Evening star. [volume] (Washington, D.C.) 1854-1972, 1929-01-30

averaged S7.23 a share and paid Sc.
Earnings for 1928 are expected to reach
81 or So a share, and if the truck bust
ness continues to expand even better
is expected this year.
White Motors. another manufacturer
OF high grade heavy duty trucks, also
brought out a lighter vehicle. In 1927
management and since then has recent
" expanded its operations to cover all
phases of the truck and bus field.
Whites unusually steady earnings dur
ing the past six years have averaged
$2.40, and during the first half of 1928
it earned $1.45 share and at present
is paying 81 a year in dividends 1t
is officially reported that earnings have
been expanding.
Assemblies Trucks.
Brockway, recently listed on the Stock
Exchange, assemblies units manufac-
tured by other makers into heavy duty
trucks. Tt owns the Indiana Truck
Corporation, making both light and
heavy duty trucks, and is negotiating
for the purchase Of some small truck
manufacturing concerns. Brockway,
while reaching out into different fields,
has effected savings by Standardizing
its models About 40 per cent of Brock
ways business Is in foreign countries,
and since this is considered one of the
most important future outlets for the
truck business, its position in this field
should prove an advantage. From 1925
to 1927 the company's earnings aver
aged 1922 and this year it is stated
that earnings may reach 81 a share.
The company could afford to increase
its So dividend rate, but it may decide
M h1I
would be more desirable.
Federal Motor truck is one of the
older companies in the business. manu-
featuring a complete line from / to 71a
ton trucks 1t sells through subsidiaries
both in this country and abroad, and,
although its profits were low during
1927 and the first half of 1928, it is
stated that earnings have recently been
rising. From 1924 to 1927 Federal av-
eraged $205 share and is now paying
80c In dividends plus an extra.
General Motors.
In 1925 General Motors found that
truck manufacturing was quite different
from passenger car building and turned
all truck, taXicab, bus and Hertz
Drivurself business over to Yellow Truck
and Coach, all of whose common stock
it owns. Yellow Truck has shown
heavy losses since 1924 due to it's policy
of writing off obsolete equipment and
to the heavy costs of a plan to con-
solidate operations which entailed NOV
ing the Chicago and East Moline plants
to Pontiac. In the face of these losses
Yellow stock has shown steady RISE
which can only be attributed to con-
fidence in the controlling corporation,
General Motors Until the rehabilita-
ton has been completed, however. the
stock can only be considered specu-
lative.
The sharp rise in Yellow stock last
November shown on the chart was due
to the disposal of large block of
class 3 in the open market by General
Motors. In order to sell the stock it
appears that it was necessary to buy
in a large block of stock, thus running
the price up. and then dispose of the
holdings as the price dropped. In addi-
ton to all of the common. which is,
Of course, out of the market, General
Motors still holds a large block of
class B. One is naturally curious to
know If they intend to dispose OF more
class B in the same manner.
Outlook.
Having frightened credit requirements,
truck manufacturers are on a much
firmer footing and In position to
benefit by the present high rate Of in
dustrial activity. They also will profit
by the construction of inland water
ways. Boulder Dam and the work en-
tailed in the Mississippi flood control.
In addition to this. manufacturers are
expecting a large increase in the eX-
port business. In 1922 about l out
of every 20 trucks was exported. while
today about l in every 4 leave the
country. Thus industrial conditions in
foreign countries. as well as at home,
are of tremendous Importance In de-
termining truck profits.
Copyright, 1929