BETTER EARNINGS

Evening Post, Issue 56, 7 March 1934, Page 12

BETTER EARNINGS

AMERICAN CORPORATIONS ■ Earnings reports of corporations for 1933 thus far published indicate in most cases a marked improvement over 1932, writes the National City Bank of New York in its February summary. A preliminary tabulation of some 350 industrial companies, engaged in various lines of' manufacturing and trade and having an aggregate net worth of 6,534,000,000 dollars, shows combined net profits, less deficits, of approximately 163,000,000 dollars in .1933, as compared with a deficit of 41,00,000 dollars in 1932 for-the same companies. The 1933 profits represented an average rate of return upon net worth of 2.5 per. cent. The proportion of concerns operating at a profit rose from 43 per cent: of the total in 1932 to 62 per cent in 1933. Many representative companies went into the black last year for the first time since 1929 or before, while many others still operating in the red reduced the .amount of their deficit sauced ■ Judging from the' early reports, the industries that enjoyed the best earnings last year were those engaged in producing articles for immediate consumption, including; cottongoods and other textiles, shoes meat packing, and miscellaneous food m-o----ducts, also automobiles, paper, and petroleum. Results in wholesale and retail trade were better. The heaw industries such as steel, building materials, electrical 2S. - f>^S-J a*^ mf ey" railway etc., continue to lag,- nevertheless, many companies have shown some improvement either by cutting their losses or Wmning^in small profits. An important factor in the gams, last year was the rise that occurred m commodity prices, counting with the decline during 1929-1932 which .valuations. The, downward readjustment'in capitalisation and in fixed assets many companies has enabled them to reduce operating and overhead charges sufficiently to show a profit on a formerly?" ' V°lume'^ h ™*™ than