Teledyne Inc. reported Sunday that its fourth-quarter and 1990 profit fell sharply because of a slowdown in the steel and automotive industries, labor strife at engine manufacturing locations, product liability settlements and loan loss provisions.
The Los Angeles company's fourth-quarter net income was $800,000 (1 cent per share) on revenue of $880.4 million, compared to net income of $62.9 million ($1.14 per share) on revenue of 883.4 million during the period a year ago. Full-year net income dropped to $94.8 million, or $1.71 per share, vs. $258.9 million, or $4.66 per share, during 1989.
Sales slid to $3.45 billion in 1990, compared to $3.53 billion a year ago, the company said.
Teledyne's results are not directly comparable to year-ago results, however, because the company spun off its insurance and finance subsidiaries earlier this year. Fourth-quarter results in 1989 reflected $24.1 million in income from the insurance operations. Fourth-quarter 1990 results do not reflect any income from these operations, the company noted.
Teledyne said the loan loss provisions that had a dampening effect on income were related to development and initial production of equipment for the government.
Meanwhile, Los Angeles-based Argonaut Group Inc., a workers compensation insurance company, said its net income soared to $26.7 million, or $2.98 per share, during the fourth quarter of 1990, compared to $18.2 million, or $1.90 per share, during the like period a year ago.
Full-year net income rose to $89.7 million, or $9.76 per share, compared to $81.6 million, or $8.26 per share, during 1989. Earned premiums rose to $458.7 million for the full year, versus $415.7 million during 1989, the company said.
Argonaut said its results were helped by investment income, which shot up because the firm holds stock in Earle M. Jorgensen Co.--the subject of a tender offer. Argonaut also received a $12.8-million dividend on its Curtiss-Wright Corp. shares.