Gulf & Western Industries Inc.'s financial services, publishing and entertainment operations led the company to year-to-year gains of 25 percent in earnings and 19 percent in revenue in its fiscal first quarter that ended on Oct. 31, the company announced in New York yesterday.
Meanwhile in Pittsburgh, H. J. Heinz Co. said yesterday that higher unit volume and cost-cutting efforts helped it to record increases in net income of 7.5 percent for its second quarter that ended Oct. 30 and 10.4 percent for the first half of the fiscal year.
Gulf & Western said yesterday that it had net earnings of $70.7 million ($1.01 a share) in the first quarter, up from $57.2 million (45 cents) in the same period a year earlier. Revenue was $809.3 million, up from $680.5 million a year earlier.
Gulf & Western owns Paramount Pictures Corp., which produces movies and television programs, and Simon & Schuster Inc., a book and software publishing company. It also has an unconsolidated financial-services subsidiary, Associates Corporation of North America.
Net earnings for the quarter included $16.7 million (24 cents) from discontinued operations, largely the gain on the sale of the consumer and industrial products group. The comparable quarter a year earlier included income of $25 million (36 cents) from discontinued operations, mainly from operations of that group.
*H. J. Heinz Co.'s net income for its second fiscal quarter rose to $74.9 million (55 cents a share) from $69.7 million (50 cents, restated to reflect the 2-for-1 stock split that took effect on Sept. 23). Sales were $1.086 billion, an increase of 4.3 percent over sales of $1.040 billion a year earlier.
Six-month net income increased to $156.5 million ($1.14) from $141.7 million ($1.03, restated for the stock split) for the same period last year, while sales increased by 3.5 percent to $2.134 billion from $2.062 billion a year earlier.
Heinz President and Chief Executive Officer Anthony J. F. O'Reilly said the second-quarter gains were the result of a 4 percent increase in unit volume and an improved gross profit margin and were achieved despite a 10.8 percent increase in marketing expenses. The improved gross profit margin reflects volume gains in some higher-profit-margin products and services, as well as the effect of companywide cost-cutting efforts, he said.