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CALIFORNIA / News and Insight on Business in the
Golden State
| EARNINGS ROUNDUP

Golden State Posts 45% Profit Rise in 3rd Quarter

October 23, 1998| From Bloomberg News

Golden State Bancorp, the second-largest U.S. savings and loan, said Thursday that third-quarter profit before a charge rose a greater-than-expected 45% as assets and banking fees grew.

The parent of California Federal Bank said net income before an $80-million charge for refinancing debt rose to $47.8 million, or 62 cents a diluted share, from $33 million, or 58 cents, in the third quarter last year. Analysts had forecast earnings of 58 cents a share, according to a survey by First Call Corp. After the charge, the company had a loss of $32.2 million, or 44 cents a share.

Glendale-based Golden State assets increased 71% to $53 billion, primarily due to a $1.8-billion merger during the quarter with First Nationwide Holdings Inc., combining Golden State's Glendale Federal Bank with Nationwide's California Federal.

Golden State shares fell $1.31 to close at $17.81 on the New York Stock Exchange, the first decline since Oct. 13. The stock has risen 40% since then.

Golden State said net interest income rose to $161.4 million in the third quarter from $151 million in the same quarter last year. Banking fees rose to $28.3 million from $26.5 million.

The company recorded a $10-million provision for bad loans, compared with $20 million in the third quarter last year, as the California economy improved.

At a Glance:

* Adaptec Inc. broke even in its fiscal second quarter, beating expectations for a loss, as the maker of computer connector cards and storage devices cut costs and inventory. Profit for the quarter ended Sept. 30 was $143,000, or break even on a per-share basis, before a charge resulted in a loss. That's compared with net income of $62.7 million, or 52 cents a share, a year ago. The Milpitas-based company was expected to lose 2 cents. Revenue fell 48% to $143.9 million from $278.1 million.

* Los Angeles-based Reliance Steel & Aluminum Co. reported third-quarter net income of $11.9 million, up 42%, or 63 cents per diluted share. This compares with net income of $8.4 million, or 55 cents, a year ago. Revenue rose 41% to $357.8 million from $254.2 million in 1997.

* Westlake Village-based K-Swiss Inc. reported a 77% increase in third-quarter net income of $3.0 million, or 53 cents per share, compared with $1.7 million, or 30 cents, a year ago. Revenue rose to $38.2 million, up from $32.8 million last year.

* Calabasas-based THQ Inc. said third-quarter net income increased 70% to a record $2.4 million, or 21 cents per share, on record revenue of $25.9 million, compared with net income of $1.4 million, or 13 cents, on revenue of $16.3 million a year ago.

* Activision Inc., based in Santa Monica, reported fiscal second-quarter net loss of $2.2 million, or 10 cents per share, compared with net income of $1.8 million, or 8 cents a year ago. Revenue rose to $66.2 million versus $53.0 million a year ago.

* San Francisco-based Preview Travel Inc. reported a wider third-quarter loss and said it planned to sell the assets of its television broadcast division to employees and investors. It lost $4.8 million, or 35 cents a share, compared with a loss of $2.5 million, or $1.44, a year ago. Revenue jumped to $5.6 million from $3.4 million a year earlier, mainly because of increased online travel reservations and higher advertising sales.

* Robert Mondavi Corp. reported fiscal first-quarter net income of $8.0 million, or 51 cents per share, compared with $7.7 million, or 48 cents, a year ago. Revenue rose 9% to $71.4 million, up from $65.6 million a year ago.

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