SANTA FE Southern Pacific Corp. said fourth-quarter net income jumped 21 percent despite a decline in profits from operations.
In the quarter, net income rose to $103.4 million, or 57 cents a share, from $85.2 million, or 45 cents a share, a year earlier. The 1983 period included income of $1.2 million from discontinued operations.
The Chicago firm`s pretax earnings from operations fell 7 percent, to $191.2 million, from $205.7 million.
Net results in the latest period were boosted by $16.1 million in nonoperating profits, primarily from interest income. That contrasted with a nonoperating loss of $21.8 million in the 1983 quarter, resulting from costs related to the merger of Santa Fe Industries Inc. and Southern Pacific Co. and to charges for the discontinuance of some trucking operations.
Revenues rose 4 percent, to $1.65 billion, from $1.59 billion in the 1983 quarter.
JOHN J. SCHMIDT, chairman, attributed the drop in operating earnings to higher railway-maintenance costs and a ”substantial” increase in charges against petroleum operations.
Schmidt said pretax profits from real estate operations rose 9 percent to $103.3 million in the quarter, primarily from increased land sales.
Operating profits of the Santa Fe Railway fell 21 percent to $42.6 million, primarily because of the maintenance costs. The Southern Pacific railroad had pretax earnings of $10.9 million, compared with a year-earlier loss of $2 million.
Pretax earnings from petroleum operations dropped 88 percent, reflecting the higher charges, increased costs and flat oil and gas prices.
FOR THE YEAR, net income from continuing operations jumped 47 percent, to $490.8 million, or $2.61 a share, from $333.4 million, or $1.77 a share, in 1983.
Pretax profits from operations climbed 23 percent to $814.7 million.
In 1983, the company had income from discontinued operations of $406.5 million, primarily from the sale of a communications company. With
discontinued results, 1983 net income was $739.9 million, or $3.93 a share.
Revenues rose 11 percent in 1984, to $6.66 billion, from $6.02 billion.
