Oils Up, Steels Down

Big U.S. corporations are still doing fine. But the profit line chalked out for them by taxes, price ceilings and increased production costs has taken a downward dip for many. The National City Bank's profit figures on 300 leading corporations, for the first nine months of 1944, showed: a 6% increase in profits, after taxes, over the similar 1943 period, with combined sales up 11%. Of the 300 companies, 140 reported higher profits this year, while 160 were down.

But there were at least two notable deviations from the norm. The 13 petroleum companies increased both sales and earnings by a resounding 27% over last year. In contrast, the steel industry sweated out a new record of 67 million tons but took a 9% cut in profits. Thus steel earnings continued their two-year drop.

Like a page from the past was Atlantic Refining's third-quarter report. Earnings for the nine months rose to $10.6 million --almost twice the 1943 figure. Atlantic directors declared an extra dividend. Not to be outdone, big Texas Co. voted its first extra dividend since 1941 from earnings of $38.9 million, up almost $10 million over the similar 1943 period.

The steel companies consoled their stock holders with the usual dividends, and a recital of unusual achievements. U.S. Steel upped its sales to a new high of $1.5 billion. But its $89 million sales increase was more than offset by higher costs. After paying taxes of $74 million (v. $79.5 million in 1943), the Corporation's nine months' net was $49.3 million against $54.3 in 1943.

Bethlehem Steel did a little better than U.S. Steel. With its steel division straining at 103% of capacity, and enough launchings to cut its huge $2 billion of unfilled ship orders by a third. Bethlehem squeezed its earnings up slightly to $19.8 million. Republic, Inland and Jones & Laughlin all reported lower profits.

Many consumer-goods industries also saw profits shrink from last year. Textile-company earnings were down 12%; food companies, unable to outfoot rising costs, were down 5%. General Foods reported a slightly lower net on record sales of $209 million. Their $28 million increase in sales was just matched by a $28 million increase in the cost of sales.

But each third-quarter tally sheet carried more if, and, or but footnotes than a timetable. Not until the year's end, when reserves and taxes are adjusted and contracts renegotiated, will company accountants know for sure whether 1944 profits will be greater or less than last year's.

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