Television digest with electronics reports (Jan-Dec 1958)

14 Financial Reports; Plough Inc., Memphis, which now owns 4 radio stations (WMPS, Memphis; WJJD, Chicago; WCAO, Baltimore; WCOP, Boston) has acquired capital stock of Creolin Co. from co-owners Merck & Co. and William Pearson Ltd., London, giving it U. S. manufacturing & sales rights for Creolin, Hycol, V-C-P. Major TV-radio sponsor — it got into radio by reason of success with broadcast advertising — Plough Inc. is best known for St. Joseph Aspirin, during last 2 years has also acquired Musterole, Zemo, Dr. Edwards’ Olive Tablets, Coppertone Sun-Tan, Solarcaine burn remedy, in addition to WCAO & WCOP. Pres. Abe Plough owns 169,765 out of 1,218,438 outstanding shares, traded on New York Stock Exchange. Meredith Publishing Co., whose subsidiaries operate Meredith group of TV-radio stations, earned $3,850,307 ($2.97 per share) on total revenues of $49,720,636 in fiscal year ended June 30 vs. $4,644,417 ($3.59) on $53,071,711 year earlier and $4,047,146 ($3.14) on $48,459,633 in fiscal 1956. Change in accounting treatment of Meredith’s magazine circulation expenses had effect of increasing earnings by $516,000 in last fiscal year. On comparable basis, prior year’s earnings would have been $20,000 less. Breakdowns for Meredith stations (WHEN-TV & WHEN, Syracuse; WOW-TV & WOW, Omaha; KPHO-TV & KPHO, Phoenix; KCMO-TV & KCMO, Kansas City; radio KRMG, Tulsa) weren’t available. 20th Century-Fox reports consolidated earnings rose to $5,233,009 ($2.29 per share on 2,280,386 shares outstanding) on gross revenues of $66,078,014 in 26 weeks ended June 28 compared with $4,069,865 ($1.54 on 2,644,486) on $64,276,712 year earlier. Film rentals — including TV — accounted for $61,546,005 in 1958 half vs. $59,535,202 in 1957 period. Increase in earnings was attributed largely to “strong pictures” — Peyton Place, A Farewell to Arms, The Young Lions, Long Hot Summer. For 2nd 1958 quarter, earnings were $3,085,297 ($1.35) vs. $1,898,185 (72(() year earlier, film rentals for 13 weeks totaling $28,450,000 vs. $27,054,000 in 1957 quarter. United Artists, whose latest venture in TV is stock deal to control Warner Bros, movie library held by Associated Artists Productions (Vol. 14:33), earned record $1,319,000 ($1.23 per share) on world-wide gross revenue of $37,453,000 in first 1958 half vs. $1,196,000 ($1.11) on $32,498,000 year earlier. Engaged primarily in financing & distributing theatrical features, UA has released 52 of own movies to TV (Vol. 14:24) in addition to making deal with AAP, is showing continuing profit progress in 3rd quarter this year, said chairman Robert S. Benjamin. Highly successful WCIA, Champaign, 111. (Ch. 3), with both CBS & NBC affiliations, in filing May 31, 1958 balance sheet with FCC as required in connection with license renewal, lists net worth item of $850,000 reserved for building new studio and developing color TV ; earned surplus of $457,296; capital stock, $100,000 (51% control held by August & Clara C. Meyer, 20% by owners of Champaign News-Gazette). Current assets were $1,687,047, including $1,446,307 cash; current liabilities, $717,090. Reports & comments available: On Disney Productions, I’eport by Sutro & Co., 42 Wall St., N. Y. On Raytheon, brief by Amott, Baker & Co., 150 Broadway, N. Y. On Philco, analysis by Harris, Upham & Co., 120 Broadway, N. Y. On Westinghouse, report by Thomson & McKinnon, 11 Wall St., N. Y. Top 100 Defense Firms: GE kept its No. 1 position among companies heavily engaged in electronics in new list of 100 top prime defense contractors issued by Defense Dept, this week. As in earlier ranking reported in Feb. (Vol. 14:8), GE was fourth among all defense firms in post-Korea July, 1950-Dec. 1957 tabulation in which Boeing replaced GM as biggest contractor of all. Top 10 contractors were: Boeing, GM, United Aircraft, GE, General Dynamics, North American Aviation, Douglas, Lockheed, AT&T, Curtiss-Wright. For 1957, General Dynamics ranked first among all defense contractors, GE was second. We’ve consolidated 2 new “top 100” lists in table below to show standings of electronics firms (all dollar figures in millions, dashes indicating company was not among first 100 prime contractors for period) : July 1950 Jan. 1957 Dec. 1957 Dec. 1957 (VR Contracts $5,940.5 5,621.3 Rank 4 Contracts $ 916.4 Rank 2 General Dynamics 5 1,127.4 1 AT&T 3,244.0 9 471.0 5 f»pprry-T?An <1 1,830.6 1,742.4 15 246.0 14 Bendix Aviation 16 223.5 15 Westinghouse . 1,555.6 19 179.9 21 Hughes Aircraft 1,290.0 21 369.2 7 BCA 1,149.2 22 89.1 31 IBM . 1,092.6 23 255.4 13 AVnO 857.0 26 118.8 25 Raytheon . 815.7 27 128i3 23 793.1 704.3 28 ITT 34 80.3 34 Phlleo 611.3 38 49iJ 49 Collins Radio 498.7 47 61.9 39 American Bosch Arma 404.0 52 112.4 27 General Precision Equlp’t 396.5 54 41.0 58 Mlnneapolls-Honeywell 340.7 61 46.9 51 Mass Inst, of Technology 273.4 67 57.3 45 Glimian 250.0 74 23.0 91 Lear — — 25.4 84 Hazeltlne 249.5 76 24.4 88 238.6 79 Motorola 226.9 84 21.6 97 Cal. Inst, of Technology — — 32.0 76 Riirrrmgh.>! 191.4 92 38.7 60 Dynamics Corp. of America.— 184.1 93 Admiral 169.8 97 — (a) Awards to Hughes Tool Co. Include awards to Hughes Aircraft dlv. prior to Dec. 31, 1953. Howard W. Sams & Co., Indianapolis electronics engineering, research & publishing firm, reports record profit before taxes of $443,059 on sales of $4,455,716 for fiscal year ended June 30 vs. $394,835 on $3,984,324 for preceding year — Chairman Sams also reporting current sales & profits running ahead of year ago. Associated printing firm, Waldmar Press Inc., hiked sales to $1,023,505 in first 6 months of 1958 from $836,639 in 1957 period, profits to $104,038 from $93,946. Emerson Radio, though still far behind lush TV-radio years, reported best earnings since 1955 for 39-week period ended Aug. 2. Consolidated net profit for period was $397,888 or 20<* per share vs. $54,753 or 3<i per share for same period last year. Pres. Benjamin Abrams said report did not include results from its DuMont div., acquired for $6,000,000 July 1 from DuMont Labs (Vol. 14:27). ITT reported earnings of $12,346,828 ($1.72 per share) for the first 6 months of 1958 on sales of $330,457,985 vs. $12,989,254 ($1.81) on $326,189,958 for corresponding 1957 period. Pres. Edmond H. Leavey attributed drop in earnings to reduced profit margin of certain manufacturing operations abroad, said ITT’s U. S. manufacturing group had 6 months profits ahead of 1957. Webcor earnings dropped sharply in 6 months ended June 30 to $7917 (Id per share) on sales of $12,630,731 from $504,043 (77c) on $15,638,467 in 1957 period. Dividends: Motorola, 37 %d payable Oct. 10 to stockholders of record Sept. 30; Webcor, 15C payable Sept. 30 to holders Sept. 15; ITT, 45d Oct, 15 to holders Sept. 19.