Dunlap’s Moves Paying Off as Sunbeam Turns a Profit

Sunbeam Corp. on Wednesday said third-quarter earnings rebounded from a year-ago loss as Chairman Al Dunlap’s 15-month turnaround of the appliance maker appears to be bearing fruit.

Net income was $34.5 million, or 39 cents a share, contrasted with a year-earlier loss from continuing operations of $15.8 million, or 19 cents. The results exceeded by a penny the average estimate of analysts.

Sunbeam shares fell 50 cents to close at $48.38 on the New York Stock Exchange. Some investors expected the company to do even better, said Justin Maurer of with McDonald & Co. Investments.

Revenue rose 25% to $289 million from $231.8 million as the maker of Oster blenders, Mixmaster mixers and other small appliances shipped 10 new products in the quarter.

“This is the first time in the company’s history that it has consistently achieved double-digit sales growth, each quarter, without an acquisition,” Dunlap said.

The roll-outs are part of Sunbeam’s plan to introduce 35 products, such as a soft-serve ice cream maker, in the U.S. this year to generate an additional $100 million in sales.

In a conference call with analysts, Dunlap repeated that Sunbeam wants to make an acquisition in a similar business. Targets would be poorly managed companies--”and that gives you a large field,” Dunlap said--that have strong brand names that Sunbeam’s management could market.

Dunlap, who was hired more than a year ago, halved Sunbeam’s work force to 6,000 and closed dozens of factories and offices. He also sold or ended product lines including clocks, thermometers, kitchen timers, bath scales and gas-log businesses.

At a Glance:

PepsiCo Inc. posted sharply higher third-quarter earnings, beating Wall Street expectations for a period in which the beverage and snack foods company still had fast-food restaurant holdings. PepsiCo spun off its restaurant operations that included the Pizza Hut, KFC and Taco Bell chains a month after the quarter ended Sept. 6. Including restaurants, PepsiCo said it earned $658 million, or 42 cents a share, up from $144 million, or 9 cents, a year earlier. The 1996 results reflected $376 million, or 23 cents a share, in one-time charges from a restructuring in international beverages.

Procter & Gamble Co.’s fiscal first-quarter profit rose 11%, as increased sales offset the effect of a strong dollar against European and Asian currencies. The world’s largest maker of household products said net income rose to $1.09 billion, or 79 cents a share, from $979 million, or 70 cents, a year ago. That matched the estimates of analysts.

Washington Mutual Inc. reported a third-quarter loss because of costs from its $8-billion purchase of Great Western Financial Corp., amid robust growth in its consumer lending. The largest U.S. thrift said its loss widened to $127 million, or 53 cents a share, from $26.1 million, or 15 cents, a year earlier.

US Airways Group Inc. said third-quarter earnings rose 94% before gains and unusual expenses to $116.7 million, or $1.14 a fully diluted share, from $67.7 million, or 60 cents, in the year-earlier quarter.

DuPont Co.’s third-quarter profit rose 3.8% to $981 million, or 86 cents a share, from $945 million, or 84 cents, a year ago, matching estimates.

Union Pacific Corp.’s third-quarter profit before a charge rose 29% to $250 million, or $1 a share, from $194 million, or 79 cents, in the year-earlier period.

SBC Communications Inc.’s third-quarter profit fell less than 1% on higher wireless costs, even as it beat estimates by adding phone lines and wireless customers. Profit from operations fell to $859 million, or 94 cents a share, from $867 million, or 94 cents, a year earlier.

Bell Atlantic Corp. said third-quarter profit rose 9.5% to $969.4 million, or $1.25 a share, from $885.7 million, or $1.14, a year ago.

3M reported third-quarter profit rose 8.5%, excluding a one-time gain, to $432 million, or $1.05 a share, compared with $398 million, or 95 cents, a year ago.

AlliedSignal Inc. reported a 15% jump in third-quarter profit to $292 million, or 52 cents a share, versus year-earlier earnings of $253 million, or 45 cents.

Anheuser Busch reported a 4.3% increase in third-quarter earnings to $393.5 million, or 79 cents a share, compared with $377 million, or 75 cents a share, a year ago.

Fruit of the Loom Inc. posted a third-quarter loss, before a charge, of $38.1 million, or 52 cents a share, compared with net income of $47.8 million, or 63 cents, in the year-earlier period.

United Technologies Corp.’s third-quarter profit rose 18% to $300 million, or $1.16 a share, from $254 million, or 97 cents, in the year-ago period.

Kroger Co., the nation’s largest grocery chain, said third-quarter earnings soared 34% to $95.7 million, or 36 cents a share, compared with $71.4 million, or 28 cents, a year earlier.

American General Corp.’s third-quarter earnings rose 10%, excluding certain gains and losses, to $220 million, or 88 cents a share, from $200 million, or 80 cents, a year earlier. Net income, including a $6-million gain on investment sales, rose to $226 million, or 91 cents a share. A year ago, a $17-million gain on investment was offset by an $18-million charge, resulting in net income of $199 million, or 80 cents.