Zenith Electronics Corp. posted a small profit in the fourth quarter, but it wasn`t enough to prevent the Glenview firm from posting its third consecutive yearly loss and the largest of the last three.
Contributing to the latest yearly loss were pricing pressures and staff-reduction charges for Zenith`s consumer electronic business and production problems that limited shipments of a new computer monitor.
Despite greater than anticipated production problems with the new ”flat- tension mask” monitor, Zenith`s computer business continued to thrive and widen its lead over the ailing consumer electronics line.
Meanwhile, a Zenith spokesman said the company was unaware of any reason for the trading activity last week in its stock and he declined to comment on recurring rumors of a transaction involving Zenith`s consumer electronics business. Last week, Zenith`s stock gained $2.75, to $18 a share, on the New York Stock Exchange.
In the fourth quarter, Zenith`s net income increased to $4.7 million, or 18 cents a share, from $400,000, or 2 cents a share, a year earlier.
Sales rose 15 percent, to $686 million from $597 million, as a 58 percent jump in computer systems and component sales more than offset a 13 percent decline in consumer electronics revenues.
For the full year, Zenith`s net loss widened to $19.1 million from $10 million in 1986. In 1985, Zenith lost $7.7 million.
Sales increased 25 percent, to $2.36 billion from $1.89 billion, as revenues from the computer sector nearly doubled and offset a 9 percent decline from consumer electronics.
Contributing to the 1987 loss were $25 million in costs from the launch of the mask monitor, up from $5 million in such costs in 1986. Zenith said it began shipping the product in August, but shipments were ”initially much slower than planned” because of production difficulties.
Overall, the computer sector posted sharply higher operating profits, benefiting from increased sales of computers to the government and in Europe.
