1900 1905 1910 1915 1920 1925 1930 1935 - 1940 1945 1950 US U.S. STEEL CORPORATION AND SUBSIDIARIES United States Steel's income as a percent of sales was 7.2 in 1949, as compared with 5.9, 6, and 5.2, respectively, in the other postwar years of 1946, 1947, and 1948. Although this return on sales for 1949 was greater than in other postwar years, it was far below the 11 percent average return received in peacetime years prior to 1941 when the rate of operations was at the approximate level prevailing in 1949. Although dollar dividends in 1949 were the largest of any year since 1930, they were at the relatively low rate of 3.5 cents for each dollar of sales. 96347-50-ser. 14 pt 4b---37 EXHIBIT S-232 CHART 3.-Income and dividends, in 1935–39 dollars, United States Steel Corp. and subsidiaries 1 Federal Reserve Bank of New York Cost of Living Index (1913-100), linked into BLS Consumers' Price Index at 1913. (Historical Statistics of the United States, 1789-1945, Bureau of Census, p. 235.) Italics denote red figures. United States Steel's income or loss-as well as dividends and income reinvested-fluctuate violently as might be expected of a company in a heavy durable goods type of industry. This is true whether the measurements be in current dollars or in terms of dollars of equal value. In the case of United States, in spite of greatly increased production, which is the real measure of economic contribution, its relative income has not increased proportionately. A comparison of the results of 1940 and 1949 in terms of dollars of equal purchasing power reveals that in 1949, when shipments of steel products were 121 percent of 1940, the income was 4 million dollars less. In the same periods the 1949 dividends were 11.8 million dollars less and the return to owners did not keep pace with the cost of living. The amount reinvested in 1949 was only 8 million dollars more than in 1940 and was mostly required for replacement of property during the year. EXHIBIT S-233 CHART 4.-Income and dividends per share of common stock, United States Steel Corp. and subsidiaries These data are based on the number of common shares outstanding after 3 for 1 stock split on May 12, 1949 (26,109,756 shares). Income per share for common stock is after deducting the regular preferred dividend whether or not it was earned. Italics denote red figures. |