Evening star., 1939-07-28
Bethlehem Declares
Common Dividend
As Profits Rise
50-Cent Payment Is First
In 18 Months; Net of
$685.. .927 Shown
Rv the Associated Press.

NEW YORK, July 28.-Bethlehem
Steel Corp. rewarded it's common
stockholders with a 50-cent divi-
dend late yesterday, the first in 18
months, in token of good rise in
June quarter profits.
Eugene G. Grace, president of the
big steel company, announced the
net income for the second quarter
was 1882 ,927, equal to 81 cents a
share on common stock after pre-
ferred dividends. This compared
with $2,409,059 or II cents a share
in the March quarter and $l50,305,
equal to IA cents share on the 7
per cent preferred stock in the three
months ended June 80, 1888.
Commenting on the common stock
dividend, which is payable Septem-
Der is to stock of record August 25,
Grace said it was appropriate"
recognition of the shareholders in
view of the quarters relatively
good showing"
81 Paid at End of 1887.
The previous dividend in the
common stock was 81 in December
1887.
The usual quarterly dividend of
SITS on the per cent preferred and
Is cents on the S per cent preferred
also were ordered by the board, pay
able october 2 to stock of record
September s.
For the six months ended June
80 Bethlehem earned a balance equal
to 78 cents share on the common
stock against SLOT a share on the 7
per cent preferred and Is cents a
share on the 5 per cent preferred in
the similar period last year.
Grace pointed out that profits in
the June quarter actually were a
little better than 81 a share for the
Junior stock in view of charge offs
totallng more than $1,0O0O0O in
connection with the issue and sale
of S25, 100000 bond issue in July of
this year and with losses incident to
liquidation of the companys housing
and real estate holdings.
I'VE are getting out of the real
estate business, by disposing of our
housing properties to employees and
other private parties" he said.
Orders Ahead of 1888.
Bethlehem's estimated value of
orders on hand June 30 was s184.-
92l ,08l, compared with Sl92 ,O4O ,906
on March 81 and S39 916,0l2 on June
80, 1888. The decrease from three
months ago, Grace explained. was
due to completion of work on ship
building contracts. The amont of
steel backlog was little changed, he
said, and orders were just about sup
porting the current operating rate
OF around 62 per cent of capacity.
Production averaged 604 per cent
of capacity during the quarter,
against 53.8 per cent in the first
quarter and 357 per cent in the
June quarter last year.
Grace repeated his complaint that
the spread between producing costs
and selling prices was not enough
to give the steel industry a fair re-
turn on its capital
I'VE have been doing fairly WELL"
he commented, "but generally, the
price situation is unsatisfactory
The executive revealed that Beth
lehem has some important construc-
ton projects underway at the Big
Sparrows Point, Md, plant. In
cluded is the installation of equip
ment for rolling of small pipe and
for coating of wire by an electric
process. The company is about fin
lShed on the installation of a cold
rolled tin plate department.
Construction spending in the first
half amounted to about $1,000 900
and around S7OO0,00O has been bud
geted for the last half of the year.