The Los Angeles Times from Los Angeles, California • 54

2 Part IVThursday, February 7, 1985 Cos Atifleleg Stones TRW's Net Income Climbs $61.6 Million in 84 BRIEFLY EARNINGS Great Western Financial restated its earnings. The Beverly Hills-based financial -services firm said it has added $5.6 million to fourth-quarter and year-end net income due to a preferred stock distribution and dividend from the Federal Home Loan Mortgage Corp. The dividend was omitted from earlier results because of an uncertain accounting status that has since been clarified, the company said. The added profits boosted Great Western fourth -quarter earnings 22 to $31.6 million and 1984 earnings 6 to $99.5 million. Financial Corp.

of America expects more layoffs. Spokesmen for the giant financial institution would not say how many employees would be affected, only that the cutbacks would be "sizable" though not as many as the 1,500 persons laid off last year. The layoffs are expected to be announced before the end of March and are part of a continuing program to shrink the firm's asset size and loan volume, the spokesmen said. FCA is the parent company of American Savings Loan Assn. MicroPro suspended its use of copy protection.

Saying it was "responding to the customers' need for software that is easy to use," the San Rafael, software producer said that, effective Feb. 1, it was no longer using copy-protection technology on its newest word-processing products, WordStar 2000 and WordStar 2000 Plus. Users have complained that the technology, which protects software from being illegally copied, also makes the software difficult to use. MicroPro International said update kits including replacement diskettes will be provided to dealers upon request and to those customers who have sent in their registration cards. Pepsico may sell its Wilson Sporting Goods unit.

The Purchase, N.Y. -based soft-drink maker said it is studying billion. The company's Allstate Insurance and Coldwell Banker units posted strong increases in net income for the year. Sears' Dean Witter subsidiary reported a loss, compared to year-earlier income of $100 million. Sears World Trade division lost $24.8 million for the year, more than twice what it lost in 1983.

In the quarter, the company posted net income of $563.1 million, compared to $582.7 million during the final quarter of 1983. Revenue rose 5.1 to $11.37 billion from $10.82 billion a year earlier. Restructuring Sends Net Down for Year at Pepsico Pepsico Inc. reported that its earnings for the year declined from 1983 because of a restructuring program that resulted in the company taking a charge. The company said, however, that the pending sale of its North American Van Lines subsidiary to Norfolk Southern Corp.

this year would offset that charge. After the charge, the Purchase, N.Y. -based firm's earnings for the Please see PEPSICO, Page 13 TRW Inc. posted a increase in earnings for 1984, led by operating profit increases in its aerospace, automotive and energy divisions, Ruben F. Mettler, TRW's chairman and chief executive, said Wednesday.

"From start to finish, 1984 was an excellent year for TRW," Mettler said. "We expect the same to be true in 1985. That assumes a continuing healthy worldwide economy, though not as strong as 1984." TRW's 1984 earnings jumped by about 30 to $266.8 million, compared to $205.2 million in 1983. Revenue, however, rose only 10, to $6.06 billion, compared to $5.49 billion in 1983. Operating profits rose 24 in the company's electronics and space systems segment.

Operating profits climbed 38 in the car and truck segment and 22 in the industrial and energy segment. In the fourth quarter, the Cleveland-based firm earned $59.6 million on revenue of $1.58 billion, compared to $52.6 million on revenue of $1.38 billion a year ago. Phelps Dodge Posts Losses in Quarter, Year Phelps Dodge Corp. said de- (or) 10.6 cents per pound below the 1983 average," the company said in a news release. '84 Earnings Hit Record at Sears; Down in Quarter Sears, Roebuck the nation's largest retailer, said its full-year earnings rose to the highest level ever.

However, the Chicago-based company's fourth-quarter net income fell 3.4 from a year earlier. Sears Chairman and Chief Executive Edward R. Telling blamed the fourth -quarter decline on "one of the most competitive Christmas shopping seasons in history and unseasonably warm temperatures." For the full year, Sears' profit rose to a company record $1.45 billion from $1.34 billion in 1983. Revenue also reached a company record $38.83 billion, up 8.2 from $35.88 billion in 1983. For the year, the merchandise group reported income of $905 million on revenue of $26.5 billion.

A year earlier, the group earned $781 million on sales of $25.0 pressed copper prices and a sizable one-time restructuring charge left it with a loss in the fourth quarter and a $267.8 -million loss for all of 1984. The company's fourth -quarter revenue rose to $217.6 million from the year-earlier period, when it lost $31.5 million on revenue of $214.2 million. Its revenue for the year slipped to $910.1 million from 1983, when it had a net loss of $63.5 million on revenue of $952.1 million. The latest results included a previously announced non-recurring charge of $195 million for corporate restructuring. For the year, the loss from continuing operations was $94.4 million, compared to a loss from continuing operations of $53.8 million in 1983.

The company had a loss from continuing operations of $25 million in the quarter, compared to a loss from continuing operations a year ago. "The causes of these losses continues to be severely depressed copper prices, which averaged 61.3 cents per pound for 1984 on the New York Commodity Exchange, the feasibility of selling the unprofitable unit, which accounted for $248 million of Pepsico total 1984 revenue of $7.7 billion. Wilson, however, operated at a greater loss in 1984 than the year before. Pepsico said the possible divestiture, combined with its previously announced plans to withdraw from the transportation business, would allow the company to concentrate on its beverage, snack food and food-services Stocks Mostly Higher but Dow Declines 4.64 Dow Jones 30 Industrials FEBRUARY 6, 1985 1300 I Low I I 111 II 1280 I 1260 1240 j. Hit 1220 i 1200 New York Volume Millions of shares I 180 .160 I I I 140 ill 120 jj jj 100 Week ended 111 18 I 25 I 1 I 8 I businesses.

Campbell Industries has been sold. San Diego's second-largest shipyard operator has been sold to an unidentified buyer who has agreed to keep the financially troubled ship -repair company open and operating. A unit of privately held Marine Construction Design Co. of Seattle, Campbell employed 1,300 workers as recently as 1981 but now has just 100 workers in a continuing ship -repair business. The identity of the buyer is scheduled to be revealed today.

Cetus won a patent on a potential cancer drug. The biotechnology company said the U.S. Patent and Trademark Office approved its application for protection of a genetically altered version of a protein that occurs naturally in the human body, Interleukin-2. The patent is the first ever on such a substance. Cetus, based in Emeryville, has been testing the drug since March on patients with Acquired Immune Deficiency Syndrome, or AIDS, and with various types of cancer.

Cetus said it could be selling treatments for such diseases by 1988. De Tomaso agreed to build sports cars for Chrysler. De Tomaso Industries said that certain of its Italian subsidiaries, including Officine Alfieri Maserati S.p.A., have reached an agreement with Chrysler Corp. to develop and build a two-seat sport coupe in Italy. The New Jersey-based company anticipates as much as $500 million in revenue over the next six years from the sale of sports cars to Chrysler.

Alderdice pleaded guilty to fraud charges in N.Y. The former executive vice president of International Gold Bullion Exchange, a defunct Florida company accused of bilking investors of millions of dollars, also pleaded guilty to larceny charges in White Plains, N.Y. James Alderdice, who also faces state and federal charges in Florida, was released on his own recognizance. Prosecutors dropped 30 of the 34 counts against Alderdice in return for his plea to two counts of grand larceny and two of securities fraud because prosecutors said they believe that he was subordinate to his older brother, the late William Alderdice, who was president of IGBE. Spot oil prices have risen since the OPEC meeting.

The International Energy Agency reported that prices on the non-contract "spot" market firmed significantly following an agreement reached last week by a majority of OPEC ministers to cut the average price of their oil sold on contract. According to the IEA, Britain's North Sea Brent crude for loading next month sold on the spot market Wednesday at $27.25 a barrel, compared to $25.70 when the OPEC meeting began in Geneva last week. U.S. domestic prices have also moved up, with West Texas Intermediate at $26.50 a barrel, 1 higher than a week ago. DISNEY Continued from Page 1 the history of the company," according to Doris A.

Smith, the company's secretary. The meeting opened with a short film, featuring several animated Disney characters and headlines culled from the last year, to recount Disney's fight to repel two unwelcome takeover bids. Bursts of music from the William Tell overture introduced the new management team hired in September. The tongue-in-cheek film omitted any reference to Ronald W. Miller, Walt Disney's son-in-law who resigned as chief executive under pressure from the board.

The audience reserved its loudest applause for Roy E. Disney, the son of company co-founder Roy O. Disney who allied with the Bass family of Fort Worth to appoint Eisner and Wells last September. Although the Bass family controls about 25 of the company's stock, eclipsing the Disney heirs' holdings, none of the Basses attended the meeting, according to a family friend. Nor was the Bass name mentioned until two hours had elapsed, when a shareholder asked how he could be assured that Disney can ward off corporate raiders in the future.

Wells, calling attention to the Basses' stake, said they "do not seek to run this company" and "they have also said they are long-term investors." Disney officials reported that their search for a European site for a new Disney theme park has narrowed in the last week to Spain and France. Wells assured shareholders that the company intends to finance "nothing more than a small part" of the European venture. Eisner said the new Disneyland attraction "will involve an innovative ride based on (Lucas') 'Star Wars' creations, and it will utilize technologies never seen before in a Disney theme park." In a press release, the company indicated that Lucas has agreed to develop more than one attraction and said the film maker "may become involved in other areas of Disney entertainment." In response to a reporter's questions after the meeting, Eisner said Lucas will not contribute any of the funds required to build the new attraction. The chairman declined to say how Lucasfilm will participate in the profits, and he also declined to say how much the project is expected to cost. In another development, Disney announced that it is taking steps to list its common stock on the Tokyo Stock Exchange.

BLOCK: Aid Continued from Page 1 Thomas Datt of the more conservative American Farm Bureau Federation said they are about all the government can be expected to do. Other measures announced by Block: The Agriculture Department will set up a new program to guarantee loans for farmers who previously borrowed from banks that have failed. The Treasury Department will try to restrain federal banking regulatory agencies from putting undue pressure on banks to crack down on farmers with delinquent loans. Block will head a task force of federal farm credit agencies to coordinate assistance to financial institutions, communities and farmers. The Agriculture Department will help operate "credit hot lines" in various states to provide financial information and advice to troubled farmers.

From Times Wire Services NEW YORK-Stocks mostly rose again Wednesday despite declines by several airline, auto and blue-chip issues. On the American Stock Exchange, meanwhile, trading volume surged to a record high thanks to two major block trades in British stocks. And volume surpassed 100 million shares for the 20th consecutive session on the New York Stock Exchange. On the NYSE, the Dow Jones average of 30 industrials fell 4.64 to 1,280.59 after losing 4.85 points Tuesday. The measure hit a record high of 1,292.62 on Jan.

29. Advances outpaced declines by about three to two on the NYSE, and 228 Big Board-listed stocks climbed to 52-week highs. But the exchange's 65-stock composite index slipped 0.02 from its record high to 104.40. Economy a Plus Big Board volume totaled 140.98 million shares, against 143.90 million in the previous session. Steel, mining, telephone and bank stocks helped extend the broader market's strong rally that began last month.

Stocks have been supported by investors' confidence in the economy's performance in 1985 and by the recent drop in interest rates, which made interest-bearing investments such as bonds and money-market mutual funds relatively less attractive. Some credit analysts have suggested that the recent drop in interest rates might have bottomed, although short-term rates were little changed Wednesday. Regardless, the Dow Jones industrials are currently under moderate pressure from traders wanting to cash in on the market's sharp January run-up, analysts said. On the Amex, volume soared to 19.09 million shares from 10.04 million Tuesday, breaking the previous record of 15.8 million shares set Jan. 7, 1981.

The volume surge reflected a record block trade on the Amex 6 Oak Plans to Investors for By FREDERICK M. MUIR, Times SAN DIEGO-Oak Industries said Wednesday that it has agreed in principle to sell its Corona-based KBSC-TV to a group of investors headed by television executive Joseph Wallach for $30 million in cash. The sale follows Oak's decision, announced Monday, to sell its ailing ON-TV pay-television operation to rival SelecTV of America Ltd. for an undisclosed amount of cash and assumption of certain liabilities. ON-TV is broadcast from KBSC on Channel 52.

SelecTV said it has the right to discuss purchasing air time from the new owners, should the sale of KBSC be completed. The agreement to sell KBSC is subject to development of a definitive agreement and approval of the Federal Communications Commission. That process could take six months or more, according to an Oak spokesman. The troubled cable-TV and media company agreed to sell a Florida television station last July and completed the transaction last December. Oak's only remaining TV station interest is a 48 stake in million American Depositary Receipts of BAT Industries PLC of Britain at 4V apiece, or a total of $25.5 million.

ADRs represent foreign stock held in trust by Ameri-Ccin bcinlcSi BAT closed at 4 516, up 116. The previous record block on the Amex was a 3-million-ADR trade of Imperial Chemical Industries at 8 each, or $26.6 million, on Oct. 11, 1983. Imperial Chemical now trades on the NYSE. Goldman, Sachs Co.

handled the BAT trade, and its chief block trader, Robert E. Munchin, would say only that the block's seller was an institutional investor and that the block was sold to a group of buyers, primarily institutions. Goldman Sachs also crossed a 1-million-ADR block of Imperial Group Ltd. of Britain at 2 716 on the Amex. The stock closed unchanged at 2.

The ADRs of BAT and Imperial Group each represent one of the companies' actual shares. On the NYSE, airline stocks tumbled as United Airlines said it would retain certain of its unrestricted cheap fares when it institutes a new, heavily restricted discount-fare structure on Feb. 17. United's action apparently sparked fears on Wall Street that a new fare war could erupt within the industry eroding the carriers' profit margins. Phillips Falls UAL, parent of United, skidded 1 to 41; AMR, parent of American Airlines, lost 1 to 36V4; Delta Air dropped 1 to 43V, and aircraft maker Boeing fell 1 to Phillips Petroleum fell to 49; the company is the target of a $55-a-share takeover bid by financier Carl Icahn.

Elsewhere on the NYSE's active list, Unocal dropped 1 to 46V6, General Motors fell 1 to 80, Ford Motor lost IVb to 45 and Tandy jumped 1 to 31Vi. Nationwide turnover in NYSE-listed issues, including trades in those stocks on regional exchanges Please see STOCKS, Page 17 Sell KBSC to $30 Million Staff Writer WSNS of Chicago, where the company also broadcasts an over-the-air pay TV operation. The Wallach-led group has formed a privately held company, Estrela Communications for the purpose of purchasing KBSC. An Oak spokesman said the group is "very, very well capitalized." Wallach is the former executive director of Globo Television Network of Brazil. "This is very good news" for Oak, Chief Financial Officer Frank Astrologes said.

The company has been raising working capital through the sale of assets and postponing cash dividends and interest payments. Last week, Oak said it would attempt to restructure $230 million in debt in an attempt to save $28 million annually in interest payments. The company has reported losses in the last nine consecutive quarters. Oak also said it will take write-offs of $80 million in the fourth quarter of 1984, leaving it with a negative net worth of $23 million. In a move that may signal another round in the airline price war, United Airlines and American Airlines announced that they will extend their unrestricted discount coach fares in certain markets Santa Clara-based Orrox Corp.

reported that, effective Jan. 30, the name of the company was changed to CMX Corp. Digital Equipment Corp. has extended its long-term agreement with El Segundo-based Wyle Laboratories' electronics marketing group to market DEC computer products through Wyle facilities in Houston and Austin, Tex. Jet America, Long Beach, reported that it flew 69.6 million revenues passenger miles in January, up 19.3 from the comparable 1984 period.

Eastern Expects Net Loss for January of About $30 Million Phillips Studies How to Handle Icahn Proposal By PATRICK BOYLE, Times Staff Writer Directors of Phillips Petroleum Co. met in New York late Wednesday to consider whether to sweeten the company's recapitalization offer to stockholders or to face the threat of a takeover by Wall Street financier Carl Icahn. The board meeting broke up shortly before midnight without an indication of what had been decided, but a spokesman said the company would make an announcement this morning. As a possible signal of the company's intentions to fight Icahn, Phillips filed suit against him in U.S. District Court in Tulsa, alleging that he violated securities laws in his unsolicited proposal to buy the company because he failed to file proper proxy materials with the Securities and Exchange Commission.

Icahn, who owns 7.5 million shares of stock in the Bartlesville, oil producer, has said he will launch a $55-a-share tender offer for the company unless directors match his proposal by paying that much to all stockholders. In disclosing his intentions late Monday night, Icahn gave the company until the close of business Wednesday to respond. But the deadline passed before Phillips directors even began their 6:30 p.m. EST meeting. An official at Drexel Burnham Lambert Please see PHILLIPS, Page 13 He called on the airline and its unions, which represent about 22,000 of the company's 38,000 workers, to agree on new contracts by midnight tonight.

Union spokesmen could not be reached for their 'comment. Explaining the anticipated January loss, Eastern's senior vice president for finance, Wayne Yeoman, said: "We have continually told our employees that we could not afford to reinstate these wages without it having a negative effect on the airline's bottom line. It should be obvious that we cannot so significantly increase our expense base and be profitable." The airline said January's loss will almost equal the company's entire 1984 loss of $37.9 million. It said most of last month's loss could be attributed to the nearly $23 million paid to employees when it restored pay that had been cut in a 1984 concession and stock-investment program. MIAMI () Eastern Airlines said Wednesday that it expects a net loss of more than $30 million for January and blamed most of it on workers' demands that they be paid $23 million that had been cut from their wages a year ago.

Meanwhile, the air carrier continued meeting with representatives of its three unions and announced that it would accept a labor consultant's recommendations for settling the contract disputes. The recommendations, released by Eastern on Wednesday, were made by William J. Usery, a former U.S. secretary of labor hired by the airline. They call for graduated pay increases for the members of all three unions and non-contract employees.

The increases, ranging from 11 to 13.5, would begin with a 5 pay hike on Feb. 1, 1985, based on Dec. 31, 1984, salary levels. In addition, Usery suggested programs for increasing productivity..