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Foundation Health Posts Lower Profit

November 13, 1996|Times Staff and Wire Reports

Foundation Health Corp. said fiscal first-quarter net income fell 10% as rising medical costs offset increasing enrollment in its health plans. The Rancho Cordova-based operator of managed-care plans said net income fell to $35.8 million, or 61 cents a share, from a profit from continuing operations of $39.7 million, or 69 cents, in the year-earlier period. Revenue rose 43%, to $1.03 billion from $724.0 million. Foundation Health had been expected to earn 60 cents a share, according to the average estimate of analysts surveyed by IBES International Inc. Shares of the company were unchanged at $32.125 in early trading of 18,800, compared with the three-month daily average of 409,700. Foundation Health plans to combine with Woodland Hills-based Health Systems International Inc. in a stock swap valued at $1.27 billion that would create the nation's fourth-largest managed-care company, with 5 million members and about $8 billion in revenue. . . . Los Angeles-based Arden Group Inc., which operates Gelson's and Mayfair markets, reported a 30% drop in third-quarter net income to $1.2 million, compared with $1.8 million a year ago. . . . Anaheim-based Hansen Natural Corp. reported third-quarter earnings of $111,336, or 1 cent per share, contrasted with a net loss of $148,387, or 2 cents, a year ago. . . . Glendale-based Public Storage Inc. reported third-quarter net income of $40.4 million, or 30 cents per share, versus $19.5 million, or 26 cents, a year ago. . . . Studio City-based Jerry's Famous Deli Inc. reported third-quarter net income of $9,000, or 0 cents per share, versus $291,000, or 4 cents, a year ago. . . . Rosemead-based First American Bank reported a third-quarter net loss or $564,000, or 26 cents per share, versus net income of $75,00, or 3 cents, last year.

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