Television digest with electronics reports (Jan-Dec 1953)

13 Financial & Trade Notes: TV -radio -phono makers showed average profit of 84% more in first half of 1953 than in corresponding period year ago, well above average national industrial earnings gain of 13%, according to New York Times survey of 663 manufacturing concerns. The unidentified 10 companies in TV-radio-records category showed profit of $49,356,000, up from $26,804,000 same period of 1952. Fourteen manufacturers of electrical supplies and equipment showed increase of 23% ($121,718,000 vs. $98,886,000), which the survey attributed largely to gains of 32% by GE, 13% by Westinghouse. Home appliances (12 companies) gained 17% ($18,197,000 vs. $15,594,000). Olympic Radio reports net profit of $21,115 (54 per share) on sales of $7,628,352 in first 6 months, compared to loss of $36,511 on sales of $5,276,518 in first half of 1952. Pres. Morris Sobin told stockholders TV unit sales increased 13% over corresponding period last year, added first-half profit this year was reduced by expenditure of $200,000 on research program. Working capital on June 30 amounted to $2,867,740 vs. $2,902,780 on Dec. 31, 1952. Inventories stood at $5,594,221, with backlog of military contracts about $20,000,000. Sobin said prospects for second half look “very favorable,” added company is investigating program “to merchandise allied products through the present channels of distribution” starting next year to aid summer and spring sales, but didn’t elaborate. RCA appears to be headed for its best year, reports Sept. 10 Wall Street Journal, which reports speculation that directors before end of year may vote to pass some of increased profits to stockholders either as an increased dividend or an extra disbursement. In first 6 mo., profit was $18,185,228 vs. $11,299,930 year ago (Vol. 9:30). Sales of TV station equipment are booming and receiver sales are holding up, while record div. (under new v.p. & gen. mgr. Emanuel Sacks) has had best hot weather business in 9 years. Whereas records usually slump in summer, dollar sales first 7 months were up 38% from year before, July alone up 46%, Aug. up 40%, and fall expected to run 33-50% ahead. NBC-TV is also showing substantial gains, with radio holding its own (Vol. 9:34). Wilcox-Gay Corp., parent of Majestic, reports record sales of $9,118,886 for first half 1953, despite cancellation of $1,250,000 in govt, contracts. Net income for period was $198,735. For same 1952 period, sales were $8,434,044, profit $265,428. Pres. Leonard Ashbach reported high sales of civilian items, anticipated boost in second half due to “recent pickup in TV receiver sales” and new modestly priced hi-fi phonograph to be introduced in October with promotion in 16 magazines. Avco, with no breakdown by products, reports net profit of $3,163,343 (324 a share) on sales of $312,728,859 in 9 months ended Aug. 31 compared to profit of $6,647,079 (72 4) on sales of $219,939,742 in corresponding period year ago. Smaller profit on greater sales volume is attributed by chairman Victor Emanuel to series of strikes in last 6 months, some of them still in progress. Reeves Soundcraft Corp. and wholly-owned subsidiary Bergen Wire-Rope Co. had consolidated net profit before taxes of $92,251 for 6 months ended June 30, and realized net long-term capital gain of $343,270 before taxes on sale under prior option of Cinerama Inc. common stock to Cinerama Productions Corp., reports pres. Hazard Reeves. Reeves Soundcraft still owns 431,849 shares of common stock of Cinerama Inc. IT&T and subsidiaries achieved consolidated gross income of $203,724,412 in first half of 1953 vs. $176,359,660 same period last year. Consolidated net, including that of newly merged manufacturing subsidiaries, was $4,808,549 ($1.37 per Bhare) vs. $4,500,515 ($1.35). Electronics Reports: Military spending for electronics and guided missiles is expected to continue its slow increase through June 1954 — for remainder of fiscal year — despite fact that total defense outlays will decline during that period. That’s sizeup as indicated in reports from Pantagon and Budget Bureau. Principal reason for increase in electi’onics spending is that many projects are only now leaving drawing-board and pilot production stage for full-scale output and delivery. Some electronic procurement will be decreased — for such expendable items as walkie-talkies — because, like ammunition, they are no longer being used up on the battlefields. Many of the large electronics production contracts have already been let, although Pentagon is expected to continue placing production orders in electronics and guided missile fields through the fiscal year. * * * * Faster and more accurate production of printed circuits is claim made by Emerson for “Autobrader,” fully automatic component adjusting machine developed under senior engineer Jack Bayha. Machine abrades away resistor and capacitor material from printed circuit units to standardize their value to precise point required by designers, inspecting units both before and after abrasion and sorting good from bad pieces — all in “a matter of split seconds,” according to exec. v.p. Dorman D. Israel. NPA Electronics Div. moves next week to 4115-4121 Commerce Dept. Bldg, in anticipation of its integration into new Commerce Dept, business & defense services agency, now slated to be organized by Oct. 1. Use of TV on battlefield, as demonstrated by Signal Corps, will be discussed at convention of National Alliance of TV & Electronic Service Assns. at Chicago’s Morrison Hotel, Oct. 9-11. Dr. Louis T. Rader, mgr. of engineering, appointed gen. mgr. of GE specialty control dept., Schenectady, responsible largely for industrial electronic, regulator and aircraft control equipment. Aerovox combines its Wilkor resistor and Hi-Q ceramic capacitor operations into Hi-Q division, moving Wilkor from Cleveland to the 3 Hi-Q plants at Olean & Franklinville, N. Y. and Myrtle Beach, S. C. Among officers’ and directors’ stock transactions reported by SEC for July: Irving B. Babcock sold 700 Avco, holds 10,097; Samuel Yamin bought 200 Decca Records, holds 288; Max Abrams trusts bought 1000 Emerson (June) and he now holds 186,240 personally and through trusts; Leicester W. Fisher bought 1000 General Instrument, holds 1599; Leon A. Kolker sold 3500 General Precision Equipment, holds 2500; Joseph A. Zock sold 300 General Precision Equipment (June), holds 7100; Geoffrey A. Ogilvie bought 200 IT&T, holds 305; Paul F. Swantee bought 100 IT&T, holds 100; Charles C. Moskowitz bought 1000 Loew’s Inc., holds 5500; Y. Frank Freeman bought 400 Paramount Pictures, holds 800; Russell L. Heberling bought 100 Philco, holds 500; Charles B. Jolliffe bought 100 RCA, holds 600; Gwilym A. Price sold 1000 Westinghouse, holds 4350; Decca Records bought 74,400 Universal Pictures (June & July), holds 544,575. Dividends: Emerson Radio, 10 4 regular and 54 extra payable Oct. 15 to stockholders of record Oct. 5; American Phenolic Corp., 254 Oct. 30 to holdei’s Oct. 14; General Instrument Co., 254 Oct. 16 to holders Oct. 5. I-T-E Circuit Breaker Co. reports net income of $1,237,255 on sales of $32,964,796 in first 6 months of 1953, compared with $1,332,418 on $32,197,270 in 1952 period. Servomechanisms Inc. reports first half sales of $6,817,001, profit of $183,716 (244 a share) vs. $5,108,767 and $179,040 (244) for first half 1952.