The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1935-01-03
Trends
Industry's Profits
Up Sharply in
Nine Months.
by VINCENT s. LYONS
Times Financial Editor

THE year Just closed undoubtedly
Il will prove to be a fairly pro1ta-
bic one for industry as a whole.
When annual reports Of companies
are released in the next few months
the accuracy of this view will be put
to test. Corporation income state
ments, incidentally, will be a little
later in appearing this year due to
the fact that more information will
be divulged than was released here
tOfore.
According to a survey made by the
Federal Reserve Board net income
of American industrial corporations
in the first nine months of the year
registered an increase of 70 per cent
over the corresponding period of
last year.
This betterment was displayed de-
spite the fact that industry in the
third quarter Of the year expert
enced a poor three months. During
the three months ended with Sep
TENDER, a group Of representative
companies reported profits 26 per
cent below the same period of the
preceding year and 30 per cent
smaller than in the Immediately
preceding three months.
IN the final quarter of last year
Il the recovery movement gained
momentum and it is assumed that
the p~roht-ratio marked up in the
first nine months of the year was
maintained. It viii be remembered
that several important barometers
of business pursued a steady upward
course In the final three months of
1884.
Undoubtedly representing the
working of code provisions in some
industries. wage payments Of facto-
ries. mines, railroads and public
utilities during the first ten months
Of last year scored an expansion of
IS per cent over the corresponding
10 months of the preceding year.
And it is interesting to note that
the widest gain in this field was by
durable goods factories, which are
behind the capital goods industry
in the drive toward recovery.
On the basis of the Federal Re-
serve Board survey it is indicated
that the lines which experienced an
upturn in the third quarter as COM
pared with the second quarter were
building, chemicals, food products,
medicine and drugs, non-ferrous
metal, oil and retail lines.
THE betterment in the petroleum
Il field was especially noticeable.
Despite the existence of several I'M
healthy situations in this branch of
industry. companies were able to re-
port substantial gains in profits.
This upSwing in net was so marked
in some instances that quite a few
companies were able to improve
their financial positions by retiring
currently outstanding high interest
bearing securities.
Two important branches of indus
try did not fare so well during the
year. The Reserve Board disclosed
that public utilities and railroads
~ooth reported lower third quarter
and first nine months profits as
compared with the corresponding
periods of the preceding year. At
present the outlook for the public
utility industry does not point to
any sudden upturn.
Industry, consequently, opens 1885
with a good year behind it; even if
the good" is only apparent by con-
trast with the depression years. All
industry is hoping that the gains al
ready made will be extended, or at
least maintained. Whether they will
or not will be told in the next few
months.