Television digest with electronic reports (Jan-Dec 1959)

VOL. 15: No. 30 19 Telechrome Expansion Continues: Telechrome Mfg. Co., Amityville, N.Y., which started in 1950 as a developer & manufacturer of color telecasting equipment, continues to I expand its activities. Following its absorption of Encap, sor Products Inc., maker of solid-state encapsulated circuits, early this year (Vol. 15:6), it is now “working on a number of situations,” according to pres. J. Raymond Popkin-Clurman. Among the firms with which Telechrome is discussing possible acquisition is Hammarlund Mfg. Co., old-line maker of amateur radio & communications equipment. Popkin-Clurman says this “situation is now approaching some kind of disposition,” but no agreement has been reached. Among the “many other” with which Telechrome is talking is a plastics firm. Telechrome is also “taking over the general management, policy and planning” of Universal Transistor Products Corp., Westbury, N.Y., using funds obtained by independent financing. Universal has been operated by a court-appointed trustee since last February when it filed for reorganization under a Chapter X petition. Said Popkin-Clurman: “Telechrome receives from Universal and its major stockholders & creditors a substantial percentage of Universal stock and most of the outstanding notes against Universal. Although Telechrome will have an option to acquire over 80% of Universal stock over a period of time, initially Telechrome’s interest in Universal will be substantially less than 50% and will be considered purely as an investment.” Universal’s trade creditors will be paid 100% over a period of years, says Telechrome, and many other debts will be paid off in the first few months. The reorganization “will provide Universal with a balance sheet showing substantial net worth with sufficient cash to continue business in a normal manner.” Universal makes transistorized power supplies and radiation detection equipment. Despite this widespi-ead diversification, broadcasting & test equipment for broadcasters still comprise a third of Telechrome’s business, according to Popkin-Clurman. Among recent large orders signed by the company was $250,000 worth of studio & test equipment (including color gear) sold dui’ing Popkin-Clurman’s I’ecent trip to Japan. EIA appointments; Robert T. Borth, GE, was named chairman of EIA’s new congressional information committee, which will function under the policy supervision of the legislative policy committee. August Diener, P. R. Mallory & Co., is the new chairman of the credit committee, with William F. Trace, Westinghouse, vice chairman of the committee’s western group and Albert Wilkens, Clarostat, vice chairman of the eastern group. Robert F. Chambers, Hycon, was appointed chairman of the exec. comm, of the western branch, military relations dept. The military relations dept, also announced appointments of these committee chairmen: George Hogg Jr., Westinghouse, accounting & cost principles; A. David Russell, Sylvania, facilities & govt, property; Frank E. Greene, RCA, general contract provisions; Elmer J. Gorn, Raytheon, patents & copyrights; C. L. Covington, Texas Instruments, renegotiation; Edwin P. James, Collins Radio, termination. Finance Time Inc. reports first-half revenues from its publishing, broadcasting & paper products activities set an alltime half-year record, and net income was 13.2% over the compai’able 1958 period. (Time’s stations: KLZ-TV & KLZ Denver, WOOD-TV & WOOD Grand Rapids, WFBM-TV & WFBM Indianapolis, WTCN-TV & WTCN Minneapolis, plus KTVT & radio KDYL Salt Lake City both of which are now subject of sale negotations with Columbia Pictures.) For 6 months ended June 30: 1959 1958 Revenues $131,802,400 $124,410,000 Net income 6,043,800 5,340,000 Earned per share 3.09 2.73 Storer Bcstg. Co. reports net profit of $2,714,549 ($1.09 a share) for 6 months ended June 30, including $582,417 net capital gain on the sale of radio WAGA Atlanta. Excluding this capital gain, 6-month earnings were $2,132,132 (86^S a share) vs. $1,729,620 (70^) in first-half 1958. Earnings for 2nd-quarter 1959 totaled $1,690,366 (68<) vs. $1,107,949 (45«;) for the same 1958 period. Storer also reported last week that its purchase of radio KPOP Los Angeles (Vol. 15:15, 17) was consummated June 30. Arvin Industries’ earnings for first-half 1959 were more than triple those of the 1958 period, while sales were up about one-third. For 6 months ended June 30: Net sales Net income Earned per share 1959 $32,115,771 1,095,084 97^ 1958 $22,774,922 290,759 25^ For 3 months ended June 30: Net sales $16,177,346 Net income 582,851 Earned per share 51(i $11,586,850 253,261 22if General Bronze Corp. reports for the 6 months ended June 30: Net sales Net income Earned per share Shares outstanding 1959 $18,891,593 531,105 1.39 382,317 1958 $12,193,062 261,182 69^ 380,377 International Resistance reports a sharp improvement in earnings for the 25 weeks ended June 21, and pres. Charles Weyl said “it appears likely that the profits for the full year will set a new record for the company.” For 25 weeks ended June 21: Net sales Net income (loss in ’58) . Earned per share Shares outstanding 1 $9,409,128 927,601 68«i 1,370,198 1958 $5,846,958 (71,248) 1,354,298 Reports & comments available: Electronics stocks, special report by Bache & Co., 35 Wall St., N.Y. . . . Industro Transistor Corp., prospectus. Hardy & Co., 30 Broad St., N.Y. . . . Seeburg Corp., prospectus. White, Weld & Co., 20 Broad St., N. Y. . . . Fanon Electronic Industries, prospectus, L. D. Sherman & Co., 39 Broadway, N.Y. . . . CBS, report, Thompson & McKinnon, 11 Wall St., N.Y. . . . Sprague Electric, review in Investor’s Reader, Merrill Lynch, Pierce, Fenner & Smith, 70 Pine St., N.Y. . . . Daystrom, analysis. Butcher & Sherrerd, 1500 Walnut St., Philadelphia. Fair Trade Dies: Federal legislation permitting brand manufacturers to fix retail prices on their products — sought by NARDA & other trade organizations — was killed last week. Following June hearings, a special Senate Commerce subcommittee headed by Sen. Thurmond (D-S.C.) decided that “no action would be taken this year.” Common Stock Dividends Corporation Period l Amt. Payable Stic, of Record Desilu Productions . . — $0.15 Aug. 28 Aug. 14 Oak Mfg. Co Q .25 Sep. 15 Sep. 1 Paramount Pictures . . Q .50 Sep. 11 Sep. 1 Speer Carbon (new) . .171/2 Sep. 15 Aug. 28 Sperry Rand — .20 Sep. 24 Aug. 13