Corporations: The Sign of the Dog

The 1964-65 New York World's Fair has its own official symbol—a rather dated-looking Unisphere ringed by satellites—but a good many of its expected 75 million visitors may go away instead remembering a dog sign. The dog is the familiar leaping greyhound of the Greyhound Corp., which will be sole operator of the fair's tours, information booths and sightseeing cars. Greyhound intends to impress its name and symbol as indelibly as possible. "From the time you enter that fair until the time you leave," warns Chairman Frederick W. Ackerman, 68, "you're going to be looking at Greyhound." Identification means so much to Greyhound's long-range plan that the company is even willing to risk losing money on its World's Fair operation.

Weeding & Leverage. Greyhound can easily afford it. Last week the world's biggest bus line (5,300 buses) reported first-quarter earnings that rose 47%, to $3,231,000, despite the fact that the first quarter is always the slowest for bus companies. This performance continued Greyhound's good showing in 1962, in which it showed a record profit of $28.2 million and an 18.5% return on invested capital. Though Greyhound still gets 89% of revenues from the bus business, it is also traveling other profitable roads. The company last year grossed $8,800,000 from its household moving and storage operation and another $25 million on its 130 "Post House" restaurants. Its tour service has become the nation's largest booker of hotel rooms.

Though Greyhound has fewer employees and buses and drove fewer passenger-miles last year than in 1953, the average ride per passenger has increased to a record 120 miles. Under Ackerman and President Melvin C. Frailey, 63, who conducts the line's day-to-day operations as chief executive, Greyhound has been so successful at paring unprofitable routes and attracting riders that it has built up substantial surpluses, even while refurbishing buses and building new terminals.

Greyhound has what the company calls "leverage" working for it. One example: every cent a mile saved on maintenance costs means $5,000,000 in annual savings. Greyhound has also lowered its breakeven point until every passenger who boards a bus after it is half full means almost pure profit.

After an unpleasant plunge into car rentals (it lost $17.5 million) in 1956, Greyhound acquired San Francisco's Boothe Leasing Corp., now does a thriving business ($864,000 net last year) in leasing trucks, computers and—of all things—five 707 jet planes. The company is also expanding its Post House operation, plans to build new highway complexes, restaurants, service stations and motels.