The sun., 1919-03-18

BETHLEHEM STEEL !.
NET INCOME DROPS
But Gross Sales and Earnings
Touch New High Records,
Says Report.
BALANCE is $15,93O,39O
Heavy Depreciation Writeoffs
BALANCE is $15,930, 800
Heavy Depreciation Writeoffs
and Amortization Charges
Given as Causes.

With gross sales and earnings at a
new high record figure the Bethlehem
Steel Corporations operations for 1918
resulted in net income after all charges
and deductions OF considerably less than
that OF the preceding year. That phe-
nomenal situation ts accounted for by
tremendous increases in expenses, taxes
and charges. together with extremely
high writeoffs for depreciation. anorti-
cation, &C.
The gross sales for the year were sI4s..
+10,sos. according to the pamphlet re-
port issued yesterday. amplifying the
preliminary report issued several weeks
hFo, while expensea. taxes, &C., agsre-
gated $3s4.ss3.oso, making the net man
utacturing profit but s52.417.7ls. After
the addition OF other income and the de-
duction OF nearly 100000 for bond
and note issue discount and expenses
and more than $31, 100000 for deprecia-
ton. depletion and amortization there
was left balance for the year of only
sl5,9so,Ss0. a decline Of more than
sll, 100000.
The report. which will be submitted 70
the annual meeting OF the stockholders
at Newark on April ], presents interest
ing comparisons with 1917. Gross earns,
inss increased s14s.4s3.413, which is but
slightly larger than the increase In oper-
ating expenses. s1<7,o7o,a77. Net earn
inss gained ss.2oo.4o9 over the previous
year. while the net income shrank no
less than s11 .3s0,346 from the 1917 fig
ure OF $27,s2o.7Ss. representing only 3.55
per cent. on the total volume of 1918
business, The balance which the COM
psny had at the close of 1918 was s10,-
oSLS44 remaining after paying s2,-
"3'.so0 on the 8 per cent. cumulative
preferred stock. $1.oi3,5so on the per
cent. non-cumulative preferred and S.
9tt,s00 on the common and Glass COM
mon stock and deducting appropria-
lions FOR and investment in additions to
property and working capital of 81
10000 X -
orders of the company on hand at the
close of 1915 represented an aggregate
value of sa2s.s46.os5, which compares
with S45s.s0s,759 in 1917 and with s1a3.-
97A24s IN 1915. 1t is interesting to note
that salaries and wages paid in 1913
moro than doubled those paid in 1917
ana more than tripled those paid in 1915.
Estimates DimcuIt.
Tho present uncertainty as to the
policy OF the Government regarding the
cancellation of certain of our contracts"
states the report, makes II difficult to
form at this time an accurate estimate
W sAiv oihouht VI OrQcIS on tne
books as OF January !. 1919. Our pres
ent estimate OF such orders Is s3aS,e46.-
oss, after making deductions for orders
dehnitely cancelled and an allowance for
the possibility of further cancellations.
Included in the orders on hand is a large
amount OF shtpbuildnz work for both
the Navy Department and Emergency
Fleet Corporation. which should stabilize
the earnings OF the immediate future in
dependent Of business conditions in the
steel trade.
The end Of the war finds your corpo-
ration prepared to meet the readjust-
ments in volume and character Of bust
hess and In organization and methods
necessary In the transition from a period
or intensive wartime production to an
orderly and highly competitive peace
time basis While carried on under
rather difficult conditions the programme
adopted several years ago for the extern
sion of the plants of your corporation
along the lines of increased production
Of commercial products has been steadily
adhered to and its sources of supply OF
raw materials have been strengthened
and developed. The equipment of the
steel plants has been enlarged and i'm
proved and the products largely DIVERSE
fed. The development OF the shipbuild-
ing plants has kept pace with that OF the
Steel plants, and in capacity and equip
nent they are prepared to build vessels
~ any type or size.
In order TO enter the field OF export
trade Bethlehem steel Company has
Joined an association Of steel manufac-
furers Known as Consolidated Steel Cor
poration. organized under the provisions
Of the Webb act, to engage in a. more
Energetic development OF the export steel
business than could be economically done
by the various members individually. II
- believed that this association will be
of marked utility In developing foreign
markets for its member companies"
Made Thousands OF Guns.
Reviewing the corporations war work.
the report states that the company made
during the period of the war for this
Government and its Allies, $3.50 finished
guns: 1882 finished gun carriages, lin
bers, caissons, etc. 500 finished naval
gun mounts 1900 forgings for guns;
IStTI,s7s rounds of complete field gun
ammunition; 1.T10.5T9 projectiles for
ammunition; 69,40s533 pounds for ar
NOR plate and S97.17s gross tons Of shell
steel
IN finished guns. gun forgings and
complete ammunition these figures rep
resent go per cent. 65 per cent. and 40
per cent. respectively of the entire out
put OF the country. Since this country
went in the war. the shipbuilding
plants OF the corporation have delivered
- the Emergency Fleet Corporation
$4,000 deadweisht tons of merchant
shipping. or about 22 per cent OF the
country's output. In addition 20 10 SUBJ
marines. Bethlehem Steel delivered TO
the navy 26 torpedo boat destroyers. and
launched and fitted out for delivery
early in this year sc additional destroy