Aetna Chalks Up Fourth-Quarter Profit

Aetna Life & Casualty on Wednesday reported a $160 million profit in the fourth quarter, compared with a loss of $1.1 billion in 1993 that resulted when the company dumped some unprofitable investments.

The quarterly profit amounts to $1.42 per share, vs. a loss of $10.10 per share in the fourth quarter of 1993.

That year, the company took $1.3 billion in special charges that included $825 million for the discontinued pension investments, which were made for large institutions.

Quarterly revenues rose slightly to $4.4 billion in the fourth quarter, from $4.2 billion in 1993. Premiums increased to $2.9 billion, from $2.6 billion.

For the year, Aetna earned $468 million, or $4.14 per share, for 1994, compared with a loss of $366 million, or $3.29 per share the previous year.

The 1993 figure was reduced by the pension investment charge, a $259 million charge to increase reserves for workers’ compensation claims, and $200 million in other charges.

For the year, revenues were $17.5 billion on premiums of $11.29 billion, up slightly from $17.2 billion on premiums of $10.57 billion in 1993.

In other earnings reports:

The Goodyear Tire & Rubber Co. reported a 21 percent increase in fourth-quarter profits as record sales offset higher labor and raw material expenses.

The company earned $136.5 million, or 90 cents per share, for the three months ended Dec. 31, compared with $113.2 million, or 76 cents per share, during the same quarter of 1993.

Sales rose 10.1 percent in the quarter to $3.2 billion, from $2.9 billion in the 1993 period.

For the year, earnings rose 46.2 percent to $567 million, or $3.75 per share, compared with $387.8 million, or $2.64 per share, in 1993.

Goodyear’s annual sales rose 5.5 percent to $12.3 billion, from $11.6 billion in 1993.

Time Warner Inc. said its earnings rose in the fourth quarter as its five media and entertainment businesses each posted improved results led by the recorded music operations.

The huge conglomerate said its loss for all of 1994 narrowed from the previous year with its cable systems operations showing the only decline among core businesses. It cited the impact of rate regulations.

For the three months ended Dec. 31, Time Warner earned $12 million, or 2 cents a share after preferred dividends, up from $7 million, or 1 cent a share, in 1993.

Revenue for Time Warner and its majority-owned entertainment partnership rose 11.4 percent to $4.59 billion for the quarter from $4.12 billion a year earlier. The partnership includes its cable operations, HBO cable network and its Warner Bros. movie business.

Profits rose 14 percent in the quarter from filmed entertainment, 7.5 percent from book and magazine publishing and 3.3 percent from Home Box Office and other cable programming.

For the year, Time Warner lost $91 million, or 27 cents a share, compared with a loss of $339 million, or 90 cents a share, a year ago.

Combined revenue rose 9.4 percent to $15.91 billion from $14.54 billion a year ago.

Sears, Roebuck and Co.’s best retail performance in a decade powered the rejuvenated company to higher profits for the fourth quarter and all of 1994, the company said.

Sears, the nation’s third-largest retailer, reported fourth-quarter profits rose nearly 26 percent to $685 million, or $1.74 a share, from $545 million, or $1.39 a share, during the same period of 1993.

Earnings were affected by a $195 million extraordinary gain from the early extinguishment of debt related to Sears Tower; a $104 million provision for additional California earthquake losses at the Allstate Corp., which is 80 percent owned by Sears; and an $80 million charge for Allstate’s early retirement program.

Excluding those items, earnings for the quarter would have been $674 million, or $1.71 a share.

For the full year, Sears reported profits of $1.45 billion, or $3.66 a share, compared with $2.37 billion, or $6.13 a share, for 1993.

Earnings for both years were affected by special items. In 1994, Allstate faced $781 million in earthquake losses and the early retirement charge. Without extraordinary items, 1994 earnings would have been $2.12 billion, or $5.38 a common share.

Earnings for 1993 were affected by an $87 million favorable tax adjustment, a $635 million gain from the initial public offering of 20 percent of Allstate, $176 million of income from discontinued operations and $211 million in losses from the early payment of debt. Without those items, 1993 income would have been $1.69 billion, or $4.33 a share.