Weekly television digest (Jan-Dec 1960)

22 MAY 16, 1960 3M Starts Fast: The Minnesota Mining & Mfg. Co. got off to a record first quarter by piling up earnings of $16.2 million on sales of $128.7 million, Pres. Herbert P. Buetow informed the annual meeting last week. Exec, vp Joseph C. Duke compounded the healthy report with a forecast that 1960’s total sales would climb 6-10% above 1959’s $500.7-million level. The stockholders responded by approving a 3-for-l stock split which is expected to become effective this week (20). The approval will increase the number of authorized shares to 75 million from 25 million. The 3M board promptly voted an increase in the annual dividend on the old shares, to $1.80 from $1.60. The recent acquisition of Mutual Bcstg. System by 3M (Vol. 16:17 p8) was described by Buetow as both a profit and a public-service venture. “Our directors have felt for some time that we should direct some of our energies & resources to strengthen the free enterprise system under which we have grown & prospered,” he told the stockholders. “Mutual in our opinion provides such an opportunity. Its highly-regarded news & public-affairs program service is a vital part of our nation’s free press & communications system. We will provide a reputation for financial stability and the freedom to allow Mutual to continue its service.” He also emphasized 3M’s faith that MBS will return a profit to the company. Buetow pooh-poohed speculation that 3M acquired MBS as a promotion medium for its own products, adding: “Our latest major advertising contract, in fact, has been signed by our Thermo-Fax sales people with NBC.” The contract is for co-sponsorship of NBC-TV’s June 18 telecast of golf’s National Open. Other highlights of the meeting: Demonstration by CBS Labs Pres. Peter C. Goldmark of the 3M-CBS Labs tape-cartridge system (Vol. 16:13 pl8); announcement of a $50-million expansion program involving construction of new plants in N.J., W.Va., S.C., Ala., Italy, Spain and Japan, and enlargement of facilities in Minn. & Ind. In the table below, the 1959 figures are adjusted to include the performances of all foreign subsidiaries. Consolidated report for the 3 months ended March 31: 1960 Net sales $128,669,218 Net income 16,217,911 Per common share 95(^ Common shares 17,007,273 1959 $115,172,320 13,956,520 82(# 16,948,902 Paramount Pictures anticipates a “good” 1960 although the first-quarter operating profit “probably” will run slightly behind the year-ago level. Pres. Barney Balaban reported in a Wall St. Journal interview last week. He attributed the profit sag to the now-ended 33-day SAG strike. Commenting on Paramount’s expanding pay-TV activities, Balaban said: “We are signing people up faster than we can install the boxes [in Etobicoke] ... I do believe we’ll be in operation in the U.S. within a year.” The article noted the film concern’s increasing take from TV films: “Paramount will likely report a special income of about $5 million this year as part of the payment from the sale in 1958 of the company’s pre-1948 movies for showing on TV. No income from this source was received last year. Thus far the company has received $10 million as an initial advance from the pre-1948 film sale. It is assured of at least $29 million and the total may go as high as $40 million, depending on the amount of revenue the purchaser receives from TV stations.” CBS Inc. last week filled in the figures showing a dip in consolidated net income for the first quarter of 1960 — as already reported by Pres. Frank Stanton (Vol. 16:17 p20) — ^which turns out to be a little less than 3% below the first-quarter 1959 figure. Net sales for the quarter were up about 9%. Chmn. William S. Paley said the profit decline resulted “primarily from the cost of an unusual & intensive campaign by the Columbia Record Club to secure new members.” He said that as a result of the campaign, membership in this “world’s largest record club” is at a record high. For 3 months ended April 2 (net income per share based on average shares outstanding during the period, adjusted for 1959 stock dividend) : 1960 1959 Net sales $121,077,728 $111,052,290 Net income 6,829,367 7,032,686 Per common share 81^^ 84^ Crowell-Collier Publishing Co. (radios KFWB Los Angeles, KDWB Minneapolis-St. Paul, KEWB San FranciscoOakland) plans to increase its present holdings of 129,000 (39%) of Macmillan Co.’s 337,562 outstanding common shares, but no merger of the publishing giants is in the offing. In a joint statement last week, Crowell-Collier Chmn. Wilton D. Cole & Macmillan Pres. Bruce Y. Brett gave the boot to trade I'umors of a consolidation. Skiatron Electronics & TV stock distribution by Re, Re & Sagarese, American Stock Exchange specialist firm, has been cited by SEC in charges that the company violated federal securities law. In the first such action taken against an exchange specialist, SEC started proceedings to determine whether the broker-dealer registration of the firm and Gerard A. Re & his son Gerard F. Re should be revoked. SEC alleged that unregistered stock issued by Skiatron, which also has SEC troubles (Vol. 16:18 p21), was part of $6 million worth of securities illegally distributed by Re, Re & Sagarese. Decca Records rolled up a tenfold profit gain in firstquarter 1960, compared with the year-ago quarter. The consolidated report includes the operations of subsidiary Universal Pictures and reflects domestic rentals of $8 million from 2 movies (“Operation Petticoat,” $5,100,000 and “Pillow Talk,” $2,800,000). For the quarter ended March 31: 1960 1959 Net income $1,989,775 $197,560 Per common share 1.54 13^^ Common shares 1,285,701 1,527,401 Allied Artists Pictures Corp. is inviting tenders for redemption of a maximum of 10,000 shares of 5^^% convertible preferred stock at $10.50 a share. The offer is through Emanuel, Deetjen & Co., and expires next week (23). If more than 10,000 shares are tendered. Allied Artists may use its discretion to redeem any or all of the additional shares. MCA posted record earnings in the first quarter ended March 31 as the net soared some 40% above the year-ago level, Chmn. Jules C. Stein reported. Net earnings climbed >to $1,654,354 (41^ a share) from $1,165,078 (29^) in the same 1959 quarter. The per-share earnings are after allowing for preferred dividends and are based on 3,995,736 shares of common outstanding on March 31. Filmways Inc. reports a net income of $116,443 (24<( a share on 487,136 shares) on revenues of $3,035,422 for the 6 months ended Feb. 29. The net includes a special credit of $36,000; per-share earnings include 7^ a share from special credit. Comparative year-ago figures not available. Cohn, now chmn., is expected to be elected pres.