Legal, Accounting Factors Drag Net at A. H. Robins
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A. H. Robins Co. said that legal and accounting factors contributed to a 25% decline in its first-quarter earnings over those of the same period last year. While its quarterly operating earnings rose 8% year to year to $42.5 million from $39.2 million, Robins’ net fell to $22.4 million from $30 million.
Revenue for the calendar quarter totaled $191.4 million, an increase of 15% over 1985’s first-quarter revenue of $166.4 million.
The drop in net earnings resulted from adding $1.5 million in expenses related to the company’s Chapter 11 bankruptcy case and the inclusion in last year’s figures of a deferred tax benefit gain, Robins said. Robins filed for protection from creditors last August in the wake of mounting claims against its Dalkon Shield IUD.
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