The Third Quarter

From U.S. companies last week, came a broad cross section of third-quarter earnings. Despite talk of a business downturn, many a company reported sales and profits up substantially, although there were cases where fast-rising costs had kept profits below the sales increase.

On the up side was Du Pont (see below), with a solid 7% increase in both sales and net. Earnings were $2.14 a share, v. $1.99 last year. Owens-Illinois Glass Co. raised its volume and net 4%; Eastman Kodak did even better. On a 10.2% increase in sales (from $175.6 million to $193.5 million), it raised profits 14% (from $22.2 million to $25.4 million).

Also celebrating was P. Lorillard (Kent, Old Gold and Newport cigarettes), whose third-quarter earnings were $1.02 a share, v. 22-c- last year. Pharmaceuticals were also up. Abbott Laboratories' sales for the nine months increased 12%, while profits rose 16%. G. D. Searle & Co. reported quarter profits up 21% on a sales boost of 18%. In the auto industry, General Motors' earnings were off 11%, but Chrysler and Ford both reported huge increases (see Autos).

Despite below-capacity operation in many segments of the steel industry, Republic Steel raised its nine-month earnings 30%, for a record $73 million, and Inland Steel lifted its nine-month net to $43 million, 18% over 1955, its best previous year. Among the oil companies, hurt by overproduction, Socony Mobil and Shell Oil both reported profit dips. But Phillips Petroleum and Texas Co. reported 1957 profits ahead of 1956.

For many companies, it was an effort to squeeze out profits comparable to still generally rising sales volumes. Union Carbide Corp., for example, raised its sales 7% (from $331.3 million for the quarter to $355.5 million), but was able to eke out only a 1.2% increase in earnings (from $33.6 million to $34 million). Radio Corp. of America had nine-month sales of $853.7 million, 5% over 1956's alltime high, though profits rose only 2% (from $27.8 million to $28.3 million).

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