Westcorp Woes Mount

Westcorp Inc., a savings and loan and auto financing company, said Friday that it will report a first-quarter operating loss in addition to the $5.8-million restructuring charge announced earlier this year.

The company said it also expects to reduce its quarterly cash dividend to 5 cents a share from 10 cents.

The loss is primarily the result of continuing problems with past-due automobile loans at its subsidiary, WFS Financial Inc.

Westcorp said the bad loans are the result of various factors, including declining resale values on repossessions, lower-than-expected collections on delinquent balances, the restructuring of WFS’ Western region and higher-than-expected turnover of collections personnel.

The company’s restructuring charge, which amounts to 22 cents a share, is designed to save up to $12 million annually in expenses.

The company released its information after the market closed. Westcorp, traded on the New York Stock Exchange, closed unchanged at $19.38 a share. WFS, separately traded on Nasdaq, gained 38 cents to close at $12.25 a share.