Losses & Profits

When Lindbergh got down in Paris (1927), U. S. aviation stocks began to go up. Wright Aeronautical Corp., especially helped by his flight, rose to spectacular heights on predictions of tremendous profits. Fulfilling these prophecies, earnings for 1928 were $2,400,000 against $900,000 in 1927. Last week, Wright, now 90%-owned by Curtiss-Wright, published its report for 1929. Its earnings had tumbled into an airpocket as great as the one which engulfed all aviation securities, for instead of the $5,000,000 that had once been hoped for, the report again showed a measly $900,000. Last month the Wright dividend had to be passed.

For this decline and other bad reports expected, a basic cause is apparent: the public, eager to invest in aviation last year, was not so eager to fly as it had been before.

One exception to losses reported and awaited came last week in the statement of United Aircraft and Transport Corp. For its first year, U. A. T. showed net earnings of $8,300,000, or about 50% of the total earnings expected for the entire industry. Jubilantly, President Frederick Brant Rentschler told stockholders of this success, and of $5,400,000 new orders since Jan. 1. Money-making U. A. T. subsidiaries include Pratt & Whitney (motors) ; Chance Vought, Sikorsky, Boeing (ships).

Although the true position of the industry can not be gauged until such potent companies as Aviation Corp., Curtiss-Wright Corp., and Detroit Aircraft Corp. make their statements some time in April, the losses shown by two large transport companies were significant.

Transcontinental Air Transport and its subsidiary, Maddux Air Lines, had combined losses of $986,000 for their first six months of operation. Commented Chairman Clement Melville Keys: "While operating losses had been expected . . . these results were disappointing." Stockholders comforted themselves with the knowledge that during the first year of any company extraordinary expenses are incurred. Encouraging to T. A. T. owners are reports that Pennsylvania Railroad has increased its holdings, will instill famed railway efficiency into the system.

Aviation Corporation of the Americas, parent of Pan American Airways, showed a net loss of $317,000.

This file is automatically generated by a robot program, so reader's discretion is required.