Television digest with electronic reports (Jan-Dec 1957)

14 Financial & Trade Notes: Magnavox’s growth pattern is reflected anew in report this week showing net earnings in 6 months ended Dec. 31 up 28% from same period of 1955, sales up 36%. Net profit for the period was $2,275,539 ($2.52 per share) on sales of $46,395,187, compared with $1,774,960 ($2.10) on $34,025,437 in corresponding 1955 period. For quarter ended Dec. 31, eai'nings were $1,486,206 ($1.67) on sales of $29,358,000, compared with $1,210,153 ($1.43) on $20,702,000. Frank Freimann, pres, of Magnavox, told stockholders that unit sales of TV sets in last 6 months of 1956 were 30% higher than same period of 1955, and hi-fi phono sales more than doubled over that period. He added that new orders for TV and hi-fi indicate continuation of this trend. Company’s net profits, he said, were not as high as first anticipated because of non-recurring costs involved in starting production at new Jefferson City, Tenn. plant, and costs in introducing new Sentinel and Spartan lines acquired in 1956. * * * >•> CBS Inc. had most profitable year in its history in 1956, with earnings exceeding $2 per share as against $1.83 in 1955, pres. Frank Stanton told Wall Street Journal. Sales, he said, exceeded $350,000,000, compared with $316,600,000 in 1955. He gave no profit figures for 1956; CBS earned $13,400,000 in 1955. His 1956 per-share estimate took into consideration losses resulting from discontinuance of CBS-Columbia in midyear. He said all divisions showed profit in 1956 except CBS-Hytron, whose loss was about equal to 1955. Zenith Radio had estimated net earnings of $12.25 per share in 1956, down sharply from 1955’s record profit of $16.31 but withal the second highest profit year in company’s history. Pres. E. F. McDonald Jr. told stockholders in special report that 1956 sales also declined from record 1955, but gave no figures. Zenith earned $8,034,491 on sales of $152,905,005 in 1955. He said that Zenith’s TV sales in 1956 did not come up to 1955 in either units or dollars, but that radio, phono & hi-fi sales increased substantially. He also said that Dec. 1956 TV-radio sales were highest for any Dec. in company history. National Theatres Inc., which owns or leases more than 250 theatres but is not identified with TV, reports net income of $572,913 (21^ per share on 2,699,486 common shares outstanding) in 13 weeks ended Dec. 25, compared with $203,053 (14 on 2,746,486 shares in corresponding 1955 period. Included was net profit of $140,000 (54) derived from sales of theatres and real estate in the 1956 quarter compared with net loss of $69,000 from those operations in same 1955 period. (For National Theatres report covering fiscal year ended Sept. 25, see Vol. 12:52, page 12.) Universal Pictures had consolidated net income of $3,993,146 ($4.06 per share on 927,254 common shares outstanding) in fiscal year ended Nov. 3, compared with $4,018,625 ($3.71 on 1,020,089 shares) in preceding fiscal year. Film rentals and sales totaled $77,609,798, compared with $77,520,857 preceding year. Allied Artists Pictures Corp. reports net loss of $452,000 after Federal income tax credit of $346,000 on gross income of $8,662,686 for 26 weeks ended Dec. 29, 1956, compared with net profit of $183,708 after $202,000 taxes on $8,160,763 in like period year earlier. Packard-Bell sales in quarter ended Dec. 31 totaled $8,897,593, compared with $7,870,961 in corresponding 1955 quarter. Earnings, previously announced, were $259,950 (38<^), as against $258,986 (37^) in same 1955 period. Republic Pictures reports net income of $758,401 (114 a share) for year ended Oct. 27, 1956, compared with $919,034 (264) preceding year. More oflicers-&-directors stock transactions reported for Dec.: Admiral— Irene 0. Siragusa made gifts of 10,100, holds 421,520; Ross D. Siragusa made gifts of 8200, holds 253,167; John B. Huarisa made gifts of 3600, holds 98,131. Belock Instrument— Harry D. Belock donated 1250, holds 226,320. DuMont Labs — Allen B. DuMont made gifts of 4000, holds 33,601. Guild Films — Reuben R. Kaufman made gifts of 1554, holds 61,500 beneficially; bought 4300, holds 7506 directly. International Resistance — Edward A. Stevens bought 700, holds 9540. Litton Industries — Roy L. Ash exercised option to buy 2500, holds 47,415 personally, 20,222 in partnership; H. W. Jamieson exercised option to buy 2500, holds 48,490 personally, 20,223 in partnership; Charles B. Thornton exercised option to buy 5500, holds 115,098 personally, 44,490 in partnership; Richard Loewe exercised option to buy 1050, holds 2500. National Union Electric — C. Russell Feldman bought 2000, holds 4500 personally, 393,020 indirectly; W. J. Olsen bought 1000, holds 1000. General Dynamics — Earl D. Johnson exercised option to buy 15,000, holds 30,000. Dividends: WJR, the Goodwill Station, Detroit, 10^ payable March 6 to stockholders of record Feb. 15; Paramount Pictures, 504 March 15 to holders Feb. 27; Oak Mfg. Co., 354 March 15 to holders March 1; CornellDubilier, 304 March 22 to holders March 8; P. R. Mallory, 35^ March 11 to holders Feb. 25; Sprague Engineering, 9^ Feb. 15 to holders Feb. 4; Canadian Marconi, 6% stock on $1 shares March 1 to holders Jan. 31; Zenith Radio, 75<f March 29 to holders March 8; Westinghouse, 504 March 1 to holders Feb. 11; International Resistance, 54 March 1 to holders Feb. 15; Magnavox, 37%<f March 15 to holders Feb. 25; Storer Broadcasting common, 454 and ‘B’ 64, March 14 to holders March 1; Television-Electronics Fund, 8^ Feb. 28 to holders Feb. 7; Walt Disney Productions, 10^ April 1 to holders March 8. Dividend payments by U. S. corporations in 1956 totaled record $11,250 billion, up 8% (or $821,500,000) from 1955 levels, reports Commerce Dept., with no breakdown for TV-radio-electronics. Dec. dividend payments unexpectedly declined 8% from Dec. 1955, which Govt, attributed to lower volume of year-end “extra” dividends. Philco stockholders will be asked, at annual meeting April 5 at 123 So. Broad St., Philadelphia, to authorize company to raise debt limit for capital purposes from $25,000,000 to $50,000,000. Letter from pres. James M. Skinner Jr. said management had no plans to borrow additional money, but wanted the authority in light of “changes in general business conditions and Philco’s own growth.” IT&T’s consolidated net earnings in 1956 were equivalent to about $3.75 per share, compared with $3.21 in 1955, pres. Edmond H. Leavey told N. Y. Society of Security Analysts Jan. 28. He also said that, based on preliminary figures, 1956 net for the parent company alone came to about $2.50 per share, as against $2.06 in 1955. Backlog of orders, he said, exceeded the $431,000,000 on hand at start of 1956. American Electronics Inc. earned $365,000 (71^ per share) on sales of $10,300,000 in 1956 compared with $265,013 (51(*) on $5,935,104 in 1955. For quarter ended Dec. 31, earnings were $123,000 on sales of $4,350,000, compared with $87,636 on $1,616,000 in corresponding 1955 quarter. Backlog of orders as of Jan. 1, 1957 totaled $10,000,000, as against $6,500,000 year earlier, reported chairman Phillip W. Zonne. Daystrom Inc. earned $1,838,000 ($2.07 per share) on sales of $53,765,000 in 9 months ended Dec. 31, compared with $1,295,000 ($1.45) on $47,742,000 in corresponding 1955 period. For quarter ended Dec. 31, earnings were $721,000 (81^*) on sales of $20,113,000, as against $316,000 (354) on $14,886,000 in same quarter of 1955.