Television digest with electronics reports (Jan-Dec 1952)

14 Financial & Trade Notes: kca 1951 annual report released this week reveals industry’s dominant company for second time enjoyed better than half-billion-dollar year, gross sales achieving all-time record high of $598,955,000, or 2.1% more than the $586,393,000 of 1950. Net profits were $31,193,000 ($2.02 per common share) compared with $46,250,000 ($3.10) in 1950— the reduction largely attributed to leveling off of consumer demand for TV receivers, fewer TV transmitter sales, and taxes. Total taxes for year were $62,389,000, or $4.49 per share, about double year’s net profit; of this amount, $30,840,000 was Federal income tax compared with $50,743,000 in 1950. Breakdown of revenue sources discloses RCA Victor, RCA Laboratories, RCA International Div. combined to account for 73.5% of company’s revenues, or $440,135,000, down from 1950’s $476,091,000. NBC revenues went up to $137,156,000 from $92,091,000 in 1950, gain being attributed entirely to TV network and station operations. NBC accounted for 22.9% of firm’s revenues as against 15.8% in 1950. Note: NBC revenues are not broken down as between TV and AM, nor as between networks and stations, but it’s common knowledge all its TV & AM stations are operating profitably, and it has been reported network TV is now slightly profitable but network radio is losing (Vol. 7:46,48). NBC-TV network revenues now exceed its network radio by considerable margin (see PIB figures for 1951, Vol. 8:4). $ ^ ¥ V Admiral’s earnings dropped to $9,586,833 ($4.97 a share) on sales of $185,925,058 in 1951 from preceding year’s records of $18,767,554 ($9.73) on sales of $230,397,661. Despite decline, 1951 sales and earnings are second highest in company’s history. Company paid income taxes of $9,138,788, or $4.78 a share, last year. Net worth increased to $40,409,844 ($20.96 a share) as of end of 1951, from $32,751,011 ($16.99) end of 1950. Net working capital increased to $27,361,637 in 1951 from $21,931,846. Annual statement says company invested more than $2,500,000 in additions and improvements last year. Stromberg-Carlson reports net earnings of $685,777 for 1951 on total sales of $33,632,495 from all divisions, including broadcasting. This compares with $974,731 profit on sales of $37,672,385 for 1950. In letter to stockholders preliminary to annual report, president Robert C. Tait said broadcasting (WHAM & WHAM-TV, Rochester), sound equipment and telephone divisions enjoyed best year in firm’s history. “The TV market,” said Mr. Tait, “is somewhat improved at present, and the lifting of the freeze on new stations . . . plus the political conventions this summer [and] the national elections next fall should stimulate demand for TV receivers.” Tung-Sol Electric reports record sales of $31,484,760 for 1951, profit of $2,049,458 ($4.23 each on 477,815 shares) vs. $3,092,951 profit ($6.88 on 455,262) on $29,425,002 sales for 1950 (Vol. 7:10). Firm announced in annual report that stockholders will be asked at March 25 meeting to authorize 100,000 shares of $50 par cumulative preferred stock. Plan is to sell publicly series of 60,000 shares or less at first through undei-writing group headed by Hamman, Ripley & Co. Stockholders also will vote on increasing authorized common shares from 500,000 to 1,000,000. Cornell-IJubilier showed net profit of $354,969 (79<! a share) on sales of $9,468,202 for 3 months ended Dec. 31, 1951 vs. $333,710 (74<-) on $8,247,982 same 1950 period. Emerson Radio reports net income of $351,859 (18^ a share) for 13 weeks ended Feb. 2 vs. $1,518,856 (78 <‘) for corresponding 1951 period. General Tire & Rubber Co.’s net profit of $7,790,469 ($12.48 per share) on sales of $170,771,521 for year ended Nov. 30, 1951, included $773,827 realized from its TVradio activities, according to annual report. Profit for 1950 was $8,557,616 ($13.88) on sales of $125,378,837. Big tire firm’s TV holdings then were WNAC-TV, Boston, and KHJ-TV, Los Angeles, now include WOR-TV, New York; its radio properties were Yankee and Don Lee networks with 3 AM stations each, to which was added WOR, New York, in latter January (Vol. 8:3). Television-Electronics Fund Inc., in report for quarter ended Jan. 31, shows assets of $12,292,925 ($13.01 per share) as against $9,792,691 ($12.91) at end of fiscal year Oct. 31, 1951. Added to portfolio since last listed in these columns (Vol. 7:28) were these stocks: 1200 shares American Bosch (conv. pfd.), 2000 Burroughs Adding Machine, 8000 Photon Inc., 3000 Vitro Mfg. Co., 2000 Weston Electrical Instrument, 1000 Owens-Illinois. Collins Radio, now averaging about $5,000,000 sales per month, is expected to show sales of $28,000,000 for 6 months ended Jan. 31, says Feb. 28 Wall Street Journal. This would compare with $5,853,000 for first half of fiscal 1951. Earnings are expected to run $2 a common share for Jan. 31 half, which would compare with 35^ for like period year earlier and with $2.23 for all fiscal 1951. Current backlog of orders is about $150,000,000. Oak Mfg. Co. reports profit of $598,939 ($1.14 a share) on sales of $7,644,627 for 7 months ended Dec. 31, 1951. Comparative figures for last year are not available since company changed fiscal year from May 31 to calendar year, but report for fiscal year ended May 31, 1951 showed $1,188,037 ($2.27) on sales of $13,145,807 (Vol. 7:33). P. R. Mallory & Co. reports net profit for year ended Dec. 31, 1951 of $1,923,314 ($3.98 a share) vs. $2,553,758 ($5.29) in preceding year; net sales were $45,438,000 vs. $39,158,000. * * * * Westinghouse imports record sales of $1,240,801,000 in 1951, increase of 22% over previous high of $1,019,923,000 in 1950. Net earnings slipped 17% to $64,578,000 ($4.03 a share on 15,549,697 shares) from $77,922,000 ($5.36 on 14,190,654) in 1950. Consumer products v.p. John M. McKibbin said Westinghouse ended year without excessive inventories of “most home appliances.” President Gwilym Price said there are indications “scare buying of materials is ending [and] I would not be surprised if we were able to turn out even more consumer durables this year than last.” Defense business accounted for 16% of firm’s total sales in 1951, and Mr. Price predicted this may be doubled in 1952. Bendix Aviation president M. P. Ferguson reported to stockholders meeting in South Bend Feb. 27 that sales for first quarter of 1952 fiscal year ended Dec. 30 were $111,522,000, representing annual rate of about $440,000,000, compared with sales of $340,000,000 for 1951 fiscal year. As of Feb. 1, he stated, backlog of orders approximated $705,000,000, compared with $698,000,000 at end of last fiscal year Sept. 30, 1951. January, biggest month yet, showed about 80% defense shipments. Earnings were $1.37 a share on first quarter sales vs. $1.21 for same quarter last year. Dividends: Sylvania, 50<‘ payable April 1 to holders of record March 20; Bendix Aviation, 75<* payable March 31 to holders March 10; Standard Radio Ltd., 10c payable April 10 to holders March 20; WJR, The Good Will Station Inc., 10<f payable March 11 to holders March 4; Stromberg-Carlson, 25t payable April 1 to holders March 10; Aerovox, 15V payable March 15 to holders March 15.