Earnings at American Pacesetter plummeted 92% during the fourth quarter and the diversified holding company finished its fiscal 1984 with a $2.5-million loss.
The Newport Beach company said for the fourth quarter, ended Dec. 31, it earned $194,000, down from net income of $2.7 million in the year-ago period. However, the company said, the 1983 fourth-quarter earnings reflected $1.3 million in extraordinary gains. Revenues in the final 1984 quarter were $31.4 million, a 2% drop from revenues of $32.2 million in the last three months of 1983.
The annual loss compares to profits of $1.5 million in fiscal 1983. Revenues during 1984 were $121.3 million, a 28% increase from revenues of $94.5 million the previous year.
American Pacesetter has interests in real estate development, mortgage loans and electronics; the company also owns San Clemente Savings & Loan Assn.
John W. Klug, the company's chairman and president, said the heavy annual losses stemmed from the company's decision during the third quarter to take write-downs of $8.2 million. The write-downs included sale of some its development projects to other builders, and reduced valuation of some of the company's real estate holdings to reflect current market prices. Also, the company reported, the sale of some of its projects resulted in tax losses of $2.5 million.
Klug said all American Pacesetter divisions operated at a profit during the year, but the increased interest costs combined with declining real estate values put the company in the red.
Quarter Picture Improves for BoMed Manufacturing
BoMed Medical Manufacturing Ltd. has reported that its losses have narrowed while revenues climbed during the first quarter of 1985, the first time in nearly a year that the young company has seen its performance improve.
For the period ended Feb. 28, BoMed, which makes sophisticated heart and circulation monitors, lost $139,520 compared with a loss of $286,225 a year earlier. Revenues for the quarter were $166,090, compared with $84,870 in the year-ago period.
And despite the quarterly loss, BoMed said February was a profitable month because the company began shipping heart monitoring devices to a new distributor for the U.S. and Canada.