New-York tribune., 1920-08-02
Amer. Locomotive
+ arnings in Six
Months Show Cain
Increase in Gross Manufac-
turing Profit Cut by Great
er Expenses; Earnings
Reported $7.61 a Share

with gross business of S21 1859, ,679
for the six months period ended June
80 last the American Locomotive Com
pany returned a surplus after pre-
ferred dividends of 81 ,9O2, ,199, equal to
$7.61 share on the $25, 100000 COM
mon stock outstanding, compared with
$6.81 share earned the preceding six
months.
The increase in gross earnings
amounted to $1,139, 9,595, but there was
an increase of $1,101,5S0 in manu-
featuring expenses, including deprec-
alton, so that the gain in manufacture
S38,015. Further deductions included
S49,265 for interest charges and $685.
447 for United States and Canadian In
come and express profits taxes. This
LETT the net profit before preferred
dividends at S2,777,199, an increase of
S2O0,028, due to falling off in tax re-
qulrements of s151,952.
Other features of the report were:
Inventories Of materials and supplies
on hand and work in progress June 80,
S12,Sb3,418, compared with $7,364,147
on December 81, 1919, an excess of
current assets over current liabilities
with $35,6S6,011 on December 81; on
June 80 the company had no loans
payable and had in its treasury on that
date $11,500,000 of United State,
Treasury certificates and $5,919 $50 of
Liberty and Canadian Victory bonds.
Untitled orders for new locomotives
on June 80 totaled $44,073 ,632, includ-
ing $38,347,711 for domestic business
and s5,725,921 for foreign business.
which is mostly for Cuba, South Amer
lea and Far East countries. Comment
ing on the European business, Andrew
Fletcher, president, said in the COM
pany's report:
There have been no very large
orders tor new locomotives placed in
the united states since January 1, 1920
reconstruction. Negotiations for sub
stantlal orders have been carried on
tor number of months and are still
IN progress, but the general financial
ana internal conditions of some of the
countries desiring locomotives and the
necessity of deferred credit payments
present problems which require eau
tlous and conservative consideration.
especially in view of the large demands
on our working capital, which are be-
ing made by railroads of the United
States and which will, no doubt, be
increased in the near future"
'S eouHoSC pIOuuCllOn Oh inc plants
OF the American Locomotive COMPANY
averaged for the first half of the wear.
according to Mr.. Fletcher, only 35 per
cent of their rated capacity, ranging
from 23 per cent in January to So per
cent in June
The production was necessarily
small" he added, during the first few
months Of the period due to the small
amount of business on hand at the
first of the year. and as business in
creased the production was materially
affected by the great difficulty in ob
tanning materials Of all kinds, because
OF the most trying operating conditions
of the railroads, due to strike troubles
and the poor condition and Inadequate
amount of their rolling stock.
THE freight congestion on the roads
serving our plants has been somewhat
relieved and we are hopeful of a
greater production by the plants for
the last half of the year. now that the
long deferred decision regarding rail
road increases has been announced. and
the stimulating effect on the railroads.
which will result in greater service if
they are awarded increased rates for
passenger and freight service com
mensurate with their absolute needs
tor cost of operation, maintenance and
Development