Radio age research, manufacturing, communications, broadcasting, television (1941)

iifh Ci "t^Hmrvm ►5r I RCA STOCKHOLDERS MEET New Peaks of Prodiictioitij and Seroice Reached by Compamj. Sarnoff Reports—Preliminary Steps for Reconoersion Outlined. WITH all of its facilities con- tributing to the supreme task of helping to win the war, the Radio Corporation of America, dur- ing the past year, reached new peaks of productivity and service in every phase of its operations. Brigadier General David Sarnoff, President, announced May 1, at the 26th Annual Meeting of RCA stock- holders in an NBC studio in New York. He declared also that all divisions of the company have made plans and are taking preliminary steps to resume peacetime activities and development as soon as condi- tions permit. The company's pres- ent working capital of approximate- ly $60,000,000, General Sarnoff added, should be sufficient for re- construction and expansion in the postwar period without necessitat- ing the raising of additional capital through long-term borrowing. In reporting operations in the first quarter of 1945, General Sar- noff revealed a gross income of $85,385,000, an increase of 8% over the corresponding period of 1944. Net profit after taxes was $2,987,000, an increase of 24-"f over the first quarter of the previous year. Earnings per common share [36 RADIO AGE] after taxes increased from 11.6 cents per share to 15.8 cents for the quarter. Federal income taxes amounted to $9,157,000. an increase of 14'^, over the first quarter of 1944. Unfilled Orders Decrease Unfilled orders of RCA manufac- turing plants on April 1, 1945, totalled approximately $180,000,000 compared with $300,000,000 on the same date a year ago, a decrease of about 40''f. Orders booked during the first quarter of this year amounted to $62,000,000 compared with $83,000,000 for the same period in 1944, a decrease of 25^/c. After recalling that RCA person- nel had increased from 457 in 1919, when the company was founded, to 38,000 today. General Sarnoff out- lined the pension plan adopted on December 1. 1944 for the employees of the Corporation and its subsidi- aries. The plan, approved by stock- holders at the May 1 meeting, is open to all employees and assures them the security of an income upon retiring. "Stockholders," General Sarnoff said, "benefit from a Re- tirement Plan, for it offers encour- agement to younger men to remain RCA STOCKHOLDERS CROWD STUDIO 6A IN RADIO CITY TO HEAR THE 26tH AN- NUAL REPORT BY BRIGADIER GENERAL DAVID SARNOFF. PRESIDENT (INSET ABOVE). DIRECTORS OF THE COMPANY ARE SEATED AT THE LO.NG TABLE ON EITHER SIDE OF PRESIDENT SARNOFF. in the service of the company dur- ing their most effective years and attracts others to enter its service. Systematic retirements keep the ranks younger and the lines of pro- motion open. Thus the interests of the company and its stockholders are promoted by maintaining vigor- ous, competent personnel and by a higher morale throughout the or- ganization. Maximum efficiency, loyalty and enthusiasm are stimu- lated. These are factors upon which the future of the company de- pends." General Sarnoff told the stock- holders that more than 90*^, of the employees eligible to participate have enrolled in the Plan and that 98'"r of the voting stockholders had approved the Plan. All-Time Gross Profit is 9% During the first 25 years of the company's existence—from 1919 to the end of 1944—RCA's profits, be- fore Federal Income Taxes, totalled $237,000,000. This, General Sar- noff said, repre-sents a profit of 9% on the gross business. Federal Income Taxes amounted to $114,000,000. leaving a net profit of $123,000,000. an average net profit over the 25 year period of nearly 5'"r, after taxes. "During the first year of the company's operation," General Sar- noff stated, "the gross business was