

wsj_0760

10/27/89


WSJ891027-0135 = 891027 891027-0135.
Norton Net Declined @ 6% in Third Quarter 10/27/89 WALL STREET JOURNAL (J) NRT EARNINGS (ERN) INDUSTRIAL EQUIPMENT, MACHINE TOOLS (IND) WORCESTER, Mass.



Norton Co. said net income for the third quarter fell 6% to $20.6 million, or 98 cents a share, from $22 million, or $1.03 a share.

Operating profit for the abrasives, engineering materials and petroleum services concern was $19.2 million, or 91 cents a share, up 3% from $18.7 million, or 87 cents a share.

The company had a tax credit of $1.4 million. In the year-earlier quarter, the tax credit was $3.3 million. Sales rose 8% to $368.5 million from $340.7 million.

Operating profit in the company's abrasives segment rose 16% while operating profit in the engineering materials segment rose 2%. However, the company's petroleum services segment, while profitable, was hurt by high financing costs associated with the company's buy-out of a 50% stake in Eastman Christensen Co. from Texas Eastern Corp. last June. Norton and Texas Eastern had each held a 50% stake in Eastman in a joint venture.

Norton announced earlier this month that it was exploring the possible sale of all or part of Eastman Christensen.

For the nine months, Norton had net of $81.2 million, or $3.87 a share, and a tax credit of $4.4 million. In the year-earlier period, the company had net of $77.2 million, or $3.68 a share, and a tax credit of $7.7 million.

Norton had operating profit of $76.8 million, or $3.66 a share, up 11% from $69.5 million, or $3.31 a share.

Sales rose 8% to $1.15 billion from $1.06 billion.


























