KNUTSON MORTGAGE <KNMC> SEES STRONG SECOND QTR Knutson Mortgage Corp said it expects strong earnings performance for its initial fiscal second quarter earnings ending March 31 since going public in September 1986. Albert Holderson, Knutson chairman, said he expects earnings of about 40 cts per share for the quarter as a result of a strong mortgage business during the quarter. Knutson earlier declared a quarterly dividend of 10 cts a share, versus 10 cts a share prior, payable April 13 to shareholders of record March 13.