Increases for All

One of Wall Street's favorite guessing games in recent weeks: "When will oils begin to catch up with the rest of the market?" The answer came last week, as surging oil-company earnings reports gave oil shares their sharpest rise since the easing of the Suez crisis in December 1956. Standard Oil Co. (NJ.) rose 3$ points to 54 1/8 as it reported earnings of $1.47 per share, v. $1.22 in the first half last year. Gulf Oil Corp. stock added 6| points during the week to close at 116 1/8, after reporting first-half earnings of $4.38 per share, v. $3.57 last year.

The earnings rise came from a strong demand for oil products that exceeded earlier industry forecasts. With record six-month sales of $621 million, Sinclair Oil Corp. boosted profits to $1.76 per share, v. $1.45 in the first half last year. Second-half prospects, noted Sinclair Chairman P. C. Spencer, are even brighter. Said he: "In July gasoline prices began to strengthen appreciably, and if this trend can be maintained, it is reasonable to expect that the remainder of 1959 should continue to show improvement."

From nearly all sectors of industry, earnings were rising in what appeared to be the biggest quarterly gain over the comparable quarter a year before since the end of World War II. General Motors' Chairman Frederic G. Donner reported that corporate sales of $3.3 billion in the second quarter were the second best in history for that period (best: igss's $3.4 billion). G.M.'s first-half earnings climbed to $2.08 per share, v. $1.17 in the same period last year. Westinghouse Electric Corp. showed how well it had stepped up efficiency under President Mark W. Cresap Jr., raised second-quarter earnings to a record $1.12 per share, through operating economies that overcame lower sales. For the first half, Westinghouse earned $1.92 per share, v. $1.70 last year. Cresap and Westinghouse Chairman Gwilym A. Price forecast increases in sales and new orders during the second half.

Other half-year earnings (per share) :

OILS 1958 1959 Socony Mobil Oil $1.30 $1.59 Sun Oil 1.01 1.87 Cities Service 1.68 1.76 Ohio Oil 1.15 1.41 Standard Oil of Calif. 1.85 1.87

DRUGS & CHEMICALS Merck 1.35 1.48 Rexall Drug & Chemical .60 .90 Johnson & Johnson 1.13 1.30

METALS American Can 1.07 1.28 Revere Copper & Brass .79 1.99 National Lead 1.70 2.21 Alcoa .88 1.32 Kaiser Aluminum & Chemical .66 .72

MISCELLANEOUS Brunswick-Balke-Collender 1.63 2.40 Revlon 1.73 1.90 U.S. Rubber 1.06 2.85 Weyerhaeuser Timber .74 1.01 Raytheon 1.29 1.48 Eastman Kodak .90 1.36

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