Pinkerton Posts Jump in Profit to $1.6 Million

Pinkerton Security & Investigation Services, an Encino-based supplier of contract security services, reported a dramatic profit increase in the second quarter ended June 16, but noted that special circumstances in the previous year colored results.

The company reported nearly a tenfold increase in profit to $1.6 million compared to $162,000 during the same period a year earlier. Last year’s results, however, included an after-tax special charge of $1.4 million.

Revenues in the latest quarter increased slightly to $195.4 million, compared to $193.8 million during the same period a year earlier.

For its six-month period, the company reported that earnings doubled to $3 million, compared to $1.5 million a year earlier. Service revenues increased 2% to $393.8 million from $385.4 million reported during the first six months of 1994.

The company said revenue growth had slowed in part because the generally strong U.S. economy is causing labor shortages in selected markets. The shortages are eating into the bottom line because of overtime costs, the company said.

Pinkerton Security & Investigation Services is the name under which Pinkerton’s Inc. does business.