Television digest with electronic reports (Jan-Dec 1957)

13 Financial & Trade Notes: Sylvania sales in 1956 es tablished new record, exceeding 1955’s $307,371,315, chairman-pres. Don G. Mitchell stated this week. Profits in 1956, he said, did not quite equal 1955’s $4.29 per share. His formal statement did not release specific figures for ’56. Sylvania’s dollar volume of TV set sales last year were “below expectations,” which he attributed to “an industry-wide condition of excessive inventories in channels of distribution and the resultant intense competition.” He added: “In many areas, this resulted in special deals, big discounts, trade-ins and special promotions, all of which drastically affected dollar volume and earnings in TV sets.” He termed this “a phase of the nationwide shakingdown process,” and predicted that “before very long, TV will be a reasonably stable business for those who remain.” Picture and receiving tube sales “continued strong” last year, with volume particularly favorable in renewal market, he said. Parts div. sales established new record in 1956; electronic components sales, including transistors and diodes, were well ahead of 1955. ^ 4: * Emerson Radio experienced shai’p declines in profits and sales in fiscal year ended Oct. 31, earnings falling to $84,852 per share) on sales of $73,882,029, compared with $2,468,063 ($1.26) on $87,383,028 in preceding fiscal year. In report to stockholders, pres. Benjamin Abrams blamed lower selling prices, extensive liquidations and “disappointing” color sales. Proxy notice for annual meeting Feb. 6 reports that Benjamin Abrams received aggregate remuneration of $60,008 ^n 1956; Max Abrams, secy.-treas., received $48,065; Dorman D. Israel, exec, v.p.', $38,458. At annual meeting, stockholders will act on new key employes stock option plan. Time Inc. experienced most profitable year in its history in 1956, with earnings of approximately $6.75 per share, compared with $4.72 in 1955, stockholders were told by chairman Maurice T. Moore and pres. Roy E. Larsen. The 1956 earnings do not include profit from liquidation of Time’s stock in Houston Oil Co., estimated to have resulted in a capital gains profit, after taxes, of $15,113,700, equal to more than $7 per shai'e. Letter to stockholders also stated that net proceeds of Time’s I’ecent sale of 350,000 shares of St. Regis Paper Co. came to about $12,500,000. Funds will be used for several expansion projects, including purchase of 3 Bitner TV-radio station combinations for $15,750,000 (Vol. 12:51-52). General Instrument earnings of $301,585 (21<f per share) in quarter ended Nov. 30 almost equalled the $337,146 (24(() earned in 9 months ended Nov. 30, chairman Martin H. Benedek explaining that third-quarter earnings include those of Micamold Electronics and T. S. Farley Ltd. of Canada, both acquired in midyear. Earnings in corresponding quarter year ago were $252,790 (Ifi^i). Sales for 9 months were $25,398,628, as against $21,986,904 in same period of 1955. Sales in quarter ended Nov. 30 were $11,418,715, compared with $8,636,777 in same period year ago. E. J. Korvette Inc., big 12-store N. Y. discount house chain, has applied for listing on N. Y. Stock Exchange, with decision expected Jan. 24. Korvette this week reported sales of $21,296,294 in 13 weeks ended Dec. 29, up 41% from $6,187,826 in corresponding 1955 period. Dividends: Gross Telecasting, 40^ on common and 7%^ on “B” common, payable Feb. 11 to stockholders of record Jan. 28; Consolidated Electrodynamics, 10^ March 14 to holders March 1; Erie Resistor, 20^ March 15 to holders March 4; Granco Products, 5^ Feb. 25 to holders Jan. 25. Electronics Reports: Defense electronics procurement is slated to increase in fiscal 1958 — ^mainly due to step-up in guided missile production — according to estimated expenditures in President Eisenhower’s budget for July 1, 1957June 30, 1958. In his budget message, the President noted that major total procurement and production expenses would be up about 5%, but “expenditures for guided missiles will be up 35% ; for ship construction, up about 12%; and for aircraft procurement will remain about the same.” Budget estimates for procurement categories for fiscal 1956, 1957 & 1958: Guided missiles, $1,168, $1,506 & $2,039 billion (of which electronic equipment represents about 50%); aircraft, $7,146, $6,786 & $6,737 billion; ships, $917,000,000, $928,000,000 & $1.04 billion. Research & development expenditures for missiles and aircraft will decline somewhat in fiscal 1958. Meanwhile, RETMA’s marketing data dept, came up this week with what it calls first authentic figures on military electronics procurement expenditures, based on new formula for extracting electronics portion from various procurement categories. RETMA estimated electronics procurement amounted to $2,733 billion in fiscal 1956 (July 1, 1955-June 30, 1956) and $632,600,000 in first quarter of fiscal 1957. RETMA’s breakdown of electronics expenditures for fiscal 1956 and first quarter of fiscal 1957 by major procurement categories: Aircraft, $925,000,000 in fiscal 1956 (34% of total electronics spending) and $213,000,000 in first quarter of fiscal 1957 (34%) ; electronics & communications, $770,200,000 (28%) and $130,000,000 (20%); guided missiles, $630,000,000 (23%) and $130,000,000 (32%o) ; research & development, $265,000,000 & $66,000,000; ships, $80,000,000 & $17,000,000; combat vehicles, $9,500,000 & $1,000,000; support vehicles, $5,800,000 & $200,000; miscellaneous, $47,500,000 & $400,000. ELECTRONICS PERSONALS: E. U. DaParma appointed operations v.p. of all Sperry Rand divs. . . . Seymour L. Merrall promoted to mgr. of Stromberg-Carlson systems & procedures dept. . . . John Jipp, former marketing mgr., promoted to mgr. of instrumentation div., Ampex Corp., Redwood City, Cal. . . . Dr. Richard W. Skulski promoted to chief mechanical engineer, Farnsworth Electronics Co. . . . Louis H. La Forge Jr. named director of engineering, Daniel H. Goodman mgr. of research & advanced development, Lefler H. McKee mgr. of product design & development, Sylvania microwave tube lab, Mountain View, Cal. . . . Paul S. Dove, ex-chief of Navy ordnance research & development countermeasures section, named mgr. of DuMont Labs Washington office, succeeding Justin R. (Ted) Sypher Jr., now project director at Naval Air Test Center, Patuxent, Md. . . . Fred W. Henck, exec, editor of Telecommunications Reports, elected v.p. & director of parent Telecommunications Publishing Co. . . . B. Lazich, exUnion Switch & Signal, named director, research & engineering div.. Filters Inc., Port Washington, N. Y. ■ Automatic production of germanium diodes was demonstrated this week by CBS-Hytron at Lowell, Mass, plant. New machine is claimed to cut manufacturing costs in half, occupy less space and turn out more uniform product than old hand-assembly method. Company says method eventually will be adapted to all semiconductor production. Consolidated Electronics Industries Corp. directors authorized company to negotiate agreement to supply “over-all management assistance” to Sessions Clock Co., including extension of credit line and option to buy operating assets of Sessions later. Action is subject to approval by stockholders of both companies. Dynamics Corp. of America (parent of Standard Electronics Corp.) has purchased Shavex div. of Electronic Specialty Co. for undisclosed amount of cash and stock.