Wynn’s International Experiences Slump

Wynn’s International Inc., experiencing a major slump that came on the heels of its dramatic 1986 turn-around, said Wednesday that net earnings from continuing operations during the first quarter plunged 92% to $92,000 from $1.2 million a year earlier.

The Fullerton-based auto parts manufacturer said revenues from continuing operations dropped more than 3% during the first three months of 1987 to $68.4 million from $70.7 million in 1986.

Wynn’s, whose various units supply parts and components to car makers and the auto parts after-market, blamed the first quarter’s plunging profit on weak original-equipment sales to automobile manufacturers.

Auto industry incentive programs in late 1986 and federal tax changes that eliminated sales tax deductions “tended to shift considerable new-car buying into 1986 at the expense of business in early 1987,” John F. Lillicrop, Wynn’s president and chief executive officer, said in a prepared statement.

“For the year as a whole we expect to be down,” said Lillicrop. However, the final half of 1987 is expected to show steady improvement over the first, he added.

During 1986, Wynn’s had $6.4 million in net earnings, compared with a 1985 net loss of $1.9 million.