New-York tribune., 1918-01-30
Profits Trimmed
On Government
Orders for Steel
The BethlehemC Corporation
Earns Less on Increased
Volume of Business

On gross sales of S2960O0.000 the
Bethlehem Steel Corporation in 1917
earned total net Of S52. .43l after
tenance, according to the preliminary
annual report, issued yesterday after
the directors had declared the regular
dividends on the various classes Of
capital stock. In 1916. the record
breaking year Of the company. when
it was engaged in filing war mun;tior
contracts for the Allies at big profits.
total net earnings amounted 20 SCI
717,309 on gross sales of s2l6.2S4.5o5.
Net profits last year. after all charges
before dividends. amounted to S27.-
32O,736, compared with s43,593.96S IN
1916.
Charles NJ. Schwa}. chairman of the
board of directors. said that the cor
poraticn had no. made any report on
the exact amount of the Federal wa:
and excess profits taxes and added
that 1--WE are not going to publish
them" Attention was called to the ia i
that during 1916. the peak year for the
corporation IN poirt of profits, tho
company was engaged in work for for-
eign governments, in addition TO Unit
ed States government business and do
mestlc orders. In 1917, however. prac
tically all the business was furnished
by the United States government.
Contracts on Cost Plus Basis
bethlehem is doing hcv Bit sal |
Mr.. SchWab. "aNd does not expect ID
make enormous profits from our CO.
ernment while the war continues" tn,
company mas had TO make liberal al
lowanccs for plants. while all the ncr
contracts arc on Il cost plus basis.
The comrany's income account 60 :.
1917. compared Will, 1916, follows:
Gross sales ....... s2s6. 900 900 1915 6.2s4. .555
Total net earnings. 52.651.431 e1.7i7. $40
Interest on bonis. 7.41e.o54 377255s
Depreciation. etc . 17.ei1. sal 14.35o.7ss
Balance ......... S27. .32O.73o s43,5s3 1858
According to the company's own fig
ures net profits in 1917 were equivalent
to only 9.2o per cent of gross sales.
compared with 20.l6 per cent for the
previous year. The wide difference in
the ratio was due to the heavy war
taxes and the larger margin Of profit
obtained on foreign government work
as compared with that allowed on
United States government orders. After
allowing for dividends on the : per
mr. Coz. It.to I.
able for the s59,44S.O0O of common
stock last year was equal to S442O.
compared with approximately $40 in
1916.
Regular Dividends Declared
At the close of 1917 the Bethlehem
corporation had on hand orders valued
at Sd50.500,000 against S1o3.374,2 PAS in
1916. No new financing is contem-
plated by the company in the current
year, Mr. Schwab asserting yesterday
that I'VE are not worried as to where
Bethlehem is going to obtain the ne
cessary funds TO complete the orders
on its books" The annual report shows
an increase of approximately 100 per
cent in the interest charges on bonds
and notes Of subsidiary companies. the
total being S7,419,054. compared with
So SS33.772,556 in 1916.
The directors declared the regular
quarterly dividends of $3.50 u share
on the Glass A and Glass B common
stock. Dividends for the year on the
new 8 per cent cumulative preferred
stock we're also declared, payable in
quarterly instalments of per cent
each. The directors also declared diyi-
dends for the year on the old I per
cent stock, payable in quarterly in
stalments Of IL per cent each