Democrat and Chronicle from Rochester, New York on January 22, 1974 · Page 32
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Democrat and Chronicle from Rochester, New York · Page 32

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Rochester, New York
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Tuesday, January 22, 1974
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Page 32
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1 Hf mom! ana (fltntniflrl 1 Q Q. S 13 6D if ROCHESTER, N. Y., TUESDAY, JANUARY 22, 1974 wings Top $3 BusinessPeople Mi ion Xerox Ea OO R.A. NOTILNACLE NICHOLAS USTICK Nothnagles '74 Forecast: Higher Sales The 2,000-member Real Estate Board of Rochester will install Raymond A. Nolhnagle as its 40th president tomorrow night during a dinner at the Flagship Rochester Hotel. Nothnagle, who began his career 17 years ago as a real estate salesman, is president of the Rochester-based Nothnagle Gallery of Homes which has eight offices in this area. "If the local real estate market is a barometer of the economy as a whole," he said yesterday, "I think the outlook for 1974 is a lot brighter than alarmists would have us believe." He noted that 1973 was one of the realty business's most active years in Monroe County, sales volume in the board's multiple listing service totaling a record $205 million. "I think that demonstrates a basic and justified confidence by real estate buyers and by bankers who made loans to those buyers," Nothnagle said. "This confidence," he added, "should extend through 1974 because by far most people who bought property in this area in the last 30 years have come out ahead financially when they sold." Nicholas Ustick of Naples, former corporate manager of personnel for the Amerada Hess Corp. in New York City and Woodbridge, N.J., has been appointed director of employe relations at Rochester General Hospital. Ustick has served on the Penn State University and Cornell University faculties. Construction and start-up costs for Gepello's Ristorante, which opened Oct. 18 in Penfield, were partly responsible for a drop in the profits of Robinex International Ltd. of Penfield, operator of Robin Hood Room and Tale of the Whale restaurants. The company has reported net income of $32,171 or 6 cents a share for the nine months ended Oct. 31, down from $107,326 or 20 cents a share in the corresponding 1972 period. Until the end of last October, Robinex restaurants absorbed increases in food costs during the nine-month period, Richard S. Kaiser, vice president, reported. Directors of Valle's Steak House, Portland, Me., owner-operator of 19 restaurants along the Atlantic seaboard and interior, including one at 1335 E. Ridge Road, Irondequoit, have declared a 10 per cent stock dividend on the company's common shares, payable Feb. 28 to stockholders of record Jan. 31. Cash will be paid in lieu of fractional shares. Champion Products Inc., 115 College Ave., introduced a new line of "Coach of the Year" blazers yesterday at the company's national sales meeting at Rancho La Costs, Calif. The blazers have the official endorsement of the American Football Coaches Association. J.J. McGUIRE R.L. GABERS James J. McGuire of 4 Carriage Court, Pitts-ford, who joined the Sybron Corp. in 1970 as director of labor' relations, has been promoted to director of industrial relations . . . Randolph L. Gabers of Elmira, formerly purchasing manager of the Bertram Yacht Division of the Whit-taker Corp., has been named purchasing director of Goulds Pumps Inc. of Seneca Falls. Before joining Whittaker, Gabers was purchasing manager of the Sperry Rand Corp.'s Vickers Division in Waterbury, Conn., and materials manager of the Remington Rand Division in Elmira. Local Stocks At a Glance H73-74 Hi Oh Low M4 174 t'i 3i 151'i 101 45 2i !'' MH JJ'i 1234 1 1 Mi 534 ji'i in. tain In IMs Won Low 25' 4 J7 ft S'i 770 101 Bousch A Lomtj BernzomatiC Eastman Kodak Gannett Garlock Gleoson Nelsnor RGSE Rochester Tel. Stor Markets Sybron Tobm Voplex Xerox 4'2 40U 2 J't 612 108'i 10'i 103 W, 28 1J34 7"i 183. 1 11 5 3 38 117 1 U 37T 3'i 1634 15' 7" li'i 18t r ?8i Clos Cho. 40' 1'4 3' 108'. 2?'i H 1 U Iji, 71, 18'i i 13' Li v4 28'i The Xerox Corp. yesterday reported record 1973 net income of $300.5 million, an increase of 20 per cent over the $249.5 million earned in 1972. Per share earnings for the year were $3.80 compared to $3.16 a year ago, while record revenues readied $2.99 billion, up 24 per cent from $2.42 billion the previous year. In addition, C. Peter McColough, chairman and chief executive officer, and Archie R. Mc-Cardell, president and chief operating officer, reported record results for the fourth quarter, which also was the best three-month period in the company's history. Net income in the last three months of 1973 was $77 million, or 98 cents per share, compared to $66 million, or 83 cents per share, for the 1972 period. Quarterly revenues totaled $306 million versus $653 million. McColough and McCardcll said this year's plans call for continued growth despite indications of a less favorable global economic environment and possible shortages of parts and materials that could cause "temporary dislocations" during the year. Xerox also said that changes in the value of international currencies benefited the company's pre-tax earnings by $39 million in 1973. And because of the currency flucuations, Xerox said, it has established a reserve of $13 million for possible unfavorable currency impacts. The company reported that revenues from U.S. sales of copiers, duplicators, facsimile equipment and related supplies and services gained 19 per cent last year. Strong usage of equipment and especially good placements of the Xerox 4000 copier were cited as aiding the increase. Fourth quarter placements of the Xerox 3100 copier, which was first delivered in midyear, were excellent, the executives added. They also noted that worldwide computer revenues rose 14 per cent in 1973, although the computer line continued to show a loss. Orders for the Xerox 530 computer were "encouraging." "We look for improved computer operations, but near-term profits are not expected because of long-term investments in research, development and marketing," they said. Sales of educational materials and services were up 7 per cent from a year earlier, the company said, and a strong fourth quarter gave 1973 profits a significant boost. International business also picked up for Xerox, which is headquartered in Stamford, Conn., but employs about 16,000 at plants in the Rochester area. Rank Xerox, Ltd., the company's London-based subsidiary, had 1973 revenues of $903 million, an increase of 34 per cent over 1972. Net income for Rank was up 32 per cent to $117 million. Rank's figures include its share of earnings from Fuji Xerox Co., Ltd., jointly owned by Rank Xerox and Fuji Photo Film Co. Fuji, alone, reported good growth, Xerox said. Also, Xerox operations in Latin America, the Caribbean and Canada advanced during 1973. Combined operations showed a 34 per cent revenue increase and 17 per cent protit gain. 1MSVJ t 11 Dollar, Gold Rise Floating' Franc Slumps Tokyo bank clerk puts 'No Quotation' sign on foreign exchange board . . . ... as Tokyo market closes yesterday ajter floating trencn jranc. (Af) D&C Wire Services PARIS The newly floated French franc slumped 4 to 6.5 per cent on foreign exchange markets yesterday while the dollar rose. The price of gold soared, a customary reaction in times of monetary uncertainty. France announced Saturday it would float its currency to defend the economy against the impact of big oil price increases. The five remaining nations in Europe's monetary union agreed last night to remain as a bloc and to keep their currencies at a fixed rate despite France's decision to break away. Finance ministers from West Germany, Belgium, Denmark, Holland and Luxembourg also announced that onf Walsfon Giving Up brock brol ceraae Business NEW YORK (AP)-DuPont Walston Inc., a big Wall Street brokerage house controlled by Texas computer tycoon II. Ross Perot, disclosed plans yesterday to sell its assets and go out of business. The firm attributed its decision to "continuing operating losses" but said it would maintain full service to its 300,000 customers until buyers could be found for its operations. (DuPont Walston's Rochester office will stay in business throughout the transfer, John Lampe, vice v president of public relations in New York City, confirmed. (Lampe agreed with a statement yesterday by Wilfred Montminy, office manager of duPont Walston's branch at 600 Midtown Tower, that the branch here has been "a strong moneymaker" for the firm "and will continue to be a strong moneymaker for any future owner." (The duPont Walston branch here employs 20 and, Forgan, in the last three years. Last July the two Wall Street houses were combined, with the former Walston & Co. taking over sales and other dealings with customers and duPont Glore Forgan handling administrative tasks such as record-keeping. The firms have been a large data processing customer of Electronic Data Systems, a com-p u t e r services company through which the 43-year-old Perot built his fortune in the 1960s. Garlock Sales: $125 Million Garlock, Inc., sales for 1973 will approximate $125 million, according to a corporate advertisement scheduled for publication in today's editions of the Wall Street Journal. The sales figure cited is a primary one and "probably is slightly lower" than official results to be released in February, a Garlock spokesman said here yesterday. Garlock, a manufacturer of industrial seals and components with headquarters in Midtown Tower, reported sales of $105 million for 1972, the first time the firm had topped the $100 million mark. Montminy said, the staff, Including account executives, has a reputation for being highly stable.) Walter E. Auch, president of the firm, said that despite its profit problems DuPont Walston continued to meet the New York Stock Exchange's membership requirements regarding debts and capital. Perot, founder and head of Electronic Data Systems Corp. of Dallas, has sunk an estimated $90 million or more into duPont Walston and its associated firm, duPont Glore Canandaigua Wine: Profit Off, Sales at High 531 !14'4 119 m'4 - U Canandaigua Wine Co. has reported a decline in net income for its first fiscal quarter ended Nov. 30, 1972, despite record sales. Net income for the quarter dropped to $255,042, or 13 cents per share, compared to $342,813, or 17 cents per share, for the year-earlier quarter. Sales, meanwhile, climbed to $6.4 million from $5.8 million for the same period in 1972. Marvin Sands, president, said first quarter earnings were "adversely affected by the pressure on profit margins while operating under Fha.se 3 controls and the portion of the cost of expanding grape pressing facilities at our Canandaigua winery." "The implementation of Phase 4, permitting price increases, occurred too late for us to submit proposed increases to state regulatory agencies in time to derive first quarter benefits," Sands added. "As a result, during the period the company absorbed the increased cost of grapes and other raw materials." Sands said the new pressing capacity at Canandaigua will meet company needs "for at least the next five years." "We anticipate a much improved second quarter," he added. The company operates wineries in Canandaigua and Hammondsport, N.Y.; Petersburg, Va.; and Patrick, S.C. Also, the company will hold its first annual shareholders meeting at 11 am. Thursday, Jan. 31, at Lincoln First Tower auditorium. In a message to employes yesterday,' Auch said: "The firm is in business and fully able to execute all transactions in an orderly fashion. "We are under no regulatory restrictions. We are in, and will continue to be in, capital compliance. Though Auch said duPont Glore Forgan is a "viable firm with respect to all clients' accounts," Wall Street observers say they doubt that the processing and administration arm could continue for long without duPont Walston, its only customer. Yesterday's announcement came 10 days after the widow of Walston & Co.'s founder brought suit against duPont Walston asking that the combination of the two firms be voided and that they be placed in receivership. In her suit, Nella A. Walston charged that the New York Stock Exchange and a group of investors led by Perot had "coerced" Walston & Co., into the combination to bail out duPont Glore Forgan. She alleged a conflict of interest among the Walston directors who approved the merger. A Big Board spokesman said the exchange "will help where it can" to find a buyer of the brokerage firm's assets. Two houses, Reynolds Securities and Dean Witter & Co., have reportedly bid for large portions of Walston's assets, which include 143 branch offices. Bache & Co. also said yesterday it was studying the possible purchase of some duPont Walston branches. Yesterday's development, the latest evidence of the financial troubles which have afflicted many parts of the securities industry in recent years, caught few Wall Streetcrs by surprise. their money exchange markets which were closed yesterday would reopen today. After last weekend, the currencies of France, Britain, Italy and Ireland are all floating, with the only fixed currencies remaining in the "Deutschmark bloc" of Germany and its four small neighbors. The French decision to float its franc for six months threw the European Common Market into a new crisis and halted progress on its basic project, economic and monetary union. The Common Market's executive commission, while refusing to censure the French action, said that it brought to a head "a series of serious difficulties that have provoked a serious malaise for the Community." The first big step toward monetary union was take last year, when the Common Market nations agreed to keep the exchange rates of their currencies tightly hooked together within 1.25 per cent of each other and to let them float up and down as a bloc against the dollar. Britain, Italy and Ireland never joined this monetary "snake," as the arrangement was called. Meanwhile, official foreign exchange markets remained closed in some European countries and Japan while governments pondered what to do about the French decision. But in Paris, London, Zurich and Milan, exchanges remained open and trading between banks in other cities showed the franc down against the dollar and the British pound sterling. The dollar on the Paris commercial market closed at 5.20-5.22 francs, compared to 4.97-4.98 Friday. On the financial market, where tourist dollars are traded, the rate was 5.35-5.37 francs compared to 5.13-5.14 Friday. Gold jumped about 25 per cent on the Paris free market. A one kilogram ingot sold for 27,240 francs compared to 21,890 francs at the close on Friday. Yesterday's price was the equivalent of $158.22 an ounce, a record. The previous metal sold for $138.50 an ounce in London, up from $130 Friday. It sold for $139-$141 an ounce in Zurich, the other main gold market. The prices were records in both cities. Dow Ends Day Down 84 Cents NEW YORK (AP) - Ah llth hour flurry of bargain hunting erased most of the stock market's sharp early losses yesterday, and prices closed only slightly lower. The Dow Jones average of 30 industrials, down nearly 16 points earlier in the session, closed down only .84 at 854.63. "Things got down into a support area, and suddenly people started picking up bargains," said one analyst. Prices opened with steep losses, wth the oils leadng the downward move. Brokers attributed the weakness among the oils to talk in Washington about a possible end to the oil depletion allowance and a windfall profits tax on oil company profits. Volume on the New York Stock Exchange was 15.63 million scares. The NYSE composite index fell .13 to 51.03, while the American Stock Exchange market value index fell .47 to 95.09. Of the 1,762 issues traded on the NYSE, 542 advanced, and 897 declined. The NASDAQ composte index of over-the-counter stocks closed down .94 at 94.43. Coca-Cola Bottling Co. of New York was volume ieader on the NYSE, down V to SVi, with trading paced by a 237,000-share block at 8'8, down Among the oil stocks Phil- Petroleum fell l',3 to Atlantic Richfield fell lips 533b; 3 V2 to 92; Tesoro Petroleum dropped 2 to 42; and Exxon fell ;k to 86'2. Gold stocks showing gains included the Amex volume leader, Day Mnes, up 1 to 15'2. High Court to Rule On Claims by P. C. WASHINGTON (UPI)-The Supreme Court agreed yesterday to decide whether the bankrupt Penn Central Railroad must pay "set off" claims when it sues to collect back debts outside the bankruptcy court in Philadelphia. The court will schedule oral arguments later this term on the decision of the 7th U.S. Circuit Court of Appeals to grant a set-off claim against Penn Central trustees by Gold Seal Liquors, Inc. Normally, claims against a bankrupt firm are paid according to priorities set up by bankruptcy law. In the Penn Central dispute, the trustees pointed out that the bankruptcy court had denied other set-off claims. Gold Seal attorneys, however, said the bankruptcy court had no jurisdiction over their case in a U.S. District Court in Illinois. The trustees filed suit six months after Penn Central was declared bankrupt in June 1970, seeking $3,256 in overdue freight charges. Gold Seal filed a counterclaim of $19,319 for loss due to damage to its merchandise.

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