Kelly-Springfield

The rubber and tire companies are not just now in a very jovial mood. Kelly-Springfield's statement for the year ending Dec. 31, 1923, is, to some extent at least, typical of the industry.

In 1923 gross profits fell from $12,531,379 to $9,559,804, while operating expenses rose from $7,305,176 to $8,797,397. In consequence, profit was reduced from $5,226,203 to $762,407; figuring in "other income," total profits for 1923 were $1,107,537 compared with $5,577,846 the year before. Thus, after interest, depreciation and profit sharing in 1922 are deducted, the net profit of $3,144,549 in 1922 became last year a net loss of $1,166,284. In both years, dividends were paid on the two classes of preferred stock, but none on the common. After these payments, a final deficit of $1,768,560 was incurred last year, compared with a final surplus of $2,526,250 the year before.

In the company's balance sheet the most notable changes made during 1922-1923 were an increase of over $1,000,000 in inventories, a slight decrease in cash, accounts receivable, property, good will, etc. Some preferred stock of each class has been retired; also $1,000,000 of gold notes. But notes payable increased from nothing to $3,435,000 and general surplus has declined from $8,231,956 to $5,638,045.