Business: A. T. & T. Shows the Way

The biggest U.S. private enterprise this week set an upbeat pace for industry with the first-quarter earnings report in its current fiscal year. For the three months ending Feb. 29, the Bell System’s share of American Telephone & Telegraph Co. earnings rose to a record $292,223,000, or $1.32 per share v. $1.21 per share in the same period last year. In his quarterly letter to A. T. & T.’s 1,700,000 stockholders, company President Frederick R. Kappel said that new telephone installations for the first quarter would probably exceed 750,000, slightly more than a year ago.

Two other industry giants, General Foods Corp. and American Tobacco Co., also had good news for stockholders. General Foods directors recommended a 2 for1 split, boosted the quarter common-stock dividend from 65¢ to 70¢. At the annual meeting, American Tobacco Co. stockholders approved a 2-for-1 split, with a planned quarterly dividend increase of 7½¢ per share, to 57½¢ on the new shares. Company President Paul M. Hahn told shareholders that sales and earnings in the first quarter this year would exceed the first quarter last year, when American Tobacco earned $1.85 per share on sales of $261,566,000.

Other reports:

¶ Westinghouse Electric Corp. expects first-quarter profits to exceed the 1959 period, when the company earned 40¢ per share; sales are running 5% to 10% ahead of last year.

¶The low-net New York Times reported 1959 earnings of $3,001,460, or $29.02 per share, from record operating revenues of $103,269,682, as compared to $1,285,359 in 1958.