Television digest with AM-FM reports (Jan-Dec 1950)

Financial & Trade Nates: Philco’s first quarter sales totaled $79,487,000, up 50% from $53,006,000 for same 1949 period. Net income first quarter was $4,074,000 ($2.37 per common share) vs. $915,000 (49^) same period last year. President Wm. Balderston reported that TV was largely responsible for this record first quarter, that March output reached 20,000 per week rate, that radio business continues “very satisfactory,” that demand for refrigerators and ranges continues high, and that '“sales of all products are continuing at high levels in the second quarter.” Plants are being equipped, he added, to increase TV output throughout last 6 months of the year. At annual meeting May 19, stockholders will be asked to elect 2 additional directors — John M. Otter, general sales v.p., and William H. Chaffee, purchases v.p. ABC reports net profit of $93,000, equal to 5(f per share on 1,689,017 shares of common stock outstanding, on first quarter business — this despite considerably reduced revenues (Vol. 6:17). In first quarter last year, ABC had loss of $64,000; for all 1949, loss was $519,085 vs. profit of $468,676 for 1948. ^ Hi ^ StewartWarner reports first quarter sales $15,550,516 vs. $14,706,155 in same 1949 period. Profits nearly doubled — $762,676 (59<^) vs. $404,292 (31«S). Improved operations in several units are reported by chairmanpresident James Knowlson, TV shipments running considerably ahead of same 1949 period and radio recovered considerably from slump of early last year. CBS board declared dividend of 40^ payable June 2 to stock of I’ecord May 19 . . . Oak Mfg. Co. declared extra of 30(f and regular quarterly dividend of 25(‘, both payable June 15 to stock of record June 1 . . . Magnavox declared dividend of 25^ on Class A preferred, payable June 1 on stock of record May 15; also 25<i on common, payable June 15 to stock of record May 25. Televista Corp. of America, Long Island City, N. Y., has filed petition in bankruptcy in Brooklyn Federal Court, proposes to pay creditors 100% on basis of 2% per month; liabilities are about $28,000, assets $10,000 . . . Sonora reorganization has been approved and company released from all claims of creditors under order of Referee Austin Hall in Chicago Federal district court. Magnavox elects 2 new directors — Arnold S. Kirkeby, president, Kirkeby Hotels, and Alva J. McAndless, president, Lincoln National Life Insurance Co., Fort Wayne. Television Fund Inc.’s semi-annual statement of assets and liabilities as of April 30 shows assets at new high of $6,082,747, up more than 115% from $2,780,795 shown at end of October. Net assets per share rose to $12.55 from $9.33. Over 4400 shareholders owned 484,751 shares at end of April. “The Fund has continued to move toward a heavier representation in the field of telecasting and electronics,” states president Chester F. Tripp, “and we have for the present reduced moderately the percentage invested in teleset manufacturers. Television broadcasting is approaching a profitable basis, and while network operations are still in the red, many individual stations are in the black and some are making substantial profits.” Stockholdings in Television Fund’s portfolio as of April 30 are listed as follows: Primarily TV (18.24%) Admiral 4000, DuMont 6600, Emerson 4000, Motorola 4000, Philco 5000, Zenith 1000, TV & Electronics (33.49%) — Aerovox 1000, ABC 6000, American Phenolic 1000, CBS ‘A’ 7000, Corning Glass 2000, Fansteel 4000, GE 6000, Mallory 1000, Muter 2400, Oak Mfg. 3000, OwensIllinois 4000, Pittsburgh Plate Glass 1000, RCA 12,000, Raytheon 5000, Sprague 1500, Stromberg-Carlson pfd. 200, Westinghouse 7000. Electronics Other Than TV (22.85%)— American Bosch 4000, Bendix 2000, Consolidated Engineering 2000, Cutler-Hammer 8000, Fairchild Camera 2000, General Precision Equipment 3500, IBM 1000, Minneapolis-Honeywell 7000, Remington-Rand 7000, Sperry 3000, Webster-Chicago 3000. Miscellaneous (25.42%) — AT&T 1800, Bell & Howell 500, Burgess Battery 1200, Capitol Records 3000, Decca Records 5000, Disney Productions 5000, Eastman Kodak 5000, Jos1>ti Mfg. 2000, Loew’s 6000, Otis Elevator 5500, Paramount Pictures 2500, Reliance Electric 2500, Time Inc. 2000, Twentieth Century-Fox 5000, United Paramount Theatres 2500, Warner Bros. 2000. Additions during 6-month period were Bendix, Remington-Rand, Raytheon, Stromberg-Carlson, AT&T, Decca, Otis, Reliance, Time, Warner. Eliminations were: IT&T 4000, General Instrument 1300, Hoffman 1000, Magnavox 2000, National Union 1000, Burgess Vibrocrafters, 1200. * * * 3i: Observation on TV stocks by Wall Street Journal’s Oliver J. Gingold (May 12) : “The television shares are not in quite as weak a position technically as they were a few weeks back. There has been a lot of profit taking in some of these and many are on firmer ground. However, the booming industry is going to suffer a lot of growing pains and the race will be won by the strong and not those which have developed on high prices and indifferent financial structure. This is a boom year for companies selling television sets and sales have mounted sharply. However, already the inroads of competition are being felt and in the next year this is likely to be an even more important factor in the situation. This will be a year of highly satisfactory profits for many television companies but it remains to be seen if these shares have not discounted most, if not all, the good news for 1950. What portends in this growing competition for 1951 is another story and still has to be registered in markets.” What TV has done for Hopalong Cassidy (William Boyd), hero of the westerns, is toted up by Walter H. Oxstein in May 10 Wall Street Journal. Here’s the take: $250 to $1000 per picture for each TV showing; $1,250,000 royalties from sales by 90 licensed manufacturers, who figui’e to sell $50,000,000 worth of “Hopalong” brand merchandise this year — such as roller skates with spurs, bicycle with built-in gun sling, even special castile soap, as well as run-of-mill watches, knives, guns etc.; $5000 weekly from radio; $1000 for brief daily appearances with Cole Bros. Circus, of which he is one-third owner and which concentrates its summer itinerary in TV areas. CBS’s 42-year-old president Frank Stanton is subject of article by Robert McFetridge in financial section of May 8 New York Times, who writes: “He’s the last person in the world you’d expect to find heading up the CBS. He’d probably be the nation’s No. 1 idol of movie fans, if he wished, or he could be that college professor that makes the girls swoon. Instead, by applying education to business he has achieved an unusual niche in American industry.” Eighteen RMA directors, participating in poll “guesstimating” 1950 TV set production, ranged from 4,500,000 to 6,500,000 — average of 5,350,000. Two months ago, similar informal poll ranged from 3,200,000 to 6,750,000 — average 4,500,000.