Profit zooms, stock rallies at MagneTek.

Profit zooms, stock rallies at MagneTek

MagneTek Inc. of West Los Angeles, on its way to breaking the $1 billion-a-year revenues mark, reported a 47.5 percent increase in its third-quarter profit and its stock rallied up to $12 a share on the Big Board.

For the third quarter ended March 31, the $962 million (1989 sales) electrical equipment manufacturer reported a profit of $11 million, or 47 cents a share, on sales of $287 million vs. an income of $7.5 million, or 37 cents a share, on revenues of $247 million for the same period last year.

The results were the first to reflect the operations of a subsidiary the company acquired last quarter, MagneTek Electric of Waukesha, Wis.

President Frank Perna Jr. attributed the third quarter results to continued strong growth in operations serving the electric utility industry, particularly the demand for energy-saving lighting equipment and for certain fractional-power motors.

Earlier this year, when second quarter earnings were up 140 percent and the stock was at $10.25 share, the price had also been positively affected by a favorable article in Barron's, but later dropped 50 cents a share following a Wall Street Journal article Since the company went public in June 1989, its stock has hit a high of $14.25 and a low of $7.75.

MagneTek primarily manufacturers high-voltage coils used in electric power generators and rebuilds utility generators and transformers. It operates 52 facilities world-wide and employs more than 14,500 people.