Newspaper article THE JOURNAL RECORD

Quarterly Profits Up 24% for State Firms

Newspaper article THE JOURNAL RECORD

Quarterly Profits Up 24% for State Firms

Article excerpt

Second quarter 1993 profits for 51 of Oklahoma's largest publicly held corporations rose 24 percent to $337.8 million, with almost three-fourths of the firms participating in these higher levels. Nine others were mired in red ink, one less than a year earlier.

Sales-revenue levels increased 3 percent, totaling $9.9 billion, with about 65 percent of the firms contributing to these higher levels. Profit margins, based on continuing operations, advanced to 3.4 percent from 2.8 percent in the corresponding period a year ago, with 62 percent of the companies improving their margin of profitability.

Nationally, sales-revenue levels were 5 percent higher in the second quarter than they were a year prior, with profits rising 13 percent, as reflected in the data on 900 companies prepared by Standard Poor's Compustat Services Inc. Profit margins for these major firms rose to 4.4 percent compared with 4.1 percent a year earlier.

Five out of the six economic sectors represented in this review were more profitable in the current quarter than they were in the same period a year ago.

Energy, which accounted for 72.9 percent of second quarter profits, rose 28 percent. Phillips Petroleum Co. accounted for half of this sector's profits. The almost sixfold quarterly increase of The Williams Companies Inc. accounted for about 15 percent of this sector's second quarter profits.

Manufacturing issues improved their profits by 76 percent to $22.3 million, led by CMI Corp., which accounted for 28 percent of the sector's profits, rising almost twofold.

Utilities, with both companies participating, improved their earnings by 18 percent to $23.1 million. Financial Services firms added 11 percent to year-ago profits, increasing to $15.5 million, with BOK Financial Corp. accounting for almost 60 percent of the total.

Food-Food Related companies showed an increase in profits of 6 percent to $29.3 million, with The Fleming Companies Inc.'s portion about 92 percent. Services' profits fell 79 percent to $1.3 million, impacted by reversals of profitability in Tribune/Swab-Fox Companies Inc. and T/SF Communications Corp., and by the sharp decline in Matrix Service's profitability.

Sales-revenues results in the six sectors were comparable to profit trends, with Services the only sector having lower levels, falling 23 percent. Utilities increased 16 percent; Manufacturing, 11 percent; Financial Services, 10 percent; Energy, 4 percent; and Food-Food Related, less than 1 percent.

Profit margins improved in all sectors but Services.

The number of companies with strong fundamentals _ increasing sales, profits and profit margins in at least the last two quarters higher than they were in the respective prior-year periods _ showed a net increase of four to 15. …

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