Business: Against the Current

Performing as if there were no recession, three of the biggest U.S. companies posted record earnings last week:

¶ American Telephone & Telegraph, the world’s biggest company, scored the highest profits ever made by any company in a twelve-month period. Net for the year ended Nov. 30 was $1,244,000,000, or $5.52 per share, v. $5.16 per share the previous year (former record: General Motors’ $1,189,000,000 in 1955). Fourth-quarter earnings were $1.40 per share v. $1.33. The company’s operating revenues were also a record, $7.9 billion, up from $7.4 billion. Reasons: an increase of 2,800,000 in Bell telephones in use to a 60.7 million total, a 7% growth in long-distance calling, and a 20% jump in overseas calls.

¶ International Business Machines recorded the highest annual and quarterly profits in its history. Annual earnings totaled $168,000,000, or $9.18 per share, a sizable jump from $145,633,000, or $7.97 per share in 1959. Fourth-quarter earnings rose 11% to $2.67 per share from $2.41 per share.

¶ The Great Atlantic & Pacific Tea Co., the nation’s largest grocery chain, reported that nine-month profits soared to a record $1.88 per share from $1.59, and the company rewarded stockholders with an extra 20¢ per share and a 3% stock dividend on top of the regular 25¢ quarterly dividend.

The three reports are striking examples of what is happening in growth industries that have bypassed the downturn.