Itron Suffers Steep Fourth-Quarter Losses

Itron Inc. took a series of punishing charges in the fourth quarter that created deep losses for the three-month period and the year.

But officials at the Spokane-based maker of automated meter-reading equipment said Wednesday that the losses, though painful, should clear the way for a profitable 2000.

For the quarter, Itron lost $56.5 million, or $3.78 a share, compared with a profit of $627,000, or four cents a share, for the same period a year ago.

The company lost $60.5 million, or $4.32 a share, for all of 1999, compared with a loss of $6.2 million, or 42 cents a share, in 1998.

Most of the red ink stemmed from two charges associated with meter-reading equipment Itron agreed to sell to Duquesne Light Co.

Itron will take a charge of about $51 million to cover a loss on the transaction, which is expected to close by March 30.

A second charge of $10.5 million will account for revisions to revenues and expenses.

Other charges stem from overseas activities and previously announced restructuring measures that included reducing the company’s Spokane work force, closing its Boise operation and a shakeup of the executive staff.

Chairman Mike Chesser said those steps and the measures announced Wednesday should sharpen the focus at Itron, which employs 400 at its Spokane Valley headquarters.

“I am confident that Itron is now poised for solid financial performance beginning in 2000,” he said in a statement.

Spokeswoman Mima Scarpelli said selling the Duquesne system made more sense from a cash-flow standpoint than continuing to be its owner and operator.

“We believe we have a good deal,” she said, noting that the installation remains a model project frequently shown to potential Itron customers.

“We think we’re in great shape going into 2000,” she said.

In other earnings reports:

PepsiCo Inc., the No. 2 U.S. soft drinks company, said its fourth-quarter earnings rose 27 percent, boosted by strong results in its North American operations and growth in its Frito-Lay and Tropicana businesses.

Walt Disney Co., showing signs of mending after a lackluster 1999, reported higher earnings Wednesday as the entertainment giant benefited from its ABC hit “Who Wants to Be a Millionaire.” The company earned $515 million, or 25 cents a share, for the quarter ended Dec. 31, up from $482 million, or 23 cents a share, for the same period a year earlier.

The Goodyear Tire and Rubber Co., the world’s biggest tire maker, on Tuesday reported a “disappointing” 1999 but said its fourth-quarter decline in profit was smaller than expected. The Akron, Ohio-based company posted earnings excluding special items of $47.6 million, or 30 cents a diluted share, compared with $115 million, or 74 cent a share, a year earlier.

Allstate Corp., the No. 2 U.S. property and casualty insurer, said Wednesday its fourth-quarter earnings fell 18.3 percent amid tough pricing pressures and higher auto claims.

Humana Inc.’s fourth-quarter operating profit nose-dived 56 percent, but it was enough to beat Wall Street’s diminished expectations for the managed care firm.

The Louisville-based company said net operating income was $25 million, or 15 cents a share in the final three months of 1999, compared with $57 million, or 34 cents a share, a year ago. The results beat Wall Street estimates by two cents.

The Associated Press and Bridge News wire services contributed to this report.