Eli Lilly & Co. said its first-quarter...

Eli Lilly & Co. said its first-quarter net income increased 7.3% over a year ago while SmithKline Beckman said its profits fell 12%, partially because of the recall of three of its over-the-counter drugs. The much-smaller Schering-Plough said its earnings spurted 20%. Lilly cited good growth in international pharmaceuticals and favorable currency exchange rates for its improvement. SmithKline attributed its profit decline to one-time charges of $41.8 million from an early retirement program and $16 million from the withdrawal of Contac, Dietac and Teldrin in March. Schering-Plough attributed its gains to substantial growth in its U.S. and international pharmaceutical businesses and in its U.S. sun care business.

Despite record first-quarter traffic, Air Cal reported that it lost $7.4 million for the three months ended March 31. In the first period last year, it earned $2 million. The Newport Beach-based carrier blamed the loss in the most recent quarter on a lower yield because of fare wars triggered by the entry of Continental West into the competitive West Coast air corridor.