Weekly television digest (Jan-Dec 1960)

23 VOL. 16; No. 8 Amphenol-Borg Electronics Corp, scored record sales in 1959 with a 21.6% gain over the 1958 volume. Net income rose 28.4%, making 1959 the company’s 2nd-highest profit year, topped only by 1957’s income. Chmn. Arthur J. Schmitt noted that 1959 earnings of the components producer would have been higher but for consolidation expenses involving its Broadview, 111. office-plant & Danbury, Conn, plant. The 1959 plant & equipment spending topped $4.6 million. Schmitt forecast a 15%-20% sales gain in 1960, said earnings will reflect the increased volume, elimination of non-recurring expenses, and the advantages of the concern’s new facilities. The 1959 preliminary report consolidates for the first time the earnings of wholly-owned subsidiary Amphenol (Great Britain) Ltd. and the company’s equity in the undistributed earnings of a 50% owned affiliate. (The 1958 report is adjusted to reflect the consolidation, for comparative purposes.) Preliminary report for the year ended Dec. 31: Net sales Net income Per common share Common shares . . 1959 $56,451,533 2,926,605 2.50 1,172,044 1958 $46,430,851 2,279,434 1.96 1,163,210 Arvin Industries reports substantially better sales & earnings for 1959 despite a poorer 4th quarter due to the steel strike. Per-share results for 1958 in the table below have been adjusted to reflect a 25% stock dividend paid last April. Arvin’s results for 1959 (fiscal year ended Jan. 3, 1960) vs. 1958 (ended Dec. 28) : 1959 1958 Net sales $66,174,567 Net income 2,031,058 Per common share 1.80 Common shares 1,129,709 For 3 months ended Jan. 3: Net sales $15,571,237 Net income 344,606 Per common share 31^ $54,015,225 1,487,878 1.32 899,225 $18,140,207 918,341 81(f Tung-Sol Electric reports record sales in 1959, with earnings slightly higher than 1958. The company explained that earnings didn’t match the sales rise because the prices of products did not keep pace with costs, because starting-up expenses on several new products were heavy, and inventories increased due to maintaining production during the steel strike. The preliminary report for the year ended Dec. 31: 1959 1958 Total sales Net income Per common share Common shares . $72,345,248 $59,809,166 2,712,552 2,643,842 2.70 2.67 924,321 896,067 Federal Pacific Electric Co., Newark, N.J. electrical equipment concern which is talking merger with CornellDubilier (Vol. 16:7 p24), posted strong sales & earnings gains in the 6 months ended Dec. 31. (Common shares listed do not include 581,040 shares of Class B common in 1959 & 590,540 shares in 1958 which are not eligible for dividends) : 1959 1958 Net sales Net income Per com. share (after pfd.) Common shares $36,931,369 2,052,390 1 QQ 1,441,534 $27,788,192 1,347,150 1.07 1,202,379 Gabriel Co. sales increased last year over 1958, while earnings dropped slightly: 1959 1958 Net sales $28,836,253 ' $22,825,684 Net income 536,906 545,066 Per com. share (after pfd.) 77<# 80^ Common shares 675,838 661,038 Skiatron Case Neads End: SEC attorneys put Skiatron Electronics & TV Pres. Arthur Levey & gen. counsel Kurt Widder on the stand last week for prolonged questioning about stock deals, then prepared to wind up hearings on their charges that the company submitted misleading information in an SEC registration statement (Vol. 16:4 p20). The 3rd week of the proceedings, which could bring an SEC stop order suspending the stock-offering statement, was spent by the SEC lawyers retracing complicated Skiatron Electronics market maneuvers involving Levey and Matthew (Matty) Fox’s Skiatron of America — and Widder’s part in preparing the allegedly faulty statement. At the week’s end, SEC counsel planned to draft stipulations with Skiatron lawyers which would obviate the necessity for further hearings — or for calling Fox himself as a witness in the complex case. The proceedings will be convened again in Washington Feb. 24 to open the record for any agreements. In his testimony, Levey told how he loaned 206,000 shares of Skiatron Electronics stock to Fox, sold 130,000 unregistered shares to relatives & friends when Skiatron’s payTV system was a hot item in industry news 3 years ago — and made another sale of unregistered shares to 2 men identified only as Charles Grande & Jose Miranda. He said he didn’t know these 2 buyers. SEC lawyer Frederick Moss said Fox posted the stock as collateral for loans to promote pay TV, then defaulted on the loans, and that Skiatron Electronics’ statement should have disclosed that Skiatron of America had a deficit of nearly $3.3 million. Moss also said that Levey’s stock-buying friends & relatives had resold their shares despite SEC regulations against public distribution of unregistered stock which is sold privately. Levey said he had been given “investment letters” by the buyers indicating intent to keep them, and that he had been unaware they had been sold again. Before the hearings were recessed Feb. 18, Levey conceded under questioning that Skiatron Electronics lacks funds now to put its pay-TV system in operation. And even if it had enough money on hand, he said, his company would be hard put to overcome what he said was lack of sympathy for the pay-TV idea among members of FCC & Congress. Levey insisted he still had faith in pay TV. Barnes Engineering Co. more than doubled net income on soaring sales in the 6 months ended Dec. 31 (1958’s income excludes non-recurring charges & credits) : Net sales Net income Per common share Common shares . 1959 $1,928,417 151,390 46<f 327,170 1958 $1,002,992 65,245 22cS 299,570 Litton Industries posted strong sales & profit gains in fiscal-1960’s first half. The income in the 1959 period in cludes a special credit of $400,000 (11«S a share) resulting from beneficial purchase of assets. For 6 months ended Jan. 31: 1960 1959 Sales Net income Per com. share (after pfd.) Common shares $77,400,000 3,248,000 S54 3,752,848 $56,900,000 2,724,000 74(f 3,556,142 Western Union’s holdings in TelePrompTer Corp. have been increased to 91,026 shares, or more than 20% of the outstanding stock, as a result of the acquisition of 41,026 additional shares by conversion of a $400,000 note.