Fast Second Lap

As second-quarter earnings statements came out last week, there was ample evidence that profits were still on the increase despite a leveling off in business.

The second-quarter profit of giant American Telephone & Telegraph rose to $152,700,000 from $134,400,000 in 1955. Some other spectacular increases:

P: International Business Machines tallied record profits of $31,868,620 for the first half, up one-third from last year's $23,870,992.

P: Eli Lilly's first-half net rose from last year's $6,800,000 to $16.6 million.

P: Revlon's first-half profits of $3,700,000 were more than for all 1955.

The first steel producer to report was Lukens Steel Co., which more than trebled earnings for the first half to $3,542,133, or $11.14 per share v. $2.67 for the like period last year. Most of the profits, said President Charles Huston Jr., came in the second quarter. He attributed the rise to more efficient use of new equipment, a cost-improvement program, the decline in scrap prices, and the rise in sales of steel specialties and carbon plates.

A clue that toolmakers had recovered from a mediocre 1955 came from Cincinnati Milling Machine Co., the industry's largest company. It bettered last year's second quarter by 177%, earning $2,264,680. In food processing, Libby, McNeill & Libby earned $8,037,971 in this fiscal year v. $5,433,402 the last. In distilling, both Hiram Walker and Brown-Forman reported profits up more than 10%.

Will profits stay up? Dun & Bradstreet asked the question of 1,499 manufacturing executives, retailers and wholesalers. Their answers displayed overwhelming confidence. All but 8% predicted that, barring a lengthy steel strike, profits will remain as high, or rise even higher, in the fourth quarter of 1956.

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