The Sacramento Bee from Sacramento, California • 27

Business stocks 7 The Sacramento Bee Tuesday February 5 1980 GM Reports Sharp Declines In Quarterly Annual Profits DETROIT (AP) General Motors Corp Monday reported a 58 percent decline in fourth quarter earnings last year giving the company an 18 percent drop in 1979 earnings to $289 billion Directors declared a dividend of $115 a share on common stock the same amount paid in the three previous quarters GM said fourth quarter earnings totaled $426 million or $146 a share compared to $1 billion or $351 a share for the like 1978 period Revenues totaled $161 billion down 92 percent from $177 billion For the year the No 1 automaker earned $1004 a share down from $1224 a share on total earnings of $351 billion the previous year Revenues dropped 49 percent in 1979 to $663 billion from $632 billion in 1978 $663 billion in sales dropped it into second place behind Exxon Corp with 1979 sales of $844 billion in the list of the largest industrial corporations Worldwide vehicle sales at wholesale fell 5 percent for the year to 899 million from 948 million GM was the second US automaker to report fourth quarter results Earlier American Motors said its profits fell 32 percent to $128 million Ford probably will lose money for the quarter and Chrysler will report a whopping loss analysts say GM Chairman Thomas A Murphy and President Elliott Estes said in the earnings statement that unit volume and a less favorable product accounted for 86 percent of the fall in 1979 profits That means fewer cars and less profitable cars They attributed the rest of the decline to higher costs that could not be recovered in prices the costs of plant shutdowns to hold down inventories and the dealer incentives necessary to move inventories GM said about 79 percent of last profits came from the United States compared with 87 percent the year before That would indicate US profits fell 25 percent for the year from about $31 billion to $229 billion and profits overseas including Canada rose 33 percent from $456 million to $608 million GM said its return on the investment was 151 percent for the year the first time it has fallen below 20 percent since a 96 percent return in the recession year of 1975 The profit margin on sales fell to 44 percent from 55 in 1978 GM noted it had been 103 percent in 1965 US Steel Chief Claims Japanese Automakers 'Dump' Cars In US Turbine Takes Shape Standing 18 feet tall and weighing more than 56 tons this steam turbine high-pressure lower-half outer shell is being manufactured by General Electric at its Schenectady NY turbine works A milling operator checks the machining of the shell's high pressure inlets The shell will become part of a large steam turbine generator unit rated at 570000 kilowatts being built for the Laramie River Plant Wheatland Wyo The plant is scheduled to start service in April 1982 Bee Newsservices DETROIT The chairman of the largest steel-making company said Monday two Japanese automakers may be dumping cars in the US selling them below the home market price David Roderick chairman of United States Steel Corp said a survey comparing wholesale prices in eight US cities and in Tokyo indicated a dumping margin of between 14 and 20 percent "In other words Americans buy Japanese vehicles for 14 to 20 percent less than the Japanese Roderick told a news conference He described the alleged pricing policy as Auto industry analysts do not believe the Japanese companies are in the strict sense in which the word is used in treaties that is selling abroad below the cost of production They note Japanese home-market prices are higher because of that special 15 percent tax on cars no matter what Most-Wanted The statement increased again the forecast of 1980 capital spending put at $6 billion at the end of 1979 $7 billion last month and now a sum that exceed" $7 billion GM's heavy investments and dividend payments are beginning to collide the company noted GM usually pays extra dividends in the second and fourth quarters After increasing the regular dividend from $1 to $115 in the second quarter last year GM declared only 85 cents worth of extras which made last total dividend $530 down from $6 in 1978 But total was 53 percent of profits up from 49 percent Some analysts have said dividends might have to be held down in the future to complete the $38 billion in investment GM plans for 1978-85 unless GM chooses to borrow money Channel 31 Sale In Talk Stage KMUV-TV the Spanish-format Channel 31 may be sold and converted to a part-time English-language subscription station The reported price is about $8 million Negotiations for the purchase are in an advanced stage according to industry sources Prospective buyers for the five-year-old independent UHF station are Tandem Productions Inc which is Norman television production company and Jerry Perencio chairman and chief executive officer Perencio also is part-owner of National Subscription Television which owns two subscription television stations in Los Angeles and in Detroit Perencio and Tandem earlier this month bought a Newark NJ station to be converted to subscription service KMUV currently is owned by 11 individuals including local realtors Andrew Bartalini and George Artz and 'businessman DainDomich What will happen at KMUV if the proposed sale is completed? No definite plans have been made according to Barbara Brogliatti a Tandem vice president However noting the Federal Communications Commission must approve such sales and the FCC "wants free programming she said Channel 31 probably would remain a station as opposed to a subscription operation at least part of the time Most likely Brogliatti said KMUV would operate as an English language subscription channel during prime time hours say 7 to II pm week-nights and throughout the weekends Its signal then could be received only by customers who pay a fee for a special antenna The rest of the time she said the station likely would retain its Spanish format in broadcasts which could be received without charge on any television set Programming during the subscription hours she said probably would consist of movies and local professional and college sports kind of games not normally A subscriber she estimated would pay a one-time antenna installation fee of $35-40 and a monthly subscription fee of about $19 Criminals said the results are often insignificant chance of being sentenced to a prison term is 20 percent for those indicted for bank embezzlement and 89 percent for those indicted for bank robbery" he said Nader said a businessman once told him that worth it to squirrel away S3 million in a securities fraud when the penalty if he gets caught is only a short tail sentence Nader ticked off four major types of corporate crimes for which he would like to see stricter laws: financial price-fixing and chemical and product safety crime As an example of financial crime Nader cited companies that admit to giving illegal and improper payoffs abroad And Nader said "A relatively new category of illegality chemical crime has begun to spread as Ke-pone PCBs and other exotic chemicals work their way into the human Moskowitz Capital Commercial Notes 6-Month-Old Bank Posts Profit that the US will become more dependent on foreign steel in the 1990s than it is dependent on foreign oil now if foreign steel-makers continue price-cutting The US Steel chairman again singled out Japan saying the country has adopted a national coordinated export policy aimed at improving trade deficit caused by importing $40 billion worth of oil "If Japan Incorporated adheres to that policy to pay its petroleum bill they're passing the petro buck asking us to assume a double Roderick said conceivable that impoots could rise to a level of 30 percent of the domestic market by the end of the decade if present trends continue which means that we could be more dependent on foreign steel in 1990 than we are on foreign energy right he said Imported steel took 18 percent of the US market in 1978 when about 25 percent of US energy was imported in the form of petroleum standing loans totaled $23 billion with more than 21400 borrowers The Federal Land Bank of Sacramento part of the nationwide Farm Credit System makes loans through 32 land bank associations in five Western States Privately financed it obtains its lending funds from the sale of bonds to investors Bloxham said the number of new loans in 1979 rose 11 percent from 197S while the amount of the loans was up 63 percent Delinquencies were at an all-time low according to the president Cable Data VPs CableData of Sacramento which provides billing and other services to 750 cable television systems with 7h million subscribers reported the appointments of Dave Barnes as vice president of human resources and Jim Stafford as vice president of operations Barnes joined the company in 1978 Stafford in 1979 Other notes Diet Center Inc of Rexburg Idaho reported the appointment of Mrs Kay Gabbert of Sacramento to its national advisory board The firm as 850 branches including six in the Sacramento area Mass Motivators Sacramento advertising and marketing firm announced it has been awarded the $200000 advertising and public relations account for 16 Wienerschnitzel franchises in this area The advertising firm said its annual billings exceed $4 million First Commercial Bank which opened here Aug 1 1979 reported a net profit after taxes of $330000 for the five months ended Dec 31 In its first annual report the bank also listed deposits of $216 million and assets of $32 8 million Commenting on the profit picture First Commercial President Frank Bristow said any known industry standards this achievement should be very encouraging to all of us in this new venture shareholders directors and staff He noted the bank entered the Sacramento market at a time of high loan rates higher rates paid to customers on time deposits and a decline in construction activity these negative factors" said Bristow bank made a substantial profit in its first month of operation which to the best of our knowledge is unique among Bank Just Millionaires their origin The tax is not imposed on exported cars Roderick said the survey found the Toyota Corolla 1800 SE sells for $800 more in Japan than in the US a margin of about 20 percent A Datsun B210 four-door sedan sells for about $3950 in Japan while a comparable export mooel costs $3300 a difference of IS 5 percent Spokesmen for Nissan US A which imports Datsun and Toyota Motor Sales US A Inc denied the charges The Nissan spokesman said dealer prices often are higher in the US than in Japan The Toyota representative pointed out the US Treasury Department cleared Toyota Datsun and Honda of dumping charges in 1975 Roderick said the government should halt the alleged dumping by enforcing existing trade laws Imported cars he said last year ahead of American Motors ahead of Chrysler even ahead of Ford in the domestic Roderick in other remarks at Monday's news conference warned The independently owned bank is at 550 St Heads Atlas Units William Johnson a vice president of Atlas Thrift has been named senior vice president and branch administrator of the 11 Northern California offices Atlas founded in Sacramento was acquired one year ago by Genstar Ltd a diversified company with $2 billion in annual revenues Atlas has its headquarters in San Jose Land Bank Record George Bloxham president of the Federal Land Bank of Sacramento reported 1979 was the largest most successful year It recorded 3679 new farm and ranch loans amounting to more than $821 million At the end of 1979 the out- Jewel is the largest shareholder ot the California Pay Less with 135 percent ownership Pay Less Northwest owns 125 percent of the California stock The board of directors of Pay Less California has recommended that its shareholders accept the new offer by the Oregon chain when they convene March 31 Pay Less Northwest officially began its merger efforts Jan 17 with an offer to pay $2250 per share for the California Pay Less stock Tries Anew the messages' nature Last three commercials discussed hat Kaiser said was the need for a US energy policy the danger of government overregulation to free enterprise and the high cost of governmental red tape to consumers In the 1979 commercials Kaiser urged Americans to write their views to elected representatives Rhody evoked laughter from the business-oriented Comstock Club when he reported ABC replied in part it accept commercials saying to your congressman' commercials should use a positive response Rhody said was do you guys get off thinking you have a right to express an opinion on these a network can decide who can express an opinion wc arc in serious Nader Idea: A List Of Business WASHINGTON (AP) Consumer activist Ralph Nader said Monday that the FBI should start a Ten Most Wanted List for corporate criminals crime is at an epidemic Nader remarked to a House judiciary crime subcommittee which is holding hearings on proposed legislation that could slap suffer penalties on those participating in illegal business practices The consumer advocate said the FBI is spending a lot of its time and money going after the 10 most wanted criminals who are sought for street and violent crimes mainly But he said the agency does not seem to concentrate as much as it should on crime in the business sector we should institute a Ten Most Wanted List for corporate criminals for the FBI to focus some of its resources on'' Nader said Even when the federal government moves against business abuse Nader -Milton ONE MILLION DOLLARS used to count for a lot To become a millionaire was considered a pinnacle of financial achievement At least it guaranteed security in old age But inflation has eroded values all over the place and even a millionaire can't sit back anymore and take it easy That's the word from an institution that should know: the United States Trust Co It sounds like an official arm of the US government but let the name fool you not US Trust is a bank Not your ordinary bank that has branches everywhere and solicits checking account customers US Trust has one place of business: 45 Wall St New York City 146 years old And it specializes in taking care of big clumps of money held by very wealthy people In short: a bunk for millionaires The last time anyone counted US Trust had about $45 billion of stocks and bonds stuffed in its vaults held in custody for customers THE REASON I know US Trust is worried about the security of millionaires is that it has been saying so in ads run in the financial press wealthy people" say these ads realized that conservation of wealth is no longer a goal you can approach passively It demands aggressive By action" US Trust means having their people analyze your financial situation and suggest what you should do to prevent inflation from dissipating your money Remember though this is not a service provided for just anyone The ad specifically says: "If your net worth is approximately $1000000 we would be happy to discuss the analysis and its interesting that US Trust the guardian angel of millionaires has utso been breaking into print without This For Pay Less Merger Agreement 1 33S9E9 even paying for the space It seems the company is holding so much money it doesn't even know what it's missing Last July it was disclosed that US Trust had lost $397 million of non-negotiable bonds issued by New York State's Municipal Assistance Corp (MAC) A New York City pension fund had lodged the bonds in US vaults for safekeeping A little embarrassed US Trust had its accountants Coopers Ly-bands conduct a massive inventory They went through about 35 million pieces of paper to count up what the bank had The inventory cost US million NO SOONER HAD this search been completed when another $2 million in MAC bonds was found to have disappeared from the vaults MAC was organized to rescue New York City from bankruptcy It thought its bonds would be safe in the hands of the bank catering to millionaires US Trust is at a loss to explain the disappearance of the bonds $800000 of which was recovered in the hands of a Los Angeles municipal bond dealer But US Trust has tightened its security More TV cameras are being installed in the main vault which is buried two stories underground and protected by a 30-inch wall of concrete and steel In addition all the employees of the vault will now be required to wear coatless uniforms and change their clothing when they enter or leave As they change they will be underobservation not very encouraging news for millionaires who are being advised by US Trust that the goal is eliminate those worries that plague you at 5 a How much am I really worth? Where are my financial strengths and weaknesses Have I madegood decisions Add to that: where is my money? 1980 LA Times Syndicate On Banned Commercials PORTLAND Ore (AP) Pay Less Drug Stores Northwest reports it has reached a merger agreement with Pay Less Drug Stores of California The two chains which sell large-volume merchandise announced the merger agreement" after the Oregon-based firm raised its cash offer from $2250 to $24 per share last week The Orgeon Pay Less had been vying with Jewel Cos of Chicago to acquire the 60-store California chain which is based in Oakland Koiser Steel By Marguaret Peterson Bee Staff Writer Kaiser Aluminum and Chemical Corp rebuffed in an attempt last year to air its corporate views in commercials on network television is trying again a Sacramento audience was told Monday Kaiser is persisting because it believes business and industry should have the right to broadcast corporate opinions on issues according to Ronald Rhody The Kaiser vice president addressed the Comstock Club in the Sacramento Inn Rhody said Kaiser last week submitted new public affairs commercials to the three major networks which rejected the first offerings for varying reasons including what was described as Business Editor 446-9561 mercials even though radio is governed by the same rules as television is and therefore would not be expected to accept what television rejects Kaiser last year responded to the rebuff by publishing full-page newspaper ads showing a scene from each commercial and the entire text The ads evoked an public response 96 percent of it favorable Rhody said The corporation also began discussing the matter with congressmen so far it has reached some 40 US senators and representatives of both parties he said Kaiser last week presented the three major networks with new commercials about minority unemployment the importance of voting productivity and national energy conservation very controversial Rhcfly deadpanned trouble in this country" he said "We (Kaiser) feel our free speech is being Rhody repeatedly referred to the "awesome power of television" saying no other medium can command such a mass audience Too he said "TV is a monopoly and to a considerable extent a public utility those are the airwaves" He said the retworks' rejection apparently was based on legislation passed in 1934 did not anticipate and does not deal with the awesome power of TV the existing rules are too strict those rules ought to be changed If there are other reasons for rejection we should know what they he said Could there be other reasons? Rhody pointed out some 75 radio stations nationwide bifladcast the com.