New-York tribune., 1920-03-13
Studebaker Corp.
1919 Net Profits
Reach New Record
Sales Amounted to$66,383,-
3O7; Erskine Optimistic
: About Current Year; Com
pany Strong Financially

In line with the general prosperity
Of the motor industry the StudebaEer
Corporation, in it's 1919 annual report
showed the largest earnings in its
history. Profits last year aggregated
$9,312,283, equivalent, after the de-
duction Of $748,475 in preferred divi-
dends, to $2S.54 share, $100 par,
earned on the $30,0Oo,00o common
stock, which compares with $3,s84,194,
or $1O.3S share, earned in the preced-
ing year. Additional common stock
amounting to $15,o00,000 was issued
in December, 1919, bringing the COM
mon stock outstanding at present to
s45000,0 900.
Net sales in the year amounted to
s6s38S, ,3o7. compared with $52,os7 ,se7
in 1918 and $81,988,594 in 1915, the
previous record year. Manufacturing
costs, etc, were placed at $50, ,844,
a $7,829,459 gain over the Syear before.
After interest, ETC., Of $116,951 and
Federal taxes Of S1,854,229 had been
taken care Of, balance available for
preferred dividends was $9,312,283. or
S5,24S,089 more than in 1918. Common
stockholders shared s2,160,00O' in
dividends during the year, against ST.
100000 received the preceding year.
Surplus after all charges totalled S6,-
463,808
Last year was the first year since
1915 in which the commercial oper-
ations Of the corporation were not
curtailed by the manufacture of mil
ltary supplies for war purposes. In
both 1918 and 1917 the company's
plants and organization were serving
the government, and its profits from
those operations were considerably
below normal. Last years results
we're considerably better, notwith-
standing the fact that CONNIE mercial
operations were not in full swing
until spring. Sales for the first six
months Of the year amounted to $27,-
100000, while those for the final half
were S38,9OO,000
In his report to stockholders A. R.
Erskine, president, said: "The corpo-
ration is in thoroughly sound financial
condition, and it's commercial prospects
were never brighter. Production of
the Detroit plants in the first two
months of this year is the greatest on
record. and 1884 per cent more than
last year. The South Bend automobile
plants will be in production on the new
light six this spring. Our schedule
for the year calls for total Of 10000
cars, which so far as we can see now
will be sold as fast as they are made.
oTuerS received IN the vehicle division
for the first two months are for 1O,183
wagons. against 1,480 last year, and
this department. is also oversold. AL
together considered, the business of
the present year promises to far ex-
ceed in volume and profits anything
heretofore accomplished by the cor
poraton.'
The balance sheet as of December 81.
1919. shows that the corporation is in
q strong financial condition. Net
working capital is placed at s33,o1l,-
452. an increase of $20,030,7l9 over
1918. In December, 1919, $4,000, 900
in common stock was sold, the pro-
ceeds of which was used to retire SIS
100000 in short term notes. As a re-
suit of this sale the company now has
no bonded Indebtedness. Cash and
government bonds and certificates
amount to $7,191,175. In addition the
company has 100000 outstanding in
short term notes.