Television digest with electronics reports (Jan-Dec 1956)

17 Financial & Trade Notes: Zenith Radio Corp. reports year ended Dec. 31, 1955 showed consolidated net profit of $8,034,491 ($16.31 per share), up 41% from the $5,676,264 ($11.53) of 1954 and highest for any complete fiscal period with exception of the $8,479,390 ($17.22) earned in proforma 12-month period ended Dec. 31, 1950. Consolidated 1955 sales of $152,905,005 were also second highest in company’s history, comparing with $138,608,360 in 1954 and record $166,733,276 in 1953. Pres. Eugene McDonald stated Zenith sold its greatest number of TV sets in 1955, enjoying 33% increase as against industry average of 5%. Operations and earnings, he stated, were favorably affected by cost savings from expanded and more efficient facilities as well as from increased sales volume. He stressed Zenith’s “Flash-Matic Tuning,” the flashlight remote control which he said “permits a user sitting in an easy chair across the. room to shut off the sound to eliminate long annoying commercials . . .” Note: Zenith has been one of most actively traded stocks on N. Y. Stock Exchange during the last year, its 1955-56 range having been 142% to 86. It closed March 9 at 136%. jjS * * Sylvania chairman-pres. Don G. Mitchell, amplifying mid-Feb. announcement that his company achieved record $307,371,315 sales in 1955, up from $281,641,987 in 1954 (Vol. 12:7), predicted in annual report this wee>k that volume of entire electrical-electronics industry will reach new high of $18.7 billion this year as against $17.4 in 1955. He also noted that Sylvania has doubled its volume in 10 years. Profit for 1955 was $13,812,970 ($4.29 per share), up 46% from $9,480,941 in 1954 ($2.92). About one-fourth ($74,000,000) of Sylvania’s 1955 business consisted of defense sales, up 6% from 1954. TV picture tube sales set new records, receiving tube volume was far ahead, and company increased business in specialized electronic products such as transistors. In atomic energy field, its work now includes development & production of fuels, reactor components & materials, and research on separating & recovering spent fuels, besides participation in many commercial reactor projects. Sharp increase in international sales of TV picture tubes, fluorescent lamps & photoflash bulbs was reported, and wholly-owned Sylvania Electric (Canada) Ltd. showed 50% increase in sales. >i> « * * Skiatron Electronics & TV, traded in American Stock Exchange and a prime mover for subscription TV, is reported in Wall Street Journal to have increased sales in 1955 to around $225,000, up from $223,119 in 1954; profit of $2000, up only slightly from $1943 in 1954, reduces earned surplus deficit below $57,000. Govt, backlog was $500,000 at end of Jan., reports pres. Arthur Levey. Electronics Corp. of America reports sales of $11,301,456 and net profit of $446,840 (59^ per share) in 1955 vs. $5,590,210 & $162,106 (lOi#) in 1954. Military contracts ran higher than anticipated, reports pres. Arthur G. Metcalf. Emerson Radio’s consolidated net profit after taxes was $163,825 (8^ per share) for 13 weeks ended Jan. 28 vs. $499,392 (26^) for same period last year. Canadian Marconi Co. reports 1955 net income of $1,007,065 {224 a share) vs. $1,083,590 (24«S) in 1954. * * Dividends: Erie Resistor Co., 20^ March 15 to stockholders of record March 10; Webster-Chicago, 25^ March 26 to holders March 16; Columbia Pictures, 30^ April 30 to holders March 30; Decca Records, 254 March 30 to holders March 19; Dynamics Corp. of America. 10<f March 31 to holders March 19. Among officers’ & directors’ stock transactions reported by SEC for Jan.: Ross D. Siragusa bought 2000 Admiral, holds 243,647 personally and 69,808 thni children’s trusts; Edward L. Hyman sold 2500 AB-PT, holds 10,000; Robert H. O’Brien sold 7000 AB-PT, holds 5600; Simon B. Siegel sold 2000 AB-PT, holds, 3100; Robert M. Weitman (now CBS-TV) sold 6500 AB-PT, holds 6033; Herman H. Kahn bought 500 Avco, holds 1000; Matthew A. McLaughlin bought 150 Avco, holds 175; A. B. Newton bought 200 Avco, holds 200; Henry J. Oechler bought 100 Avco, holds 100; Thomas A. O’Hara bought 1000 Avco, holds 2595; E. R. Piore bought 100 Avco, holds 200; Harry D. Belock bought 300 Belock Instrument, holds 237,370; Thomas F. Hanley bought 100 Belock Instrument, holds 41,232; Wm. G. Laffer bought 200 Clevite, holds 3408; Horace M. Albright bought 100 Consolidated Electronics Industries, holds 100; Felix Weiss sold 100 Cornell-Dubilier, holds 10 thru joint tenancy; Benjamin Abrams bought 1500 Emerson, holds 229,366 personally and 90,039 thru trusts & foundations; L. B. Richards sold 200 General Dynamics, holds 4730; Carleton Shugg sold 800 General Dynamics, holds 6350; Dr. W. R. G. Baker bought 461 GE, holds 7433; C. J. Hendon sold 1000 GE, holds 1415; W. V. O’Brien bought 2000 GE, holds 2807; Philip D. Reed sold 1000 GE, holds 5300; Hubert S. Conover bought 200 Indiana Steel Products, holds 840; Harry A. Ehle sold 500 International Resistance, holds 16,500; Richard A. O’Connor sold 500 Magnavox, holds 54,793; Robert A. Kerr bought 400 Olympic Radio, holds 400; Adolphe A. Juviler, thru holding companies, bought 5500 Olympic, holds 8219 personally & 5500 thru holding companies; E. Dorsey Foster bought 100 RCA, holds 500; Charles M. Odorizzi exercised rights to buy $9600 worth of RCA convertible debentures, holds $9600; Jeffrey S. Granger sold 200 Sentinel Radio, holds 1500 personally & 800 in partnership; Edward O. Boshell bought 300 Westinghouse, holds 400; Edward Hopkinson Jr. bought 100 Westinghouse, holds 200; Robinson S. Kersh bought 100 Westinghouse, holds 660; Arthur W. Page bought 100 Westinghouse., holds 260; A. W. Robertson bought 300 Westinghouse, holds 500; Charles M. Odorizzi bought 400 Whirlpool-Seeger, holds 400. Avco stockholders are asked, in proxy statement for April 12 annual meeting to approve increase from present 76,394 shares to 250,000 the number to be reserved for new stock options designed to attract key personne.l, notably scientists. Option price must be at least % point above closing market price of common on date granted, may never be less than $5.75 per share. (Avco closed March 9 at 6%.) Report shows 63 persons, including 17 officers, now holding options to purchase 220,000 shares; chairman-pres. Victor Emanuel (1955 salary: $125,000) had options on 75,000 shares as of Feb. 26, 1956; director & recently resigned v.p. W. A. Mogenson ($75,000), 15,000 shares; Crosley Bcstg. Co. chairman & Avco dii-ector James D. Shouse ($75,000), 12,500; director R. S. Pruitt, 5000 — all at 6% — and finance v.p. K. R. Wilson Jr. ($32,083), 8000 at 6%. Whirlpool-Seeger earned $14,129,908 ($2.70 per common shai’e) after taxes of $20,755,655 on sales of $280,362,765 in 1955. Annual report added together the earnings & sales of Whirlpool Corp. & Seeger Corp. as separate companies from Jan. 1 to Sept. 15, when merger became official, and of the merged operations from Sept. 15-Dec. 31. RCA’s stove & air conditioning depts. were combined with Whirlpool-Seegor as part of merger. Report noted that if RCA’s operations had been included for full year, earnings would have been $14,638,752, sales $301,695,814. Total current assets as of Dec. 31 were $89,240,194. total current liabilities $44,099,086, working capital $45,141,108.