A survey of San Fernando Valley businesses released last week found more companies reporting flat or declining profits for the third quarter of 1985 than did for the second quarter.
The survey found that 23% of the businesses posted lower profits in the third quarter than in the previous three months, and 34% reported flat profits. In the second quarter, 20% of the businesses reported lower profits than in the previous quarter and 25% showed flat profits. Of those surveyed, 42% had higher earnings in the third quarter, versus 54% in the second quarter.
The results are from the 11th quarterly survey of Valley businesses conducted by the Woodland Hills office of the Price Waterhouse accounting firm. The firm said that it polled 490 companies, including both clients and non-clients, and that 23% responded.
Wilfred J. Bagg, a senior Price Waterhouse manager, said the third-quarter results clearly show a slowing of the business pace.
"There's no doubt about it, the economy's cooled off," he said.
Sales results were off. About 29% of the businesses reported lower sales in the third quarter, versus 15% in the second quarter. Only 47% reported higher sales, versus 58% in the second quarter; 24% said third-quarter sales were flat, versus 27% in the second quarter.