Profits & Effects

Amidst the third-quarter earnings reports and stock-split announcements last week there was a standout: Westinghouse Electric Corp. With the company's nine months' earnings soaring ($3.17 per share v. $2.79 in 1958) on only slightly higher sales than last year, its directors recommended a two-for-one stock split, boosted the annual dividend rate from $2 to $2.40. For Westinghouse, the nation's oldest (73 years) and second largest electrical equipment maker (first: General Electric), the split climaxed a three-year drive to reorganize the company and recover from a crippling five-month 1955-56 strike.

Credited with Westinghouse's climb back to high profits is onetime Management Consultant Mark W. Cresap Jr., 49, who took over as president in 1958, became chief executive officer last April. Under Cresap, Westinghouse has cut costs, improved low-profit product lines and reduced expenses.

With the effects of the steel strike still to be felt, bright earnings news last week also came from General Motors Corp., whose third-quarter profits doubled over the same period a year ago, and boosted nine months' net to $2.55 per share v. $1.39 last year.

For the nation's steelmakers, the strike's effect on earnings was all too apparent. All continued to report heavy third-period losses, though most showed nine-month results ahead of last year. Top ranking U.S. Steel had its first quarterly loss in 21 years, and its largest ever. Big Steel lost $31 million in the July-September period, but had nine months' earnings of $3.80 per share v. $3.56 last year. Other nine-month steel earnings: 1958 1959 Bethlehem Steel $1.68 $1.75 Jones & Laughlin 1.45 3.15 Wheeling Steel 1.80 2.78 Inland Steel 1.86 1.99 While second-quarter earnings made up for the third-period shutdown for most steel companies, they were not enough for ailing railroads. The New York Central reported a deficit for the third consecutive month, and a cut in nine months' earnings to 52-c- per share v. $1.56 per share at the end of June. The Pennsylvania had a $2.3 million loss in September that wiped out its eight months' profit and put the road $449,346 in the red for the first nine months. Other nine-month rail earnings: 1958 1959 New Haven $3,534,080 $7,362,154 (loss) (loss) Erie 5,487,565 5,191,812 (loss) (loss) Union Pacific 2.17 1.87 Oil company earnings for the third quarter were mixed amidst industry reports of overproduction. Big Standard Oil Co. (of California) reported a decline in nine months' earnings to $2.85 v. $2.97 last year. Despite a third-quarter drop in earnings, Gulf Oil Corp. showed nine months' results of $6.49 per share v. $6.13 per share last year. Other oil earnings: 1958 1959 Sinclair Oil $2.07 $2.28 Atlantic Refining 2.02 2.54 Ohio Oil 1.75 1.95 For industries not hit by the steel strike the third quarter produced some records.

Brunswick-Balke Collender Co. reported a record September quarter net of $5.15 per share, boosting nine months' earnings to $755 a share v. $4.73 last year. Motorola Inc. had record nine months' earnings of $4.90 per share v. $1.66 last year. Other nine months' results: 1958 1959

U.S. Rubber $1.80 $3.94

Owens-Corning Fiberglas 1.07 1.73

Thompson Ramo Wooldridge 1.82 2.03

Bridgeport Brass 1.48 3.35

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