Weekly television digest (Jan-Dec 1963)

8-TELEVISION DIGEST MAY 13, 1963 for 19-in. sets), with one-year set replacement guarantee against printed circuit board breakage. Westinghouse also has guarantee plan optional with distributors, providing additional 9-month ports <S labor warranty for all 19-in. Instant-On sets. Warranty on Sylvania b&w TVs provides one-year replacement of all parts <S tubes, guarantee of Halolight power transformer & lighting tube for life of receiver. Sears Roebuck & Montgomery Ward have somewhat similar warranties including labor. Sears warrants all tubes & parts for one year, with 90-day labor warranty (carry-in for portables). Ward's warranty provides for one year on all tubes, 90 days labor (corry-in for portables). Thus, warranty picture remains complex & muddy, with nothing near Linanimity in industry. Many companies will continue to merchandise warranties as selling feature, while others hew strictly to "standard" warranties. Warranty issue therefore should stay hot & controversial for another year. PROFILE OF ELECTRONIC PARTS DISTRIBUTORS: Quietly going about their business, nation's 1,770 electronic parts distributors topped $1 billion in sales last year for first time, or surely will do it this year, according to latest projections. Final 1962 figures aren't in yet, but sizable jump from 1961's S940.3 million sales is evident. Profits in 1962 may be different story, however. Squeeze was on, and if our analysis of 7 major ports distributors is indicative, earnings plunged despite soaring sales. National Credit Office's Market Planning Service says 50% of electronic parts volume is done by 9% of total distributors — those whose armual sales volume exceeds $1 million. We analyzed 7 of these million-doUar distributors: Allied Radio, Arrow Electronics, Harvey Radio, Lafayette Radio & Electronics, Newark Electronics, Radio Shack, Terminol-Hudson Dectronics. Total 1962 sales of these 7 distributors whooshed to $107 million from 1961's $86.9 million. Their earnings dropped to $1.4 million from $2.3 million. However, drop in earnings of the 7 is unduly emphasized by Radio Shack's 6-month loss of $593,590. Sales gains were posted by 6 of 7 distributors. Only Radio Shack declined. But only 2 of 7 — Harvey Radio and Lafayette Radio & Electronics — increased profits, both by sizable margins. Here ore 1962-vs.-1961 sales & earnings of 7 electronic parts distributors: Sales Earnings 1962 1961 1962 1961 Allied Radio (6 mo. to Jan. 31, 1963) $ 32,477,965 $25,957,785 $ 638,764 $ 723,989 Arrow Electronics 5,067,112 4,219,203 110,913 135,406 Harvey Radio (year to Jan. 31, 1963) 7.188.020 4,356,081 357,453 232,592 Lafayette Radio & Electronics (6 mo. to Dec. 31) 15,974,879 12,131,076 482,092 338,897 Newark Electronics (year to Aug. 31) 22,384,646 16,941,429 258,824 368,698 Radio Shack (6 mo. to Dec. 31) 8,024,854 10,432,949 (593,590) 102,206 Terminal-Hudson Electronics 13,917,652 12,884,957 162,770 430,120 TOTALS $107,035,128 $86,923,480 $1,417,226 $2,331,908 Without fanfare, electronic parts distributors hove been riding with changes in electronics industry during past half decade and increasing their volume significantly. From 1957 through 1961, NCO's Market Planning Service found, sales have mushroomed more than 39% to $940.3 million from $671.9 million. In that period, sales of TV accessories declined 2.5% to $82.6 million from $84.7 million — but components sales more than took up slack with 75.9% surge to $359.7 million from $204.6 million. Battery soles jumped 37.9% to $38.1 million. Test equipment increased 29.8% to $31.1 million. Tube sales jumped 27% to $272 million. Significantly, sales of sets & other devices boomed 38.4% to $135.9 million, represent industry's 3rd highest volume producer. Components & tubes still are bread & butter of parts distributor business. In 1961, components led all product categories by accoimting for 38.3% of total parts distributor sales — up from 35.3% in 1960. Tubes were second, with a 28.9% take — down from 1960's 30.5%. Thereafter, product mix is thin. Sets & other devices accounted for 14.4% of 1961 sales; TV accessories, 8.8%; batteries, 4.1%; test equipment, 3.3%; tools & manuals, 2.2%.