The company said 1988 net income included a $417,000 pretax gain from the sale of Falls' service corporation's investment in a parcel of real estate.

Prior-year net from operations includes non-recurring pretax gains of $4,007,000.

The National Semiconductor Corporation today reported improved results that were helped by reduced operating costs and a special pretax gain of $8.5 million from patent licensing fees.

The sale is expected to result in a one-time pretax gain of $14.6 million for Cleveland-based Ameritrust.

That figure compares with $166 million a year earlier, although the 1999 quarter includes significant one-time pretax gains, related to selling and swapping some cable assets.

The analysts said that Morgan's operating profits this quarter were nearly 12 percent higher than those of 1988, if the unusual pretax gains were not counted.

The special items included a one-time pretax gain of $567 million from the sale of shares in Excite Inc.

But earnings were inflated by a special pretax gain.

Excluding a one-time pretax gain, earnings would have been 10 cents a share, the company said.

As a result, the company said it would report a net pretax gain from this year's divestitures of approximately $200.8 million, or 99 cents a share.