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Wynn's Posts 22% Increase in Quarter's Profit

April 21, 1993|SUSAN CHRISTIAN | TIMES STAFF WRITER

ORANGE — After jettisoning unprofitable items from its production lineup, Wynn's International Inc. posted a 22% increase in first-quarter profits.

The Orange-based automotive products company on Tuesday reported net income of $1.9 million, or 51 cents per share, in the quarter ended March 31. That compares to earnings of $1.5 million, or 42 cents per share, in the 1992 first quarter.

Wynn's makes a wide range of products for automobiles, including air conditioners, seals and oil and gas additives. One of its better known products is Wynn's Friction Proofing Oil Treatment, an oil additive that has been around throughout most of the 54-year-old company's existence.

The company's profits rose despite relatively flat sales. Revenue for the quarter was $70.5 million, down from $71.5 million last year.

Jim Barlow, Wynn's controller, said improved operating profits compensated for decreased revenue. "We pared back on low-margin items," he said, citing as an example Chrysler Corp.'s Mopar brand air conditioner. "As the company grew, we developed a complete product line. But during the recession, it's sometimes best to go back to your core products."

The company's air-conditioning manufacturing unit in Ft. Worth was particularly hard hit by a decline in auto sales and production two years ago, when Wynn's posted an $11.2-million loss on revenue of $274 million. After restructuring the subsidiary and trimming its payroll by a half, Wynn's came back in fiscal 1992 with profits of $7.3 million on revenue of $291.8 million.

The subsidiary, Wynn's Climate Systems, recorded a 12% increase in operating profits during the first quarter this year--offsetting a 12% drop in sales, the company said.

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