Digital Equipment Posts Quarterly Loss

Digital Equipment Corp., blaming a weak economy and low computer prices, reported a $138.3-million quarterly loss Thursday and said job cuts may play a big role in its recovery.

It was the first time ever that the No. 2-ranked U.S. computer maker has suffered a loss from operations.

Meanwhile, Apple Computer Inc., based in Cupertino, Calif., said its quarterly earnings rose 10.3% to $166 million from $150.5 million a year earlier thanks to big sales of its new PowerBook notebook computer.

Digital’s $1.11-a-share loss for the quarter that ended Dec. 28 contrasted with a profit of $111.1 million, or 92 cents a share, in the same period a year earlier.

“In a competitive world where most customers are cutting back on capital expenditures, we did not see any growth in product sales and we had to adjust pricing,” President Kenneth Olsen said.

The Maynard, Mass.-based company, which has cut expenses, said it is accelerating efforts to restore profit through cost containment.

Revenue in the company’s second fiscal quarter was $3.48 billion, compared to $3.35 billion in the year-earlier period.

Apple’s profit for the first fiscal quarter ended Dec. 27 amounted to $1.36 a share, against $1.28 a year earlier.

The company said revenue climbed to $1.86 billion from $1.68 billion.

* Reporting a 13% drop in quarterly profit, Rockwell International Corp. said a depressed worldwide economy weighed on its major markets.

The aerospace and defense company, which builds space shuttle orbiters and engines, reported a profit of $123.3 million for its first fiscal quarter ended Dec. 31, compared to $141.5 million a year earlier.

Revenue fell in all four of the company’s main divisions, slumping 13% to $2.56 billion from $2.94 billion.

Chairman Donald Beal said Rockwell’s Automotive and Allen-Bradley International Automation businesses have not shown hoped-for signs of improvement.

The company said a big slump in earnings from its graphics division offset small operating profits in electronics, aerospace and automotives.

Earnings, D11