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HUDSON AIMS HIGH FOR 1926 Publication: Automotive Daily News Dateline: New York, New York 
Date: 27 August 1925 Topic: Hudson |
New York, Aug. 26.—Sales of the Hudson Motor Car Company in the first nine months of this year will run close to 200,000 cars, against 128,000 for the calendar year 1924, according to estimates in the financial district. The improvement in earnings has been equally satisfactory, considering the lower prices. In consequence the financial position of Hudson is regarded as unusually strong.
It is estimated that Hudson will show net earnings of about $6,000,000 in the three months ending August 31. This is after all deductions and after allowing for price reductions. The net will be equivalent to approximately $4.65 a share on the 1,320,050 shares. Such a figure would compare with $4.52 during the second fiscal quarter and $2.90 during the first, bringing net earnings for the nine months up to about $12.07 a share.
The company sold 27,000 cars in June, 30,000 in July, and August is expected to approach the 30,000 mark, which would make a round total of 87,000 for the third fiscal quarter, which, at the assumed unit profit rate of $80 which was obtained in the past, would indicate net earnings of $7,000,000 or about $5.30 a share. But it is estimated that allowances for lower prices will bring these earnings to $4.65 a share.
Action of the directors last week in declaring only the regular divi- disappointed many holders of the dent disappointed many holders of the stock, who had expected that in view of etaoinshrdluetaoinupnup profits, and the fact that at current earnings rate the dividend for the year is being earned in sixty days, the company would capitalize part of its profits in the form of a stock dividend.
Dow, Jones & Co. report that there is slight disposition on the part of holders to let go of their stock. Some banking interests believe Hudson has found a groove with unmeasured potentialities and is attaining such predominance in its specialized coach models that it will next year earn from $20 to $25 a share. The adopted “Ford method” of increasing its profits by reducing the price and expanding production has worked to a nicely this year, and there is a strong concurrence of opinion that in 1926 for a considerable portion of the year the company will be able to sell 2,000 cars a day as it is planning.