Utile Improvement
Iniecond Quarter
Corporation Profits
By ELMER C. WALZER
United Press Financial Editor
New York (IP) Noting that
the recession probably is bot
toming out, Standard & Poor's
sees little promise for over-all
improvement in corporation
earnings in the second quar
ter. It is conceivable that earn
ings comparisons might begin
to improve in the third quar
ter, but Standard notes that
hopes center chiefly on the
closing months of the year.
"By that time " it says,
"the economy might be show
ing the first signs of revival
nothing pronounced but rep
resenting some progress from
current levels. Moreover,
profits will be measured
against the sliding 'results of
the fourth quarter of 1957.
On the latter basis alone, year
to year comparisons should
become less unfavorable."
It could well be, the statis
tical agency adds, that the de
cline of some 31 per cent in
the total corporate profits for
the first quarter might be
trimmed to a decrease of 15
per cent to 20 per cent for the
full year.
Important Dividends
But it adds this sour note:
"On a historical basis, 1958 is
likely to be the poorest year
since 1952."
Apparently Wall st. is less
concerned over earnings than
it is over dividends.
The street continues to
bring out the tabulation on
dividends paid in the first
quarter by companies listed
on the New York Stock Ex
change. This dividend payout to
taled $2,179,860,580, a first
quarter record, and an in
crease of $43,369,950 or 2 per
cent over the total cash divi
dends paid by the same com
panies in the first quarter of
last year.
For all corporations, the
Department of Commerce re
ported that the dividend pay
out for the first quarter in
creased by one-half of 1 per
cent.
Any increase at all con
sidered highly important. It
reflects some influence of the
recession, however, since com
panies are spending less on
plant expansion and paying
stockholders a greater per
centage of their income.
Decline in Earnings
Dividend news in recent
stock market sessions has
been more influential in
swaying stock prices of indi
vidual shares than have earn
ings reports. In many in
stances declaration of the
usual dividend on a stock
whose company has reported
poor earnings has sent its
price up sharply.
The street, of course, is in
terested in earnings but it
considers the over-all totals
with only academic interest
for the purposes of record.
That is the analysis when div
idends are retained.
Standard & Poors first
quarter calculation showed
662 industrial companies had
an aggregate decline in earn
ings of 36.1 per cent. When
a group of utilities was- add
ed, however, this percentage
decline for all the companies
was cut to 30.5 per cent.
Three out of four groups
suffered decreases in the cal
culation. Declines of 50 per
cent or more appeared in au
tomobile, auto part, metal
fabricating, carpet, oil well
equipment, rail, steel, textile
and apparel industries.
Increases centered on such
lines as utilities, food, drugs,
confectionery, grocery chains,
soaps, tobacco products and
finance companies.
MAIL TRIBUNE, Medford, Oregon, Monday, May 19, IMS 3
Visiting Reporter
Employed of Paper
A visiting reporter from
Bend, Ha S. Grant, , today
began a two-week association
with The Mail Tribune. Mrs.
Grant will cover -the city hall
and special assignments dur
ing her stay here. She is a
member of the staff' at The
Bend Bulletin.
"I am happy to have an op
portunity to spend time in
Medfofd and get acquainted
with newspaper people here,"
Mrs.' Grant said. "I have al
ways enjoyed southern Ore
gon on visits fer the Shake
spearian festival, and it's a
real pleasure to be here."
Baker Air Field
Work Bids Opened ,
Seattle (IP) McCormack
Construction c o m p any of
Pendleton is the apparent low
bidder for construction of re
ceiver and transmitter build
ings at the Baker air station,
Army Engineers said today.
The McCormack bid . was
$47,110.
"I Never NEVER Have
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"Sprinkle it freely in my Jam Closet
so safe no worry of poisoning'" lays
Danville. Calif, lady.
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