VARITY<VAT> SEES IMPROVED RESULTS AFTER 1ST QTR Varity Corp, earlier reporting a full year loss against a prior year profit, said improvement is expected in the balance of fiscal 1987 as new products fill the inventory pipeline, cutbacks in operating costs are realized and its newly acquired Dayton Walther business is fully integrated. However, operating results are likely to remain under pressure in the first quarter ending April 30, it said. Varity earlier reported a loss for fiscal 1986 ended January 31 of 23.3 mln U.S. dlrs, compared to a year-earlier profit of 3.9 mln dlrs. Varity said continued deterioration in major markets, a weakening U.S. dollar and unforeseen delays in launching major new lines of tractors contributed to the full year loss. Industry demand for farm machinery continued to erode during the latest fiscal year, with worldwide industry retail sales of tractors sliding more than 10 pct below last year's depressed levels, the company said. However, Varity increased its share of the global tractor market by more than one pct to 18.2 pct, it said. The combined impact of costly sales incentives and foreign exchange adjustments on margins was substantial, Varity said.