Television digest with electronic reports (Jan-Dec 1954)

13 Financial St Trade Holes: National Union Electric Corp., which last week disclosed proposed sale of its picture tube facilities at Hatboro, Pa. to Sylvania (Vol. 10:48), will receive $1,516,000 in transaction, it was revealed in proxy notice to stockholders calling special meeting Dec. 10 in Wilmington, Del. to ratify purchase. Company proposes to use part of proceeds from sale to acquire another business. Proposal for such acquisition would be submitted to stockholders at or before next annual meeting in May 1955, statement said. Secy. Joseph V. McKee Jr. declined to identify company in advance. Purchase price in Sylvania deal is broken down as follows: $1,125,000 for facilities, $141,000 for tube machinery and equipment on order, $250,000 for inventories of CR tubes and related materials. As of Oct. 10, 1954, these were valued on company’s books at $1,470,913. The plant itself was acquired in 1948 for $319,839. Following sale, which must be ratified by Dec. 15 and concluded by Dec. 30, company’s net worth, based on Oct. 10 position, would be $3,081,398 ($2.07 per common share). “Giving effect to the sale, $1,570,297.46 of assets would be in cash, $1,600,659.19 would be in accounts receivable, about half of which would be reduced to cash within 60 days in the normal course and the remainder within 6 months, and $1,170,868 in other assets,” statement said. Continuing in electronics through its transistor div. and research lab at Orange, N. J., company proposes to reduce its personnel from 450 to 80 employes. As of Nov. 17, company had 1,375,766% common shares and 232,200 preferred outstanding, each share representing one vote. Some 255,600 common shares and all of preferred (representing 30.34% of outstanding voting securities) are held by officers and directors of company as a group. Officers are C. Russell Feldmann, chairmanpres.; A. Melvin Skellett, manufacturing & engineering v.p.; John M. Kellie, treas., and McKee. Directors are Feldmann, Skellett, McKee, Harry E. Collin and Frank L. Taylor. Feldmann is beneficial owner of all preferred stock and 21,500 shares of common, together constituting 15.78% of voting securities. Collin owns 219,000 shares of common directly; additional 70,500 shares owned bene ficially by his wife bring their combined holdings to 18%. of voting securities. Tracing company’s history, statement said CR tube production proved profitable from 1949-53, though profits declined each year. Receiving tube production was discontinued in 1953. For fii-st 10 months of 1954, National Union had net loss of $822,735 on sales of $5,255,455, compared to profit of $267,302 on sales of $10,546,665 in corresponding period of 1953. For all of 1953, earnings were $166,459 on sales of $12,158,045. ❖ * * Emerson Radio’s sales for fiscal year ended Oct. 31 set new record of about $80,000,000, compared to $75, 926,546 in preceding fiscal year, pres. Benjamin Abrams told meeting of bankers and insurance executives in N. Y. this week. Profits, however, were equivalent to about fiO^* per share, or considerably below the $2,988,432 ($1.54) earned in preceding fiscal year. He said 60% of company’s business in last fiscal year was in TV, 20% govt, contracts, 10%f radio, 10% air conditioners & oil burners. For current fiscal year, he said he expects 20% increase in sales. He estimated Emerson’s current net work at about $20,000,000. (For his remarks on color, see below). Dividends: Zenith Radio, 50^ quarterly plus $1 extra, both payable Dec. 28 to stockholders of record Dec. 12; Arvin, 40^^ Dec. 29 to holders Dec. 13; American Phenolic, 12V2(' Jan. 28 to holders Jan. 14; Decca Records, 17%(' Dec. 29 to holders Dec. 14; Muter Co., 15<J Dec. 31 to holders Dec. 15; Erie Resistor Co., 20^ Dec. 15 to holders Dec. 8; RCA, quarterly 25(' plus extra 35if Jan. 24 to holders of record Dec. 17. Allen B. DuMont Labs earned $612,000 (22<‘ per share) on sales of $67,593,000 in 40 weeks ended Oct. 10, compared to $935,000 (36<f) on $65,896,000 in corresponding period year ago and $359,000 (ll«f) on $52,128,000 same 1952 period. For all of 1953 DuMont earned $1,544,782 (OOO on record sales of $91,828,982; in 1952 earnings were $1,424,603 (55<0, sales $76,166,782. Electronics Corp. of America, Cambridge, Mass., was listed on American Stock Exchange as of Dec. 1. ADLAI E. STEVENSON, acting as attorney for RCA in his first legal case on resuming practice after 8 years, \vas turned down without comment by U. S. Supreme Court Justice Sherman Minton Dec. 2 w'hen he moved to stay pre-trial examinations in $16,000,000 Zenith-Rauland anti-trust suit against RCA, GE & Western Electric pending in Chicago Federal court. He asked that the proceedings be held up pending trial of the original issue in Delaware Federal court, due to be set for trial Jan. 4. On Dec. 3, Judge Igoe in Chicago Federal court also denied RCA’s motion for stay in taking of depositions, due to begin in N. Y. Dec. 6 (Vol. 10:48). Judge Igoe, however, set for argument Jan. 7 RCA’s motion to dismiss because of statute of limitations, and also on that date will hear RCA motion that the court define scope of the pre-trial depositions. Net effect of the legal maneuvering — with Zenith bent on getting Chicago case tried first and RCA on getting Delaware case tried first — is that depositions start Dec. 6 in N. Y. law offices of Zenith-Rauland counsel, Pennie, Edmonds, Morton, Barrows & Taylor. Zenith originally sued RCA in Delaware in 1946. RCA filed counterclaims, charging patent infringements. Zenith-Rauland then raised anti-trust issues in counterclaim suit in Chicago. Gov. Stevenson is counsel in Zenith suit only, not in Dept, of Justice’s recent civil suit against the RCA patent pool in N. Y. Federal court fVol. 10;'17-48). Rt'A will uiguc before •N. Y. Federal Judge KiUiX on Dec. 8 that govt, case should be transferred to Wilmington. Color set sales will be negligible in 1955 because of price and programming limitations, Emerson pres. Benjamin Abrams predicted this week. Speaking to special group representing investment trusts, banks and insurance companies, meeting in offices of Hayden, Stone & Co., N. Y. Dec. 1, he stated: “We might as well be realistic — the prices cannot be sufficiently reduced next year to attract the public. Furthermore, the consumer will not be induced to part with his money when he learns next year that color programming will continue to be presented on a sporadic basis. Some sales of color receivers will be made, of course, but not until 1956 will color TV play a vital role in our industry.” He also said he expects transistorized TV sets will be offered next year. Later, in interview with Retailing Daily, Mr. Abrams was quoted as saying Emerson will have 21-in. color set on market by next March or April; that he sees limited output at least through first half of 1955; that if by time of Emerson’s distributor convention next summer the prices of color components make it possible to market a color set for around $500, “We’ll go full steam ahead.” Gen. Walter Bedell Smith, recently resigned Undersecretary of State, now vice chairman of American Machine & Foundry Co., has been elected to ItCA boaid of di] (clorr, lie was C<n. Eisenhower’s chief of sl.nlf dining Woi Id Wai' II. lie’s an addition to the board, last having been Dr. E. W. Engstrom, replacing Adm. Walter A. Buck.