Better Than Expected

Despite all the news about disappointing industrial production and a slowing in the growth of the gross national product, corporate profits appear to have done surprisingly well in 1962's third quarter. Two out of every three major companies reporting last week boasted higher earnings than in the strong third quarter of 1961. A number of companies, including General Telephone, American Broadcasting and American Home Products, posted their highest third-quarter profits ever.

Gains were general in industries ranging from brewing, cosmetics and food processing to lumber, gypsum and aerospace. Standard Brands' earnings rose from $4.6 million to $5.1 million and Procter & Gamble's from $333 million to $35.1 million. In the long-sputtering transportation business, a 3% fare rise helped lift the profits of United Air

Lines from $1.9 million to $7.2 million, while increased rail freight loadings hiked the earnings of the Western Pacific, Missouri Pacific and Norfolk & Western. Heading toward its best year since 1957, Chrysler Corp. swung around from last year's third-quarter deficit of $4.8 million to a profit of $3.2 million. In oil, higher sales offset gasoline price wars and led to profit increases of 7% to 42% for Cities Service, Texaco, Socony Mobil, Gulf, Tidewater, Sun and Shell.

Despite such general rosiness, the bloom was off a few recent Wall Street favorites: Bell & Howell blamed diversification expenses for its drop from $1.8 million to $996,000, while Brunswick Corp. attributed its 53% plunge, down to $10.7 million, to "a decline in the installations of bowling lanes."

Heaviest losers were the steelmakers. Bethlehem Steel, the nation's second largest producer, shaken by a 59% drop from last year's $33.9 million to this year's $13.9 million, chopped its quarterly dividend from 60¢ to 37½¢. Jones & Laughlin's earnings melted from $10.1 million to $1.9 million while deficits were reported by Pittsburgh Steel ($814,000) 'and Kaiser Steel ($2.5 million). By contrast, steel's tough competitor, Aluminum Co. of America, increased its earnings 26% from $9.4 million to $11.8 million.

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