Avco Financial Services’ 1985 Earnings Drop 25%

Avco Financial Services Inc. said Wednesday that its 1985 earnings dropped 25% to $76.8 million from $102.5 million, largely because of losses from the sale of several business divisions and the company’s corporate headquarters and the setting aside of insurance loss reserves. However, officials said the Irvine-based company’s operating earnings--exclusive of the extraordinary losses--totaled $117.2 million compared to $97.5 million during 1984.

Avco Financial Services is a wholly-owned subsidiary of Textron Inc. of Providence, R.I. Its three operating groups provide insurance and consumer financial services both in the United States and overseas.