Marantz Sales Jump by 46% Over Year Ago

Marantz reported operating income of $1.5 million for the fourth quarter ended Dec. 31, up from $95,000 a year ago. Sales for the quarter rose 46% from the previous year, to $21.2 million.

Net income was $1 million, or 44 cents a share, contrasted with $1.5 million, or 63 cents a share, for the same quarter last year, when the company reaped $1.4 million in tax benefits.

For the year, the Chatsworth-based consumer electronics company suffered a net loss of $1.6 million, or 68 cents a share. The company’s loss in 1984--$138,000, or 6 cents a share--was smaller, largely because of tax benefits. Sales were up 13% in 1985, to $50 million.

“The results of the second half of 1985 marked a major operational turnaround for Marantz,” said the company’s chairman, Joseph Tushinsky. He attributed the improvement to the company’s changeover from gold-colored to more popular black components and to Marantz’s new videocassette recorders.

He said 72% of Marantz’s sales came in the second half of the year and that the company sold $6.5 million in VCRs, even though it didn’t offer them until mid-November.

“Our 1986 target sales goal for Marantz audio-video is approximately $80 million to $85 million,” Tushinsky said. “At this point, we are on target in obtaining these results.”

Marantz also announced an undisclosed price increase for next month to offset the increasing strength of the Japanese yen against the U.S. dollar. Most Marantz products are made in Japan, but the company said it is looking for other sources.