Kaiser Turns In Stronger Quarter Than Expected Higher Prices, Increased Production Produce Strong Profits

Higher aluminum prices and increased production at Kaiser Aluminum Corp.’s Spokane County plants helped boost fourth quarter 1995 earnings to $21 million, or 26 cents per share, on sales of $591.1 million, the company said Monday in a statement.

Kaiser earnings were stronger than Wall Street analysts had predicted, sending the Houston-based company’s shares up 75 cents to close at $13.87-1/2 per share Monday.

Kaiser, which employs 2,600 people at its Mead smelter and Trentwood rolling mill, reported a loss of $27.7 million, or 57 cents per share, on sales of $445.8 million for the same 1994 quarter.

“Looking ahead,” said chairman George Haymaker Jr., who one year ago predicted Kaiser’s return to profitability, “Kaiser has every opportunity to improve upon 1995’s performance.”

For the year, Kaiser posted earnings of $60.3 million, or 69 cents per share, on sales of $2.2 billion. That compares with a loss of $106.8 million, or $2.18 per share, on sales of $1.78 billion in 1994.

The 1995 results, the company said, included a pre-tax expense of $17 million associated with an eight-day labor strike at U.S. sites and a brief strike and boiler failure at a Jamaican alumina refinery controlled by the company.

Maxxam Inc., the Houston-based parent of Kaiser, reported earnings of $22.4 million, or $2.37 per share, on sales of $672.6 million, for the fourth quarter. That compares with a loss of $24.1 million, or $2.55 per share, on sales of $538 million, a year earlier.

In other earnings reports:

Key Tronic Corp. reported lower earnings for the second quarter of fiscal 1996, and officials of the Spokane-based manufacturer say they expect a loss for the third quarter of the year.

“As reported in our first-quarter report, we expected lower revenues this quarter, based on forecasts from several of our major computer OEM customers,” Fred Wanninger, president and chief executive officer, said in a news release Monday.

“The latest customers’ forecasts lead us at this time to expect further reductions in orders and a loss at the bottom line in the coming quarter.”

The company reported net income of $696,000, or 7 cents per share, on sales of $56.6 million during the quarter ended Dec. 30. That compares with earnings of $849,000, or 10 cents per share, on sales of $48.7 million during the same quarter a year ago.

For the first half of the year, the company reported earnings of $2.3 million, or 23 cents per share, on sales of $117.2 million. That compares with earnings of $1.2 million, or 14 cents per share, on sales of $94.2 million, during the first half of fiscal 1995.

Wanninger said Key Tronic is successfully broadening its customers base, but it will take time for the growth to show up on the bottom line.

“The new programs we have recently won, while providing future growth opportunity, will not generate significant revenue in the near term,” he said.

Key Tronic Corp. manufactures computer keyboards and other input devices in the United States, Mexico and Ireland.

Safeco Corp. reported net income was $116.2 million, of 92 cents a share, for the fourth quarter of 1995. That compares with earnings of $95.8 million, or 76 cents a share, for the same quarter in 1994.

For the year, Seattle-based Safeco earned $399 million, or $3.17 per share, compared with $314.4 million, or $2.50 per share, in 1994.

, DataTimes