All Burners Going

After two of the toughest years since the icebox became a refrigerator, the appliance industry is making a strong comeback. The turnabout started in June, and in the last several weeks all burners have been on. Last week the National Electrical Manufacturers Association reported that August sales of refrigerators, freezers, water heaters and food disposers topped August a year ago. In Chicago, August sales of air conditioners were up 45%, freezers 54%, electric ranges 42%.

For hard-pressed appliance men, the turnabout came none too soon. Said Westinghouse Vice President Richard J. Sargent: "We are confident that the recession for this industry is over." Most of the industry agreed. Items: P:Borg-Warner's Norge Division reported that September sales were up 29% for the best month in nearly two years. The company recalled more than 600 workers in three plants, put them on two shifts. Says Norge President Judson S. Sayre: "The way orders are landsliding, we could be sold out for the year by October 15." P:General Electric's Appliance Park at Louisville, where its major appliances are made, has exceeded last year's sales every month for the last four months, expects its total 1958 sales to top 1957's. P:Westinghouse in June, July and August increased its sales of refrigerators, freezers, electric ranges and food disposers by 5% over last year. Westinghouse invested $16 million this year to tool a new line of major appliances.

P:Murray Corp.'s Easy Division of Syracuse increased its sales almost 100% over June in July, 22% in August and 20% in September, expects to triple its first-half sales volume in the last half of 1958. P: Whirlpool has seen a general upswing in orders in the last six to eight weeks, had the best sales in 18 months in September, is adding overtime.

Few firms welcomed the recovery with greater relief than Philco, which has been in deep trouble. After being in the red for the first five months this year, Philco made a slight profit in June, has been in the black since. The pickup in Philco refrigerator sales was so marked that Philco brought out its 1959 models in August, six weeks earlier than usual. Laundry products have picked up so fast that Philco put in an extra assembly line for the Duomatic washer-dryer. And though TV sets are still the industry's weakest spot (down 24% from last year), Philco's TV sales are running ahead of last year.

The man responsible for Philco's comeback is President James M. Skinner Jr., 43, who took over in 1956 when the company was racked by management troubles. He streamlined operations, brought in new executive brains, paid off the $25.9 million debt, and strengthened Philco's position in the laundry field by buying out Bendix. Skinner is convinced that Philco will come close to last year's sales despite its first five bad months. Says he: "We are in a pleasant position. We believe this trend will continue into 1959."

This file is automatically generated by a robot program, so reader's discretion is required.