Television digest with electronics reports (Jan-Dec 1956)

17 Financial & Trade Notes: American BroadcastingParamount Theatres, in first quarter of 1956, increased over-all net operating profit by 84% from first 3 months of 1955, pres. Leonard H. Goldenson told stockholders in letter this week. No breakdown was given for ABC div. earnings, but Goldenson said that “with emphasis being placed on high quality entertainment gaining greater public and advertiser acceptance, our ABC operation should share on an ever broadening scale in the expected growth of TV.” AB-PT reported 3 weeks ago that ABC operated at a profit last year for first time since 1953 merger, increasing gross operating income to new high of $81,116,634 from $70^423,348 in 1954 (Vol. 12:13). AB-PT net profit during first quarter totaled $2,570,000 (60^ per share on 4,140,750 common shares), compared to $1,917,000 (45^ on 3,977,096) in first 3 months of 1955. An additional $253,000 (6^) came from capital gains, as against $33,000 (I*)) year ago. In first quarter this year, company purchased additional 12,550 shares of preferred stock at average of $20.50 in accordance with policy of buying preferred stock to apply against sinking fund requirements. Note: ABC pres. Robert Kintner was granted option March 23 to purchase 9500 shares at $25.18 per share at any time up to March 23, 1963. In that connection, Kintner extended call on his services for additional 2 years. ^ ^ ^ GE’s consumer products sales are expected to exceed $1 billion this year, pres. Ralph J. Cordiner told annual meeting April 17, adding: “For the foreseeable future, approximately 35% of the company’s total sales will be accounted for by the consumer products group, about 25 '/r by the apparatus group, and about 20% each by the industrial components & materials group and the electronic, atomic and defense systems groups.” Company’s over-all sales last year were $3 billion, which Cordiner predicted would increase by 15% this year. For first quarter of 1956, GE reported largest profit & sales for any first quarter in its history. Earnings were $54,962,000 (63^ per shai’e) on sales of $946,458,000, as against $52,516,000 (61^) on $831,014,000 in first 3 months of 1955. Magnavox sales were $52,100,000 in 9 months ended March 31, up 23% from $42,383,971 in corresponding period of preceding fiscal year ago and almost equivalent to sales of $55,071,765 for full year ended last June 30. For quarter ended March 31, pres. Frank Freimann told board meeting this week, sales were $18,100,000, up 26% from $14,365,000 in corresponding 1955 quarter, with TV unit sales up by 20%, high fidelity radio-phonos up 85%. Profits weren’t disclosed, but Magnavox previously reported earnings of $1,774,960 ($2.23 per share) for 6 months ended Dec. 31 (Vol. 12:7). Beckman Instruments Inc., Los Angeles, though only in third year, is headed for sales of more than $26,000,000 and profit of $1,625,000-$!, 750,000 for fiscal year ending June 30, 1956, pres. Arnold 0. Beckman told Security Analysts of San Francisco recently. Preceding year’s sales were $21,300,000, earnings $1,322,000. A. C. Nielsen Co. sales reached all-time high of $14,377,000 in fiscal year ended last Aug. 31, up 16.7% from preceding fiscal year. Sales of broadcast div. increased by 5.8 ' ^ to all-time high. Granco Products earned $41,274 on record sales of $1,709,905 in 9 months ended March 31, compared to $21,683 on $972,758 in corresponding period of preceding fiscal year. Muter Co. earned $346 on sales of $2,801,968 in first ([uarter of 1956, compared to $10,687 (14^* per share) on $3,162,693 in corresponding 1955 period. More officer-director compensations for 1955, as revealed in proxy statements mailed this week and supplementing our earlier listing (Vol. 12:14) : American Broadcasting-Paramount Theatres — Leonard Goldenson, pres., $182,214 (owned 52,450 common shares directly as of March 21, 1956, plus 250 jointly with wife) ; Robert E. Kintner, ABC pres., $100,000 (3500 common, 1900 pi-eferred) ; Robert H. O’Brien, AB-PT financial v.p., $53,404 (5600 common). Motorola — Paul V. Galvin, pres., $82,500 (owned 101,003 shares beneficially as of Feb. 10, 1956, plus 186,696 held in trust & 13,227 held by wife, constituting 15.60% of all outstanding shares) ; Robert W. Galvin, exec, v.p., $55,000 (143,607, plus contingent interests & 8720 shares held in trust and 8695 held by wife, constituting 17.15% of all outstanding shares) ; Edward R. Taylor, v.p. & asst, to pres., $65,000 (2460) ; Daniel E. Noble, v.p. for communications & electronics, $55,000 (5866) ; Frank J. O’Brien, v.p. purchases, $55,000 (5814) ; Elmer H. Wavering, v.p. engineering, $55,000 (20,900) ; Edwin P. Vanderwicken, v.p. finance, $55,000 (300). Hoffman Electronics — H. L. Hoffman, pres., $30,000 (owned 112,952 common shares beneficially as of April 9, 1956, plus 43,053 held by family & trusts, constituting 21.47% of all outstanding shares); C. E. Underwood, v.p.-treas., $50,500 (2500). Olympic Radio — Morris Sobin, pres., $40,000 (none) ; Herbert Kabat, v.p., $34,000 (none). CBS Inc. first-quarter earnings exceeded record profit of $3,892,677 ($1.60 per share) reported for first 3 months of 1955, chairman Wm. Paley told annual meeting this week. Gross revenues weren’t divulged; in first quarter of 1955, they were at record $104,206,067. CBS-Columbia & CBS-Hytron will show losses for first half of 1956, but their losses will be reduced from first 6 months year ago, said chairman Wm. Paley. In reply to stockholder, he said both divs. will be continued, though CBS-Columbia may have to move to new quarters eventually in effort to get its facilities on more efficient basis. General Dynamics had consolidated net income of $21,254,386 ($4.23 per common shares) on sales of $687,274,182 in 1955, compared to $22,777,226 ($4.60) on sales of $712,150,670 in 1954. Both years include full -year operations of Stromberg-Carlson, which did not become a General Dynamics div. until June 1955. Texas Instruments earned $540,000 (17<f per share) on sales of $8,853,000 in first 3 months of 1956, compared to $391,000 (13(' ) on $6,310,000 in first quarter of 1955. Pres. J. E. Jonsson estimated full 1956 sales at $40,000,000, as against $28,684,653 in 1955. Hoffman Electronics stockholders, at annual meeting May 7, will vote on proposal to increase authorized common stock from 1,000,000 to 2,000,000 shares (50^ par) “to be in a position to capitalize on opportunities.” There are 726,542 common shares outstanding. National Union Electric Co., whose CR tube facilities were sold to Sylvania in Dec. 1954, reports net loss in 1955 of $638,696 on sales of $1,132,024, compared with loss of $1,289,264 on sales of $6,758,799 in 1954. WJR, the Goodwill Station, earned $145,276 (28^‘ per share) on revenues of $860,822 in quarter ended March 31, compared to $68,213 (13(‘) on $652,985 in corresponding 1955 period. Norden-Ketay Corp. earned $236,203 on sales of $13,480,752 in 1955 vs. $1,002,922 on $9,086,453 in 1954, latter figures being for Ketay Instrument Corp. only; pres. Morris F. Ketay reports order backlog exceeds $24,000,000 compared witli $11,000,000 year ago. Clevite Corp. had sales of $71,935,883, net profit of $4,854,753 ($2.54 a share) in 1955 vs. $59,204,627 & $2,668,648 ($1.33) in 1954.