New-York tribune., 1921-02-17
Slump in Earnings
By General Motors
On Common Stock
Net Profits Are 42,I38,2OO
After All Charges, Conn
pared TO $6O,O05, ,484, i'm
1919: Current Assets High

The General Motors Corporation,
control of which passed into the hands
of the du oont and Morgan interests
last fall, earned net profits last year
after all charges Of S4s,252,o00 from
1920 operations, according to prelim-
mary statement issued yesterday in the
stockholders by Pierre du Pont, presi-
dent Of the company.
After preferred and debcnture divi-
dends of $6,113,S00 the balance avail
able for the common stock was $42,-
l3S.200, equivalent to s2.O5 share on
the 2O,552,6S5 shares of no par value
common stock outstanding at the end
of the year. In 1919 net profits after
all charges amounted to $60.O05,4S4
, dividend deductions a balance eQuiva-
lent to $36.36 a share on 1.53l,100
| shares of S1OO par value common.
! The balance sheet rs of the end of
| the year discloses total current assets
| Of S263,939,000 and total current liabil-
tiles of s1l5, $4,000, leaving net work
ing capital Of $146,395,00O The COM
| pany has cash on hand and in the bank
| S49,279,000. Sight drafts, notes receiv-
able and accounts receivable total S48,-
6ol 900, and inventories stood at $780,
| 100000 at the close of 1920. Inven-
tories were reduced during the year
approximately s25,OoO,oOO. On the liabil-
tiles side notes payable Of $72, ,225. 900
were shown at the end of the year, and
accounts payable and trade acceptances
totalcd $25,794,0O0.
! Sales of the General Motors Cor
poration in 1920 aggregated $3.50 ,O0O,-
600, an increase of S56,000,O0O over
| 1919. The company paid last year ap-
ately $4,000 900 to the United
! States for income and excess profits
| taxes.
President du Pont in his remarks to
The stockholders says, in part:
he motor car business, in common
with other lines Of manufacture. suf
Tered acutely from conditions which
| obtained during the last four months
/ OF the year. Demand for the COM
Eany's products, which had been in
sistent and urgent during the first
= part of the year, was sharply curtailed
; N September. Inventories reached
] their peak about the middle of October,
ana during the ensuing ten weeks to De-
cember 81 the company was able, not
wlthstanding the shrinkage in sales, to
effect net reduction in inventories of
approximately s25,000,00o. In addition,
Inventories were further written down
IL the amount of $25,50O,000 as Of De-
cember 81 in order to reduce unit
prices to the market
Officers of the company have clear
ly in mind the Importance of main
tanning strong cash position and of
reducing the company's inventories and
current Indebtedness. During the year
the company paid as Federal income
and excess profit taxes approximately
S26.o00,000. In addition 100000 Of
notes issued in connection with the
purchase Of Fisher Body Corporation
were retired, and approximately $780,
/ 10000 was expended in extending and
improving plants and facilities.
while in closing the books all known
losses and appropriate write down of
inventories have been taken care of,
nevertheless the board of directors
at its next meeting will be requested
/ to consider the advisability of ap-
propriating some part (not exceeding
Sl5,000,000) of surplus account as q
reserve for future contingencies.
''In view Of the conditions obtaining
| in all lines of industry, the officers Of
the company do not feel justified at
this time in making a forecast Of this
years earnings. Reports from dis
tributors, however, are encouraging,
and your company is in an excellent
Tosition to take advantage of and to
profit by the improvement in trade
4 which it seems reasonable to antci-
pate during the coming year"