Schwartz Brothers Inc., Washington retail and wholesale music merchandiser that owns the Harmony Hut record stores, reported a loss for the year ended Jan. 31. The company attributed the loss to the adoption of a different method of inventory valuation.

The company had a net loss of $147,710 compared to net income of $653,308 (81 cents) the previous year. Revenues were $30.57 million last year compared with $31.73 million the previous year.

For the fourth quarter, the company reported earnings of $88,915 (12 cents) compared with $469,114 (58 cents) the year before.

Schwartz Brothers results reflected "the overall problem of accelerating operating expenses and lower wholesale sales as well as special problems faced by the record industry," the company said.

"While Schwartz Brothers wholesaling operatings were further affected by the loss of the distribution rights of several manufacturers that went to direct distribution, projections for the company's retail operations did not materialize," the company continued in a statement.

Government Services Savings & Loan Inc. reported reduced year end profits of $352,080 (41 cents) compared with $2.6 million ($3.05). Total assets at March 31 were $338 million, up 4 percent from $324 million last year. Savings deposits were $278.7 million, down from $281.8 million.

Old Dominion Real Estate Investment Trust reported first quarter earnings of $405,213 (58 cents) compared with $3,928 (1 cent) the previous first quarter. Included in the 1980 figure is a $384,536 gain on the sale of real estate.

Gross income for the quarter increased to $772,389 from $617,324 the previous year.

Doughtie's Foods Inc., the Portsmouth-based food processing and distribution firm, reported record first quarter sales and profits. Earnings were $142,000 (21 cents) compared with $63,000 (9 cents) for 1979. First quarter sales were $10 million, up 20 percent from $8.4 million.

The Virginia Real Estate Investment Trust, based in Richmond, reported that earnings for the quarter ended March 31 were $153,886 (15 cents per share) compared with $134,867 (11 cents) for the same quarter last year.

The trustees also announced an increase in the quarterly dividend from 20 cents to 25 cents a share. The increased dividend is payable June 3 to shareholders of record on May 15.

Virginia Chemicals Inc. of Portsmouth reported net earnings declined from a record high of $1.793 million (70 cents) to a $1.468 million (57 cents) in the first quarter of this year. The decline reflected the rising cost of raw materials and energy and start-up costs for new operations, according to Harry W. Buchanan, president of Virginia Chemicals Inc.

Buchanan also noted other developments that may adversely affect second quarter earnings for the company, which manufactures chemicals for textile pulp and paper, agriculture and other manufacturing and other products. In addition to startup costs for two European plants, Buchanan said there have been recent indicators of a slowdown in demand for some of the company's products.

VSE Corporation (formerly Value Engineering Company) of Alexandria reported earnings for 1979 of $937,835 ($2.55) compared with $830,322 ($2.03) in 1978.

Revenues for 1979 were $38.63 million compared with $24.36 million in 1978. The company attributed the increase in revenues to expansion of existng services and increased revenues from its graphic communications associate. Design and Production Inc.