Remarkably Handsome

Amid widespread talk about a slower pace in the U.S. economy, corporate profits at the halfway mark of 1968 were remarkably handsome. According to a Wall Street Journal survey of 457 major corporations, second-quarter profits were up 10% from the same period of 1967. Largest gainer was the rubber industry, with earnings of nine companies bouncing to 131%.

Autos were up 10%, department stores 21%, office equipment 39%, and paper 17%. On the down side were air lines, off 18%, farm machinery 15%, and railway equipment 26%.

Among the more significant of last week's reports:

> The B. F. Goodrich Co., reflecting a recovery from an industry-wide three-month strike in 1967, plus improved distribution and marketing programs, showed second-quarter profits of $12,149,000 -- an astonishing 1,105% above 1967's second quarter.

> General Motors, first of the Big Three in annual sales, ranked last in terms of profits gained. Whereas Chrysler Corp. reported a 75% jump, G.M. managed only a 4% gain. Ford Motor Co.'s net went up 28% ($187 million v. $146 million) on improved sales of 17%.

> Standard Oil Co. (California) showed record second-quarter earnings of $116.8 million ($1.44 per share), up from 1967's $107.8 million ($1.33 per share). Chairman O. N. Miller attributed the 8% gain to a 15% jump from 1967's pace of 1,807,500 bbl. daily, plus a "continued strong upward trend" in chemical-sales revenues.

> Zenith Radio Corp. reported tripled second-quarter earnings on sales that exceeded the previous year's by 40%. Net income rose to $6.3 million from $2.3 million on sales that soared from $111.4 million to $155.5 million. Chairman Joseph S. Wright and President Sam Kaplan said that the gain was due to improved sales in both color and black-and-white television, stereos, portable phonographs and radios.

> Eastman Kodak reported a record second quarter, 14% up despite the new surtax and higher costs. First-quarter earnings were restated as $65.7 million, down $5.5 million from previous figures, due to the surtax. Eastman spokesmen said that "profit margins held up well in the face of rising costs of silver and other materials and in creasing wage rates. The tax surcharge, however, had a decidedly adverse effect on the rate of net earnings."

> Aluminum Co. of America was the only major member of its industry to report earnings gains for both the second quarter and the first half. Second-ranked Reynolds Metals' quarterly profits fell 21%, while Kaiser Aluminum's were down to 85-c- per share, from 95-c- a year ago. Alcoa's second-quarter profits, however, rose 7% to $28.8 million ($1.31 per share) from $27 million ($1.23 per share).

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