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EARNINGS

Wickes Profit, Sales Leap

August 26, 1986|MARTHA GROVES

Wickes Cos., the resurgent lumber and building products retailer that is trying to buy Owens-Corning Fiberglas, on Monday reported that net income rose to $26.9 million for the second quarter ended July 26 from $12.7 million in the year-ago period.

Sales for the period also more than doubled, increasing to $1.1 billion from $496.7 million, largely on the strength of the acquisition last September of Gulf & Western's consumer and industrial products group.

The previous year's results take into account completed and pending divestitures.

For the six months, the Santa Monica-based company had net income of $47.5 million on sales of $2.1 billion, compared to $7.5 million on revenue of $878.8 million in the same period last year.

The company became eligible for substantial tax-loss carryforwards during its reorganization under Chapter 11 of the U.S. Bankruptcy Code. It emerged from those proceedings in January, 1985.

Results for both the quarter and six months benefited from the company's use of operating-loss carryforwards. For the quarter, those totaled $6.2 million, compared to $2.7 million in last year's period. In the six months, they totaled $11 million, up from $2.7 million.

Sanford C. Sigoloff, chairman and chief executive, noted that the building materials and home furnishings and manufacturing and automotive parts distribution segments turned in strong performances but that results in the company's apparel and hosiery groups did not meet expectations because of intense competition and softness in those markets.

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