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About Medford mail tribune. (Medford, Or.) 1909-1989 | View Entire Issue (Dec. 29, 1960)
MEDFORD MAIL TRIBUNE, MEDFORD. ORE Profit Pressure In Electronics Shakes Weaklings New York - IUPD - The elec tronics industry proved no ex ception to the general course of the economy in 1960. Re ults of most companies in the field fell short of the optimis tic goals projected at the be ginning of the year. Although sales ran to a record $11 billion in 1960, and this figure i9 expected to be topped by 5 or 6 per cent in 1961, there is indication of another round of downward pressure on prices and profits resulting in a further shake out of the weak sisters in the field. The usual etlects of rapid growth are at the bottom of the earnings collapse of many companies whose sales either climbed or remained at the same general level, according to industry spokesmen. When a company expects a sharp growth rate based on past performances, it expands its facilities and inventories in line with the assumed high er volume. When the big gain in business fails to material ize, profit margins fall be cause of the higher break-even point. This, then, is the present plight of the electronics in dustry. In this sense, elec tronics has been considered by some observers to be as cyclical as the more mature industries, except for its rising volume base. , Great Hops The great hope of the indus try, spokesmen say, lies in in dustrial electronics, particu larly data processing, which is the most important and fastest growing part of the industrial market. Interna tional Business Machines Corp., which has a firm grip on around 75 per cent of this outlet, should give plenty of trouble to those desiring ex pansion in the field. Process instrumentation and numerical controls for ma chine tools a.re another likely avenue for profits, but here again competition is stiffen ing and to compete, many companies will have to merge in order to survive. The military sector of the industry - government con tracts was somewhat in the doldrums during 1960 despite a high rate of government spending. The fall-off in or ders still is felt to be a mys tery by industry officials, but a partial explanation may have been a squeeze on the new programs by the exten sive cost over-runs on some of the older projects. Exptct Boost Orders are expected to pick up, however, on a new boost in government spending by the Kennedy administration. The replacement parts and consumer, or entertainment segments of the industry should continue growing in 1961, but not sensationally. Together, they are expected to account for more than $3 billion in sales. C o nsumer electronics is dominated by television and the industry is unlikely to capture a much higher share of the consumer dollar than it already has, according to official opinion. ' Replacement part sales de pend directly on the amount of electronic equipment al ready in use. The latter is steadily increasing, but the industry doesn't feel that re placement sales are ready to soar just yet. Generally, man ufacturers will be concerned with find ing the right product mix and marketing formulas for their particular companies. Few manufacturers are willing to take the chance on a narrow specialization that might cut them off from significant seg ments of the industrial or military markets. Anti-Cancer Agent Slows Penicillin Galveston, Texas, (Science Service)-Nitrogen mustard, an anti-cancer agent, decreases the antibiotic activity of pen icillin. This finding may be a clue to why cancer patients receiving antibiotics may sud denly become more suscept ible to infection. The test-tube experiments, conducted here by Drs. Steph en E. Ritzmann and William C. Levin at the University of Texas medical branch, also showed that nitrogen mustard did not alter the antibiotic activity of erythromycin or of chlortetracycline (auremoy cin). The reason for the differ ence is not known, but one theory, suggested by the re searchers in Texas Reports on Biology and Medicine is that nitrogen mustard may inter fere with the carboxyl group of penicillin, a group not present in the other two anti biotics. ISLAND DOMAIN Hawaii has nine inhabited and several uninhabited islands. THURSDAY, DECEMBER 29, 1960 g J . Thrifty Green Stamps t 1 . -yl '",''r"Teg-y W at Our Medford Store SJfr1 T:'TjaiIMMHiS Tastewell ' j Eg33 FT1 I P7V BO - 6LB,$1 fANG BISCUITS r-i 5C MARGARINE BISKIT MIX PEPSI-COLA RIPE OLiV HILLTOP PITTED No. 1 Tall Tins $1100 FOR U 22-lb. Pkg. Orange Drink Jumbo 21-oz. Jar ACHES ALL GOLD SLICED No.. 2'j Tins $' FOR ICOTS CORNED BEEF REGAL PAK No. 1 Tins MASH $1100 FOR STRAWBERRY $1109 PRESERVES "PRIDE" 3Vi-lb. Jar.. DEL MONTE CLING No. 2Va Tins PEACHES L-L? FOR U $1100 72x90 RAYON-NYLON BLANKETS m SLIPPER SOX 77 Men's - Women's Children's COFFEE MUGS 5 $1 New Style Ceramic .. 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