Strong & Steady

The U.S. gross national product soared to a record-smashing rate of $413 billion in the third quarter, some $4.7 billion higher than during the second quarter, the President's Council of Economic Advisers reported last week. The general increase in business was reflected in third-quarter earnings. Despite the steel strike, many a company reported record profits; only a few were down, and few of those were seriously hurt.

Naturally, steel was hardest hit by the 35-day strike. Youngstown Sheet & Tube's earnings dropped to $3,381,000 in the '56 third quarter from $11,240,677 a year ago, while Crucible Steel's net tumbled from $2,752,293 to $510,226. Nevertheless, Crucible's net for the first nine months stood at $8,597,020, only a little less than last year's, and Youngstown's three-quarters figure totaled $24,904,000 v. $29,247,179 last year. Last week, as autos, freight cars, tankers, schools and heavy construction scrambled for scarce steel, the industry scheduled all-out production at 101.7% of capacity and promised to end the year with a blaze.

Flip-Top Fillip. The big surge in consumer buying also sent profits soaring. Giant General Electric turned in third-quarter earnings of $47,863,000 v. $45,127,000 a year ago, and reported its most prosperous nine months ever (earnings of $160,727,000 on volume of $2,962,780,-ooo). In the third quarter General Foods' net of $10,593,632 was only fractionally higher than the $10,356,780 earned the same period a year ago, but for its six months ending Sept. 30, the company chalked up its highest-ever sales ($468,593,496) and earnings ($23,429,942). Spurred on by the success of its Marlboro line and its new Philip Morris flip-top box, Philip Morris also boosted third-quarter profits to $3,437,834 (v. $3,370,626 a year ago).

In chemicals, there were more drops than rises. American Cyanamid's thirdquarter earnings rose 24% over last year's to $10,751,819, and Atlas Powder went from $928,010 in '55 to $1,059,291 in J56's third quarter. But Union Carbide & Carbon fell to $32,148,446 (from $37,821,-591 last year); Du Pont dropped to $1.99 a share from $2.26 in last year's third quarter; Allied Chemical & Dye declined 26% to a net of $9,498,821.

Solid Cement. The building-materials industry was also a mixed bag. Despite peak sales, Johns-Manville reported a drop in third-quarter income to $6,967,861 v. $7,178,801 a year ago. But the cementmakers were up: Consolidated Cement netted $584,400 v. $465,200 a year ago; General Portland Cement earned $2,441,500 compared with $2,086,000; Penn Dixie Cement rose 23% over last year's third quarter to $2,920,351.

Radio Corp. of America set a sales rec ord of $286,036,000 for the quarter, bettering last year's mark by 13%, nevertheless saw earnings drop 12% to $7,856,000. But one major factor in RCA's profit drop -the cost of launching color TV -was taking a sharp turn for the better, Board Chairman David Sarnoff reported last week. Since the first week in September, color sales to dealers have tripled. By last week growing demand had forced RCA to put its Bloomington and Indianapolis, Ind. color plants on overtime, and the company asked its cabinet suppliers to step up output.

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