By Randy Tucker and Mike Boyer
Enquirer staff writers

Shares of Frisch's Restaurants Inc. dropped 9 percent Friday after the company reported a 15 percent drop in fourth-quarter earnings, though it posted record sales and earnings for fiscal 2004.

Shares closed down $2.60 at $26.

Profits rose 8 percent to $10.5 million, or $2.05 a share for the fiscal year, which ended May 30, according to the Walnut Hills-based casual dining chain.

Frisch's earned $9.8 million, or $1.95 a share, in fiscal 2003.

Revenue for the year rose 11.1 percent to $261 million from $235 million in 2003.

Meanwhile, same-store sales - or sales at stores open at least a year - rose 4.7 percent at Frisch's Big Boy restaurants, while Frisch's Golden Corral unit gained 0.3 percent after experiencing a 2.9 percent decline in sales in the fourth quarter.

"We believe higher gasoline prices and lower consumer confidence were the primary reasons for lower sales in the restaurant industry in the fourth quarter," CEO Craig Maier said.

Evendale unit performs

Evendale-based GE Transportation was one of nine General Electric Co. businesses recording double-digit earnings gains and fueling a three percent increase in second-quarter earnings for the parent company.

For the three months ended June 30, GE reported net earnings of $3.92 billion, up from $3.79 billion a year ago. Earnings per share were 38 cents, a penny better than the company forecast but unchanged from a year ago because of 342 million shares issued to finance its purchase of medical equipment-maker Amersham Plc.

Revenues increased 11 percent to $37 billion from last year's $33.4 billion.

"This is the best economy we've seen in years,'' CEO Jeff Immelt said. "As such we are further narrowing our full-year guidance to $1.55-$1.60 a share.''

GE Transportation, which includes Aircraft Engines and Erie, Pa.-based GE Locomotives, reported second-quarter operating earnings of $810 million, up 18 percent from $686 million a year ago.

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E-mail rtucker@enquirer.com or mboyer@enquirer.com