Two-thirds of the Business Was Done in Last Half of the Period
President Benjamin Guggenheim of the International Steam Pump Company in his annual report to the stockholders says that about two-thirds of the entire year's business was booked during the second half of the year. In view of this fact, he says, the results attained during the past year must be regarded as gratifying. Mr. Guggenheim made this statement regarding the year's earnings:
The total net earnings for the year amount to, approximately, $2,000,000, as compared with $1,447,652 for the preceding year and $1,618,506 for the year before that. In order to appreciate the full import of these figures it is necessary to remember that while the volume of business in 1909 was only 65 per cent. of that of 1908, the profits were equal to 90 per cent. of those for the year 1908, and that during the year just completed, whereas the volume of business was only 85 per cent. of 1908, the profits were equal to 124 per cent. of those for the year 1908. The profits for the year just closed were about $700,000 In excess of requirements for fixed charges and preferred dividends. Of this amount $117,900 will be used to retire $107,185 of the bonds of the Blake & Knowles Steam Pump Works, leaving thereafter only $194,970 of these bonds still outstanding.
Should the current year's business continue as at present, and as it has averaged during the past six months, this year's profits should produce a surplus of about 7 per cent. on the common stock outstanding.
Announcement is made of the acquisition by the International Steam Pump Company of the JeanesvilIe Iron Works Company and of a controlling interest in the Denver Rock Drill and Machinery Company. The additions made to the company's facilities will result, the report says, in an increase of at least 30 per cent. in the company's output and in a correspondingly large increase in the net earnings.
The foreign business of the company shows signs of continual improvement, not only in the amount of business but also in the introduction of improved and more economical methods.