Earnings

In 1934, some 1,300 U. S. industrial corporations made about $1,100,000,000. In 1935, reports from 237 corporations showed, according to Standard Statistics, Inc., a gain of 48% over 1934. But a $22,000,000 improvement in U. S. Steel and a $72,000,000 improvement in General Motors weighted this average heavily on the side of Recovery. The other 235 corporations showed an increase of about 28%. With good, bad and indifferent reports still to be filed, Standard Statistics took a long breath and figured that when all the returns were in the final result would be some 40% ahead of 1934 earnings. On this basis, earnings of the major U. S. companies would, roughly, swell from a little more than one billion to almost one and one half billion dollars. Recovery leaned too heavily on the motor industry to be satisfactory from the standpoint of a general return to good times. But many a corporation was reporting the best year since 1930, many more the best since 1931.

U. S. Steel Corp, made $1,084,000 in 1935 as against a loss of $21,667,000 in 1934. In 1935's fourth quarter, U. S. Steel's profit came to $5,326,000. U. S. Steel will be big 1936 beneficiary from any booms in construction or railroad steel.

Bethlehem Steel Corp, made $4,291,000 in 1935 as against $550,000 in 1934. In 1935, Bethlehem ran at 39.8% of capacity. Its prices in 1935 averaged 92-c- a ton more than in 1934.

Republic Steel made $4,455,000 in 1935 as against a loss of $3,459,000 in 1934. First profit since the present company's formation in 1930, the 1935 earnings emphasized President Tom Girdler's position as steel's man-of-the-year. To refund debts of subsidiaries, President Girdler last week sold $45,000,000 of 4 1/2% bonds maturing in 1961.

National Steel made $11,136,000 in 1935 as against $6,050,000 in 1934. Organized on the eve of Depression, Ernest Tener Weir's well-managed company has battled through the 1930's without a deficit and last year, for the fourth consecutive twelve-month period, rated as top earner in steel. Rivals say Mr. Weir has trimmed prices; statistics say Mr. Weir has trimmed rivals.

Inland Steel made $9,417,000 in 1935 as against $3,729,000 in 1934. This profit did not include the first nine months' earnings of Joseph T. Ryerson & Son, Inc., which would have added $691,000 to Inland's total. The Ryerson company was acquired last September. Inland, ably managed by Chicago's Block family, has rivaled National as a good earner in bad times.

E. I. du Pont de Nemours 8 Co. made $62,085,000 in 1935 as against $46,701,000 in 1934. About one-third of the Du Pont net was supplied by $22,497,000 in dividends from General Motors. Yet the chemical portion of the Du Pont business showed the greatest profits in the company's history.

Chrysler Corp, made $34,975,000 in 1935 as against $9,534,000 in 1934. The company took advantage of its good year to pay off the funded debt inherited from Dodge Bros., to spend $11,000,000 on plant improvement, to give employes a cash bonus of $2,300,000 (on present payrolls, about $40 a man). Chrysler sold 843,000 cars to dealers for $516,800,000; sold about one-fourth of all U. S. passenger cars, one-eighth of all U. S. trucks. Chrysler declared a $1 dividend for the first quarter of 1936, compared to 75-c- for the fourth quarter of 1935.

American Woolen Co, made $2,740,000 in 1935 as against a loss of $5,458,000 in 1934. Wool prices rose steadily through the last half of 1935, prevented the big inventory losses which have been a large factor in American Woolen's frequent deficits. American Woolen declared a $1 back-dividend on its preferred, still has a $57 accumulation outstanding.

Deere & Co. made $6,105,000 in 1935 as against $379,000 in 1934. Second largest farm machinery & implement company, Deere's 1935 earnings were particularly pleasing in view of a $4,335,000 deficit in 1933. The company reflected increased farm purchasing power with profit of almost 20 times 1934 earnings on estimated sales of about twice the 1934 volume.

Commercial Investment Trust made $16,279,000 in 1935 as against $11,643,000 in 1934. Last year this company financed the sale of more than 700,000 new and used cars, handled nearly a billion dollars worth of "receivables" of all kinds. In 1930 many a prophet predicted that bad times would kill installment buying, but C. I. T. flourished throughout Depression, last year cashed in on motor recovery.

General Motors Corp, made $167,000,000 in 1935 as against $94,769,000 in 1934. In the fourth quarter of 1935 it made $52,743,000 compared to $2,323,000 in the same 1934 period. But the November Automobile Show has thrown last quarter comparisons totally out of line. In 28 years, General Motors has made $2,031,000,000. Last week Founder William Crapo Durant filed a bankruptcy plea: Liabilities $914,000; Assets (clothing) $250.

Auburn Automobile Co, lost $2,697,000 in 1935 as against a loss of $3,724,000 in 1934. With General Motors, Ford and Chrysler selling about 92% of 1935 cars, the little companies have hoed a hard row. Last week the Hupp plant was closed and Hupp President Vern Drum had resigned. Willys-Overland secured a court order allowing it to build 15,000 units, partly to keep labor off relief rolls.

R, J. Reynolds Tobacco made $23,896,000 in 1935 as against $21,536,000 in 1934. Considering the generally reduced profit margin in tobacco, the $2,300,000 profit increase could have resulted only from greatly increased Camel sales. Estimates put the Camel volume at about 37,000,000,000 cigarets, compared to about 32,000,000,000 each for Lucky Strikes and Chesterfields.

Liggett & Myers Tobacco made $16,856,000 in 1935 as against $20,086,000 in 1934. This decline in earning was in line with general conditions in the tobacco industry which suffered from higher tobacco costs and increased processing taxes. Estimated earnings of American Tobacco (Lucky Strikes) were also below 1934 figures.

F, W, Woolworth Co, made $31,247,000 in 1935 as against $32,142,000 in 1934. Cost of opening new stores plus a decline in dollar volume accounted for reduced profits.

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