Evening star., 1941-07-30
Provision for Taxes
Sharply Cuts Profit
OF u. ). Steel
Output Is at New High,
But Net for Quarter
Drops to S24,8l4,75l
By the Associated Press.

By the Associated Press.
NEW YORK, July 30.-Profits of
United States Steel Corp, rejecting
provision for proposed higher taxes,
dropped sharply in the second quar-
ter of this year, while production
expanded to new high records, we'll
in excess of the totals of World War
years.
The big steel company-account-
ing for more than a third of this
country's capacity. reported net
profits Of s248l4,751 for the three
months ended June 30, compared
with $36,559 ,995 in the preceding
three months The total, however.
was still we'll ahead of the SIG .2O1 ,O08
reported for the June quarter of
1910.
The profits for the latest quarter,
after preferred dividends, amounted
to s2.12 a share on the common
! stock, but the Board of Directors
again ordered common dividend of
only 81 a share, payable September
20 to stock of record August 20, as in
previous recent quaters. This dis
bursement to common stockholders
totals s8,703,252
Total operating profit for the
latest quarter was S64 051 689, nearly
three times the s22 2,009.147 reported
for the same period of last year, but
deductions of s32 800 900 to allow for
Federal income and excess profits
taxes, together with other charges,
cut this total to less than half.
Highest Shipments on Record.
Shipments of finished steel for the
June quarter were 5,l0l,6 tons,
highest for any quarter on record, 3
per cent above the March quarter.
and SO per cent over the June period
Of last year.
Average number of employees in
the three month period was 295.047,
and the total pay roll was s147,905.-
290, compared with 240,257, and
500, ,736 1896. respectively, in the same
part Of 1910
Operations for the three months
averaged at 1924 per cent of rated
capacity.
The company laid out s44 200 900
during the first half of this year for
additions and betterments of prop
critics, and as Of June 80. last. had
uneXpended balances on all author
izations for property additions and
requirements of sl76600000.
Net profits for the first six months
came to s6l .374746. against S36,315,-
003 for the first half of 1910 For the
latest half year. total funds set
aside TO provide for Federal income
and excess profits taxes were s44,-
100000, and for State, social security
and other taxes, s30.96l67l.
Huge Backlog Reported.
Irving S. Olds, chairman of the
board. said the corporations un-
filled orders for finished steel
equaled six months operations on
the basis of present shipments.
Mr. Olds said that direct and in
direct defense orders. including
shipbuilding, were more than so
per cent of the total.
Discussing the raw materials, Mr..
Olds said the scrap situation was
serious.
The shortage of scrap is retard-
ing production of steel today" he
said, Our own position is fairly
comfortable. We have, however.
exported so much scrap during the
last four or five years that there
just isn't a very large supply"
Mr.. Olds explained that the steel
corporation, as a result of its many
operations, produces great deal
Of its own scrap.
las regards manganese and tin"
Mr.. Olds said. Il don't think any
one knows what will be the effects
of the Far Eastern situation Oh
supplies. The situation gets
tighter all the time
Mr.. Olds said export business in
the first half of 1941 was about 10
per cent on the total, as compared
with about 20 per cent in the COM
parable 1910 period. He indicated
most the exports were going to
Britain.
Turning to production Mr.. Olds
estimated the steel corporation in
got capacity at 29. .720 900 tons an
nually. He said there had been
no change in the situation as re-
cards expansion OF capacity.