The Key West citizen. [volume] (Key West, Fla.) 1879-current, 1952-08-28
Toduy,S
Business
Mirror
By SAM DAWSON

oy SeNW 0NWS0sv
NEW YORK RHThe steel indus.
try hopes within a month or so to
be breaking all records of produc.
ton, but it has some doubts as
to how long it can keep that ur
and find customers.
And it has some other headaches
today, too:
/. Earnings of 80 iron and steel
companies for the first half year
fell 43 per cent behind the first
six months of 1851. And the third
quarter doesn't look too good, eli.
Their, because the mills were
struck during July and at the end
of August still aren't back to ca
pacity output.
September may see them boom
ing. but that's only one month out
of three, when the mills figure
up profits.
2. The $50 a ton average price
hike the mills might count on to
sweeten the profit picture is off
set, steel executives assert, by
higher payroll expenses. (Some
steel mills claim the steel price
hike is more than offset, because
other material and service costs
will rise for them, too.)
8. And many of the steel mills
customers are grumbling. They
fear there's good deal to what
Secretary of Commerce Sawyer
says: Manufacturers may not be
able to pass much of that extra
steel cost along in higher prices
on the end product. Competition
and customer price resistance may
prevent it.
The trade weekly, Iron Age, puts
a steel customers plight this way
today: washington has raised a
manufacturers costs and is crow
ing because he can do nothing
about it.
Steel makers have their order
books well filled. They are cur
rently concentrating on catching
up with the backlog If demand
for defense production.
But a new element Of doubt is
creeping in, because customers
aren't too pressing.
Before the strike steel execu-
tives were predicting that demand
would Slacken in the closing
months of this year and output fall
below capacity.
With the mills closed down in
June and July, and production still
below capacity in August, this
timetable for the end of capacity
output might be put back until the
first part Of next year.
But orders for civilian use steel
while good-haven't been nearly
as urgent since the strike ended,
as some mills had predicted. And
steel executives once more are
wondering:
L. win demand for steel slacken
before we thought?
2. Will the new higher price cool
off some of that demand?
Iron Age, however, sees little
chance of an overall easier mar
ket the rest of this year. It re.
ports some easing in demand for
wire and wire products, but it says
the pressure to get bars and hot.
rolled sheets is as strong as ever.
The American Iron and Steel
Institute predicts the worlds
greatest output of steel" is likely
in coming weeks. New records oil
production can be set because the
companies have larger capacities
now, and continue to expand facil-
tiles. And the institute thinks il
win be some time before the over.
all demand built UP during the
strike will be satisfied.
United States Steel's earnings
statement Tuesday completed the
roster of the big companies. Thir-
ty-nine, both big and small, who
work with iron and steel show COM
bined earnings for the first six
months Of SOS. 500 sol. In the first
half Of 1851. the same companies
had combined profit after taxes OF
s35S, 431. 1871.
This drop In profit of sl52 500 :
$50, or 42.6 per cent, brings with
il q smaller take for the U. S.
Treasury in income taxes.
u. S. Steefs statement is an ex-
ample: This year it is setting aside
g million dollars to meet federal
income taxes for the entire first
half. Last year il set aside $50
million for the first half taxes.
The Treasury's take of big steel
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