Evening journal., 1917-02-17
DUPONT POWDER HAS
Great WAR Profits
Exports of Gunpowder Net
ted Above $3OO,OOO,OOO
in Two Years
PROFIT REDUCED TO
NEAR NORMAL POINT

The Wall Street Journal today said;
The phenomenal earnings of the
dupont Powder Company an 1916 are
perhaps the crowning demonstration of
the magical power of war business 20
expand profits. Wheu the story of
American industry in the European war
comes to be written, one of the leading
chapters will be assigned to the great
powder companies. Their performance
has been all to the good. Their record
has reflected not only credit upon them
selves, but upon the American people
What war has meant to the Amer
lean powder business is clear from
the fact that in the past two calen-
dar years we have exported some
425,OOON0O pounds OF gunpowder.
netting 100000, O,OOO-besides $3.50.
100000 more for cartridges and other
explosives In the years prior TO the
war the United States shipped abroad
only about a million pounds OF pow
der a year, and this was mostly for
the uses Of sport. It commanded but
about a third Of a dollar pound.
The military brand that Europe has
been buying the past two years has
commanded an export price Of 75 to
| eO-odd cents a pound.
There is magic, financial and physi-
cal. also in the DUPONT figures. For
dupont to earn SS2,1O7 .693 net in 1916
aga nst S57 .S40,75S in 1915 and So sos, -
l53 in 1914, an increase Of $24 .266. .935,
or Al. per cent over the 1915 results
and about 1900 per cent increase over
the 1914 figures, It was necessary for
the company to expand enormously its
physical equipment and OF course It's
gross sales.
This fas been done by the expen-
diture of more than $60OO0.O 900 I'm
plant construction, most of which has
apparently been amortized. so that
when war demand ceases the plants
even if not fully utilized will not rep
resent any serious drain upon normal
operations.
In l9l6, after deduction Of the deben
ture stock dividend, dupont earned 1888.
per cent. for its SIS. .S54. 900 common
stock. The 1915 surplus for the com
mon, on the same test was 94.3 per cent
During two years. therefore. the com
pany has earned S227 per share on stocl
which in amount is nearly four time
the total of bethlehem Steel's commo
shares.
1t is very interesting 10 note tha
duPout Powder has apparently cut il
selling prices so low that its manufa
turing profit is but n bit over norma
In 1913 the big profits of S57. .S4O,7'
were admittedly made on an exocssivel
high manufacturing profit. But the rat
! of net 20 gross during 1916 was PSI p,
S cent. In ante-belum Times gross sal,
e regularly ran S25,O00,O00 TO $50 900 M
S and manufacturing profit was 20 pC
cent. 70 % per cent. IL is clear. ther,
fore, that even when war is over. tn
1 company will not have much Of a shrink
p age TO stand so far as a normal produ,
I tion profit is concerned.
In 1915 the company did not divulg
its gross sales. But they are not be
5 lieved to have exceeded S150.00O.O00
II this supposition be correct thei
/ there was actually more than 100 pc
, cent. increase i'm 1916 sales, while il
tonnage figures the percentage OF gail
, was far and away IN excess OF thi
amount, In smokeless powder alon
the company is now making more il
b a day than il formerly manufacture
, I'm month.
, On December 81 DUPONT had an
enormous cash balance of $50 325, ,1O3
Its working capital was about S160.
100000, against S1O5 11S.000 az th'
close Of 1915. This working capita
has been increased despite the 10
per cent paid in dividends. Presen
plans are to hold il intact until tn
end Of the war gives the corporation
an idea how to shape its futur
course.
But OF course company which ha
Q jumped from usual gross of S25, 600
{ 600 or s30.000,000 to the huge tota
E of S31S.S45,6S 6S5 of sales during 1915
r with plant equipment TO match vii
5 never again be normal. Its days O
Y littleness have definitely passed.
{ The company has a producing sy'
/. TEN which if not devoted to the traf
\ edy OF war will be utilized in the art
Y OF peace. This is why DUPONT
looking forward TO the time whc
- output Of lacquers, solvents. chem
/. icals. paints. perhaps dyes and othe
s products will absorb its energy an
\ productive ability It will be a bi
1 American industrial factor in peaC
T as it has been in war.