Weekly television digest (Jan-Dec 1960)

VOL 16: No. 19 23 Finance RCA SALES & PROFIT PEAKS: Record sales and earnings were racked up by RCA in the first quarter of 1960. Sales reached $361.2 million & net profits $13 million, compared with $321.8 million and $12.9 million in the year-ago pariod, RCA Pres. John Bums reported to 1,600 stockholders gathered before a 2-story-high display of RCA products in NBC’s studio 8-H N.Y. May 3. With RCA Chmn. Brig. Gen. David Sarnoff presiding, the meeting rolled along more smoothly than its predecessor with almost no fireworks and much comforting news for shareholders : TV-radio networks: NBC-TV has just finished “the best first quarter for both sales & profits” in its history. Bums stated, with the fall schedule “fully two months ahead” in sales (Vol. 16:18 p5). The radio network’s belttightening in entertainment programming “has been overwhelmingly endorsed.” Despite the payola hassles in the industry, NBC “has continued to make some very significant gains,” added NBC Chmn. Robert W. Sarnoff. In the NBC something-for-everybody program plans (bread-&butter shows, specials, public affairs, sports, etc.) “you have what NBC believes to be a true network,” he said. Computer sales: In what Bums termed “our first full year of all-out effort in data processing,” RCA is ahead of its own timetable. By year’s end, sales values of lease arrangements “should exceed $200 million.” Prior to 1961, RCA plans to ship “at least $60 million worth” of computers. He visualized the computer field as “a new industrial area which alone can double the size of RCA within the next decade.” Bums said RCA has “moved beyond the starting mark in a race that can lead to the greatest profit rewards our company has ever known.” Other sales: Gains were made on a number of consumer sales fronts. TV receiver sales did well, with 17-in. portables scoring a 115% gain. RCA’s phono, radio & record lines also had strong gains. Advertising: Responding to a question from the floor, RCA Chmn. Sarnoff said RCA had spent $31.8 million for consumer & trade advertising during 1959 (2.3 cents per sales dollar) as against $30.6 million in 1958 (a lower amount, but equaling 2.6 cents per sales dollar). For quarter ended March 31: 1960 1959 Gross sales revenue $361,200,000 $321,800,000 Net profit 13,000,000 12,900,000 Per common share . .85 .88 Common shares 14,344,000 13,855,000 ♦ * * RCA’s top 1959 wage earners among board members, as noted in its proxy statement: Chmn. David Sarnoff, $200,000; Pres. John L. Burns, $197,917 (ineiuding a $25,000 payment on a $125,000 incentive award for 1959) ; NBC Chmn. Robert W. Sarnoff, $162,000 ($12,000 of $60,000 award) : RCA senior exec, vp Elmer W. Engstrom, $143,917 f$ll,000 of $55,000) : group exec, vp Charles M. Odorizzi, $130,917 ($8,000 of $40,000); exec, committee Chmn. Frank M. Folsom. $90,307 ($6,974 of $35,000) ; vp & technical dir. Charles B. Jolliffe, $73,458 ($5,000 of $25,000). Altogether, RCA directors & officers as a group received $3,013,147, including a $180,842 installment on a $918,645 incentive award. Incentive award is payable in 5 annual installments. Reports & comments available: General Precision Equipment, memo, H. Hentz & Co., 72 Wall St., N.Y. 5 . . . Eitel-McCullough, review, A. M. Kidder & Co., One Wall St., N.Y. 5 . . . Magnavox, report. Hardy & Co., 30 Broad St., N.Y. 4 . . . Amphenol-Borg, discussion, Hornblower & Weeks, 40 Wall St., N.Y. 5 . . . International Resistance Co., report, Steiner, Rouse & Co., 19 Rector St., N.Y. 6 . . . Electronics Capital Ckirp, review, D. H. Blair & Co., 42 Broadway, N.Y,, 4. . Record Motorola Sales: Motorola’s first-quarter sales set a new record (10% above last year’s similar period) and earnings increased 16% to within $50,000 of 1953’s firstquarter record. So reported Pres. Robert W. Galvin May 2 at the annual meeting, which approved a 2-for-l stock split effective July 15 to holders June 30 (Vol. 16:7 p23). “It continues to appear that Motorola will show an over-all growth of about 10% for 1960,” Galvin said, adding that 2nd-quarter results so far indicated increased sales & earnings over the first. All divisions except military electronics improved their sales & earnings performance over first-quarter 1959, he declared. “Especially gratifying were the outstanding gains by the semiconductor div. [and] it also appears to be another fine year for our TV, stereo & radio products. Car radio sales are ahead of last year (Motorola supplies radios to Ford, Chrysler & American Motors for their compact cars, among other makes). Communications div. sales “continue to increase steadily.” Motorola has no plans to resume color-TV production, Galvin said in answer to a stockholder question. Stockholders approved a stock-option plan for executives. Motorola’s statement for 3 months ended March 31: Sales Net earnings .... Per common share Common shares . 1960 $70,297,042 3,036,475 1.51 2,015,131 1959 $63,653,184 2,616,427 1.35 1,935,131 Admiral sales & earnings continued upward in firstquarter 1960 as volume climbed 8% and profit increased more than 7%. In the table below, the per-share earnings for both periods are based on 2,405,971 shares outstanding at the end of the 1960 quarter. For 3 months ended March 31: Sales Net income Per common share 1960 1959 $48,413,663 $44,739,388 763,375 711,644 32(i 30^ Wells Television, TV set-leasing organization recently acquired by Tishman Realty & Construction Co., N.Y., is improving its profit picture, exec, vp Robert V. Tishman is quoted in The Wall Street Journal. Wells made $800,000 before depreciation & taxes last year, and Tishman said its growth should “be steady but slow.” He added that its major contribution to the parent company comes from the heavy depreciation charges it provides. Speer Carbon Co., St. Marys, Pa. maker of electronic components for TV & radio, other products, scored record sales & earnings in 1960’s first quarter. Sales rose 22%, and the company forecast record volume & earnings for the 1960 year. In the table below, the 1959 per-share earnings are adjusted to reflect a 2-for-l stock split in July, 1959. For the quarter ended March 31: iggq 1959 Net sales $6,761,995 $5,548,421 Net earnings 572,900 500,990 Per common share 64<J 56(i Tele-Broadcasters Inc. (radios WPOP Hartford, KUDL Kansas City, KALI Pasadena-L.A., KOFY San Mateo-San Francisco) has purchased the radio-equipment-producing electronics communications div. of San FVancisco-based Robert Dollar Co. for an undisclosed amount of cash & stock. Tele-Broadcasters Pres. H. Scott Killgore said the acquisition will be operated by subsidiary Tele-Communications Inc. Killgore also reported to the annual meeting last week that Tele-Broadcasters tallied first-quarter net earnings of $14,433, compared with the net loss of $7,979 X’egistered in the year-ago period.