FINANCE
Borden Co. Cities Service Crane D u Pont of Canada" Gulf Oil Mead Johnson National Lead Phillips Petroleum U. S. Potash Wheeling Steel
Sales ( In millions ) 1954 1953 $ 776.8 $ 792.4 826.3 845.9 299.8 315.7 55.6 54.6 1705.3 1640.9 38.7 34.8 419.3 436.1 796.1 765.2 15.8 14.3 190.2
Income ( In millions ) 1954 1953 $ 22.7 $ 20.3 50.7 60.4^ 8.7 5.8 4.7 4.2 175.0 182.8 2.2 2.7 30.8 36.6 76.8 76.2 3.2 4.0 9.6 12.5
° Including $16.7 million in consolidated profits from the sale of the remaining Cities Service utility interests. b Data given are converted to the same basis as that in effect in the six months beginning July 1, 1954, when Canadian Industries Ltd. ( 1 9 5 4 ) and Du Pont of Canada were separated.
Oil Companies Continue Rise 1954; τ
Gulf a n d Phillips sales continue to increase during Cities Service sales slump, income jumps
ITTLE EVIDENCE is found in oil
com-
-*-* pany annual reports of the economic "readjustment" felt last year by many firms. Cities Service's revenues from sale of petroleum products and natural gas exceeded those of 1953 by $10 mil lion. Although its gross income was down about $20 million, this reflects the elimination of the gross earnings of utilities sold in 1954. This sale, how ever, boosted net income by $16.7 mil lion. Some of this was cancelled out by lower prices of refined products, lower proration, and reduced tanker charter rates, so that net gain in earn ings was about $10 million. Gulf's sales were up considerably, although its domestic sales volume was u p only lc/c (domestic refining opera tions were up 9 % ) . Its annual report emphasizes its steady expansion in pe trochemicals and its potential interest in the Port Neches, Tex., synthetic rub ber plant. Phillips says that the value and vol-
Two R&H Reports: One Planned for Employees, One For Stockholders
ume of fertilizer sales increased more than 50%. This was reflected in its in creasing sales volume. Also reflected in the sales column was the larger sales of crude oil purchased in excess of re finery requirements. These crude sales were made at no profit. Net earnings were affected by reduced petroleum product sales and increases in crude oil costs. Increases were felt in sales of chemical products, including ferti lizers, synthetic fiber intermediates, synthetic rubber, and several chemical specialties. Borden says the over-all tonnage and dollar sales of chemicals increased in 1954 from 1953, but profits were slightly lower. Increased output of formaldehyde helped its chemical di vision's sales growth. Despite a 14week strike in the plywood industry, its sales of resin adhesives exceeded those of 1953. Du Pont of C a n a d a says that despite lower selling prices, the year's total
was 2% higher than in 1953, chiefly as a result of special export business. It says although there were signs of im provement during the second half of the year, production of textiles was at a considerably lower level than in the previous year. National Lead's dollar sales volume was off 4%. Most o£ this decrease came in its Magnus Metal and DoehlerJarvis divisions. Its titanium, Baroid, and paint divisions showed satisfactory increases. Net income increased 19% over 1953. In relation to sales dollar, net income increased from 7 . 1 % in 1953 to 8.7% in 1954. U . S. Potash says its sales reached a new high in 1954. This was due in part to delivery during the first quarter of 1954 of the large inventory of finished products on hand at the end of 1953.
• Dresser Industries sales for the first quarter ended Jan. 31 w e r e $28.2 mil lion, in comparison with $34.0 million for the same period a year ago. Net earnings were $1.4 million, compared with $1.7 million for t h e first quarter of 1954. It expects an improvement in sales volume for the "balance of the year. • A.CF Industries and its consolidated subsidiaries for the third quarter ended Jan. 31 had net earnings of $1.8 million compared with $1.5 million for the same period the year before. Earnings for the nine months ended Jan. 31 were $4.3 million compared with $5.7 million the previous year. • Pen American Sulphur, Dallas, has
filed a registration statement with Se curities and Exchange Commission seeldng registration of $4,651,200 of subordinated debentures, due April 1, 1967 (convertible until April 1, 1964). The debentures are to be offered for subscription, at 100% of principal amount, to holders of capital stock at the rate of $100 principal amount of debentures for each 40 shares of capi tal stock held. The company proposes to use the increased working capital, to the extent necessary, for operations during the period of development of its sales program in various countries.
Rohm & Haas is issuing two annual reports this year: one formal, one informal. The informal one is tailored for employees and fea tures a pictorial review of company and employee activities in 1954. The other ( left ), for stockholders, tends to be more a formai state ment of company finances* Both, however, concur on one point: 1954 was a good year for Ή&ΗΕ. Sales reached $132.6 million (up. from $120.7 million in 1953) and net income was $12.4 million (up from $6.5 million in 1953) 1480
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