Fluorocarbon Foresees 230% Jump in Quarter Earnings

Fluorocarbon announced Monday that net earnings for its fiscal 1989 first quarter, which ended April 30, could increase as much as 230% and revenues could jump nearly 120% compared to the same period a year ago.

Chairman Peter Churm said the Laguna Hills company expects first quarter earnings between $2.7 million and $2.9 million, compared to $864,000. About $960,000 of this year’s earnings comes from the sale of Fluorocarbon’s stake in a plastics manufacturing operation in Japan.

Fluorocarbon, which makes specialized components for manufacturers, expects revenues of about $60 million, compared to $27.4 million for the year-earlier period.

“Manufacturers are doing well, so Fluorocarbon is doing especially well,” said Ed Lewis, an analyst at First Kansas City Securities in Kansas City, Mo.

Lewis attributed much of Fluorocarbon’s success to its acquisition last year of Eaton Corp.’s Samuel Moore polymer products group, which is accounting for nearly half of Fluorocarbon’s sales.

Fluorocarbon spokesman Ron Bissell said the Samuel Moore group’s performance has exceeded his company’s expectations.

But Fluorocarbon cautioned investors not to expect a repeat of the first quarter performance.

“The rest of the year looks good, but that first quarter was so extremely strong and it far exceeded anything we expected,” Bissell said.