Television digest with electronic reports (Jan-Dec 1954)

11 Financial & Trade Notes: rca’s 1953 sales soared to a!i-time high of $853,000,000, up 22.9% from previous high of $693,941,000 in 1952, which was 16% above 1951’s $598,955,000. Net profits were $35,022,000 ($2.27 per share), up from $32,325,000 ($2.10) earned in 1952 and $31,193,000 ($2.02) in 1951 but considerably down from the record $46,250,000 ($3.10) earned in 1950. Annual report released Feb. 27 showed Federal and local taxes more than double net profits — amounting to $75,673,000 ($5.39 a share). Total current assets at end of year were $349,735,000 vs. $304,367,000 at end of 1952 and $255,993,000 at end of 1951. Shipments to armed forces accounted for 19% of sales and current backlog of govt, orders was about $500,000,000 at year’s end. Additions to plant and equipment during year amounted to $33,644,000. There were 65.000 employes at year’s end, up 1000 from 1952, and payroll of $281,769,00, compared to $233,848,000 in 1952. There were 177,000 stockholders as of Dec. 31. Combined gross of RCA Victor, RCA Laboratories and RCA International was $645,117,000 (75.6% of total sales), compared to $507,354,000 (73.1%) in 1952. NBC grossed $176,052,000, of which 80% was achieved by TV, compared to $162,521,000 in 1952. In joint statement by chairman David Sarnoff and pres. Frank Folsom, RCA listed among 3 most significant achievements (1) magnetic tape recording of TV programs in both color and black-&-white (Vol. 9:49); (2) new method to convert radioactivity into electricity (Vol. 10:5); (3) continued development and new applications of transistors. Turning to future, statement said RCA Laboratories was continuing to work on each of those achievements and in addition was developing “tid-color viewing tube in various sizes, projection-type color TV receivers, and an experimental tri-color camera tube designed to take the place of 3 color pickup tubes used in RCA’s present color TV cameras.” <: * * * General Electric’s 1953 sales set all-time record of $3,128,127,000, increase of 19% over $2,623,888,000 reported in 1952. Net eamings for 1953 were $165,728,000 ($5.75 a share), 9% higher than $151,720,000 ($5.26) in 1952, but below 1950’s record high of $173,423,702 ($6.01). GE board Feb. 26 proposed to split common stock on 3-1 basis. The 247,000 stockholders will be asked to approve split at annual meeting in Schenectady April 20; approval by holders of two-thirds of stock on March 19 is I'equired. Stromberg-Carlson reports net profit of $1,667,308 ($3.40 a share on 484,551 common shares outstanding) after taxes of $3,440,000 on peak sales of $65,241,861 in calendar 1953, compared to profit of $1,240,746 ($3.28 on 337,484 common shares) on $48,098,209 in 1952. Pres. Robert C. Tait told directors nearly all preferred stockholders had taken advantage of priority to buy or convert 80.000 shares of 4% convertible stock (Vol. 10:8), with result that only 227 shares were redeemed, and entire issue is now retired. We.stern Electric, manufacturing subsidiary of AT&T, reports earnings of $52,604,613 on record sales of $1, 507.953.000 in 1953, compared to profit of $47,081,705 on $1,311,332,000 in 1952. Sales to AT&T companies represented 67% of total. Billings to govt, accounted for additional 20%. Television-Electronics Fund, Chicago, reports net assets as of .Ian. 31 at all-time high of $31,509,881, $7.19 a share after distribution of 21 <* a share, compared with $6.92 a share 3 months earlier. Shares increased to 4,384,527 from 4.091,842 during 3 months. Among oflScers’ and directors’ stock transactions reported by SEC for Dec.: Robert L. Huffines Jr. sold 1000 AB-PT, holds none; Edmund Ludlow bought 100 Arvin, holds 1800; James D. Shouse bought 1500 Avco (Nov.), holds 5050; Clarence Francis bought 100 Bendix Aviation, holds 100; Leon Levy bought 800 CBS “B,” holds 40,900; Allen B. DuMont bought 500 DuMont (Nov.), sold 3000, holds 42,900; Edward J. Kelly bought 500 Emerson, holds 1000; John M. Otter bought 2000 Philco (May & Oct.), holds 5312; Wm. Gammell Jr. sold 200 Raytheon, holds 13,300; Frederick Straus sold 600 Trav-Ler, holds 400. Dividends: Sylvania, 50d payable April 1 to stockholders of record March 10; Stromberg-Carlson, 37% d March 31 to holders March 15; Hoffman Radio, 25(? March 15 to holders Feb. 26; Sprague Electric, 40^ March 15 to holders Feb. 27; General Precision Equipment Corp., 40^ March 15 to holders March 5; Aerovox, 15d March 15 to holders March 1; Bendix Aviation, 75i? March 31 to holders March 10; Radio Condenser, 5d March 22 to holders March l;Wells-Gardner, 15d March 15 to holders March 4; Admiral, 25c March 31 to holders March 16; WJR The Goodwill Station, lOd March 12 to holders March 4; GE, $1 April 26 to holders March 19. Magne-Tronics Inc., 122 E. 42nd St., N. Y. 17, is new company headed by Percy L. Deutsch “to operate in the over-all audio and visual fields and primarily to promote the recording and reproduction of sound on magnetic tape.” Company’s first project will be to offer musical tapes for industrial, office and restaurant use beginning March 15. Magne-Tronics v.p. is Joseph F. Hards, pres, of Magnetic Recording Industry Assn, and ex-v.p. of Audio Video Tape Laboratories. Gabriel Co. reports net profit of $214,642 (35^ a share) after taxes of $162,000 on sales of $21,976,182 in calendar 1953, compared to $13,927 (210 after taxes of $7200 on sales of $17,888,893 in 1952. P. R. Mallory & Co. reports net profit of $2,547,813 ($3.74 a share) on sales of $70,874,347 in calendar 1953, compared to earnings of $1,897,772 ($3.12) on $53,443,117 in 1952. Philadelphia TV sales in Jan. 1954 totaled 10,591, down from 16,200 in Jan. 1953, according to Philadelphia Electrical Assn. B “Seeding” TV audiences with uhf converters is plan suggested to uhf station executives by pres. Horace Atwood Jr. of Industrial TV Inc., Clifton, N. J., which makes converters, boosters and other electronic items. In exploratory letter this w^eek to heads of uhf stations, Atwood said his company has new converter — -not yet offered through trade channels — which could be made available to stations in lots of 1000 at about $10 each. He suggests stations run promotional contests — perhaps in “partnership” with servicemen or jobbers — -with converters as prizes for 1000 best entries. Planting 1000 new families in uhf audience, he says, would mean: (1) “at least $20,000 of installation business for the installation-service trade in your area,” (2) at least $10,000 in antenna and installation business for parts jobbers, (3) greater stimulation of further converter sales through increased interest in station. First “.stereophonic TV” program will be WNBQWMAQ-WMAQ-FM simulcast in Chicago March 7 of NBC-Chicago orchestra concert. Program is in regular AM-FM series. New Dimensions, w'hich broadcasts weekly experimental “3-D sound” programs, involving use of AM & FM receivers spaced 5-12 ft. apart to recreate directional sound — but addition of TV will be innovation. To get stereophonic effect, viewer or listener must have .A.M set and TV or FM receiver, but conventional reproduction of progi-am is obtainable on any set.