Rise in State’s Borrowing Pushes Up Profits for 2 Large Thrifts

Two of the largest U.S. thrifts, Golden West Financial Corp. and Glendale Federal Bank, said Thursday that fourth-quarter profits rose, as a recovering California economy spurred borrowing.

By meeting or beating Wall Street expectations, thrifts confirmed they have recovered from the late 1980s and early ‘90s, when high interest rates and regulatory changes wiped out hundreds of savings banks.

Oakland-based Golden West, the third-largest thrift company in the U.S., said earnings rose 14%, while Glendale Federal, ranked 10th, reported a 61% increase.

Golden West Financial Corp., which operates 118 branches in California and six other states under the name World Savings Bank, said fourth-quarter earnings rose 14% on the strength of more home loans and wider profit margins on loans.

Its net income rose to $76.0 million, or $1.32 a share, from $66.7 million, or $1.14, a year earlier.

Glendale Federal said its fiscal second-quarter earnings rose 61% from increased lending revenue.

The Glendale-based thrift said net income in the quarter rose to $23.2 million, or 31 cents a share, from profit from operations of $14.4 million, or 22 cents, for the same period in fiscal year 1996.

The company posted a second-quarter net loss of $10.7 million, or 37 cents a share, a year earlier, because the thrift sold its headquarters and a portfolio of mortgage-backed securities at a loss.

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Texas Instruments Inc. shed its money-losing computer notebook business Thursday to concentrate on making microprocessor chips, ending an ill-fated bid to dominate one of the fastest-growing segments of the computer industry.

The sale to Taiwan’s Acer Group for undisclosed terms came as TI reported a $29-million loss in the fourth quarter partly because of its laptop computer woes.

The company said its loss amounted to 15 cents a share, in the three months ended Dec. 31. The loss included a $105-million special charge for a cross-licensing agreement with Samsung.

This quarter’s loss contrasted with a profit of $291 million, or $1.50 a share, in the same period a year ago.

At a Glance:

Delta Air Lines Inc., the latest major airline to report strong earnings, said Thursday that its profit increased 79% in the recent quarter. But Southwest Airlines said its profit dropped because of a rise in jet fuel prices. Delta reported $125 million in net income, or $1.66 a share, for its fiscal second quarter, its third straight quarter of record earnings. That compared with profit of $70 million, or 93 cents a share, in the year-ago quarter. Dallas-based Southwest’s fourth-quarter profit dropped to $28.2 million, or 19 cents a share, from $43.4 million, or 29 cents.

Xerox Corp. said fourth-quarter earnings increased 12% because sales of its color printers and copiers surged, and more companies hired it to handle their printing. Xerox also said it is selling two businesses of its Talegen Holdings Inc. subsidiary. The company said it will sell Coregis Group Inc. to GE Capital Corp. for $450 million and Apprise Corp. to Andersen Consulting for an undisclosed price. Xerox said quarterly net income was $426 million, or $1.25 a share, up from profit from continuing operations of $379 million, or $1.10, in the year-earlier quarter.

McDonald’s Corp.’s fourth-quarter earnings rose 12% as its expansion offset declining sales at existing stores. The world’s largest fast-food restaurant chain said net income rose to $410 million, or 58 cents a share, from $366.8 million, or 51 cents, a year earlier, in line with expectations.

Safeway Inc. reported that fourth-quarter earnings rose 33% to $151.6 million, or 63 cents a share, compared with profit from operations of $113.9 million, or 47 cents, in the year-earlier period.

Vons Cos. reported fourth-quarter net income of $35.1 million, or 78 cents a share, compared with $21.1 million, or 48 cents, a year ago.

Amgen Inc. said its fourth-quarter earnings rose 22% to $178 million, 64 cents a share, compared with $146 million, or 52 cents, in the year-ago quarter.

Schering-Plough Corp. said fourth-quarter earnings rose 16% to $277.4 million, or 76 cents a share, in the quarter compared with $239.4 million, or 66 cents, in the 1995 quarter.

ITT Corp. said fourth-quarter earnings fell 2.9% to $66 million, or 57 cents a share, from 1995 net income of $68 million, or 59 cents.

CSX Corp. earned $253 million, or $1.17 a share, in the fourth quarter, down from $276 million, or $1.31, in the year-earlier period.

Union Pacific Corp. earned $229 million, or 93 cents a share, in the fourth quarter, compared with $154 million, or 63 cents, a year ago.

Mead Corp. said fourth-quarter profit from continuing operations fell 61% to $29.2 million, or 55 cents a share, contrasted with profit from continuing operations of $74.1 million, or $1.37, in the year-ago quarter.

Sara Lee Corp. reported second-quarter profit rose 12.1% to $317 million, or 64 cents a share, from $283 million, or 57 cents, a year ago.

Textron Inc. said fourth-quarter earnings were flat, at $128 million, or $1.50 a share. That was up from $127 million, or $1.45, a year earlier.

United Technologies Corp. reported better-than-expected fourth-quarter earnings of $229 million, or 87 cents a share, from $187 million, or 71 cents, in the 1995 period.

Franklin Resources Inc. said its fiscal first-quarter profit rose a higher-than-expected 30% to $96.2 million, or 76 cents a share, from $74.0 million, or 59 cents, a year earlier.

USX Corp. reported fourth-quarter net income of $291 million on stronger earnings at its Marathon energy and U.S. Steel units, contrasted with a consolidated loss of $304 million a year ago.

Alberto-Culver Co. said fiscal first-quarter earnings rose 30% to $16.8 million, or 59 cents a share, compared with net income of $12.9 million, or 46 cents, a year earlier.

Bankers Trust New York Corp. said its fourth-quarter earnings rose 17% to $147 million, or $1.59 a share, up from $126 million, or $1.36, a year ago.

BellSouth Corp. said it earned $633 million, or 64 cents, contrasted with a loss of $161 million, or 16 cents, a year ago.

Gateway 2000 said a sharp increase in computer shipments helped it earn $88.1 million, or $1.12 a share, compared with $58.8 million, or 74 cents, in the 1995 quarter.

PairGain Technologies Inc. reported fourth-quarter net income of $13.7 million, or 19 cents a share, compared with $14.5 million, or 21 cents, a year ago.

Boomtown Inc. reported a first-quarter net loss of $1.2 million, or 13 cents a share, before the effects of costs associated with its pending merger with Hollywood Park Inc., compared with a net loss of $357,000, or 4 cents, a year ago.

Silicon Graphics Inc. reported lower-than-expected second-quarter million, or 1 cent a share, from net income of $52.4 million, or 30 cents, in the year-earlier quarter.

Electronic Arts said third-quarter net income rose 25% to $36.7 million, or 66 cents a share, from $29.3 million, or 54 cents, a year ago.

Activision said net income in its Christmas quarter more than doubled to $4.12 million, or 28 cents, from $1.95 million, or 13 cents, a year ago.