Monday, Feb. 08, 1926

Steel

For the ninth successive time U. S. Steel, through its Board of Directors, declared last week an extra dividend of 50c a share on the $508,302,500 common stock outstanding. This was in addition to the regular dividends of $1.25 a share of the junior issue and of $1.75 a share of the preferred. Thus 80-year-old Chairman Elbert Henry Gary's frequently repeated dictum that U. S. Steel common was a "7% stock" was reaffirmed. He remains as Chairman of the Board. Recently U. S. Steel has been climbing on the stock market because of rumors that a melon would be cut.

The net earnings of the Corporation for the last quarter of 1925 were $42,280,465, slightly less than the previous quarter but a third greater than the last quarter of 1924. Net earnings for 1925 were $165,188,100, as compiled from the quarterly statements. The surplus, after paying all dividends and appropriations, was $29,632,442, of which $25,000,000 was voted for additions and betterments of plants and properties. This was $5,000,000 more than had been so voted the two preceding years.

The Bethlehem Steel Corporation also made its 1925 report during the week. It showed net dividends twice as large as the year previous, $5.30 a common share as against $2.56. Gross earnings for the year were $273,025,320 against $243,904,265 in 1924; net earnings $38,988,742 against $33,996,489. The net for the last quarter of 1925 equaled $1.77 a share as compared with $0.56 a share in the previous quarter and $1.08 a share for the last quarter of 1924. Operations are currently at 83% of capacity; they averaged 70.3% for the last 27 year; were 77% the last quarter of 1925.

Like other steelmakers President Eugene Gifford Grace of the Corporation is optimistic for 1926 business conditions. He reported:

"The general outlook in the steel industry for at least the first half of 1926 is favorable. There is a large demand for steel products of all kinds, sufficient to support the present high rate of operations; there has been no apparent accumulation of stocks by consumers; there has been a general improvement in prices during the last three months, and if the current demand continues there is every reason to expect still further improvement. This, together with the increased production from Bethlehem's new finishing units, should result in better earnings."