Television digest with AM-FM reports (Jan-Dec 1951)

11 Financial & Trade Notes: Raytheon reports net proltt of $2,179,063, or $1.12 a share on 1,736,753 shares of common outstanding, on sales of $89,662,122 for fiscal year ended May 31, 1951. Profit was after estimated Federal taxes of $3,850,000. Net profit compares with $935,000 (49«f on 1,447,294 shares) on sales of $59,533,000 for pi’eceding fiscal year when taxes were approximately $675,000. Raytheon’s current backlog of govt, orders was reported as $140,000,000. Stromberg-Carlson Co. reports net earnings of $169,444 (31<f a share) on sales of $13,926,511 for first 6 months of 1951, which compares to loss of $72,903 (equivalent to 43^ a share) on $13,273,725 sales in same 1950 period. President Tait reported July 31 that telephone, sound equipment & broadcasting divisions substantially increased earnings to offset to considerable extent cost of TV-radio Div. shutdown most of second quarter. Outlook for second half is “excellent” for those divisions, he said, and TVradio in second half “should certainly show greatly improved operation as compared to the first.” Motorola’s net income for first 6 months of 1951 was $3,756,863 ($4.27 per share) on sales of $73,449,844 — and president Paul Galvin, in letter to stockholders Aug. 2, promised “a satisfactory profit for the year 1951.” Profit for same pei’iod last year was $5,197,517 ($5.91) on sales of $70,564,388. Profit before taxes was $9,017,937 vs. $8,496,378 same period last year. Govt, materials controls, said Mr. Galvin, will lessen volume of TV and car radio sales rest of year, but radio and communications sales will remain at same high level as second half 1950. Tung-Sol Lamp Works, Inc., reports $17,681,953 sales, $1,305,114 net profit after taxes ($2.71 on 475,411 common shares) for 26 weeks ended June 30. This compares with $12,834,508 sales, $1,244,824 profit ($3.60 on 326,245 shares) for comparable 1950 period. Provision for taxes was $2,549,587, as against $1,311,807 for 1950 periods. Company reports it’s building $3,100,000 plant of about 100,000 sq. ft. at Washington, N. J., for making subminiature tubes. Change of corporate name to Tung-Sol Electric Inc. becomes effective Oct. 1, 1951. Muter Co. reports sales of $7,879,678 for 6 months ended June 30, net profit before taxes of $1,036,154, profit after taxes $459,093 (70^ per share). This compares with $6,272,647 sales, $857,642 profit before taxes, $525,883 (80^) profit after taxes in same 1950 period. Stock split of 2-for-l in May 1950 and 1-for-lO in December 1950 left 651,200 shares outstanding. Blaw-Knox sales first 6 months of 1951 were $47,071,747, up from $26,450,933 same 1950 period. Net profit after $1,739,000 taxes was $1,510,406 ($1.07) vs. $1,301,530 (92«!) after $948,000 taxes in same 1950 period. Second quarter sales were $26,631,014, net profit after taxes $967,131 (69d) vs. $15,193,873 sales and $1,024,872 (72^) profit after taxes in same 1950 quarter. DuMont sales of $25,612,000 for first 24 weeks of 1951, ended June 17, represented slight decline from $26,786,000 for same 1950 period — reflection of reduced demand for TV receivers and tubes — but profit after taxes fell to $109,000 (2<^ a share), from $2,797,000 ($1.16). Scott Radio, controlled by Meek, showed net profit of $167,811 (40^ per share) on net sales of $2,775,795 for fiscal year ended May 31 — first profit in 4 years. Sales were up from $604,900 preceding year, when loss was $176,285. Earned surplus still stands at deficit of $164,016. National Union Radio Corp. reports net profit of $414,719 on sales of $7,419,705 during first 6 months of 1951 vs. $317,158 on sales of $5,600,874 for same 1950 period. TV industry was one of 6 earning less during first half of 1951 than first half 1950 in compilation of semiannual reports by New York Journal of Commerce (Aug. 1). Tabulation of profits of 196 firms in 26 categories shows average profit increase of 25% from 1950 to 1951, but 4 TV firms listed dropped 23% during that period. The unnamed TV manufacturers totaled $32,636,551 profit during first 6 months of 1950, dipped to $25,229,890 for comparable 1951 period. Only floor-coverings finns exceeded TV in amount of decrease during year. Air transport led listing with 740% increase in profit in year. Westinghouse sales first half 1951 totaled $590,562,000, net income $31,564,000 ($1.98 a share on 15,458,481 shares) vs. $461,731,000 sales and $27,207,000 profit ($1.86 on 14,109,949 shares) same period 1950. Federal taxes for 1951 period were $44,964,000, for 1950 period $18,331,000. Stewart-Warner sales were $51,410,156 first 6 months of 1951, up 53% over $33,649,039 same period of 1950. Net profit was $2,209,253 ($1.71 a share) after taxes of $4,450,174, which compares with $1,750,979 ($1.36) after taxes of $1,545,758 last year’s period. Arvin Industries reports earnings after taxes of $889,609 ($1 a share) for quarter ended July 1 vs. $936,357 ($1.05) same quarter 1950. Mobilization Notes: Despite July 31 deadline, NPA Electronics Div. has received a scant 100 applications from electronics manufacturers for fourth quarter allotments of steel, copper and aluminum. With manufacturers of home TV-radios-phonos required to file for first time, NPA expects more than 800 applications this time, compared to third quarter’s 700. In contrast to slow traffic in CMP applications, NPA was deluged this week with appeals from TV-radio manufacturers for adjustments in base period use of steelcopper-aluminum under M-47A. Number of requests was gerater than any previous week. This relief was requested with an eye to fourth quarter — since consumer durables manufacturers, in filling out CMP forms, aren’t allowed to request more material for next quarter than they’re permitted to use this quarter. Unfortunately, CMP is a mess — so far. A CMP allotment, far from being a “certified check,” is still a fishing license — because far too much metal was allotted this quarter. Allotments will be drastically cut next quarter, in the hope that they’ll balance with supply. * * _ ♦ Defense Materials Procurement Agency, charged with “procuring and increasing the supply of critical and strategic materials at home and abroad,” was set up Aug. 1 by President Truman in response to Congressional criticism of materials situation. New defense agency will be headed by Jess Larson, resigning as chief of General Services Administration, who will be responsible to Defense Mobilizer Charles E. Wilson. NPA relaxed cadmium order M-19 (Vol. 6:50, 52) July 30 because expected shortage never developed; in fact, there’s surplus of the metal in producers’ warehouses. NPA ruled early this year that TV chassis may be plated with corrosion-resistant cadmium, but most radios can’t (Vol. 7:11,13,20). Amended order continues same restrictions regarding radio. Principal relaxations in order involve non-electronic uses of cadmium. Thirty-day inventory restriction was amended to permit accumulations of greater amounts when necessary. Britain has called off construction of 6 low-power 'TV stations due to defense program, but will complete 3 highpower outlets now under construction. BBC has only 2 stations now operating — in London and Birmingham.