Primerica Corp.This financial-services conglomerate, once...

BY THE NUMBERS

July 15, 1992

Primerica Corp.

This financial-services conglomerate, once known as Commercial Credit of Baltimore, reported yesterday a slide in second-quarter revenues and an increase in profits.

The company said it earned $150.5 million, or $1.36 a share, up from $1.05 a share during the second quarter of last year. Revenues declined to $1.28 billion from $1.29 billion during the 1991 same period. As usual, Primerica emphasized results from its brokerage operations, Smith Barney, but earned more from each of its other major segments, insurance and consumer finance.

Earnings from consumer finance, the original Commercial Credit business, rose 10 percent, to $47.5 million, despite negligible growth in loans and an accounting nuance that pushed the substantial benefits from lower interest rates away from consumer finance unit to a separate account that Primerica uses to cover corporate overhead.

Earnings from the account, labeled "corporate and other," were up $16.9 million, more than any other area of Primerica's income statement. Insurance earnings, which were reduced last year by a $10 million special charge, rose to $67.4 million from $46.9 million.

Smith Barney's profits rose 13 percent, to $42.4 million. Among other brokerages reporting yesterday were PaineWebber Group Inc., where profits rose 35 percent, and Merrill Lynch & Co., which reported a 24 percent rise.

Overall, analysts were pleased with Primerica's results, emphasizing the strong gains in insurance. "They had an outstanding quarter," said Francis X. Suozzo of S. G. Warburg.

"I'm pretty impressed. Conditions weren't as strong as they were in the first quarter, and they kept things going," said David Penn, an analyst with Legg Mason in Baltimore.

Three months ended 6/30/92

.. .. .. .. .. .. Revenue .. .. .. .. .. Net .. .. .. .. .. Share

92 .. .. .. ...1,275,500,000 .. .. .. 150,500,000.. .. .. 1.36

91 .. .. .. ...1,287,500,000 .. .. ..117,300,000 .. .. .1.05

% change .. .. .. .. .. .. -0.9 .. .. .. .. .. +28.3 .. .. +29.5

Six months ended 6/30/92

.. .. .. .. .. .. Revenue .. .. .. .. .. Net .. .. .. .. .. Share

92 .. .. .. ...2,581,200,000 .. .. ..371,300,000 .... .. 3.34

91 .. .. .. .. 2,544,200,000 .. .. ..223,200,000 .. .. ..1.99

% change .. .. .. .. .. .. +1.5 .. .. .. .. .. +66.4 .. .. . +67.8

First American Bankshares Inc.

The largest bank holding company in the Washington area, reported yesterday a net profit of $8.2 million for the second quarter after eight consecutive quarterly losses.

Chief Executive Officer George L. Davis credited the turnaround to a stabilized reserve for loan losses, fewer charge-offs for bad loans and lower credit-related expenses.

A trustee has been appointed to oversee the sale of the bank, which was bought secretly by the now-closed Bank of Credit and Commerce International a decade ago.

First American reported a loss of $31.7 million in the first quarter of 1992 and a loss of $59.3 million for the second quarter of last year, primarily because of loan losses, and lost $358.3 million in all of 1991.

Non-performing assets declined by $46 million to $585 million during the second quarter, down from a peak of $630 million in the third quarter of last year, the bank said.

"Based on the trend, the bank looks a lot more promising going forward," Mr. Davis said.

Mr. Davis said the bank and the trustee, former New York state banking superintendent Harry W. Albright Jr., are beginning to sell "pieces" of the bank that have "no long-term strategic significance to the metro area here" in Washington. Those pieces include 39 branches of a subsidiary, First American Bank of New York.

Crown Cork & Seal Co.

This Philadelphia-based maker of metal cans and bottle caps boosted its second-quarter profits by 25.8 percent as it continued to reap cost savings from acquisitions made in recent years, Alan Rutherford, senior vice president and chief financial officer, said yesterday.

Crown Cork has its manufacturing headquarters on South Newkirk Street in Southeast Baltimore. It has two plants in Baltimore that manufacture aluminum cans and can ends, and two plants on the Eastern Shore that provide steel cans and ends for food processors.

Three months ended 6/30/92

.. .. .. .. .. .. Revenue .. .. .. .. Net .. .. .. .. .. Share

'92 .. .. .. .. .1,020,000,000 ,, ,, 48,740,000 .. ... .0.56

'91 .. .. .. .. .1,050,000,000 .. .. 38,750,000 .. ... . 0.45

% change .. .. .. .. .. .. -2.9 .. .. .. .. +25.8 .. .. . +24.4

Six months ended 6/30/92

.. .. .. .. .. .. Revenue .. .. .. ... Net .. .. .. .. .. Share

'92 .. .. .. .. .1,860,000,000 .. .. 75,160,000 .. ... .0.86

'91 .. .. .. .. ..1,880,000,000 .. .. 61,490,000 .. ... .0.71

% change .. .. .. .. .. .. -1.1 .. .. .. .. +22.2 .. .. . +21.1

MBNA Corp.

This Delaware-based credit card issuer, a subsidiary of Baltimore-based MNC Financial Inc. until last year, reported that income increased 15.6 percent in the second quarter, to $38.3 million, or 77 cents a share, compared with $33.2 million, or 67

cents a share, in the 1991 period.

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