Image 62 of Theo Brown Diaries, 1940

Brown, Theophilus

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Image 62 of Theo Brown Diaries, 1940

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Wednesday, January 31, 1940 CONTACT COMMITTEE meeting at 10:30 Regulr members plus McCormick, White, Murphy& Stone present. A power lift for H tractor was shown and operated and the Tractor Co wanted the sectionof the committee to this lift. It was favorable-- CHICAGO JOURNAL Commerce [Newspaper Article: Earnings of Deere & Company, farm machinery manufacturer, for the fiscal year ended Oct. 31, 1939, declined 19.46 per cent from the period preceding, but based on the present agricultural outlook, "busi- ness prospects for 1940 are favor- able." Charles Deere Wilman, presi- dent informed stockholders in the annual report issued yesterday. Net income amounted to $7,627,- 355, equal to $1.82 a common share, compared with $9,469,930 or $2.43 a share, for the 1938 fiscal year. Charges against net income for 1939 included $1,134,602 for reduc- tion of net current assets of the company's Canadian subsidiary at Oct 31, 1939, to the equivalent of United States dollars at that date. Sales declined 11.44 per cent, totalling $70,165,235 compared with $79,233,797. Mr. Wiman told stock- holders that the lower sales volume "is chiefly attributable to the de- clining tendency of farm commodity prices during the active agricultural implement selling season." Working Capital Increases Net working capital increased to $71,111,108 at Oct. 31, 1939, from $67,178,438 a year earlier, an increase of $3,932,669. Cash rose to $11,273,- 852 from $4,225,228 while inventories were reduced to $28,606,334 from $30,476,306. Cash collections showed an increase of 2 1/2 per cent. Re- ceivables were reduced to $64,595,187 from $70,840,013. All bank loans were paid at the close of 1939 fiscal year. Accounts payable increased $1,261,498, which the report explained was due to heavy purchases of raw materials near the close of the fiscal year. The number of stockholders in- creased to 11,041 at the close of the 1939 period from 9,836 a year earlier. A comparison of financial state- ments follows: [fiscal tables] Preferred stock issued is repre- sented by 1,550,000 shares, $20 per value and common by 3,007,908 shares of no par value. The com- pany owns 7,000 preferred shares and 3,546 common shares.]

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