State of Business: Earnings: High but Still Low

The world's biggest manufacturer had bracing news last week. General Motors said that earnings during this year's first nine months set a record of $962 million. The picture was also bright for the nation's largest defense contractor. General Dynamics snapped back from a loss of $143 million in 1961 to post a profit of $34 million during 1962's first nine months. Much of the comeback resulted from General Dynamics' decision to write off the losses from its Convair 880 and 990 jets in a single year (1961) instead of spreading them over several years, and its prudent use of tax...

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