Gulf & Western Industries reported that its net income for the fiscal year ended July 31 declined 9.8% to $234.3 million from a year earlier. The company's fourth-quarter profits were slightly higher. Martin Davis, the company's chairman and chief executive, noted that 1984's profit included a one-time gain of $32.7 million from the liquidation of the company's marketable securities portfolio. The company said its financial-services group had a record year, while television productions gave its Paramount Pictures operation the second-best year ever, trailing only fiscal 1984. However, those gains were offset by drops in revenue from motion pictures and costs related to the sell-off of its Atari video game and home computer operation.