its Snapple beverage business and said it was seeking a replacement for Chairman William Smithburg.

Smithburg, who plans to step down after 16 years as chairman and chief executive, has been criticized for purchasing Snapple in December 1994 in a $1.8-billion deal.

Quaker took a one-time charge of $1.14 billion for Snapple, which posted operating losses in 1995 and 1996. Snapple is being sold for $300 million to Triarch Cos. With tax benefits, the total cash value of the Snapple deal is $550 million.

Excluding the Snapple charge, Quaker said it earned $34.2 million, or 24 cents a share, in the first quarter, up from $32.2 million, or 22 cents a share, a year earlier, which was in line with the company’s earlier projection.

At a Glance:

Chevron Corp. said profit rose 35% in the first quarter, boosted by increased production and higher prices for oil and gas. The company earned $831 million, or $1.27 per share, compared with $616 million, or 94 cents per share, a year ago.

Mobil Corp. said its first-quarter earnings rose 15% before a charge to $844 million, or $2.11 a share, compared with $736 million, or $1.83 a share, in the first quarter of 1996.

Phillips Petroleum Co. said first-quarter earnings rose 18% before a charge to $247 million, or 94 cents a share, from $210 million, or 80 cents a share, in the year-ago quarter.

Hilton Hotels Corp.’s first-quarter earnings rose 76% and beat expectations on strong performance from its luxury hotels and the purchase of Bally Entertainment Corp. Hilton said net income rose to $65 million, or 26 cents a share after preferred-dividend payments, from $37 million, or 19 cents a share, a year earlier. The results beat Wall Street’s expectations of 23 cents a share.

Bausch & Lomb Inc. said first-quarter profit fell 21% and unveiled plans to eliminate 1,900 jobs, the company’s third round of firings in two years. The dismissals, representing 15% of its work force, will result in a pretax charge this year of as much as $60 million.

In the first quarter, profit from operations fell to $17.8 million, or 32 cents a share, from $22.5 million, or 39 cents a share, in the year-earlier period.

Tosco Corp. said first-quarter profit fell 85% to $3.6 million, or 3 cents a share, from $24 million, or 21 cents, in the year-ago quarter.

US Airways Group Inc. posted a $152.7-million profit, or $2 per share, in the first quarter, compared with a loss of 86 cents, or $32.3 million, a year ago.

Glendale Federal Bank reported fiscal third-quarter net income of $22.9 million, or 33 cents per share, compared with $20.3 million, or 23 cents, a year ago.

Sanwa Bank California reported first-quarter net income of $21.2 million, compared with $14.7 million in the year-ago period.

Allegheny Teledyne Inc.’s first-quarter profit rose 9.3% to $62.1 million, or 35 cents a share, compared with $56.8 million, or 32 cents, a year ago.

DuPont Co. reported a record first-quarter profit of $1.02 billion, or $1.80 per share, compared with $879 million, or $1.57 a share, in the year-ago quarter.

United Technologies Corp. posted a surprisingly strong 18% increase in first-quarter profit of $224 million, or 86 cents a share, compared with $190 million, or 72 cents a share, a year earlier.

Nynex Corp. said first-quarter profit rose 12% to $403.1 million, or 92 cents a share, from $361.5 million, or 83 cents, a year ago.

Fruit of the Loom Inc. said first-quarter earnings rose 70% to $21.2 million, or 28 cents a share, from $12.5 million, or 16 cents, a year earlier.

Norfolk Southern Co.’s profit slumped 24% in the first quarter to $127.8 million, or $1.02 per share, compared with $168.1 million, or $1.31, in the year-earlier period.

K-Swiss reported first-quarter net income of $1.5 million, or 25 cents per share, compared with $2.12 million, or 32 cents, a year ago.

Dial Corp. reported net income of $18.3 million, or 20 cents per share, versus $19.6 million, or 22 cents, earned in the year-ago period.

Franklin Resources Inc. said its fiscal second-quarter profit rose 35% to $101.4 million, or 80 cents a share, from $75.2 million, or 60 cents, a year earlier.

Southern Co. said its first-quarter profit fell 20% to $187 million, or 28 cents a share, from $233 million, or 35 cents, in the year-earlier period.

Spiegel Inc. said its first-quarter losses more than doubled to $31.2 million, or 28 cents per share, compared with a loss of $14.3 million, or 13 cents a share, a year ago.

Jones Apparel Group Inc. said first-quarter earnings rose 45% to $29.5 million, or 55 cents a share, compared with $20.3 million, or 38 cents, in the year-earlier period.

American Brands Inc. said first-quarter earnings rose 10% to $136.6 million, or 80 cents a share, from year-earlier earnings before a charge of $124.1 million, or 70 cents.

Baxter International Inc. said it lost $150 million, or 55 cents per share before charges, compared with net income of $138 million, or 51 cents, in the year-earlier quarter.

Allstate Corp. said first-quarter earnings surged 63% to $559 million, or $1.26 a share, from $342 million, or 76 cents a share, a year earlier.

USLife Corp. reported first-quarter net income of $28.5 million, or 82 cents a share, compared with $26.1 million, or 75 cents, a year ago.

Chubb Corp. said first-quarter earnings rose 37% to $175.9 million, or $1 a share, from $128 million, or 72 cents a share, a year earlier.

Burlington Northern Santa Fe Corp. reported first-quarter net income of $150 million, or 95 cents per share, compared with $187 million, or $1.21, a year ago.

Lear Corp. said first-quarter profit rose 62% to $41.9 million, or 62 cents a share, compared with $25.8 million, or 43 cents, a year earlier.

Pennzoil Co. said first-quarter earnings more than tripled to $60.2 million, or $1.29 a share, from $19 million, or 41 cents, in the 1996 quarter.

KinderCare Learning Centers Inc. reported a fiscal third-quarter net loss of $11.5 million, or 67 cents per share, compared with net income of $5.9 million, or 30 cents a share, a year ago.

Western Atlas Inc. reported first-quarter net income of $30.8 million, or 56 cents per share, compared with $22.6 million, or 42 cents, a year ago.

Presstek Inc. reported first-quarter net income of $2.9 million, or 18 cents per share, compared with $1.3 million, or 8 cents, a year ago.

Anheuser-Busch Cos. reported first-quarter profit slipped 6.5% to $257.7 million, or 51 cents a share, down from $275.5 million, or 54 cents, in the 1996 period.

Avon Products Inc. said first-quarter net income rose 10% to $41.3 million, or 31 cents a share, from $37.7 million, or 28 cents, in the year-earlier period.

Reader’s Digest Assn. Inc. said, excluding charges, fiscal third-quarter profit fell by a third to $37.6 million, or 35 cents a share, compared with a loss of $114.0 million, or $1.06 a share, a year ago.

Revlon reported a first-quarter net loss of $25.5 million, or 50 cents per share, compared with a loss of $35.7 million, or 79 cents, a year ago.

American General Corp. said first-quarter earnings climbed 22% to $186 million, or 90 cents a share, from $152 million, or 73 cents, a year earlier.

Guess Inc. reported first-quarter net income of $14.1 million, or 33 cents per share, compared with $16.6 million, or 39 cents, a year ago.