The impact of increasing pressure from Baldwin Piano & Organ Co.'s Asian competitors caused the old-line instrument maker to report sharply lower earnings for its third quarter.
Baldwin booked third quarter net earnings of $93,000, or 3 cents a diluted share, compared with profit of $1.1 million, or 30 cents a diluted share, a year ago. Last year's third-quarter earnings included non-recurring income of $79,000, or 2 cents a diluted share.
"As previously disclosed, the financial crisis in Asia has prompted our competitors to step up imports of low-end pianos in a very major way. This has put significant downward pressure on retail prices and profitability in the high-volume vertical piano segment of our business," Karen L. Hendricks, chairman and chief executive officer of Baldwin, said.
Net sales for Baldwin rose 8 percent to $34.3 million, up from $31.6 million last year, before the impact of a $2.3 million non-recurring item. Including last year's non-recurring item, related to the phase-out of the company's dealer consignment sales program, third-quarter 1997 net sales were $33.9 million.
"Sales of Baldwin's high-end grand pianos, the largest share of our revenues, remained strong," Ms. Hendricks said.
Other earnings reports:
Cinergy Corp. -- The Cincinnati-based utility holding company reported higher third quarter earnings due to warmer than usual weather, growth in its service area and cost control efforts.
Net income for the three months ended Sept. 30 was $109.4 million, or 69 cents a share, vs. $82.5 million, or 53 cents a share, a year ago before a $109 million charge from the windfall profits tax levied against Midlands Electricity, its 50 percent-owned British utility. Revenues increased to $1.97 billion from $1.36 billion a year ago.
Cincinnati Financial Corp. -- Catastrophe losses from hurricanes and storms led to a 31 percent decline in third-quarter profits at the Fairfield-based property and casualty insurer.
The company said net income was $52.9 million, or 31 cents a share, down from $77 million, or 47 cents a share, a year earlier.
Net written premiums for Cincinnati Financial's property and casualty units rose 4.7 percent in the quarter to $394.2 million. Quarterly pretax investment, the company's main source of profits, rose 3.6 percent to $91.4 million.
Comair Holdings -- The parent of the Cincinnati-based regional airline reported record second-quarter earnings of $34.6 million, or 52 cents a share, vs. $24.6 million, or 36 cents a share, a year ago.
Revenues for the three months ended Sept. 30 were $195 million, up from $162.9 million a year ago. The airline's load factor, or seats filled, increased to 65.7 percent from 62.4 percent a year ago.
Bank One Corp. -- Third-quarter profits rose 39 percent as fees from credit cards grew at Bank One, the nation's fifth-largest bank.
Banc One, which this month formally became Bank One Corp. when it completed its $18.9 billion merger with First Chicago NBD Bancorp, said net income before the deal was $648 million, or 91 cents a share, compared with $465 million, or 65 cents, a year ago.
The old Banc One, previously based in Columbus, said fee income jumped 15 percent as credit card fees rose 22 percent to $631 million.
