Television digest with electronic reports (Jan-Dec 1952)

Financial & Trade Notes: Among officers’ and direc tors’ stock transactions reported by SEC for Dec. 11, 1951 to Jan. 10: Maurice S. Despres bought 100 Admiral, gave 100 as gift, holds 3900; Irene O. Siragusa gave 2500 Admiral as gift, Ross D. Siragusa gave 1500 Admiral as gift, together hold 732,732 personally and through trusts and foundations; Irving B. Babcock exercised option to buy 10,000 Avco, holds 10,797 common, 25 pfd.; W. A. Mogensen exercised option to buy 3446 Avco, holds 10,000; R. S. Pruitt exercised option to buy 10,000 Avco, holds 31,420 common, 781 pfd.; Ralph F. Colin gave 28 CBS “A” as gift, holds 1000; Allen B. DuMont gave 600 DuMont “A” as gift, holds 54,400; Max & Helen Abrams Foundation bought 800 Emerson; Max Abrams holds 153,640 personally and through trusts and foundations; John H. Briggs bought 7200 Gabriel, holds 21,988 common, 2750 pfd.; S. Sloan Colt inherited 90 GE (Oct.), holds 2290 personally and through trusts; J. Harry LaBrum bought 100 Hallicrafters, holds 100; Hickey & Co. sold 600 Motorola, holds none, M. J. Hickey Jr. holds 2500; William Balderston gave 960 Philco as gift, holds 6208; Harold W. Butler gave 70 Philco as gift, holds 11,145; Larry E. Gubb gave 145 Philco as gift, holds 28,785; Leslie J. Woods gave 300 Philco as gift, sold 1200 (Mar.-Sept. 1951), holds 8805; James T. Buckley gave 200 Philco as gift, holds 19,787; Robert L. Werner bought 100 RCA, holds 100; John J. Smith bought 500 Sparks-Withington, holds 4400; James O. Burke gave 200 Standard Coil as gift, holds 339,660; R. E. Peterson gave 2700 Standard Coil as gift, holds 197,880; Glen E. Swanson gave 5200 Standard Coil as gift, holds 414,210; John S. Learoyd sold 200 Sylvania, holds 387; Don G. Mitchell gave 70 Sylvania as gift, holds 3004; A. H. Blank gave 1500 United Paramount Theatres as gift, holds 3095 personally and through trusts; E. F. McDonald gave 77 Zenith as gift, holds 42,114 personally and through Seneca Security Corp. New York Stock Exchange reports Thomas A. Kennally sold 1832 Philco in January, holds 18,102. Magnavox earned $587,795 (79tf a share) on sales of $15,702,911 in the 6 months ended Dec. 31, 1951 vs. $1,814,500 ($2.53) on $25,788,921 same 1950 period. Second quarter net earnings after taxes were $567,428 on sales of $10,691,871 vs. $1,033,878 on sales of $15,575,083 same 1950 quarter. President Frank Freimann’s report noted that increasing portion of company’s capacity is being shifted to defense production, and forecast TV-radio business will improve in second half of current fiscal year. Dividends: Magnavox, 37 payable March 15 to stockholders of record Feb. 25; Cornell-Dubilier, 30d payable March 28 to holders Feb. 26; Electrical & Musical Industries Ltd., 4c from sale of subscription rights, payable March 4 to holders Feb. 19; Paramount Pictures, 50 4 payable March 28 to holders March 17; 20th Century Fox, 50tf payable March 29 to holders March 14; Warner Bros., 25<f payable April 4 to holders March 3. Walt Disney Productions reports net profit of $429,840 (65tf a share) in year ended Sept. 29, 1951, vs. $717,542 ($1.06 a share) in previous fiscal year. Gross income was $6,287,538 vs. $7,293,859 in previous year. Chatham Electronics Corp., Newark, N. J., has been awarded $988,460 five-year 5% RFC defense production loan to build plant for production of thyratron radar tubes. Army will provide some $2,500,000 worth of equipment for plant. Federal Telephone & Radio Corp. (IT&T) sets up mobile radio communications dept, at Passaic plant to handle equipment in that field formerly made by Capehart-Farnsworth. Mobilization Notes: Stretching out of defense target dates — especially aircraft production goals (Vol. 8:6) — has resulted in revised estimates of military electronics production for 1952. Roughly, the Pentagon estimates current going rate of defense electronics production at $1.5 billion on annual basis. By midyear rate should reach $2.5 billion, and by end of 1952 military output of electronics industry should be at annual rate of $3.5 billion. These figures, passed on to the NPA, pose problem for materials planners. Electronics Div. is now working out schedules to balance materials allotments with anticipated military production for 1952. Toughest problem is to determine proper levels at which to support production of components, so that component output will mesh with military end product manufacturers’ requirements. Electronics Div. faces similar problem in consumer goods field — coordinating allocations of materials for components with allocations of materials such as carbon steel and copper wire that go directly into TV-radios-phonos. Planning of this type heretofore has been hit-or-miss; in 1952 miscalculations could cause stoppages in military or civilian production. $ * * * Important changes in NPA’s classification of electronic components and end products go into effect with third-quarter CMP applications. These will result in larger allotments of materials for some items, smaller allotments for others. Several new product class codes for electronics have been added to official list, and some products have been moved from one classification to another. For example, uhf converters are now in same class code with home TV-radio receivers — meaning that manufacturers will have to use materials allotted for receivers to make converters. They formerly were listed under “components.” Changes are listed in new Official CMP Class B Product List, available at Commerce Dept, field offices. Defense Dept, has obligated about $4.5 billion for electronics-communications equipment in 18-month period from outbreak of Korean war through December 1951. This is estimate of govt, electronics experts based on Pentagon announcement that it obligated $45.2 billion for “hard goods” during that period — using “rule of thumb” that electronics-communications represents about 10% of hard goods procurement. Some $15.2 billion was obligated for hard goods during last half of 1951. During the 18month period, total of $69.8 billion in obligational authority for procurement of hai'd goods has been made available to Defense Dept. * * * * Tax amortization aid for expansion of electronics production facilities to cost some $3,700,000 was approved by DP A Jan. 19-25. Receiving certificates of necessity for 5-year tax writeoffs were these 12 electronics and related projects (amortized at 65% except where noted): Superior Tube Co., Evansburg, Pa., tubes, $1,100,055; Hughes Tool Co., Culver City, Cal., electronic research, $1,091,085; General Instruments Inc., Dallas, electronic equipment, $1,027,133 (70%) ; Aircraft-Marine Products Inc., Cumberland County, Pa., aircraft & electronic equipment, $160,137 (50%); Electro Craft Inc., Stamford, Conn., electronic communication devices, $101,965; Arma Corp., Brooklyn, electronic instruments, $40,282; Calnevar Co., Los Angeles, electronic equipment, $35,106 (80%); Bogart Mfg. Corp., Brooklyn, electronic equipment, $34,909 (80%); S. Sterling Co. & Sterling Instrument Co., Detroit, test equipment, $25,000 (45%); Raytheon, Boston, electronic equipment, $15,586; Edo Corp., College Point, N. Y., naval ordnance, $15,000 (70%); Magnavox of Ky., Paducah, ordnance, $14,230 (75%).