Studebaker's Profits

The report of the Studebaker Co. for the quarter ending June 30, 1923, shows net sales of $49,370,091 as against $45,606,044 for the same period last year. After the payment of expenses and taxes, net profits of $7,200,202 were left, which compares with $7,086,552 in 1922, and after allowing for dividends on the preferred stock, amounts to 9.40% on the $75,000,000 common stock issue. In the last quarter, the com- pany manufactured 43,346 cars, but sold 43,680.

The balance sheet of the company, although containing among its assets the item of $19,807,276 as " trade name and good will," shows a sound and healthy condition, with a special surplus of $4,455,000, and a general surplus of $19,165,685 as against $10,237,189 in 1922.

President A. R. Erskine, in the accompanying statement to the stockholders, pointed out that manufacturing operations of all plants were at capacity, with 41,000 cars scheduled for production in the third quarter. $3,022,967 out of the profits during the six months ending June 30, 1923, have been "plowed in" for plant expansion and current betterments, while $650,000 of the preferred stock was also retired. The regular quarterly dividends of 1 3/4% on the preferred and 2 1/2% on the common stock were declared by the Board of Directors.