IC Industries Inc. reported Tuesday that fourth-quarter earnings more than doubled from year-earlier levels, boosted by increases in its rail and soft-drink operations.
The Chicago-based conglomerate said net income for the quarter rose to $70.2 million, or $1.31 a share, from $34 million, or 68 cents a share, a year earlier. Sales rose 18 percent, to $1.27 billion from $1.07 billion.
For the full year, IC reported net income increased 33 percent, to $162.8 million, or $3.04 a share, from $122.8 million, or $2.89 a share, in 1984. Sales for the year rose 17 percent, to $4.4 billion from $3.76 billion.
For the quarter, operating income from IC`s Pepsi-Cola General Bottlers Inc., Dad`s Root Beer Co. and Bubble Up Co. rose 31.4 percent, to $13.4 million from $10.2 million a year earlier. Sales climbed 20.5 percent, to $130.4 million from $108.2 million.
Operating income from IC`s railroad operations jumped 79.3 percent in the quarter, to $29.4 million from $16.4 million. Sales increased 30.4 percent, to $305.4 million from $234.2 million.
”In 1985, IC Industries simplified its capital structure, moved forward dramatically with its asset-redeployment program and continued to set new sales and earnings records,” said William B. Johnson, chairman and chief executive.
Divestiture of various subsidiaries and the sale of 1,558 miles of Illinois Central Gulf railroad lines produced about $400 million in cash in 1985, Johnson said.
In addition, the company in 1984 acquired two food service equipment companies and a local New Orleans distributor through IC`s Hussmann Corp. Pet Inc. bought a sauces and flavoring company, a snack cake maker and an ice cream toppings firm. IC`s Midas International Corp. acquired a chain of car exhaust replacement shops in the United Kingdom.
Santa Fe profits
jump 33% in quarter
Santa Fe Southern Pacific Corp. net income rose 33 percent in the fourth quarter, although year-end results dipped 4 percent.
The railroad holding company said net income in the final quarter rose to $137.3 million, or 79 cents a share, from $103.4 million, or 57 cents a share, in the year-earlier period. Revenues slipped to $1.6 billion from $1.65 billion.
Santa Fe also said the quarter`s operating income increased to $215.5 million from $191.2 million a year earlier, primarily because of significant improvements in results from petroleum, real estate and pipeline operations.
For the year, Santa Fe reported net income of $469.6 million, down from $490.8 million in 1984. Per share earnings rose to $2.67 from $2.61 on a lower average number of shares outstanding as a result of the company`s repurchase program. Revenues for the year dropped 3 percent, to $6.4 billion from $6.66 billion.
Chairman John J. Schmidt noted that all major business segments reported increased operating income for the year except for forest products, which was slightly below 1984, and rail transportation.
