Television digest with electronics reports (Jan-Dec 1956)

13 Financial & Trade Notes: Westinghouse lost $i 6,000, 000 in first quarter of 1956, as result of 156-day strike at 30 consumer products plants, pres. Gwilym A. Price told annual stockholders meeting April 4. Strike ended March 21. Loss amounted to about $1 a share, comparing with net profit of $12,782,000 (75^) in first quarter of 1955 and loss of $1,037,000 in 4th quarter of 1955. Strike cost company $300,000,000 in billings, he said. Earnings will be adversely affected during second quarter because of delay in billings, said Price, adding that he hoped present dividend rate will be maintained and that in future Westinghouse would allot about 50% of its net earnings for dividends. “The financial structure of the company has remained sound through the rigid economic measures effected during the strike,” he said. “With production just getting under way at many of our plants, it is impossible to forecast accurately what the results are likely to be in the second quarter,” he commented. “For all of our consumer products — refrigerators, ranges, TV receivers, lamps and many others — and also for numerous of our industrial products, it will require weeks and in some cases months to refill the pipelines to our distributors and dealers.” [For details of Westinghouse’s TV-radio-appliances “comeback” plans, see p. 10.] IT&T set new sales and profit records for 1955, with consolidated net sales of $448,378,128 and net income of $23,070,327 ($3.21 a share), compared to 1954’s net sales of $372,638,805 and income of $20,068,525. However, financial report stated that TV-radio manufacturing subsidiary Capehart-Farnsworth’s sales “were not up to expectations, particularly in TV, and operations for the year showed a loss.” Color TV manufacturing, it said, will probably be continued “just so we can keep our hands in the field, [though] we’re losing money in that particular field, just like all color TV set manufacturers are.” Farnsworth Electronics Co.’s first year was a success, report said, and further expansion is due this year. IT&T’s trend is “away from consumer goods and into the more specialized fields where we can put to good use our research & development facilities.” Report dwelled on expansion in electronics, with emphasis on “unlimited possibilities for expansion and service in automation and the control of atomic power for peacetime use.” There was no mention of current negotiations for merger with office equipment & computer mamrfacturer Underwood Corp., which officials in both companies conceded were in progress last week. GE plans public offering of $300,000,000 of debentures later this spring — its first public financing since 1920. Proceeds will be used for capital expenditures, working capital and retirement of bank loans. It will be one of largest blocks of corporate debt securities over underwritten for public offering. Details will be disclosed when registration is filed with SEC, expected within 2 weeks. GE issue will be underwritten by nationwide group of investment firms headed jointly by Morgan, Stanley & Co. and Goldman, Sachs & Co. GE 2 weeks ago borrowed $100,000,000 from commercial banking sources to provide funds for its March 15 income tax payment, first time since 1946 that company has borrowed for any purpose. Wells-Gardner & Co. earnings last year rose to record $1,221,856 on peak sales of $26,646,745, up from $911,340 on $21,200,318 in 1954. Annual report stated that increase in civilian business more than compensated for decline in Govt, sales. P. R. Mallory & Co. earned $2,225,649 ($2.04 per share) on sales of $63,931,811 in 1955, compared to $1,071,803 (79<f) on $54,630,091 in 1954. OMPENSATIONS paid in 1955 to officers-directors of TV-radio-electronics companies whose financial reports have been summarized during recent weeks; these are as reported in proxy statements (figures in parentheses indicate number of shares of common stock held) : RCA — David Sarnoff, chairman, $200,000 (15,000); Prank M. Folsom, pres., $197,991 (13,108); Elmer W. Engstrom, senior exec, v.p. & exec. v.p. for research-engineering, $96,982 (743); Charles B. Jolllffe, v.p. & technical director, $79,723 (673); John T. Cahill, gen. counsel, $3450 (500) out of $425,000 legal fees paid to firm of Cahill, Gordon, Reindel & Ohl, of which Cahill is senior partner. In addition, directors receiving compensation and holding stock were Harry C. Hagerty, $16,800 (100); John Hays Hammond Jr., $700 out of $60,000 paid for research laboratory services to Hammond Research Corp., of which Hammond is pres.; George L. Harrison, $8800 (1000); Mrs. Douglas Horton, $6550 (300); Harry C. Ingles, $12,900 (100); Edward F. McGrady, $17,550 (200); Wm. E. Robinson, $950 (100); Walter Bedell Smith, $1810 (100). CBS Inc. — Wm. S. Paley, chairman, $225,000 (120,199 Class A, 694,467 Class B); Frank Stanton, pres., $281,522 (106,138 Si 31,288); Edward R. Murrow, $316,076 (936 & 624), primarily as news commentator, excluding $105,600 royalties to Persons to Persons Corp., of which he, his son & mother beneficially own 32 ('2%: J. L. Van Volkenburg, pres, of CBS-TV, $115,000 (8115 & 624); Arthur Hull Hayes, pres, of CBS Radio, $42,307 (122 & 0); Henry C. Bonflg, pres, of CBS-Columbia, $40,154 (none); Charles F. Stromeyer, pres, of CBS-Hytron, $59,999 (7110 & 6856); James B. Conkllng, pres, of Columbia Records, $74,999 (0 & 312). In addition, Bonfig & Hayes each has option to purchase 7650 shares of Class A common at $27.94 & $21.81, respectively. Bonfig’s options are exercisable for 6 years starting June 8, 1956; Hayes’ options are for 6 years starting Nov. 11, 1956. Admiral — Ross D. Siragusa, chairman-pres., $103,715 (245,467); John B. Huarisa, exec. v.p. & treas., $103,715 (99,731); Wallace C. Johnson, v.p., $54,340 (2200); Vincent Barreca, v.p., $40,965 (435); Edmond I. Eger, v.p., $49,288 (none). In addition, Siragusa’s wife, Irene O. Siragusa, personally owns 430,620 shares and together they own 240,480 shares as trustees for their children. Huarisa’s wife, Wanda Huarisa, owns 13,294 shares and 7200 together as trustees for daughter; Barreca’s wife, Marjorie Barreca, owns 400. Emerson — Benjamin Abrams, pres., $60,008 (228,876); Dorman D. Israel, exec, v.p., $31,980 (1364); Max Abrams, secy .-treas., $39,936 (80,900). In addition, Benjamin Abrams owns 26,869 shares as trustee under various trusts for members of his family, his wife owns 12,470 shares, and aggregate of 63,170 is owned by 3 charitable membership corporations of which Mr. & Mrs. Benjamin Abrams and Mr. & Mrs. Max Abrams are members. Max Abrams also owns 6590 shares as trustee for members of his family, his wife owns 2800 shares, their 2 sons own 26,073. DuMont — Allen B. DuMont, chairman, $50,000 (38,601); Wm. H. Kelley, v.p. -gen. mgr., $45,000 (none); Irving G. Rosenberg, v.p.technical products & govt, manufacturing, $40,000 (none). In addition. Dr. DuMont holds 8000 shares of common in irrevocable trust for benefit of son Allen B. DuMont Jr. Storer Broadcasting Co. — George B. Storer, pres., $75,500 (14,640 common & 1,278,250 Class B common); J. Harold Ryan, senior v.p., $20,616 (5500 & 100,000); Lee B. Wailes, exec, v.p., $71,228 (13,000 & 0); Stanton P. Kettler, v.p., $55,285 (11,200 & 0); Wm. E. Rine, v.p., $49,418 (10,000 & Oj; George B. Storer Jr., v.p. $36,178 (2046 & 0); Charles V. McAdam, director, $200 (5000 & 0). Hazeltine — Jack Binns, chairman, $51,100 (4000); W. A. MacDonald, pres., $55,575 (2300); Jennings B. Dow, exec, v.p., $35,704 (600); L. B. Dodds, pres, of Hazeltine Research, $49,999 (300); W. M. McFarland, exec. v.p. of Hazeltine Electronics, $32,425 ( 310). Zenith — E. F. McDonald Jr., pres., $204,280 (44,193); Hugh Robertson, exec, v.p., $199,230 (1378); Leonard C. Truesdell, v.p. & director of sales, $85,200 (none); Joseph S. Wright, v.p. & gen. couilsel, $61,999 (110). Whirlpool-Seeger — Walter G. Seeger, chairman, $75,000 (40,246); Elisha Gray II, pres., $100,313 (30,900); John S. Holl, v.p., $80,000 (55,687). Texas Instruments — J. Erik Jonsson, pres., $63,600 (505,219); Patrick E. Haggerty, exec, v.p., $60,300 (149,859); Cecil H. Green, v.p., $65,497 (406,314); Fred J. Agnich, exec. v.p. of subsidiary Geophysical Service Inc., $38,019 (32,905). In addition, Jonsson owns 3400 shares as trustee for associate. Philco— See Vol. 12:11, p. 16. ■ Terms of contract with pres. David T. Schultz were revealed by DuMont in proxy statement for May 7 meeting, mailed to stockholders this week. The former Raytheon senior v.p. has 5-year contract at $75,000 a year, continuing through end of 1960 and renewable for another 5 years on same terms. On 6 months notice by either the company or Schultz, agreement may be modified to provide for his employment on part-time consultant basis for remainder of the additional 5-year period, at $30,000 a year. Subject to stockholder’s approval, Schultz was given option to buy 25,000 shares of DuMont stock at $9.81% after Jan. 3, 1958 and before end of 1965. Stock closed April 6 at 8%. Collins Radio earned $2,197,271 ($1.38 per share) on sales of $67,103,794 for 6 months ended Jan. 31, compared to $1,495,572 (98(‘) on $48,214,224 in same period of preceding fiscal year. Backlog of orders totaled $125,000,000 on Jan. 31, as against $155,000,000 same date year ago.