Television digest with electronic reports (Jan-Dec 1953)

14 Financial & Trade Notes: CBS earnings and sales set records for both 9-mo. and 3-mo. periods ended Sept. 30. Nine-month profit was $5,661,343 ($2.42 a share) after taxes of $9,300,000 on sales of $223,109,649, compared to $3,807,171 ($1.63) after taxes of $5,640,000 on $174,819,597 in 9 months year ago. Third-quarter profit was $1,657,966 on sales of $71,855,969, compared to $955,576 on $58,275,937 in corresponding 1952 quarter. The CBS report does not break down earnings by divisions, and figures represent TV-radio time sales as well as all manufacturing operations. Zenith Radio profit in first 9 months was $4,098,074 ($8.32 a share), increase of 59% from the $2,576,212 ($5.23) for corresponding period year ago. Sales were $125,762,591, up 52% from $82,563,305 year ago. Thirdquarter profit was $1,321,884 ($2.68) on sales of $43,555,417, compared to $1,239,855 ($2.52) on $35,637,794 corresponding period last year. Pres. E. F. McDonald Jr. said there was no question about the ultimate development of color but that because of small picture size and high price of color sets, black-&-white would continue to be backbone of industry for long time. ABC-TV will show “good profit” in fourth quarter but will still lose about $200,000 for entire 1953, predicted AB-PT pres. Leonard H. Goldenson in speech to N. Y. Society of Security Analysts. He said ABC-TV had opperated at a slightly larger loss in first 9 months of 1953 than in same period last year (when net loss was $659,000) because of the need for rebuilding programming and facilities, placing expenditures for facilities alone at $4,500-, 000. Next year, Mr. Goldenson said, ABC will be “well on the way toward earning its keep.” He admitted that fourthquarter earnings from its 627 wholly-owned and 53 partlyowned theatres were running behind fourth quarter 1952. Clevite Corp., with no breakdown for electronic subsidiaries Brush Electronics Co. and Transistor Products Inc., reports over-all earnings of $2,771,221 ($1.42 a share on 1,799,652 shares) after taxes of $4,155,813 on sales of $53,688,991 in first 9 months, compared to $2,432,693 ($1.38 on 1,599,695 shares) after taxes of $3,281,009 on $39,050,723 in first 9 months last year. For quarter ended Sept. 30, earnings were $755,802 (384) on $16,003,433 vs. $646,313 (360 on $11,891,582 same period year ago. Olympic Radio reports earnings of $65,327 (15c a share on 431,925 shares) on sales of $11,907,058 for 9 months ended Sept. 30. Third quarter earnings were $44,212 (10c) on sales of $4,278,706. Pres. Morris Sobin also announced this week that firm will enter room air conditioner field in Jan., marketing % & 1-ton models designed by Olympic but manufactured by others. Webster-Chicago Corp. reports record sales of $19,763,094 for 9 months ended Sept. 30, exceeding record sales for all of 1952 of $19,580,686 and comparing with sales of $11,795,120 in first 9 months last year. Earnings were $539,933 ($1.19 a share) vs. loss of $350,793 after tax carry-back for same period last year. Stewart-Warner reports net sales of $98,689,330 and earnings of $3,187,186 ($2.37 a share) for 9 months ended Sept. 30, vs. $89,992,482 and $2,828,306 ($2.20) same period last year. Third quarter sales were $31,350,389, earnings $1,044,121 (770 vs. $27,790,876 & $1,018,728 (790 year ago. Tung-So! reports earnings of $1,423,284 ($2.46 a share on 554,051 shares) on sales of $30,464,739 for 39 weeks ended Sept. 26 vs. $1,288,324 ($2.49 on 495,663) on $23,826,364 same period last year. Arvin reports profit of $484,073 (54c a share) on sales of $17,809,501 for 3 months ended Sept. 27 vs. $190,452 (21c) on $14,506,165 corresponding 1952 quai-ter. Among officers’ and directors’ stock transactions reported by SEC for Sept.: Irving B. Babcock sold 1200 Avco (Aug.), holds 8897; Wm. A. Blees sold 500 Avco (Aug.), holds none; C. Coburn Darling sold 3000 Avco (Aug.), holds 3000; David H. Cogan sold 200 CBS “A” & 200 “B,” holds 11,302 “A” & “B” directly and through D. H. Cogan Inc.; Wm. H. Miller sold 400 Gabriel Co., holds 13,410; Sidney J. Weinberg sold 200 GE, holds 800 directly and through Goldman Sachs & Co.; R. B. LaRue bought 200 General Precision Equipment, holds 1300; Paul R. Doelz and trusts bought 900 Indiana Steel Products, holds 3780; Charles A. Maynard bought 200 Indiana Steel, holds 440; Kenneth C. Meinken bought 5000 National Union, holds 38,600; Peter B. Atwood bought 300 Oak Mfg. (Aug.), holds 300; Frank M. Folsom sold 37,500 RCA, holds 13,000; David Sarnoff sold 75,000 RCA, holds 30,000; Harold D. Coddington bought 200 Sparks-Withington, holds 800; Harold M. Johnston bought 100 Sparks-Withington, holds 400; Richard Schneidewind bought 200 Sparks-Withington, holds 700; John J. Smith bought 1501 Sparks-Withington (Aug.), holds 6841; John J. McCloy bought 100 Westinghouse, holds 100. Earnings of TV-radio manufacturers were up average 17.7 G in third quarter of 1953 over corresponding period year ago, according to Wall Street Journal survey covering 425 companies, including 6 unidentified TV-radio companies. Earnings of the 6 totaled $12,135,000 compared to $10,306,000 same quarter last year. Leading group was iron and steel, with 100.8% gain, mining and metals second, 58.7%; chain stores 37.1%. Electrical equipment manufacturers showed 8.1% gain. Weston Electrical Instrument Corp. reports profit of $825,395 ($1.93 a share) after taxes of $874,000 on sales of $23,779,724 in 39 weeks ended Oct. 2 vs. $810,080 ($1.89) after taxes of $859,000 on $20,612,284 corresponding period year ago. For first half of calendar 1953, profit was $647,112 ($1.51) vs. $586,825 ($1.37) in first half of 1952. General Precision Equipment Corp. reports profit of $2,283,830 ($3.46 a share) on sales of $62,493,972 in first 9 months, up from $890,433 ($1.34) on $35,633,521 same period last year. For Sept, quarter, earnings were $814,763 ($1.24) vs. $529,321 (804) comparable period of 1952. Dividends: CBS, regular 404 plus special 25c dividend on Class A & B stock, both payable Dec. 4 to stockholders of record Nov. 20; Tung-Sol, regular 254 quarterly plus 254 extra, payable Dec. 2 to holders Nov. 17; Erie Resistor, 204 Dec. 15 to holders Dec. 5; International Resistance, 54 Dec. 1 to holders Nov. 16. ■ Virgil M. Graham, Sylvania technical relations director, named a v.p. of U. S. National Committee of International Electrotechnical Commission, international standardizing organization in electrical and electronic fields, of which American Standards Assn, is U. S. parent body. Other officers, all reelected: R. C. Sogge, GE, pres.; P. H. Chase, Philadelphia Electric Co., v.p.; J. W. McNair, American Standards Assn., secy.; Adm. G. F. Hussey Jr. (ret.), treas. Fifth govt. -industry Electronic Components Symposium will be held May 4-6 in Washington under sponsorship of AIEE, IRE, RETMA & West Coast Electronics Mfrs. Assn., with participation by Defense Dept, and Bureau of Standards. “The (electronic age” is how Dr. Allen B. DuMont characterizes new era of industrial and social uses of TV — in surgery, railroading, banking, education, etc. Motorola starts $750,000 expansion of Phoenix research facilities, to be completed in 3 months.