Allied Research Corp., a Baltimore-based defense contractor, reported record earnings in 1991, driven by sales to foreign countries.

Reinald W. Carter, president and chief executive officer, said the dramatic increase in earnings reflected the company's new strategy of focusing on products with short-term payoffs, expanding automated production and controlling costs.

Company spokesman Richard Farrell said Allied Research benefited from increased orders for ammunition from Third World countries. The company was especially successful marketing its anti-armor ammunition, he said.

Allied also credited cost-control measures, including consolidating a Washington marketing office into the Baltimore operations.

"The results reflect more than a turnaround," Mr. Farrell said. "They mark a complete new direction for the company, with emphasis on targeted research and development, production efficiencies and strong management control."

Allied once had manufacturing operations in the area but now has only four employees at its Baltimore headquarters. Its main operation, in Belgium, has 400 to 500 employees. The company also has operations in Elk Grove Village, Ill.

Allied develops and produces ammunition systems, supplies engineering systems for defense departments around the world

and designs products and systems for industry.

Three months ending 12/31/91

... ... Revenue .. ... ....Net . .... .. .. Share

'91 ... 92,819,000 .... 7,143,000 .. .... 1.67

....23,266,000 .....4,884,000 .. .... 1.21

% change .. +298.9 .. ... +46.2 .. .... .. +38.0

Twelve months ending 12/31/91

.. .... ..Revenue... .... .. Net... .... ...Share

.. .174,677,000... ... 14,229,000 . .3.38

'90.. ... .. 51,243,000.. ..23,000 .. .. .0.01

change.. .. . +240.9.. ...+61,765.2. .. +33,700