Kaiser Aluminum & Chemical Corp. of Oakland, Calif., yesterday reported record second-quarter earnings of $40.3 million ($2.01 a share).

In the corresponding second quarter of last year earnings totaled $30.5 million, or $1.54 per common share.

Sales for the period were reported at $634.2 million, compared with $552.8 million in the second quarter of 1976.

First-half earnings totaled $64.2 million ($3.19 a common share) on sales of $12 billion. In the first half of 1976, earnings were $43.2 million ($2.16 per share) on sales of $970.3 million, the company said.

Merrill Lyc & Co., the holding company which controls Merrill Lynch, Pierce, Fenner & Smith* Inc., the nation's largest brokerage house, yesterday reported a 14 per cent drop in net earnings in the second yquarter of 1977 against the same period last year.

Merill Lynch's net earnings in the second quarter was $16.4 million (47 cents per share), down from $19.5 million (55 cents) a year ago.

Revenue was up to $285.1 million from $247.6 million in 1976's second quarter.

The New York-based investment banking house of J.P. Morgan reported an increase in second quarter profits to $50.12 million ($1.23 a share) compared to $45.01 million ($1.11) a year ago. Both sets of figures represent the results before securities transactions.

Green Giant Corp. of Minneapolis has reported a 76 per cent increase in net earnings for the fiscal year ended May 28. The firm said the substantial increase was largely the result of a strong second-half performance by its grocery products business.

Thomas Wyman, president and chief executive of the firm, said prospects for the company's 1977 vegetable season are also good.

Net sales from continuing operations were $425.5 million, up 8 per cent over 1976. Net earnings were $7.87 million ($1.72 per share) compared with $4.47 million (92 cents per share) in 1976.

Pepsi Co Inc., the conglomerate that produces Pepsi-Cola, reported a 10-cent per share irise in net earnings in the second quarter from a year ealier.

Net earnings were $44 million (59 cents a share) compared to $36 million (49 cents per share) a year before.

The 1976 results reflect the effect of the acquisition of Lee Way Motor Freight Inc., the company said.

Sales for the nation's second-largest soft drink producer were $73.8 million in the second quarter, a rise of $81 million.

Another brokerage firm, E. F. Hutton Group Inc., the nation's second-largest, also announced a drop in second quarter net earnings, to 74 cents a share from 84 cents a year earlier.

Net earnings were $4.4 million, down from $4.8 million, but revenue rose in the second quarter to $85 million from $73.1 million.

In Pittsburgh, Mellon National Corp. said second-quarter profits rose 12 per cent from the same period in 1976, largerly as a result of higher interest and trust department income.

Mellon, the parent company of Mellon Bank, N.A., the 16th largest U.S. bank, reported net income of $17 million ($1.74 a share) compared to profits of $15.1 million ($1.55 a share) in the second quarter of 1976.