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Earnings

January 18, 1985

Southern California Edison Co. reported a 6% increase in 1984 net income, boosting earnings per share to the highest level in the company's history for the fourth straight year. Net income totaled $732.4 million on operating revenues of $4.9 billion, compared to net income of $690.8 million on revenues of $4.5 billion the preceding year.

"The earnings improvement over the past few years is a result of a continuing emphasis on stringent cost controls and productivity, fuel-cost savings resulting from unusually favorable low-cost hydroelectric and purchased power availability, and timely rate relief (from the Public Utilities Commission), which has offset rising inflation-related costs," said Howard P. Allen, chairman and chief executive of the Rosemead-based utility.

Edison's fourth-quarter net income was $167 million on revenues of $1.3 billion, compared to net of $157 million and revenues of $1.1 billion in the same quarter of 1983.

Gibraltar Financial Corp. of California posted 1984 net earnings of $33.46 million, the highest in its history, compared to $31.36 million in 1983.

Herbert J. Young, chairman and president, said operating results were restrained by rising interest rates in the summer and fall, which increased the cost of funds, and higher general and administrative expenses relating to the start-up of new subsidiaries and product lines.

For the 1984 fourth quarter, net earnings amounted to $7.28 million, compared to $7 million in the corresponding prior-year period. The 1984 fourth quarter included income from the distribution to Gibraltar of Federal Home Loan Mortgage Corp. stock of $3.5 million, which, on an after-tax basis, amounted to 16 cents a share.

A reduction of the 1984 effective income tax rate to 23% from the 37% rate used for the nine months ended Sept. 30, 1984, resulted primarily from the utilization of investment tax credits generated by increased activity in the firm's leasing company. The reduction in the tax rate increased fourth-quarter net earnings by 37 cents a share.

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