EARNINGS: Strike Hangovers

How much did the 113-day strike cost General Motors Corp.? Last week G.M.’s Alfred P. Sloan Jr. intoned the sad answer: an operating loss of $88.9 million. G.M. figured that $53 million would be offset by tax recoveries from the Federal Government, under the carry-back provision of the excess-profits tax. (But the amount may be reduced if G.M. shows a substantial profit for the full year.) Thus, G.M.’s net loss for the first quarter, the reddest report seen since depression days, was $36 million v. a 1945 first-quarter profit of $50 million. Nevertheless Mr. Sloan expects to end 1946 in the black, told stockholders that “operations in the second quarter should be more satisfactory.”

Chrysler Corp. reported a substantial first-quarter loss last week of $8,400,000, offset an even higher percentage of it ($7,200,000) with expected tax recoveries. But Chrysler President K. T. Keller was not very cheerful about the future. Said he: “The prospect for any substantial increase in the rate of production [now 50% of capacity] . . . is not good.”