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

RCA Business Increase Gain in Volume of Business from SI2S,0()0M(J0 lo S5S6,0U0,U00 ill Lcjst Deault' is Reported at 32nil Meeting of Stoekhohlers N. et earnings of the Radio Corporation of America for the first quarter of this year amounted to $11,901,- 542, representing the best first quarter that RCA has ever had, Brig. General David Sarnoff, Chairman of the Board, announced at the 32nd annual meeting of RCA stockholders held in a studio of the National Broad- casting Company in Radio City, New York, on May 1. General Sarnoff said that volume of RCA business has increased to more tiian four and one-half times what it was ten years ago—from a level of $128,000,000 in 1940 to $586,000,000 in 1950. He reported that during the past ten years, dividends paid to RCA stock- holders amounted to $80,184,000. a sum which he de- clared to be larger than that paid in this period by any other company in the world principally engaged in the radio business. He credited television, which RCA pioneered, planned and engineered, as the spearhead in establishing the new sales records. First Quarter Results The net earnings of $11,901,542 for the first quarter of 1951 represented an increase of $665,311, or 6% over the same period a year ago. After providing for preferred dividends, earnings per common share for the first quarter of 1951 amounted to 80 cents, compared with 75 cents per share for the first quarter of 1950. Consolidated gross income of RCA for the first quarter of 1951 amounted to $185,590,755, or an in- crease of A6%, as compared with that of 1950. A dividend of 50 cents per share on the common stock of RCA was declared by the Board of Directors on April 5, 1951, payable on May 28, 1951, to holders of record of such stock at the close of business on April 20, 1951. "It is the intention of the Board of Directors to place the common stock on a semi-annual dividend basis and to declare such dividends payable in May and November of each year, provided the future earnings of the Corporation justify such action, and we hope that they will," said General Sarnoff. In 1950, RCA paid $58,205,000 in taxes to Federal, State, and local Governments. These payments, which included $7,162,000 in Federal excess profits taxes, and $3,870,000 in social security taxes, were the highest on record, and amounted to nearly three times the total for the preceding year. These taxes are equal to $4.19 on each share of the outstanding common stock. In addition, excise taxes paid by the Corporation in 1950 amounted to $13,948,000, bringing the total taxes for the year to $72,153,000. A total of $15,842,000 has been estimated and pro- vided for Federal taxes on income in the first quarter of 1951. Approximately 2 million dollars of this total are for excess profits taxes. No excess profits taxes were in existence during the first and second quarters of last year. Working Capital General Sarnofi:' reported that approximately A6% of RCA's net profits, earned during the past ten years, had been paid to stockholders, $31,685,000 going to preferred stockholders and $48,499,000 to holders of common stock. The balance of the profits earned during the last decade has been reinvested in the business, he asserted, adding: "Ten years ago, the net working capital of the Cor- poration was $26,695,000. Now it is $130,902,000. The net figure on our balance sheet for plant and equipment, ten years ago, was $28,943,000. Now it is $87,392,000. Stockholders' equity in the Corporation, ten years ago, was $71,717,000. Now it is $172,790,000. Stated percentagewise, these figures show the following increases over the ten-year period: Net working capital 390%. Plant and equipment 202%. Stockholders' equity 141%." On behalf of the Board of Directors, General Sarnoff congratulated RCA's more than 50,000 employees on their "creative efforts and craftsmanship in achieving the splendid results which our reports reveal." He pointed out that in addition to its own employees, it is estimated that the Corporation helps provide employ- ment to an additional 50.000 workers in other compa- nies which last year supplied materials and services amounting to nearly $300,000,000. RCA 'Victor's sup- 12 RADIO AGE