Going Up

By last week many a corporation had reported its earnings for 1940's first six months. The reports made cheerful reading. In the grand dance of the current boom there have been few big-asset, big-name wallflowers:

> Most cheering was the news from the capital goods industries, most of which were spectres at the ill-fated 1936 feast. According to a New York Times computation, earnings of 95 durable goods companies were up 317% over the first six months of 1939. They were down 3.1% from 1939's export-boomed second half, but only because of higher tax and depreciation reserves. Among the star performers, Pullman, Inc.'s $3,443,662 six-month net, up 220%, and American Locomotive's $1,178,470, up from a $931,710 deficit, measured increased buying by U. S. railroads. Both companies were also working on war orders. The demand for conveyors, chain drives, stokers, etc., for new or expanding plants, increased Link Belt Co.'s earnings 118.2% to $965,279. Crucible Steel Co. earned $2,404,883, up 586%, made ready a plan to clear up $40.75 per share preferred-stock arrearages.

> Situated at the Bosporus of war orders, Curtiss-Wright Co. earned $6,235,969, up 85%, and no more than it may need from now on to carry and pay off the $92,000,000 RFC is planning to lend it. Republic Aviation Corp. earned $842,161 compared with a $524,781 deficit for all of last year. Airlines continued their uptrend. United turned a 1939 first-half deficit of $202,962 into a $288,554 net profit; Eastern in creased net 102% to $733,926. But T. W. A., its pockets emptied buying Stratoliners, had a $390,680 deficit.

> Swiss-born Camille Dreyfus, president of $66,000,000 Celanese Corp., has never felt the damp hand of deficit--even in 1932 Celanese cleared $891,866, in 1933 $5,453,903, in 1939 $6,216,781. Last week, getting ready to float a $25,000,000 debenture issue ($15,000,000 new money), he titillated the stockmarket by reporting the best six-month earnings in Celanese history--$4,552,580.

> Increased construction boosted Crane Co.'s valve, toilet & tub sales, raised earnings for the year (ending June 30) to $5,722,830, against $2,013,655 last year.

> Among consumer industries, Coca-Cola Co. increased earnings 8% to $15,030,170 for the half year. Proud also was Coca-Cola of another announcement last week: Jim Farley, who needs a good paying job, will leave the Post Office Department to become chairman of Coca-Cola Export Corp. Eastman Kodak, which still gets a third of its sales from amateur photographers, also makes money from plastics, reported $9,179,170 net, up 13.7% for 24 weeks ending June 15. For the first six months, stores were up too: J. C. Penney 4%, American Stores 103%.

> Of the few big companies whose profits were not up, most had been tripped by special situations. Because higher wheat prices add to flour company costs (not to hedged inventory values) Pillsbury Flour Co. net for fiscal year ending May 31 dropped 56% to $990,914. 20th Century-Fox Film Corp.'s six-month net fell from $2,325,526 to a thin $117,213 (because of heavy foreign losses, an $800.000 reserve set up against them and a string of unlucky pictures).

Though its mill runs were 25% down, American Woolen Co., as rumored, managed to report better six-month earnings than last year--$394,431 compared with $357,670. But to do it, provision for depreciation was reduced to $574,507 from $1,110,178 in 1939's half.

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