Records All Around

From every corner of U.S. industry last week came a cresting flood of 1955 earnings reports. As nothing else, they pinpointed the economy's continuing good health and expanding markets. One prime example was cosmetics-maker Revlon, Inc., which won the annual TV sweepstakes by latching onto the $64,000 Question. President Charles Revson reported that Revlon had a 54% sales increase to $51.6 million for the year, counted record profits of $3,500,000 v. $1,200,000 in 1954. And sales are still climbing.

Spreading put to heavy industry, the news was all of records and booming fourth-quarter sales. Inland Steel, Republic Steel and Pittsburgh Steel all had peak years, with earnings up as much as 240%.

Knocks on the Door. The most impressive figures came from Bethlehem Steel. Indestructible Eugene G. Grace reported sales of more than $2 billion, net income of $180 million v. $132 million in 1954; fourth-quarter profits alone totaled $57.5 million, an alltime record. With order books jammed for months ahead, Steelman Grace saw no decline in sight in spending, rather, continued demand. To meet it, Bethlehem Steel is spending $300 million to add 3,000,000 tons a year to capacity. Said Grace: "What little the auto industry has cut back, other [steel] users are knocking on our door to get."

Part of the continuing steel demand came from U.S. railroads, which are expanding as never before to meet new markets. The Association of American Railroads estimated that overall profits for 1955 may hit $915 million for Class I roads, the best year on record. The New York Central, Union Pacific and Santa Fe are all reaping the benefits of new equipment and expanding business along their tracks; Central profits of $52 million were 400% higher than 1954. For the giant Pennsylvania Railroad, increasing dieselization, new maintenance shops, heavier coal and steel shipments added up to the best year in a decade. President James M. Symes announced overall revenue of $935 million for 1955, net earnings of $41 million, more than double the 1954 figure. In December, the road totaled profits of $790,000 v. a $1,009,000 net loss in the same month of 1954. Said Symes of 1956: business will be at least as good as 1955 "and maybe a little better."

Money on the Farm. The picture was the same in oil, construction, farm machinery and aviation. New markets in petrochemicals, natural gas and increasing auto travel boosted Phillips Petroleum's 1955 profit to a record $95 million, 25% more than 1954; the company will spend $200 million on expansion in 1956 and confidently predicts still higher earnings. The boom in business flying brought light-plane-maker Cessna Aircraft sales of $16 million for fiscal 1956's first-quarter, 30% more than a year ago. In housing, the demand for home and factory insulation materials pushed Johns-Manville Corp.'s 1955 sales to $285 million, its second-best year in history. Increasing farm mechanization and highway building helped Allis-Chalmers to record sales of $535 million, up 9% over 1954. And the company expected 1956 business to be at least as good.

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