Profits Boom

U.S. airplane manufacturers are boosting profits at a snappy rate despite the highest taxes ever. Up & coming Aviation Corp. last week reported earnings (after $3,100,000 estimated taxes) of $2,478,000 in the six months ended May 31 v. only $662,000 last year. Giant United Aircraft three weeks ago reported $6,955,000 profits in the first six months, 25% above 1941. Compared with these gains, combined profits of 290 big-time industrial outfits nose-dived 35% (TIME, Aug. 3).

Obvious reason for this prosperity: skyrocketing deliveries of military planes. United's first-half deliveries jumped 99% to $242,708,000; Aviation Corp.'s sales almost tripled to hit $17,423,000.

To dodge the Army's ban on all aircraft-company interim reports, both companies did some fancy footwork: United cagily labeled itself "a Navy contractor." Aviation Corp. wriggled through the loophole exempting all companies which have less than one-third their total business in finished planes.

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