Television digest with electronic reports (Jan-Dec 1952)

10 MORE YEAR-END statements this week from leaders of the TV-radio-electronics industry to add to those we summarized here last week — all continuing in the same optimistic vein in contemplating 1953 outlook. Here’s a distillation of this week’s releases: “TV’s best years and possibly greatest expansion are still ahead,” said RTMA president A. D. Plamondon Jr. He predicted 200 stations on air by end of 1953, with about 40% of population seeing TV for first time next year. Yet, he noted with justifiable satisfaction, with only 60% of the country as a market, 23,000,000 TV sets have been produced so far, of which at least 20,500,000 valued at $8 billion retail are in use. Mr. Plamondon foresees 50,000,000 sets-in-use within 5 years; thereafter, replacement markets that alone will require annual production almost as great as at present. He concluded: “No other great product of American industry has established itself as a virtual necessity of the American home in such a short time. It took the automobile industry 25 years or more to do what TV has done in five. Even in an allied field, it took 10 years to manufacture and sell an equal amount of radios.” RCA chairman David Sarnoff regards lifting of freeze, licensing of new stations and opening up of uhf as most significant steps in TV progress in 1952. He announced that big RCA Service Co. alone will open 34 additional service branches in 1953. Great strides in color were reported by Gen. Sarnoff, who stated: “Field tests have produced further evidence of the practicability and desirability of a compatible system [which] permits owners of existing TV sets to receive color programs in black&-white without any change whatever in their sets.” Philco president Wm. Balderston, on eve of company’s big Boca Raton convention starting Jan. 3, predicts 100 new stations on air in 1953 and output of at least 6,500,000 TV sets, 8,000,000 radios. Philco 1952 sales will hit new record total of $350,000,000, he reported, with defense orders amounting to $160,000,000, compared with total $310,000,000 for 1951. Of color, he said NTSC has made “tremendous strides” toward a fully compatible system, but cautioned that it’s unlikely to go on market “for some years to come.” Dr. Allen DuMont foresees: (1) More than 75 new stations on the air in 1953, of which 50 will be uhf. (2) About $50,000,000 worth of transmitting & studio equipment sold by all manufacturers during the year. (3) Between 6,000,000-6,500,000 TVs produced and sold at retail volume of more than $1 billion, highest production year since 1950 when 7,563,800 sets were produced. (4) More than 8,000,000 picture tubes produced, 2,000,000 for replacements, with 21-in. rectangular most popular and 17-in. holding own as price item. Admiral sales v.p. W. C. Johnson estimated 100 new markets in 1953 should account for sales of 750,000-1,250,000 TV sets next year, bulk of remainder going for replacements or into multiple-set homes. He noted that 50% of some 20,000,000 sets-in-use have screens under 16-in., predicted 21-in. sets will run away with 1953 market. Bound and Indexed We will index and bind, between embossed book covers, a limited quantity of all 1952 issues of the Television Digest Weekly Newsletters, plus the Final Television Allocation Report, plus the semi-annual TV Factbooks with all Addenda, plus all Supplements and Special Reports. This volume will provide a handy and handsome permanent reference for your own or your company library. Orders will be taken only until Jan. 6. Price: $25 per volume. Financial & Trade Koies: TV-radio industry’s 9-month profits in 1952 were about 13% lower than same 1951 period, according to New York Times’ survey of earnings of 512 companies in practically all manufacturing fields. But it predicted that final quarter profits will be best for any 3-month period this year for most manufacturers. Combined net income of the 512 companies declined 9% for first 3 quarters of 1952. The 11 companies in the TVradio-records category showed 13% drop in same period — from total profit of $49,533,000 in first 9 months of 1951 to $43,116,000 in same 1952 period. Nine manufacturers of electrical supplies and equipment reversed the trend, showed 9% gain over 1952 — attributed to “sizable earnings advances by GE and Westinghouse.” Home appliances (9 companies) showed 7% decrease. “The 21month downtrend in earnings is likely to be checked only temporarily [in fourth quarter, but] no outright slump is anticipated,” said the Times. Control of RKO Pictures was recaptured last week by Howard Hughes, who sold his 29% interest in company 2 months ago to syndicate headed by Ralph Stolkin for some $7,000,000 (Vol. 8:38-40,43). Hughes was named Dec. 12 to head new RKO board. Sherrill C. Corwin, associated with Stolkin in ownership of several AM stations and TV applications, resigned from board. Another associate in Stolkin’s TV-radio enterprises, Edward G. Burke Jr., remains on RKO board. Packard-Bell sales reached new high of $22,724,273 for year ended Sept. 80, but Federal taxes brought net earnings down below fiscal 1951. Profits before taxes were $3,054,411, after taxes $968,051. For fiscal 1951, company’s sales were $18,772,527, profits before taxes $2,805,246, after taxes $1,014,751. Indiana Steel Products Co., for 9 months ended Sept. 30, reports net income of $197,575 ($1.39 a share) compared with $512,545 ($3.58) same 1951 period. For third quarter 1952, net income was $50,816 (37(f) vs. $97,012 (68(f) in third quarter 1951. Oak Mfg. Co. reports sales of $11,013,071 and net income of $745,116 ($1.42 a share) in 9 months ended Sept. 30, compared with sales of $9,774,409 sales and profit of $767,942 ($1.46) for same 1951 period. I-T-E Circuit Breaker Co. reports net profit of $2,535,642 ($8.96 a share) on net sales of $62,837,546 in year ended Sept. 30. * * * * Dividends: Motorola, 37%^ payable Jan. 15 to stockholders of record Dec. 31; Emerson, 104 Jan. 15 to holders Jan. 5; Packai'd-Bell, 254 Jan. 26 to holders Jan. 10; Audio Devices Inc., 34 Dec. 30 to holders Dec. 19; Technicolor Inc., 504 Dec. 30 to holders Dec. 19; Reeves Ely Labs, 104 Dec. 29 to holders Dec. 18; Canadian GE, $2 plus $4 extra Jan. 1 to holders Dec. 19; IT&T, 204 plus 54 extra Jan. 21 to holders Dec. 19; Davega, 154 Jan. 8 to holders Dec. 29; Hoffman Radio, 254 Dec. 31 to holders Dec. 23; StewartWarner, 354 extra March 7 to holders Feb. 13. Short interest in TV-radio and related stocks on N. Y. Stock Exchange showed these changes between Nov. 14 & Dec. 15: Admiral, 8087 Nov. 14 to 7352 Dec. 15; Avco, 7080 to 4021; GE, 11,348 to 11,801; Magnavox, 6358 to 5675; Motorola, 17,879 to 17,669; Philco, 7097 to 5569; RCA, 23,625 to 25,635; Zenith, 11,241 to 10,131. ■ Reviewing “electronics in solids” and transistors in particular, RCA chairman David Sarnoff devotes considerable space to subject in year-end statements, says: “Scientists are acknowledging electronics in solids as one of the most dramatic steps in technical progress . . . Like the electron tube, the transistor is a master key to the continuing expansion of electronics.”