Oxy Profit Falls 10%; Arco Gains Slightly

Occidental Petroleum Corp. said Monday that its fourth-quarter profit fell 10% on currency losses affecting a Thai petrochemical joint venture, among other factors, and Atlantic Richfield Co. reported a slight rise in its quarterly profit as better refining margins more than made up for lower oil prices.

Los Angeles-based Occidental reported profit from operations of $143 million, or 34 cents a diluted share, down from $159 million, or 41 cents, in the year-earlier period.

The company’s earnings fell short of the average estimate of 39 cents a diluted share by IBES International Inc.

In the most recent quarter, Occidental took a $750-million charge on its sale of its MidCon natural gas pipeline to KN Energy Inc., and $277 million in charges related to the write-down of nonstrategic and impaired assets in its oil, gas and petrochemical divisions and additional environmental matters.

The charges resulted in a loss of $884 million, or $2.65 a share. The company said it had no gains or charges in the year-earlier period.

Meanwhile, Los Angeles-based Arco said fourth-quarter earnings rose to $382 million, or $1.17 a diluted share, compared with $380 million, or $1.16 a share, in the year-ago quarter.

Arco was expected to earn $1.20 a share, according to the average estimate of analysts.

* Phillips Petroleum Corp. said fourth-quarter profit fell 19% on lower prices it received for crude oil and natural-gas liquids such as propane and butane.

Bartlesville, Okla.-based Phillips’ profit from operations fell to $203 million, or 76 cents a diluted share, from $252 million, or 95 cents, matching estimates.

At a Glance:

American Express Co. said fourth-quarter net income rose 14%, led by new consumer and business card accounts, and an increase in managed assets by its financial services group.

The New York-based financial and travel services company said its net income rose to $493 million, or $1.04 a diluted share, from operating income of $433 million, or 90 cents, in the year-earlier period. Last year’s results don’t include a $300-million one-time gain and a $138-million one-time charge.

The earnings beat by a penny analysts’ expectations of $1.03 a diluted share.

* Insurers Safeco Corp. and St. Paul Cos. reported better-than-expected fourth-quarter earnings as fewer catastrophe losses boosted profits. Travelers Group posted a drop in profit because of a restructuring charge related to its purchase of Salomon Inc. and losses stemming from the Asian financial crisis.

Travelers said fourth-quarter profit from operations fell 13% to $728.7 million, or 60 cents a diluted share, from $836.9 million, or 69 cents, a year earlier. Wall Street’s forecasts ranged from 55 cents to 61 cents a diluted share, according to analysts.

Seattle-based Safeco said profit, excluding investment gains and charges, rose to $109.3 million, or 79 cents a basic share, from $92.9 million, or 74 cents, a year earlier. The results exceeded the average forecast of 73 cents.

St. Paul’s profit from continuing operations climbed 38% to $147.5 million, or $1.59 a diluted share, from $107.2 million, or $1.18, a year earlier, beating analysts’ average forecast of $1.48 a diluted share.

* Raytheon Co. said fourth-quarter profit rose 38% on recent acquisitions, before charges of $321.7 million related to a previously announced restructuring. Earnings before the charges rose to $244.4 million, or 98 cents a basic share, from net income of $177.4 million, or 75 cents, a year ago. Including charges of $1.29 a share, the company had a fourth-quarter loss of $77.3 million, or 31 cents. Raytheon said it earned 89 cents a diluted share, matching the average estimate of analysts.

* Nabisco Holdings Corp. said fourth-quarter earnings rose 14% before a charge, to $172 million, or 64 cents a diluted share, from $151 million, or 56 cents, a year ago, matching expectations.

* Tupperware Corp. said fourth-quarter profit fell 37% and warned that fiscal first-quarter profit also will drop on poor foreign sales. Earnings before a charge fell to $47 million, or 76 cents a diluted share, from $74.4 million, or $1.18, a year ago.

* Hertz Corp., the world’s largest car rental company, reported fourth-quarter net income of $34.6 million, or 32 cents per diluted share, compared with $36.1 million, including a gain, or 33 cents per diluted share, a year ago.

* Tyson Foods Inc. said fiscal first-quarter earnings rose 13% before a charge to $50.2 million, or 23 cents a diluted share, from $44.6 million, or 20 cents, a year ago.

* Meditrust Cos., one of the U.S.’ largest financiers of health-care properties, said fourth-quarter earnings were close to unchanged as a result of the $458-million purchase of Santa Anita Cos. Meditrust posted funds from operations of $47.3 million, or 57 cents per diluted share, up from $47.1 million, or 64 cents, last year.

* Cardinal Health Inc. said fiscal second-quarter profit rose 25% to $68.1 million, or 61 cents a diluted share, compared with $54.4 million, or 50 cents, a year earlier.

* Knight Ridder’s fourth-quarter profit rose a better-than-expected 5% to $76.2 million, or 74 cents a diluted share, up from $72.6 million, or 77 cents, a year earlier.

* Union Carbide Corp. said fourth-quarter profit rose 44% to $147 million, or $1.04 a diluted share, from $102 million, or 68 cents, a year ago.

* Jenny Craig Inc. reported fiscal second-quarter net income of $283,000, or 1 cent per share on a diluted basis, compared with $879,000, or 4 cents, a year ago.