Los Angeles herald., 1909-07-22
WESTERN ELECTRIC'S
BUSINESS INCREASES
MARGIN OF PROFIT SHOWS
BIG GROWTH
Half of Fiscal Year Just Completed
Records Largest Machinery
Trade In History of
Company

While the first half OF the fiscal year
of the Western Electric company end-
ed with May shows an improvement III
business and an increase IN safes NoiT
ume far ahead of expectations SIX
months ago, the most satisfactory ere
ment of the situation and the one on
which the officers are felicitating them
selves most is the fact that the COM
MANY Is making money under present
market conditions. An officer Oh the
company said yesterday:
MAY 81 ended the first hair OF our
fiscal year Our business is running AT
the rate of approximately $40, ,OOO,Ooo'
rrhis would compare with $33 600 Tor
the fiscal year of 1908 and $53'OOo'ooO
for the fiscal year 1907. The present
business outlook seems to us good, put
without anything to lead us to expect
an unusual growth in our business. a
sure and steady increase, however,
may be confidently looked forward TO II
business conditions continue along the
lines they are doing at present.
"Some lines of our business, such as
our sales to the telephone companies
outside of the Bell system (Which nave
been a feature of our business Tor only
the last year and half) have SHOWN
very satisfactory growth, while our
business in machinery has. notWltn-
standing the depression, grown stead
ily throughout the last few years ana
is now at the highest point in the his
tory of the company. Business is run
ming more than ever before to moder-
ate sized motors and generators, large
ly used for industrial plants, when
shows a healthy activity, and the
nriees and margins of profit at which
they are being sold were never SO
good.
"The increase in the machinery sales
for the half year was 40 per cent over
the same period a year ago. and close
ly reflects the Improvement in lndus-
trial conditions, since large part or
the machinery orders were 1or adul-
tions and improvements
"Gross business for the first quar-
ter of the fiscal year ran at the rate
of $42 900, 900 per annum, and Tor the
last quarter at the rate of nearly $5O,-
100000 for the year, an increase OF
about 10 per cent. While the business
for May is usually ahead of the busi-
ness of the preceding month, the IN
crease of May, 190S showed approxl-
mately go per cent. The month OF
April, 1909, showed an Improvement
equivalent to so per cent over April,
1908, and if the ratio of Improvement
of the last two months continues the
company will easily attain $5O,OoO,oOO
year.
''The business with the farmers in
the agricultural states has been salts
factory, and with good crop prospects
that exist at present there Is every
prospect that the development along
this line will continue.
"The volume. of the company's or
ders for the six months increased about
20 per cent over the same period in
1908, and the average value per order
Increased approximately 10 per cent. In
certain lines the volume of orders In
creased more than 80 per cent.
"The export business for the most
mart has not felt the impetus of the
Improvement in this country, running
only slightly ahead of last year. Tho
European business from the company's
foreign plants, however, gained 30 per
cent over a year ago and was IL per
cent greater than 1907, which previous
Iv held the high record. This remark
ahIe gain is due to the fact that the
company's trade with foreign coun-
tries Is not so much dependent upon
Industrial conditions as the condition
of the foreign governments ex-
cheuuers. A great part OF the export
business is done with South American
countries, which felt the effects or the
panic heavily. Coincident with the
hetterment of conditions In this coun-
try the Dominion of Canada reports
improvements in trade.
"The Western Electric is putting
more copper into consumption at pres
ent than for a long time. AS is the
established policy of the company,
however, the metal is purchased only
for requirements that can be clearly
foreseen."