Weekly television digest (Jan-Dec 1962)

HEW SERIES VOL. 2, No. 43 TELEVISION DIGEST— 11 AUG. PHONO SALES UP 30%: August set all kinds of records in distributor-to-dealer phono sales, according to official EIA figures released last week. By far 1962’s biggest month in sales (441,455 units), August set record for both mono & stereo unit sales. Total August sales were 30% above Aug. 1961 and brought year-to-date sales 11% over first 8 months of last year. Here are EIA’s data on monthly phono distributor & factory sales, together with 1961 figures for comparison: PHONO DISTRIBUTOR SALES I98S 1981 Month Mono Stereo Total Mono Stereo Total January 48,423 171,305 219,728 74,881 211,268 286,149 February 50,563 188,857 239,420 54,097 210,365 264,462 March 60,206 236,051 299,257 59,290 231,021 290,311 April 64,615 146,577 201,192 48,632 173,685 222,117 May 65,192 130,372 196,664 55,057 164,400 219,457 June 91,526 183,000 274,526 47,970 170,178 218,148 July 90,175 202,125 292,300 58,514 163,660 212,064 August 115,741 301,047 416,788 93,749 225,423 319,172 TOTAL 579,441 1,559,334 2,138,775 492,090 1,539,790 2,031,880 PHONO FACTORY SALES 1962 1961 Month Mono Stereo Total Mono Stereo Total January 68,545 191,014 259,559 80,336 211,383 291,749 February 62,566 202,846 255,412 50,710 204,638 255,348 March 60,991 237,492 298,483 62,396 227,469 289,866 April 45,152 137,960 183,102 53,074 162,974 206,048 May 67,610 119,682 187,292 53,887 142,450 196,337 June 104,548 278,989 383,537 61,533 197,170 258,703 July 89,699 220,694 310,393 70,681 171,331 242,012 August 109,258 332,197 441.455 106,157 242,164 348,321 TOTAL 598,369 1,720,864 2,319,233 538,804 1,549,579 2,088,383 ■ Motorola’s “Decorator & Designer” collection of dej luxe TV & stereo in unusual Drexel & Heritage cabinets, which attracted attention at Chicago furniture shows last January (Vol. 2:3 p9), is now being offered to dealers through Motorola distributors. Company introduced line last week at Southern Furnitui’e Market in Drexel, N.C. It consists of 14 pieces, including TV in wall-hanging spice cabinet ($535), stereo in 77-in. long hall piece ($1,338), coffee table & window-bench stereo unit. Motorola Consumer Products Pres. Edward R. Taylor noted that line caters to “special segment of the market, which we believe is becoming increasingly important.” “Magnavox makes sweet music,” is headline of profile in Oct. 17 Financial World. “Company has had an impressive growth pattern despite keen competition in TV set field,” noted publication, adding: “Although still identified primarily with its consumer goods, Magnavox now derives more than 40% of total revenues from defense & industrial products. These operations are also becoming more profitable.” Summed up Financial World: “At current deflated levels of around 33, Magnavox’s stock represents one of the most attractively-priced issues in the electronics group, selling at around 16 times estimated 1962 earnings. . . . The chief appeal of these shares, however, is for long-range growth.” Jerrold Corp., which posted record sales & profits in fiscal-1963’s first 6 months ended Aug. 31 (Vol. 2:42 pl2), i expects sharp improvement to continue through 2nd half. Pres. Sidney Harman forecast total year earnings of 50h i a share on $26-million sales — up markedly from fiscalj 1962’s 30<f on $18-million sales. Globe-Union was slated for listing on New York Stock Exchange Oct. 22. Symbol: GLB. Disputed merger of Macfadden Publications & Bartell Bctsg. (Vol. 2:29 pl2) moved closer to settlement last week with new agreement between contesting minority stockholders & Macfadden-Bartell Corp. New terms, subject to court approval, provide that unidentified “certain officers” of M-B surrender for retirement 350,000 shares of the corporation stock they own. Initially, M-B officers, including Chmn.-Pres. Gerald A. Bartell, were to surrender 175,000 shares to company treasury. However, last July, court-appointed referee David W. Peck termed earlier agreement inequitable, said it was “not a significant amount compared to the Macfadden stockholders’ stake in the case.” Dissident stockholder group is lead by former Macfadden Pres. Irving S. Manheimer. Motorola distributors’ September TV unit sales jumped 25% ahead of a year earlier & posted best September since record year of 1955. Motorola Consumer Products Pres. Edward R. Taylor termed September showing “doubly encouraging because the sales seem to indicate through movement.” He explained: “Warranty card returns from our dealers were up 42% through June, 52% in July & August, and 55% during the latest week reported in September. This means that dealers are selling to consumers as well as distributors selling to dealers.” He said stereo sales picture “is equally as bright.” Distributors’ September stereo sales rose 17.2% from a year earlier. Sales during October’s first 2 weeks jumped 101.5%. Davega Stores has been authorized to borrow $300,000 to purchase additional inventory. Leonard Ginsberg, courtappointed bankruptcy trustee, said loan will enable Davega chain to buy merchandise with retail value of $750,000 to $1.5 million. Chain is now operating at weekly loss of $2,700, compared with $62,000 weekly loss when Chapter 10 proceedings were initiated June 11. Ginsberg forecast sales of at least $3.2 million from Oct. 15 to end of year, said operations should begin to show profit “in the middle of November.” He said Davega should have minimum cash balance of $559,400 before repayment of loan on Dec. 29. Loan is expected to be made by Commercial Bank of North America, at 6% interest. Internal Revenue Service is “expected to rebuff any bid by GE to reduce its taxable income by amounts paid in settling damage suits for price fixing on electrical equipment,” reported Oct. 17 Wall St. Journal. In recent financial report (Vol. 2:42 pl2), GE said it had applied some $7.7 million of such payments as “voluntary price adjustments” against 3rd-quarter sales, reducing earnings for period by $3.7 million. Noted Journal: “IRS can be expected to maintain that such adjustments are payments made as a result of anti-trust actions and that to allow them as deductions would ‘frustrate national policy.’ ” Studebaker has obtained $25-million credit from 6 banks to help finance cash portion ($29 million) of its purchase of Franklin Mfg. (Vol. 2:42 p7). Purchase also involves 1,333,333 shares of Studebaker common. Financing is under revolving credit expiring Jan. 29, 1965. Credit will be reduced to $17.5 million after Jan. 31, 1964. Studebaker stockholders will vote on acquisition at special Nov. 16 meeting. Packard Bell consumer product sales jumped 48.3% in 1962’s first 9 months from same 1961 period. Home Products Div. vp-gen. mgr. Kenneth R. Johnson said September volume alone was up 77% from September 1961. For 9 month, b&w rose 34.2%, stereo 76.6%.