Profits Decline: Earnings for the nation’s 500...

Profits Decline: Earnings for the nation’s 500 largest service companies dropped 12.3% in 1989, but it still was their second most profitable year ever, Fortune magazine said in its annual ranking. The report attributed the decline for the Fortune Service 500 to drops in profitability among the biggest commercial banking, thrift and retailing businesses. Profits at the diversified service group, which includes companies ranging from movie studios to waste processors, more than doubled from a year ago and rose nearly 12.1% for diversified financial services. Fortune said the 500 biggest service companies earned a combined $69.7 billion in 1989, down from $79.5 billion in 1988.