Weekly television digest (Jan-Dec 1960)

VOL. 16; No. 48 19 Webcor has acquired Dormeyer Corp. from Webcor ^ Chmn. Titus Haifa and members of his family, and will operate it as a wholly owned subsidiary. The Chicago-based manufacturer of small appliances, electric tools, staplers and plastic parts, was acquired through issuance of 290,000 shares of Webcor stock at $12.50 a share for a total acquisition price of $3,625,000. Dormeyer’s sales in the fiscal year ended last May 30 totaled $19,480,000, while Webcor’s sales for the year ended June 30, 1959 were $33,498,227. Fiscal-1960 Webcor sales haven’t been announced yet, but for 9 months to March 31, 1960, sales were $24 million vs. $26.4 million in the similar 1959 period. New models: Packard Bell introduces 23-in. table model in 3 finishes at $319.95-$339.95, and 19-in. table models in some finishes at $279.95-$299.95, both with new Roto/ Remote, which uses ratchets instead of snap-buttons for ultrasonic set control (Vol. 16:47 p20) • Sarkes Tarzian Inc. expands its FM line with 6-tube AM-FM radio at $29.95, due Dec. 15 • Zenith announces 4-transistor “Courier” hearing aid, for mild hearing loss, at $115. Stereo reply comments filed with FCC in its rule-making proceeding (Vol. 16:44 pl5 et seq.) include a recommendation from H. H. Scott Inc. that the Commission adopt a system using AM modulation for the subcarrier. Scott said that its own tests & calculations indicate that AM produces less distortion, least degradaton of signalto-noise ratio, etc. GE replied to its critics, saying that they’re not familiar with its system, and it has supplied a point-by-point technical rebuttal. “Striking transformation” in advertising for appliances sold in the District of Columbia has been noted by FTC Chmn. Earl W. Kintner following a conference with local dealers on “list-price” practices (Vol. 16:45 pl8). “We hope the improvement will be permanent, but are prepared to bring action if it proves otherwise,” he said. Philco products will be fair-traded in N.Y. & N.J. Distributor John M. Otter Co. has set minimum resale prices under the fair-trade laws in both states. All Philco consumer products are covered by the floor-price pact. Finance Republic’s Rosy Outlook: Republic Corp., formerly Re public Pictures, earned approximately $1.6 million, or about 80«i per common share, in the fiscal year ended Oct. 29, Pres. Victor M. Carter said at a meeting last week of the Los Angeles Society of Security Analysts. He said “sales were approximately $30 million compared with $28,250,000 in fiscal 1959 — and they give every indication of being substantially higher in fiscal 1961.” In fiscal 1959 Republic reported net income of $884,880, or 24^ a share. Carter added that Republic’s subsidiary. Consolidated Molded Products Corp., accounted for 25% of total sales last year; Consolidated Film Industries, 35%; TV and movie film distribution, 25%; studio rentals, 15%. Republic has financed 2 TV series & 4 movies, he stated. The company has $2.7 million in cash and no bank debt. He said $5,002,000 in 4% debentures due in 1965 are being steadily paid off, and about $200,000 of the debentures were bought back during the last fiscal year. Current assets total $10.9 million, current liabilities $4.5 million. Carter said be owns 30,000 of the 400,000 shares of cumulative convertible preferred stock, 317,000 common, and $1,264,000 of the 4% debentures. He predicted 1961 profits of “approximately $1.25 per share.” Desilu Productions’ profits in fiscal-1961’s 2nd quarter (ended Oct. 29) wiped out the $201,397 loss suffered in the first quarter (Vol. 16:35 pl6), reported Pres. Desi Arnaz. He forecast that profits in the 9 months to Jan. 30 will be “within 10% ” of the year-ago period. Outlook for the full fiscal year: Results “at the worst, look like they’ll be equal to last year.” In fiscal 1960, Desilu earned $811,559 on $23.4-million sales. Arnaz said that about 50% of the company’s profit comes from network telecasts of shows in which Desilu has varying degrees of ownership. Another 25% stems from residual usage of older shows. The balance is from rentals of production facilities & sales of services to shows which are filmed on Desilu lots. At present, Desilu has ownership in 4 shows on the air, rents facilities & sells services to 13 others, has 50% of its facilities in use. Arnaz said prospects for Desilu-owned shows are bright, adding: “We hope to have 9 or 10 shows in which we have varying degrees of ownership on the air next year.” Federal Pacific Electric anticipates “disappointing” earnings for fiscal-1961’s first half, ending Dec. 31. Pres. Thomas M. Cole told stockholders last week that the lessthan-expected results stem from the general business slump, price competition, and the expenses involved in consolidating with Cornell-Dubilier earlier this year (Vol. 16:7 p24). However, Cole forecast a brighter 2nd half. He said Federal Pacific should earn about $1.2 million in each of the last 2 quarters, and pegged the “minimum earnings goal” for the fiscal year at around $3 million, vs. $2.8 million in fiscal 1960. Siegler Corp. will absorb Jack & Heintz Inc. (Vol. 16:14 p23) in a stock deal involving issuance by Siegler of 410,000 common shares and 105,000 shares of no-par cumulative convertible preferred, according to an SEC registration statement. Subject to approval by stockholders of both companies, Siegler (Olympic Radio & TV, David Bogen Co., etc.) will offer alternative merger plans to Jack & Heintz holders. They may exchange each of their shares for .55 of a Siegler share or take preferred stock at a rate to be fixed. No underwriting would be involved, Siegler said. Reports & comments available: Motorola, Microwave Associates and FXR, comments in a report on “The Microwave Industry,” Halle & Stieglitz, 52 Wall St., N.Y. 5 • General Tire & Rubber, review, Fahnestock & Co., 65 Broadway, N.Y. 6 • Johnson Electronics, analysis. Security Associates, Park & New England Aves., Winter Park, Fla. • Capital Cities Bcstg., review. Bacon, Stevenson & Co., 39 Broadway, N.Y. 6. Electro-Science Investors, Dallas-based small-business investment company, has purchased for more than $1 million a 30% interest in Communications Industries, the Dallas manufacturer of industrial communications & automation equipment. The investment is the first for recently organized Electro-Science. Gibraltar Enterprises (WICU-TV & WICU Erie, Pa., other Edward Lamb operations) scored a 49.8% profit increase on an 11% sales gain in the first 9 months of 1960. The Jan.-Sept. earnings totaled $594,625 (48(( a share) vs. $398,285 (32^) in the year-ago period. Crosby-Teletronics has established a stock option plan for key employes. Pres. Murray G. Crosby said the company has “definitely turned the corner on sales & profits,” will push sales to more than $1.5 million this year. Andrea Radio’s sales & profits for 1960’s first 9 months exceeded those of the same 1959 period. Pres. Frank A. D. Andrea announced last week. He gave no figures.