Whitman Corp.`s profits from continuing operations rose 33 percent in the fourth quarter. However, results remained weak at the Pet foods division, which is to be spun off to shareholders this year and is considered a discontinued operation.
In the quarter, income from continuing operations increased to $25.2 million, or 15 cents a share, from $18.9 million, or 9 cents a share, a year earlier. Sales from ongoing lines rose 9 percent, to $618.5 million from $566.8 million.
Chicago-based Whitman, which has been restructuring and selling businesses for the last few years, has three continuing lines: soft-drink bottling, muffler shops and commercial refrigerators. Each posted higher pretax operating profits in the latest period, as soft-drink bottling led the pack with a 46 percent jump in earnings.
Whitman said the soon-to-be divested Pet division was hurt by weaker sales and higher promotional costs. Pet`s pretax profits fell 19 percent on an 8 percent decline in sales.
Including results from discontinued operations, Whitman`s net income decreased 11 percent, to $63.5 million, or 52 cents a share, from $71.7 million, or 60 cents a share, in the 1989 fourth period.
For 1990, Whitman lost $31.3 million, or 68 cents a share, from continuing operations, reflecting heavy restructuring charges in the third period.
In contrast, Whitman posted income from continuing operations of $85.6 million, or 48 cents a share, in 1989.
In 1990, Pet`s pretax income fell by 11 percent on a 3 percent increase in sales.
Including discontinued operations, Whitman posted net income of $19.3 million in 1990, down 90 percent from $190.7 million in 1989. After payment of dividends on preferred stock, Whitman lost 19 cents a common share in 1990; in contrast, it earned $1.50 a share in 1989.
