Milford chronicle., 1960-02-26
Studebaker-Pa ackard
Show Big Earnings

debaker--Packard Corporation
today reported 1859 consolidated
earnings of $2S,544 ,s39, an upturn
in sharp contrast to the operating
deficit Of $13,390,937 in 1858. Sales
for the IL months ended December
81 were $685., ,372.375, up ia per
cent from $3.50, ,657 ,592 the previous
year.
Harold E. Churchill, president,
ascribed the earnings turnabout of
the 1OS year old business to the
Lark by Studebaker, pioneer IN
the convenience-size u to m bi lie
field, which enjoyed the most sue
cessful first year sales record of
any car introduced In recent years.
Domestic retail sales of manufact-
ured passenger cars for calendar
year 1859 increased $50 per cent
over 1858. Churchill said.
Earnings were equivalent to
/ $436 per common share on 6,543,-
185 shares outstanding, or $2.37 per
common share after conversion Of
the per cent preferred stock to
5.500,000 additional common shares
after January 1, 1861.
Studebaker-Pa -Packard's 1859 earn
ings are not subject to federal in
come tax because of tax loss carry
forward credits. Operating results
reported today were in excess of
any prior years retained earnings,
after taxes and before dividends, of
either the present corporation or
its two predecessor businesses.
The Studebaker Corporation and
the Packard Motor Car Company.
The company reported an income
from operations of $5,784,27S in the
fourth quarter of 1859 before favor
able year-end adjustments, with
sales of S1O2, ,462, ,435. This compares
with $3,680,574 in earnings realized
on sales of $8S,651, 1896 in the last
three months of 1858 when the Lark
was introduced
Contributing to S tud e baker
Packard's sales and earnings per-
| formance," Churchill said, was
the timely purchase of sufficient
supplies of steel to maintain full
and uninterrupted production dur
ing the prolonged steel strike"
The Corporations working capi-
tai position as of December 81 was
$73, $50 ,1O1, which included cash
and marketable securities in the
amount of $62,164 ,0O9. This COM
pared with working capital of $44,
845,055 at December 81, 1858 of
which $35,361 ,944 was cash and
marketable securities.
Lark sales have been further
augmented by the addition of con-
vertible, only u. S-built soft top
in its size and price bracket. and
new fOur-door station wagon"
Churchill said. These models pro-
vide the Lark line with the most
complete selection in the compact
car market"
Fleet sales increased to nearly
percent of the company's total
sales, and continue TO show great
er gains for the 1860 models as
commerce, industry and govern
mental agencies report Iow-cost
maintenance and utility of these
units.
The Studebaker Hawk, five pass
enger sports coupe, accounted for
5.4 per cent of the retail sales. The
A@OV AAoWh tHIiOuuCCu q new Ic0
cubic inch VS. engine with 30
horsepower.
The Studebaker truck line for
$50 introduced The Champ, new
idea" pickup. available in u and
T3/4 ton models, which exceed con-
yentional N gin e ring specifica-
tions.
With completely new body de-
sign, The Champ presents a smart
appearance and lower silhouette. A
choice of four engines and two
wheel bases-112 and 122 inches
is offered.
The Studebaker medium and hea-
vy-duty 1860 Transtar Series will
present is models with choices to
meet all operating conditions from
one ton through heavy-duty two ton
trucks
Mercedes Benz Sales, Inc. a
Studebaker-Packard subsidiary. ex-
elusive u. S. distributor of Merced-
es-Benz cars, increased domestic
retail deliveries SAG per cent in
1853 over 1858. with sales potent
ial far in excess OF the number of
cars allotted to the u. S. by Daim-
leT-benz, A u.
This division also was granted ex-
elusive rights to distribute the
DkW and the Union line in the u.
>, effective last June. Shipments
Of this economy line of German
built cars, which are distinguished
Dy fhree-cylinder, two stroke
cycle engine, will be increased sub
stantially in 1860.