Base of the Boom

The U.S. economy's transition from recovery to boom was underscored last week by first-quarter earnings from the nation's two leading steelmakers. Top-ranking U.S. Steel Corp. reported a 9.9% return on sales for a net of $106.6 million, or $1.86 per share, up more than 70% from $1.04 per share for the first quarter last year. Bethlehem Steel Corp., second largest producer, doubled its first-quarter earnings per share to $1.06 from 52-c- last year.

Both U.S. Steel Chairman Roger M. Blough and Bethlehem Steel President Arthur B. Homer said that, barring a long strike, the industry's pickup in production would continue; for U.S. Steel and the industry second-quarter production will run between 90% and 95% of capacity. Blough said the rate of production, barring a strike, would drop "somewhat" in the third quarter but "would continue reasonably good because there's been a recovery in the economy that involves an increase in consumption by our customers." And for the fourth quarter production "ought to be better than the third." The signs point to total industry production of between no and 115 million tons this year, compared with only 85 million tons last year.

In other industries earnings were just as good. For some companies, such as Zenith Radio Corp., whose stock has spiraled from 67 1/2 a year ago to 324 1/2 last week, first-quarter earnings were so high ($3.37 per share) that Chairman Hugh Robertson facetiously told stockholders that he had qualms about announcing them. Explained Robertson: "We were fearful of putting out our first-quarter figures because they were so good. We don't think the stock is overinflated, but we don't want to add fuel to the fire."

Other first-quarter earnings (per share) :

1959 1958 General Motors $1.03 $ .65 Chrysler 1.75 1.74 (loss) Standard Oil Co. (N.J.) .78 .72 Westinghouse Electric Corp. .81 .73 Brunswick-Balke-Collender .57 .37 1/2

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