Television digest with electronics reports (Jan-Dec 1953)

13 Financial & Trade Notes: Bitter fight for control of Indiana Steel Products Co. (Vol. 9:11,14-16) may wind up in courts after 3-day stockholders meeting in which directors proposed by ousted president A. D. Plamondon Jr. were defeated by slate backed by board chairman Paul R. Doelz by vote of 77,478% to 60,696%. The 3 directors comprising the majority faction — Doelz, Hugh S. Conover and W. C. Buchanan — were reelected. Also named to board were Robert F. Smith, formerly v.p.-gen. mgr., and manufacturing v.p. John H. Bouwmeester. Removed from board were Plamondon and Fred M. Gillies. Immediately after election, Smith was named president. Plamondon challenged more than 35,000 of opposition’s proxies, but was overruled by the 2 election judges who he charged were both attorneys retained by the Doelz faction. The RTMA president also charged: (1) Doelz, acting as chairman of meeting, ruled out of order motions that chairman and judges be selected by majority of stockholders present. (2) Some 123 proxies, representing over 23.000 votes for Doelz faction appeared to have been “solicited as postdated proxies [in] violation of SEC regulations.” (3) Evidence “that agents of the Doelz faction had persuaded persons [to] purchase stock and support the Doelz faction on the promise that a ‘deal’ was in the offing that would increase the value of the stock.” Plamondon and his backers are considering court action against winning faction. * * * * Webster-Chicago anti-management forces succeeded in electing 2 directors to board in hard-fought proxy battle at Chicago stockholders meeting. New directors are Chicago investment broker Martin C. Remer, head of opposition faction who last February successfully blocked proposed merger with Emerson Radio; and Robert E. McNett, president of Royal Electric Co., Jamestown, O. Management elected 5 directors: Merchants National Bank president George R. Boyles; Webster-Chicago president Rudolph F. Blash and company officers Walter P. Attenburg, Herbert A. Gumz & Norman C. Owen. Three anti-management candidates were defeated. Blash, who headed management group, received proxies for 280,130 to Remer’s 116,142. General Precision Equipment Corp. named these new directors at annual meeting: Elliot V. Bell, McGraw-Hill; T. Roland Berner, attorney; Levin H. Campbell Jr., Automotive Safety Foundation; Joel Dean, partner in Joel Dean Associates; Leon A. Kolker, chemical engineer & industrialist; John A. Robertshaw of Robertshaw-Fulton Controls Co.; Joseph A. Zock, N. Y. Stock Exchange. First quarter earnings are expected to be $1 per share on sales of about $20,000,000, compared with 6tf on sales of $7,780,000 same 1952 period. Presently authorized no par shai’es will be convei’ted to equal number of $1 par shares. Dividends: Zenith, 50<f payable June 30 to stockholders of record June 12; Sentinel, 7%£ May 28 to holders May 15; Baltimore Radio Show (WITH), 10c June 1 to holders May 15; Remington Rand, 25 C July 1 to holders June 9; Driver-Harris, 50C June 12 to holders June 1; Westinghouse, 50c June 1 to holders May 11; Weston Electrical Instrument, 25# June 10 to holders May 15; International Resistance, 5# June 1 to holders May 15. Weston Electrical Instrument stockholders approved 2-for-l stock split, increasing authorized capital stock to 500.000 shares. Net income was $255,989 (80# a share) on sales of $7,476,560 for first 1953 quarter vs. $304,222 (95#) on sales of $6,679,893 year ago. Share earnings for both periods were computed on the 321,166 shares outstanding after stock split. Packard-Bell reports net income of $965,748 on sales of $19,467,478 for 6 months ended March 31, compared with $764,645 on sales of $12,169,183 same 1952 period. Admiral’s first-quarter earnings were 102% higher than first 1952 quarter, sales 57% higher. Earnings were $3,056,878 ($1.56 a share) on sales of $69,191,849 compared to $1,515,506 (77#) on sales of $43,970,356 corresponding 1952 period. Exec. v.p. John B. Huarisa attributed growth to opening of new markets, expanded replacement market and good business in fringe areas. He pictured outlook for second quarter as “very good” but warned current market is highly competitive, will require astute salesmanship to maintain high levels. Sylvania net income and sales for first 1953 quarter were highest in company’s history. Earnings were $3,679,243 ($1.38 on 2,425,438 shares), up 88% from $1,953,771 (87 # on 1,867,625 shares) corresponding 1952 period. Net sales were $80,060,308, up 43% from 1952 quarter’s $55,987,461 and 10% higher than previous recoi’d of $72,801,320 in final 1952 quarter. TV sales were 50% higher than year ago and export demand for TVs was “strong.” Income increase is attributed partly to lower excess profits tax. Second-quarter orders are reported “strong in virtually all products” and prices “firm in the early months of 1953.” Zenith net income for fii'st quarter was $2,109,461 ($4.28 a share) on sales of $47,898,773, compai'ed with $1,083,242 ($2.20) on sales of $25,755,332 coi'responding 1952 period. First quarter sales were record for that period, second only to $54,899,347 final 1952 quarter. TV-radio sales were “up shai-ply” over last year’s and distributor inventories “were in many cases insufficient to support the retail movement of merchandise.” Company plans to spend more than $5,000,000 for plant expansion and modexmization in coming months. Olympic reports billings of $4,300,000 for first 1953 quarter, up 70% from $2,500,000 in same 1952 pei’iod. New president Morris Sobin says 20% of first quarter sales was defense business, and civilian business rose 33% over corresponding 1952 months. Westinghouse had net income of $16,858,000 ($1.04 on 15,765,116 shares) on sales of $382,226,000 for quarter ended March 31 vs. $15,485,000 (96# on 15,549,697 shares) on sales of $323,820,000 coi’responding 1952 period. Wilcox-Gay reports net income of $181,422 after 40% provision for taxes on sales of $5,638,458 for fii’st 1953 quarter, compared with $144,238, with no provision for taxes, on sales of $4,500,380 same 1952 pei'iod. StewartWarner had net income of $1,076,344 (80# a share) on sales of $33,964,599 for quarter ended March 31 vs. $956,097 (75<t ) on sales of $31,254,451 same period preceding year. National Union had net income of $179,148 on sales of $4,218,491 for quarter ended March 29 vs. $43,600 on sales of $3,834,665 corresponding 1952 period. Clarostat sales increased 34% to $1,800,000 for fii’st 1953 quarter vs. $1,345,000 same 1952 period. * * * * R. H. Macy & Co. enjoyed net capital profit of $2,766,557 from 1952 sale of its WOR-TV, WOR and other broadcasting properties (Vol. 8:3) to General Tire subsidiary General Teleradio Inc. It still has about 10% interest in General Teleradio, and its report for first half of current fiscal year to last Jan. 31 shows income from broadcasting, telecasting and other non-trading sources was $243,548 vs. $190,986 for same 1952 period. Loew’s Inc. reports net income of $1,839,523 (30# a share) for 16 weeks ended March 12, compared with $1,647,977 (32#) a year earlier. For first half of fiscal year — 28 weeks ended March 12 — net income was $2,171,729 (42#) vs. $3,222,040 (73#) for preceding year’s period.