Business: Statistics into Cash

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Last month General Motors Corp. reported its best first quarter since 1929, its fourth biggest first quarter in history. Net income of $52,464,000 was a thumping 66% ahead of the first three months last year. In April GM's U. S. sales of more than 200,000 cars smashed its previous monthly record set in 1928, and combined U. S. and foreign sales topped a seven-year-old mark. With these figures at hand, GM directors sat down last week to do even more than President Roosevelt and his proposed tax on undivided profits would have them do. After declaring the usual quarterly dividend of 50¢, they proceeded to treat stockholders to a handsome 75¢ extra. Next month GM will mail dividend checks footing up to some $54,000,000.

Meantime other motormakers were also translating statistics into cash. Stockholders of Chrysler Corp. were no less pleased when their directors hiked the quarterly dividend from $1 to $1.50 after the company reported $11,453,000 for the first three months of 1936, its second biggest quarter right on top of its all-time quarterly record in the final three months of 1935. For the first time since 1932 Nash Motors Co. made a profit ($72,000) in the first quarter of its fiscal year (through February). With its "Baby" eight going into its second year, Packard Motor Car Co. showed profits of $1,248,000 as against a loss of about the same amount for the first quarter of 1935. Packard registrations in the March quarter were up more than 600%. Except for the final period of 1935, Hudson Motor Car Co. topped all quarters for six years with net income of $592,800. Studebaker registrations were up 56% from the first three months of 1935, and the company made money for the first time since its reorganization last year, reporting profits of $104,600.

Trucks with an average registration gain of 25% over the 1935 quarter showed even a better record than passenger cars, which as a whole rose 22%. After 65 consecutive profitless months, White Motor Co. went into the black with registrations spurting 76% over the first quarter last year. After losing $187,000 in the first period of 1935, Mack Trucks, Inc. cashed in on general sales gains to the extent of earning $107,400.

Clearly evident in March quarter motor figures was the trend toward medium and high-priced cars. Low-priced makes gained only 16% compared to a 41%, rise for all others. Though still holding more than 90% of the market, the Big Three (Ford, General Motors and Chrysler) had their slice of the market pared slightly, independents gaining more than the general average. Furthermore, Ford safes fell off 24% from the same period last year. Ford's slump nearly cost the Man of Dearborn second place in the industry, reducing his margin over Chrysler to a bare 6,400 units for the first three months of 1936.