Television digest with electronics reports (Jan-Dec 1956)

14 Financial & Trade Notes: Admiral’s first-quarter profit increased over the $1,239,176 (52<i per share) earned in first 3 months of 1955, but sales were 3% below the $50,034,396 in first quarter year ago. For full year, however, pres. Ross D. Siragusa told annual meeting this week, net profit will be “sharply higher” than the $2,426,866 ($1.73) earned in full 1955, and sales will be 10% higher than the $202,362,000 of year ago. First-quarter 1956 figures are to be released shortly. “We have 2 major expansion programs under way,” he said. “The first will increase our TV production capacity by 20%. It incorporates a 93,000-sq. ft. addition to our major TV plant at Harvard, 111. This is the fifth expansion of this facility since 1946. In addition, we are building another 70,000-sq. ft. section to our other major TV facility in Bloomington, 111.” Siragusa also said that Admiral’s appliance plant at Galesburg, 111., would be expanded this fall to provide “special production capacity for a variety of built-in kitchen equipment.” Foreseeing big expansion in TV, radio & white goods, he declared: “With these prospects, we think it quite possible that our company will need plant facilities sufficient to meet a $500,000,000 sales volume annually by 1961 and we are making long-range plans on this basis.” Stockholders re-elected all directors and approved a restricted stock option plan for officers and key employes. It was announced that 100,000 shares of authorized but unissued capital stock were reserved for the 49 options granted under plan. Note: Canadian Admiral this week reported profit of $1,442,570 on sales of $30,057,188 in 1955, compared to $1,671,037 on $29,977,272 in 1954. * ii> * * Erie Resistor earned $959,433 ($3.19 per share) on record sales of $22,358,644 in 1955, compared to $317,767 (88^) on $14,866,836 in 1954. Pres. G. Richard Fryling said research & engineering programs, initiated several years ago, have made several new products available in volume production, including “PAG” (Packaged Assembly Circuit) system for automatic grouping of components into modular package for quick installation on printed circuit board. Trav-Ler Radio sales in first half of 1956 are expected to approximate the $7,800,000 in first 6 months year ago, pres. Joe Friedman told newsmen following annual meeting this week, adding that second-half sales will be stronger “provided that new products now in progress can be produced in the quantity planned.” He said there were no plans to resume dividend payments; last one was in Jan. 1955. National Co. had net loss of $380,965 on sales of $5,125,607 in 1955, compared to profit of $230,334 (84^() on $7,298,055 in 1954. Pres. Joseph H. Quick attributed loss chiefly to “expenditures for rapid development” of National’s engineering div. Backlog of orders exceeded $4,000,000 at end of 1955, as against $2,600,000 at end of 1954. Decca Records earnings in first quarter of 1956 exceeded the 50^ per share earned in first 3 months of 1955, with record div. sales up 20% and Universal Pictures div. about equal to year ago, pres. Milton R. Rackmil told annual meeting this week. Famous Players Canadian Corp., which owns 50% of CKCO-TV, Kitchener, and 25% of CFCM-TV, Quebec City, earned $2,922,112 ($1.69 per share) in 1955, compared to $3,384,825 ($1.95) in 1964. Radio Condenser Co. earned $560,472 ($1.29 per common share) on sales of $17,547,958 last year, compared to loss of $138,082 on $13,039,972 in 1954. Among oflicers’ & directors’ stock transactions reported by SEC for Feb: Ross D. Siragusa bought 2000 Admiral, holds 245,467 personally & 69,808 thru children’s trusts; Irving B. Babcock bought 4800 Avco, holds 97; James Bruce bought 2000 Avco, holds 3000; Harry D. Belock bought 200 Belock Instrument, holds 237,570; Thomas F. Hanley bought 500 Belock Instrument; Helen Neuschaefer bought 3200 Belock Instrument, holds 133,531; Henry V. Erben bought 3225 GE, holds 11,565; Philip D. Reed sold 500 GE, holds 4800; Chauncey Guy Suits sold 2070 GE, holds 25; Wm. C. Wichman bought 1695 GE, holds 2603; Walter E. Green sold 600 General Precision Equipment, holds 1855; Martin H. Benedek gifted 6600 General Instrument, holds 85,154; Ralph N. Harder sold 600 General Precision Equipment, holds 1500; Edwin A. Link bought 9946 General Precision Equipment, holds 49,491; Joseph S. McGee sold 250 Hoffman Electronics, holds none; Frank Freimann bought 600 Magnavox, holds 49,286 personally & 25,484 thru trust; Edwin C. Wolf bought 125 Oak Mfg. Co., holds 1000; Jeffrey S. Granger partnership bought 300 Sentinel Radio, he holds 1500 personally, 500 thru partnership; Arthur Levey gifted 2092 Skiatron, holds 460,258; Arthur L. Chapman bought 142 Sylvania, holds 686; W. Benton Harrison bought 126 Sylvania, holds 333; Don G. Mitchell bought 370 Sylvania, holds 2531; Howard L. Richardson bought 108 Sylvania, holds 575; John M. Schiff bought 500 Westinghouse, holds 12,000; Neil H. Griebenow bought 1100 Whirlpool-Seeger common, 150 preferred, holds 8225 common, 375 preferred; Frederick S. Upton gifted 38,400 Whirlpool-Seeger, holds 137,708. Dividends: Gross Telecasting common 30^ & ‘B’ common 5tf, both payable May 10 to stockholders of record April 25; Howard W. Sams & Co., 10(* April 25 to holders April 16; General Instrument Co., 121^^ June 1 to holders May 7; Daystrom Inc., 30(( May 15 to holders April 27; Magnavox, 37V2<‘ June 15 to holders May 25. Reeves Soundcraft Corp. earned $143,741 on sales of $3,348,148 in 1955, compared to $89,385 on $3,747,810 in 1954. Pres. Hazard E. Reeves said profit increase on lower sales resulted from company’s decision to forego lowmargin govt, business in favor of more profitable commercial products. General Precision Equipment Corp. 1955 net income dropped to $2,530,758 ($2.05 per share) from $5,488,090 ($5.54) in 1954, though sales went up 8% from $123,332,634 to $133,337,819. Earnings decline, said pres. Hermann G. Place, was due to 30% drop in sales of motion picture equipment and long strike at several subsidiaries. David T. Schultz, pres, of DuMont, purchased 1000 common shares of DuMont in March — his first stock purchase since assuming presidency in Jan., according to Wall Street Journal. He retains his 7594 shares of Raytheon common (Vol. 11:49). AT&T had net income of $176,986,612 ($3.28 per share on 53,976,630 common shares outstanding) on gross operating revenues of $1,399,927,072 in 3 months ended Feb. 29, compared to $156,105,619 ($3.18 on 49,164,950 shares) on revenues of $1,261,942,250 year earlier. Webster-Chicago Corp. earned $589,574 (95(1 per share on 619,750 common shares) on sales of $31,984,539 in 1955, compared to $564,198 (91<‘ on 519,750 shares) on $31,741,046 in 1954. Cornell-Dubilier, for quarter ended Dec. 31, earned $377,000 (71^ per share) on sales of $9,200,134, compared to $568,556 ($1.08) on $9,949,032 in corresponding 1954 quarter. Clarostat earned $171,600 (41^ per share) on sales of $6,250,000 in 1955, compared to $56,600 (14^) on $5,655,000 in 1954.