Aluminum Co. of America reported yesterday that its third-quarter earnings dropped from their levels last year in spite of better sales.
Reynolds Metals Co., BankAmerica Corp., Manufacturers Hanover Corp., and General Telephone & Electronics were among other major corporations also reporting earnings yesterday.
Alcoa Chairman W.H. Krome George blamed the profits decline on increased labor costs, high energy costs, the general impact of the recession and a strike at one of the company's Australian bauxite refining plants.
Net income for the quarter tumbled to $74.7 million ($2.07 a share) on sales of $1.26 billion from $107.4 million ($3.04) a year ago on sales of $1.17 billion.
Nine-month earnings were $367.1 million ($10.29) on revenues of $3.9 billion compared with earnings a year earlier of $369.5 million ($10.47) on revenues of $3.6 billion.
Shipments of aluminum were 351,000 tons during the latest quarter, 1,000 tons more than a year ago, and 1.38 million tons for three quarters, up from 1.42 million.
Reynolds Metals Co. of Richmond yesterday announced third-quarter earnings of $36.6 million ($1.88 a share), up from $35 million ($1.82) a year ago, and said the results were better than management anticipated. Sales increased to $913.7 million from $829.1 million.
Nine-month net income was $146.8 million ($7.60) on sales of $2.75 billion compared with $132.7 million ($6.94) a year earlier on sales of $2.48 billion.
Shipments during the third quarter hit 319,000 tons compared with 325,000 a year earlier.One million, four thousand tons of aluminum were shipped during the nine months compared with 1.01 million a year earlier.
BankAmerica Corp., holding company of the nation's largest bank, said third-quarter operating earnings rose 7.7 percent from a year earlier.
Consolidated income before securities transactions was $176 million ($1.20 a share) compared with $163 million ($1.12) in the same 1979 period. Net income, which includes securities transactions, was $173 million ($1.18), up 6 percent from $163 million ($1.12) a year ago.
Nine-month income before securities transactions rose 9.4 percent to $484 million ($3.30) from $443 million ($3.03) in the 1979 period. Net income totaled $481.6 million ($3.28), up 8.8 percent from $442.6 million ($3.03) a year ago.
President A.W. Clausen attributed the increased third-quarter results in part to strong noninterest revenue, lower growth in noninterest expense and a continued improvement in the net interest margin.
Manufacturers Hanover Corp., holding company for the nation's fourth-largest bank, said third-quarter operating earnings rose 4 percent to $58 million ($1.74 a share) from $55.7 million ($1.69) a year earlier.Net income, or income after securities transactions, was up 3.9 percent to $57.9 million ($1.74) from $55.7 million ($1.69) in the same 1979 quarter.
Nine-month operating earnings were $170.7 million ($5.13), up 7 percent from $159.5 million ($4.86) in the comparable 1979 period. Net income totaled $171.6 million ($5.16), up 7.4 percent from $159.8 million ($4.87) a year ago.
Improved earnings in the third quarter were attributed largely to an increase in other operating income and a lower provision for loan losses, which continued to exceed net charge-offs. They were partially off-set by a rise in other operating expenses compared with a year ago when those expenses were reduced by a gain on the sale of other real estate.
GTE Corp., the telephone and electronics giant, had a sharp drop in third-quarter profits to $86.97 million (52 cents a share) from $152.93 million (99 cents) a year ago.
The shrinkage was caused largely by losses amounting to 41 cents a share on discontinued operations, and Chairman Theodore F. Brophy said the results reflect the company's recently announced decision to get out of the consumer electronics business.
Sales rose to $2.46 billion from $2.20 billion in the 1979 third quarter.
Nine-month profits were $285.2 million ($1.73 after a 99-cent loss on discontinued operations) on sales of $7.31 billion compared with $486.9 million ($3.06) a year ago on sales of $6.488 billion.
R.J. Reynolds Industries Inc. reported a 26 percent gain in earnings for the third quarter on a 16 percent rise in sales.
Net income was $186.1 million ($1.73 a share) on sales of $2.58 billion compared with $147.6 million ($1.38) a year ago on sales of $2.2 million.
Nine-month net income was $535.5 million ($4.99) on sales of $7.54 billion compared with $393.1 million ($3.97) a year ago on sales of $6.45 billion.
Chairman J. Paul Sticht said the domestic tobacco and energy divisions produced the best gains. Reynolds' energy company, Aminoil, more than doubled its profit.