Television digest with electronic reports (Jan-Dec 1959)

— 18 — Zenith Profits, Sales Soar: A walloping 48% increase in profits and a 22% jump in sales marked Zenith’s spectacular preliminary earnings report for 1958 — and pres. Hugh Robertson assured stockholders that the company is headed for a record first quarter, too — more than 25% ahead of 1958’s previous high. The $12,116,165 net earnings were nearly double the $6,178,717 of 2 years ago. Robertson told stockholders that Zenith’s 1958 TV shipments set a record — 15% higher than previous record year of 1957 — although industry-wide shipments were down 20%. He reiterated his belief that his company is now No. 1 in production & sales of monochrome TV sets. More than 40% of Zenith’s increase was accounted for by increased shipments of sets with “Space Command” remote control. He said shipments in Jan. 1959 established a new record. Zenith’s stock reacted sharply to the news. On Feb. 24, the day the preliminary report was issued, it jumped 9 points; next day it rose 14 more, next day 4 more, closing at 219. It ended the week at 213 — a 4-day net rise of 21. The preceding week it had stuck in the 190-193% range. The preliminary financial statement for the year ended Dec. 31: 1958 1957 Consolidated sales $195,041,624 $160,018,978 Net profit 12,116,165 8,165,577 Earned per share 12.30 *8.29 Shares outstanding 984,928 492,464 *Based on shares outstanding Dec. 31, 1958. Gross remunerations of 5 TV-radio sales executives as listed in 1958 proxies are noted in Feb. 20 Sales Management article titled “How 112 Top Sales Chiefs Are Paid.” They are: Magnavox TV-radio div. v.p. Leonard F. Cramer (since resigned), $50,000. P. R. Mallory exec. v.p. Ray F. Sparrow, $61,929. Philco exec. v.p. John M. Otter (now head of own distributing company), $50,000. RCA exec, v.p. Charles M. Odorizzi, $100,000. Zenith sales v.p. Leonard C. Truesdell, $106,503. All received retirement benefits; all but Cramer were on profit-sharing; and all but Cramer & Truesdell were down for stock options. Proposed Raytheon-Machlett Labs merger has been approved by directors of both companies, subject to stockholder approval Apr. 23. Under the terms of the agreement, Raytheon will exchange $19,106,500 of its stock for Machlett’s 595,940 outstanding shares. Raytheon stock to be exchanged includes $5,000,000 of 5%% cumulative preferred at $50 par value, convertible at $66. Machlett, which makes electron & X-ray tubes, had 1958 sales of about $10,000,000. Raytheon had approximately $375,000,000. Gabriel Co., manufacturer of automotive & electronic equipment including TV & radio antennas, reports lower sales & earnings for the year ended Dec. 31. Net sales Net income Earned per share . Shares outstanding 1958 $22,825,684 545,066 80<S 661,038 1957 $24,665,000 783,004 1.15 658,038 Common Stock Dividends Corporation Amt. Payable Stk. of record Amer. Bosch Arma ... $0.30 Apr. 15 Mar. 20 Arvin Ind .12 1/2 Mar. 31 Mar. 9 Arvin Ind Apr. 28 Apr. 8 Bendix Aviation .60 Mar. 31 Mar. 10 British Ind .121/2 Mar. 31 Mar. 17 British Ind Mar. 31 Mar. 17 Gabriel .15 Mar. 16 Mar. 4 Hoffman Electronics . . .25 Mar. 31 Mar. 13 Meredith Publishing . . .45 Mar. 12 Feb. 27 Philco (No action Feb. 26) Wells-Gardner .20 Mar. 16 Mar. 5 New Records for CBS; Continuing its almost unbroken climb in sales & earnings, CBS Inc. reported records in both departments, with a $26,000,000 increase in sales & a $2,000,000 increase in net income for 1958. In the bare announcement, there was no breakdown of revenues & profits between the various subsidiaries & divisions — but, of course, far more than CBS’s highly profitable TV network operation is involved. Among the branches in diversified CBS are the big Columbia Records & Columbia phono operations, CBSHytron tube & semiconductor business (now also manufacturing stereo phono cartridges), plus such special investments as its 40% interest in My Fair Lady. Preliminary consolidated statement of CBS Inc. for year ended Jan. 3, 1959 (53 weeks) as compared with 52 weeks a year ago: Sales Net profit Earned per share . Shares outstanding 1958 $411,800,000 24,400,000 3.10 7,881,493 1957 $385,409,000 22,193,000 2.81 7,881,286 Storer Broadcasting Corp. had a profit of $1,676,754 (57(i a share) in 1958, compared with $6,396,164 ($2.58) in 1957. The decline was largely due to “abandonment loss” of $4,709,063 on now-dark WVUE, Wilmington-Philadelphia (Vol. 14:47). For the 4th quarter of 1958, Storer had net earnings of $1,411,972 (57^), completely reversing the 3rd quarter’s net operating loss of $1,464,837, and ahead of 4th-quarter-1957’s net of $1,146,671 (46«i). The 4th-quarter figure doesn’t include the results of operation of WITI-TV, Milwaukee, acquired by Storer last December — and which will become the CBS affiliate March 31st. “Westinghouse TV stations in several cities felt the impact of competition from new stations in their markets. However, such decreases in earnings as were experienced were substantially offset by improved performance from radio stations.” — from Westinghouse 1958 annual report. Loew’s Inc. expects its earnings to increase to about 50(‘ a share in the quarter ending March 12, from 34^ in the same period last year, pres. Joseph R. Vogel told a special stockholders meeting this week in N. Y. The meeting w'as called to abolish cumulative voting of Loew’s stock — which it did, after a floor battle led by small stockholders. Vogel also announced that distribution of the new stock of Loew’s Inc. & Loew’s Theatres Inc. will begin March 12 — % share of each for each share of Loew’s held. Loew’s Theatres Inc. will own the U.S. & Canadian theaters and radio WMGM, N. Y. Loev/’s Inc. will retain MGM movie studios, overseas theaters, music publishing & phono records. Million-dollar suit against Loew’s Inc. has been filed by producer David 0. Selznick, seeking 50% of the TV earnings of a group of MGM features. Republic Pictures Corp. reports earnings of $1,482,338 for the year ended Oct. 25, 1958, vs. a loss of $1,362,420 a year earlier, despite sales decline. The report: Sales, film rentals, etc Net income (loss in 1957) . . . Earned per share Shares outstanding 1958 $33,468,483 1,482,338 2,004,190 1957 $37,899,826 (1,362,420), 2,004,196 1 Allied Artists earned $120,000 in 25 weeks ended Dec 28, 1958, vs. $172,000 in the corresponding 1957 period. Filniways Inc. reports net earnings of $79,695 for c months ended Nov. 30, 1958. Litton Industries Inc. has purchased Times Facsimih Corp. from N. Y. Times for an undisclosed amount of cash