The New York herald., 1921-08-16
GENERAL MOTORS
EARNINGS BOOSTED
Advance to S14,555,516 in See
ond Quarter Of 1921-Cap-
ital Now $120, 100000.

The General MOTORS CofporhtioNr te-
porting yesterday to the New York
Stock Exchange for six months ended
on June 80 through Pierre s. du Pont,
its president, shows earnings of $3.50
676, equivalent To 32 cents share on
| 20,52s,790 shares OF its common stock,
after preferred dividends and customers
refunds, a working capital position in
excess OF s120,00o.000, Of which nearly
| $50, 900, 900 is cash. and a striking gain
in earnings In the second quarter of this
| year as compared with those OF the
| first one.
| The corporation went through a
period Of extreme depression from Sep
tember /, 1920, to March and is emerg-
ing from the readjustment. Discussing
the liquidation period Pierre S. du
Pont told Of inventories mounting to a
peak Of $222,09S,s05 in October, wlth a
great burden of commitments for mate
rails unnecessary in view Of the COM
pany's restricted ouput. gradual ameli-
grafton Of inventory to the present fig-
ure Of $147,502,086, q reduction Of S74,-
596.719. Of which $25.776.112 was accom-
plished through writeoffs He told also
of accounts payable of s40.736127 at
the peak and since reduced to S19,S52,-
5s1, and Of notes payable which aggre-
gated $S7.596,07 at the maximum and
since reduced to S6s.S08.250. In addi-
tion notes on account Of Fisher Body
Corporation stock purchase have been
reduced by s6,S40,o00 and cash in bank
increased S6,661,790.
The significant Improvement achieved
by the company in the second quarter
of 1891 is shown In the following tabu-
lation of salient items:
First Second
Quarter. Quarter.
Net earnings. ........ 80, TOT .944 Sl4 551 .516
Int on notes and trade
acceptances 1,b0l,2l5 1i126,ll0
Net profits after taxes.
employees funds pro-
visions, but before re-
funds to customers. 1915 493 1883, ,9f0
The statement for the six months
shows that the company drew on its sur
plus to the extent Of s3,76o.0O0 to pro-
vide funds for the dividend payments
Of $10,230,975 on its common stock in
that period. That draft however, was
only per cent. of the profit and loss
surplus and would have been unneces-
sary had the company not charged to
income s4549,s71 as liability under re-
funds made to customers under an
agreement which guaranteed to its cus-
toners on and after last Octooer against
price reductions before July /. The
amount available for dividends on Its
common stock was S6,46S,56e. In the
corresponding half of 1920 the amount
was S32,504,663. The company's net
earnings for the first half OF this year
were S1S.259,461 against s55 251.236 in
tho corresponding 1920 period. It's aver
age monthly earnings In the second
quarter of this year were $4,S50, 900 in
contrast to average monthly earnings
for the first six months Of 1920 Of
S9,375, 900.
The company's balance sheet as of
June 80. 1921, discloses the progress
made In six months to a point waere
emergence from readjustment begins.
Salient items are tabulated as follows:
CURRENT ASSETS.
June 80. Dec, 81.
Inventories ...... .s147. 80. .ose sis4. .es4 's7s
Cash ...... ........... 49,363,653 46,eos $50
Accts. receivable..... cl,o42.so6 22.oo1 .095
cess current assets. 1a4.l1s,oo1 1a9. 500. $50
CURRENT LIABILITIES.
Notes payable. ...... SOS. sos $50 I2.4?1 .452
Aects. payable. 1a.s52.5s1 so,14o'27s
Taxes payable and
other accts. accrued 20.Ss1, 1884 11.122. .1os
In addition to total surplus of s117.-
510. 900 the company has Jet up re-
serves aggregating s3S.773.100. Mr.. du
Pont describes In the report the condi-
ton Of the company as healthy and
declares that the company Is well pre-
pared to take advantage of increased
volume of business In any line pertain
ing to the automotive industry. calling
attention to Improvement In the manu-
featuring part of the business as well
as to it's financial position.