Lawter International Inc. said special charges and writeoffs resulted in a sharp decline in fourth-quarter earnings and a net loss of $5.4 million for all of 1985.
The Northbrook printing-ink products and specialty chemicals firm said its quarterly earnings dropped 70 percent, to $873,000, or 5 cents a share, from $3 million, or 17 cents a share, in the year-earlier period.
As Lawter previously disclosed, the latest quarter`s results were reduced by one-time charges for inventory accounting adjustments and writeoffs of an acquisition-related option contract and obsolete inventories.
Sales rose 3 percent, to $25.7 million from $25 million.
Lawter blamed the full-year loss on a tax charge of $14 million related to undistributed earnings of foreign subsidiaries previously deemed to be permanently invested overseas. The loss was in contrast to net income of $14.9 million, or 86 cents a share, in 1984.
DIVIDEND INCREASE FOR BAXTER TRAVENOL
Baxter Travenol Laboratories Inc. posted fourth-quarter net income of $7 million, as results were restrained by a $29 million aftertax provision related to the acquisition of American Hospital Supply Corp.
The Deerfield health-care company also declared an 8 percent increase in its common stock dividend.
The inclusion of American`s results from the Nov. 25 acquisition date sharply boosted Baxter`s pretax earnings and revenues for the fourth quarter and all of 1985 and made comparisons with year-earlier periods difficult.
Further straining comparisons was a special net charge of $116 million in the 1984 fourth quarter for consolidating operations and asset writedowns. That charge resulted in a net loss of $94 million in the 1984 fourth period.
Pretax operating income nearly doubled to $68 million from $35 million a year earlier.
The $29 million provision in the latest period was to cover anticipated costs of asset and staff consolidations from the merger with Evanston-based American.
In the latest period, Baxter paid $7 million in preferred stock dividends, leaving it with no net income available for common stock.
Quarterly revenues jumped 82 percent, to $839 million from $460 million.
For all of 1985, net income was $137 million, or 85 cents a common share, on revenues of $2.36 billion. In 1984, net income was $29 million, or 21 cents a share on fewer shares outstanding, on revenues of $1.8 billion.
Baxter raised the quarterly common stock dividend to 10 cents a share from 9 1/4 cents. The new rate is payable April 1 to shareholders as of March 17.
The company also declared regular quarterly dividends of 98 3/4 cents a share and 87 1/2 cents a share, respectively, on the adjustable rate preferred stock and $3.50 cumulative convertible exchangeable preferred stock issued in the American acquisition.
