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MARK IV PROFITS PLUNGE 86 PERCENT IN THIRD QUARTER BUT FIRM'S OPERATING INCOME RISES

Mark IV Industries Inc. said today that its profits tumbled 86 percent during the third quarter, although the Amherst conglomerate's income from continuing operations rose by 2 percent.

Despite the slight increase in its income from continuing operations, Mark IV's net income fell because its profits during the third quarter last year included $44.1 million in one-time gains from securities repurchases and the sale of Blackstone Corp.

Mark IV's net income fell to $6.8 million, or 50 cents a share, during the quarter ended Nov. 30, compared to $50.1 million, or $3.38 per share, a year earlier, when the extraordinary items accounted for net income equal to 56 cents per share and discontinued operations added another $2.41 per share.

The company's net income during the third quarter of this year included a one-time gain of $700,000, or 5 cents a share, from gains Mark IV realized by purchasing some of its junk bond debt on the open market.

Mark IV's income from continuing operations, which gives a better picture of how the company's remaining operations are doing compared to last year, rose to $6.1 million, or 45 cents a share, from $6 million, or 41 cents a share, a year earlier.

Sales rose 11 percent to $228.4 million from $204.9 million.

For the first nine months of the year, Mark IV's net income fell 69 percent, partly because of the company's extraordinary gains, which equaled $9.5 million, or 61 cents a share. Discontinued operations accounted for profits equal to $2.20 per share last year.

The company's net income fell to $20.9 million, or $1.49 per share, compared with $66.4 million, or $4.24 per share, one year ago.

Mark IV's income from continuing operations before investment gains rose 4 percent to $19.6 million, or $1.40 per share, from $18.8 million, or $1.20 per share, a year earlier. The company had investment gains of $600,000, or 4 cents a share, during the first three quarters of this year, compared with $3.6 million, or 23 cents a share, a year ago.

Sales for the first three quarters rose 6 percent to $673.5 million from $634.3 million.

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