Upward Squeeze

As more and more first-quarter earnings were reported last week, it was clear that a large segment of U.S. business was doing better and better. Observers were quick to point out that during the first three months of 1968, wages rose faster than prices, a situation that points to a profit squeeze ahead. And the returns were not yet complete enough to set a pattern in any major industry. Still, the statistics suggested that business made impressive gains compared to the recession-tinged first quarter of 1967. A sampling:

· Chrysler, the only automaker to report, had record sales of $1.7 billion (up 33% over last year's first quarter) and record earnings of $69.3 million (up a whopping 280%). A few auto suppliers also had good quarterly earnings, including B. F. Goodrich with a record 16.7% climb, Uniroyal up 26.3% and glassmaker Libbey-Owens-Ford, which had a hefty 48% increase.

· Republic Steel Corp. reported a 38.6% rise over the first quarter of 1967, while Wheeling Steel, which has suffered more than two years of losses, reported earnings of $5.3 million.

· Xerox Corp. rang up a record first three months, with revenues increasing 24% to $202 million, while earnings were up 13% to $28.8 million.

· Reynolds Tobacco had a first-quarter earnings rise over the same period last year of 13.2%, while Lorillard increased earnings by 9.4%.

· Reynolds Metals reported a 12% earnings rise to $13.5 million, and Alcoa profits were up $3.5 million, to $30.7 million.

· Budd Co. had its best first quarter since 1960, with profits of $2.8 million; Westinghouse Air Brake's earnings rose 10% to $3.2 million.

· A.T. & T. reported the company off to its best start in history, with "at least" a 10% earnings increase for March. General Telephone & Electronics, with a net income increase of 6% had record earnings of $53.4 million.

· Sinclair Oil reached peak earnings of $26.5 million, and Occidental earnings rose a big 125% to $15.2 million.

· Columbia Broadcasting System, while predicting a strong year ahead, reported a 4% increase in earnings to $13.2 million during the first quarter.

· Control Data (up 89%) led computer companies, while Honeywell was up 48%, and Burroughs up 21%. Office-equipment maker Dictaphone was up 38%.

· Textron Inc., the big conglomerate exceeded its record 1967 first quarter with sales of $380 million (up 124%) and earnings of $15.8 million (up 14.7%). Another conglomerate, Tenneco Inc., reported a 4% rise in earnings.

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