International Bank and the Outlet Co. reported yesterday record sales and profits during 1977. Outlet also boosted its annual dividend rate by 43 percent.
A diversified Washington-based financial services firm, International Bank reported 1977 earnings of $10.7 million ($1.50 a share) from continuing operations, a gain fo 124 percent over $4.8 million (66 cents) the previous year.
After writing off a loss of $1.4 million on the closing of an industrial operation, net income still was a record at $9.2 million ($1.30 a share) compared with a net loss of $511,733 in 1976.
Reserves established to cover potential losses on liquidation of a former bank subsidiary in The Bahamas, as well as losses and income taxes related to selling shares in Financial General Bankshares Inc., produce the 1973 red-ink figure.
Revenues last year were a robust $16.3 million, up 87 percent from $8.7 million during 1976.
The industrial operation closed last year was Marion Malleable Ironworks, Inc., whose operations ceased July 29. The Marion, Ind., manufacturer of iron castings never recovered former profitability after the 1975 recession. Marion suffered a net loss of $798,000 in 1976.
IB Chairman George Olmstead said yesterday his company's potential for future growth was "vastly enhanced" by recent developments, including negotiations for the sale of a venture capital firm that has adversely affected earnings, settlement of a conflict with the Federal Reserve Board related to IB's former banking firm investments, acquisition of minority interests in property and casualty insurance companies.
Reporting on the company's major divisions, Olmstead said:
Property and casualty insurance profits were $5 million compared with $3.6 million in 1976, reflecting higher premium levels.
Life insurance profits were $2 million compared with $1.8 million.
Industrial group profits declined slightly to $8 million from $8.1 million because of lower sales for standby power generating equipment and a 28-day strike at one plant.
Finance and leasing losses were trimmed to $204,000 from $914,000, reflecting profits from the sales of real estate.
International financial operations posted profits of $1.5 million compared with $2.3 million in 1976, not counting the reserves for potential losses at the former Bahamas bank.
In another development yesterday, IB announced the appointment of Vartkes M. Alahaidoyan to head a new Middle East representative office in Beirut. The firm said he will seek to identify investment and management opportunities in the Middle East for IB and its affiliates.
Alahaidoyan formerly was general manager of IB operations in Lebanon and Kuwait. He will become IB vice president for the Middle East.
Outlet Co., a Providence firm that owns the Philipsborn stores here and has agreed to buy WTOP Radio, reported 1977 profits fo $9.5 million ($3.93 a share) compared with $5.4 million ($2.33) the previous year, a gain of 76 percent. Sales rose 66 percent to $248 million.
In an unusually strong fourth quarter, Outlet earned $6.3 million ($2.57) compared with $3.2 million ($1.42) as sales soared to $107 million from $50 million. President Bruce Sundlun attributed the sharp increase to gains at broadcast stations, the holiday retail season and a significant impact from acquisitions.
Directors approved a new dividend rate of $1 a share annually, up from 70 cents, for owners of record April 14. Outlet also owns the Flair specialty chain in Richmond and Newport News.