AMERICAN COMPANIES

Auckland Star, Volume LXXIII, Issue 231, 30 September 1942, Page 5

AMERICAN COMPANIES

DECLINE IN EARNINGS The decline in corporation earnings which appeared in the first quarter of this year continued in the second quarter; and the half-year s earnings of industrial companies which have reported during the past month show, in- a great majority of cases, a considerable decrease in net income, compared with a year ago. states the National City Bank of New York. Sales as a rule were substantially larger, but operating expenses were higher and taxes took a greatly increased percentage of income. A tabulation of the statements of 290 companies in the maior manufacturing, mining, trade and service industries shows for the first half of 19-12 combined net income of approximately £142.000.000 (NewZealand) after taxej. hich compares with £217,000.000 (N.Z.) for the same companies in the first half of 1944. — a decrease of 35 per cent. This group of companies, representative for the most part of the larger organisations, employed an aggregate capital and surplus of approximately £3.780,000,000 (N.Z.) at the beginning of the year The portion of industrial corporation income being taken by Federal taxes is now far above that, ever reached in the past. During the last war Federal taxes absorbed only about 23 per cent of the net income of all manufacturing corporations in 1917. 45 per cent in 1918 and 26 per cent in 1919.