ROUTING SLIP

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP66B00728R000400030026-5
• Release Decision: RIPPUB
• Original Classification: K
• Document Page Count: 4
• Document Creation Date: November 16, 2016
• Document Release Date: March 17, 2000
• Sequence Number: 26
• Publication Date: July 9, 1963
• Content Type: FORM

Appro
Appr0v7:05ftlease 2000/05/04. CIA RDP66B00728R000400030846-5
ROUT I A
TO
NAIItE,AMD ADDRESS
INITIALS
DATE
2.
3.
4.
5.
6.
7.
RETURN TO SENDER
ACTION
CONCURRENCE
INFORMATION
COMMENT
FILE
SIGNATURE.
REMARKS. _ -?//.SQ~t~y ~r~ . /CeL/ t .
y
1410
NAME AND ADDRESS
PHONE NO. `
DATE
 Apprfrpd Fora ele?se Q 0 0&04: CIA-RDP66 00728R00040003002j50
rairc~i~~ %amera & Instrument
Stock- Approx. Price Dividend Yield
COMMON ........................... 34l/2 2$0.50 21.5%
RECOMMENDATION: This company is broadening its activities in the electronics, graphic,
photographic, and business machines fields at a rapid pace through extensive product devel-
opment and an agressive acquisition program. Heavy non-recurring expenses associated with
the expansion of the business will retard earnings progress in 1963, despite a favorable sales
outlook. However, at current reduced prices, retention of the stock is advisable for its longer-
FAI
RCHILD CAMERA & INST
RUME
NT
125
195
THRU
1956
1 30
425 I
e
NDUSTRIALS
III~
I
I~
75
I I
u
III
I
II
III
I~
l
I
I'
~
~~
50
JI ~
~I
ll
Il
llll
25
I'
TRAD
VO
6
a
4
2
o
vu
1957 1958 1959 t96o
1961 1 62 1 6
e Charted on special comparable scales; values not shown.
Quarter:
SALES (Million $)
1962 1961 41960
1959
1958
March.....
23.88 20.66 13.84
9.74
7.21
June........
25.60 23.92 16.45
9.01
8.18
Sept........
24.14 22.09 19.18
11.65
7.32
Dec........
27.92 25.58 18.47
13.04
8.96
Aggregate revenues (including machine
rentals) rose 10% I from those of a year earlier
to a new peak. The gain in volume reflected
higher sales of semiconductor devices and
virtually all commercial lines, as well as the
contribution of recent acquisitions. Margins
widened slightly, despite heavier expendi-
tures for company-sponsored research and
development. Hence, operating income was up
11%. The gain in pretax profits was pared to
8.5% following a larger combined deduction
for non-operating charges. However, since
the net provision for taxes was lower at 32.7%,
against 36% a year before (an available tax
loss carry-forward was applied to 1962 and
1961 results equal to $0.65 a share and $0.57
a share, respectively), the advance in final
net was extended to 14%.
35COMMON SHARE EARNINGS ($)
Quarter:
1962
1961
41960
1959
1958
March.....
0.54
0.36
0.39
0.19
d0.11
June........
0.59
0.57
0.43
0. 21
0.06
Sept .......
0.55
0.58
0.50
0.30
0.10
Dec........
0.69
0.59
0.35
0.35
0.24
PROSPECTS
Near Term- The upward trend in sales Is
expected to continue in 1963, and total rev-
enues for the full year should comfortably
surpass the record $101.5 million of 1962.
The projected rise in volume will stem from
a further expansion of the semiconductor
business, the introduction of new commercial
products, larger shipments under defense
contracts, and the series of acquisitions
effected in 1962.
Nevertheless, margins will be adversely
affected during the forepart of 1963 by
burdensome start-up costs for improvement
of certain lines and a temporary slump lathe
company's aerospace programs. While net
profits from operations may be about the
same in 1963 as those for 1962, tax benefits
derived from the remainder of the available
lose carry-forward will be considerably less.
Thus, indications are that share earnings for
1963 will be at least moderately below the
$2.36 a share (including the special credit of
$0.65 a share), which was reported for the
preceding year. A $0.50 annual dividend was
disbursed in December, 1962.
Long Term- Growth prospects still appear
promising for the company's highly special-
ized semiconductor lines, graphic equipment,
and other new commercial lines in subsequent
years.
RECENT DEVELOPMENTS
In March, Fairchild and union representa-
tives of the International Association of
Machinists signed a three-year wage con-
tract. The new labor pact covers production
and maintenance employees at the Long Island
plants.
DIVIDEND DATA
Under a new credit and term loan agree-
ment being negotiated in March, 1963, the
payment of cash dividends would be limited
to 50% of consolidated net earnings after
January 1, 1963. The most recent annual
disbursement was:
Amt. of Date Ex-divd. Stock of Payment
Divd. $ Decl. Date Record Date
0.50... Nov. 20 Nov. 27 Nov. 30 Dec. 18'62
IListed N.Y.S.E.; also traded Midwest, Phila: Balt: Wash. and Pacific Coast S.Et. 'Paid on Dec. 18, 1962. 'Adj. for 2-for-1
splits in Nov. 1961 & Dec. 1959. 'Incl. Allen B. DuMont Laboratories from July 5. 'Incl. $0.57 a sh. spec. Cr. in 1961, $0.65 in
1962.
STANDARD LISTED STOCK REPORTS STANDARD & POOR'S CORP.
? 1963 Standard & Posr's Corp. All rights reserved. Reproduction in whsle or in part without written pwralWan is strictly prohibited.
Published of Ephrata, Pa. Editorial & Executive Offices, 345 Hudson St., New York 14, N. Y.
Vol. 3 o.7 Thursday April 11 1963 Sec. 10
Approved For Release 2000/05/04: Cl'A-RDFS66B00728R000400030026-5
 Approved F Release 2000/05/04: CIA-RDP66B00728R000400030026-5
85( FAIRCHILD' CAMERA & INSTI AENT CORP.
INCOME STATISTICS (Million $) AND PER SHARE ($) DATA
Year
% Oper.
Maint.
Deprec.
Net
---'Common Share (S) Data
Ended
Dec.31
Net
Sales
Inc. of
Sales
Oper.
Inc.
&
Repairs
&
Amort.
Bef.
Taxes
'Net
Inc.
'Earns.
Divs.
Paid
Price
Range
1963--
----
---
----
---
---
---
---
---
--
5034 -343A
1962--
101.54
13.0
13.22
---
3.76
8.90
5.99
2.36
0.50
70'11-31
1961--
92.25
12.9
11.90
0.85
3.16
8.20
.25
2.10
0.50
7 -62!4
1960-
67.94
13.8
9.35
0.67
2.19
6.99
3.76
1.54
0.25
100'/4-55'6
1959--
43.44
13.3
5.79
0.38
1.48
4.36
2.07
1.00
0.25
78'11-121?'4
1958--
31.67
10.6
3.36
0.17
1.31
1.87
0.54
0.29
0.12111
161/4- 4r/
1957--
36.99
8.7
3.22
0.21
1.22
1.86
0.80
0,42
0.12'11
6'11- 4
1956--
42.97
4.1
1.74
0.66
1.13
0.48
'0.70
0.37
0.19
6'11- 4'%
1955--
33.07
5.7
1.89
1.26
0.99
0.85
0.79
0.42
0.25
7'- 7A
1954--
42.44
10.4
4.43
1.05
0.91
3.26
1.61
0.88
0.12116
9714- 5
1953--
25.69
11.4
2.93
1.01
0.73
1.69
0.88
0.48
0.053/4
6'11- 3'11
PERTINENT BALANCE SHEET STATISTICS (Million $)
Net Cur. Ratio Long
Gross 'Capital Cash Inven. Receiv- ---Current-- Workg. Assets to Term Book Vol.
Dec. 31 Prop. Expend. Items tories able' Assets 'Liobs. Cap. Liabs. Debt Com. Sh.
1962--- 34.80 -- 3.04 20.53 25.61 49.84 29.14 20.70 1.7-1 5.28 15.02
1961--- 29.00 5.17 2.67 13.97 17.71 34.78 17.02 17.75 2.0-1 3.76 13.58
1960--- 25.02 4.41 3.84 15.97 13.92 34.16 19.34 14.82 1.8-1 3.44 12.19
1959--- 15.15 3.25 1.45 9.60 8.30 19.59 11.85 7.74 1.7-1 2.90 7.49
1958--- 12.71 1.52 1.11 6.34 5.91 13.58 6.84 6.74 2.0-1 2.80 7.12
1957--- 11.89 1.37 1.44 4.11 6.31 12.09 5.69 6.41 2.1-1 1.78 6.98
1956--- 13.84 1.54 1.56 5.79 7.73 15.31 9.59 5.71 1.6-1 2.07 6.60
1955--- 13.39 1.09 2.37 3.54 4.52 10.63 4.70 5.93 2.3-1 2.71 6.17
1954-- 12.65 1.17 2.95 3.38 2.76 9.24 5.23 4.01 1.8-1 1.21 6.00
1953--- 11.94 2.16 1.71 7.35 3.59 12.78 9.68 3.11 1.3-1 1.97 5.10
'Bef. special credit of $0.10 a sh. in 1956; aft. special charges of $0.16 a sh. in 1958 & $0.04 in 1957; incl. spec. credit of $0.14
in 1960, $0.57 in 1961 & $0.65 in 1962. 'As reported to SEC. 'Aft. deduct. U.S. Treas. tax notes. 'Adj. for 2-for-1 splits
in 1961 & 1959, & 10% stk. divd. in 1953. 'Aft. tax credit.
Fundamental Position
The Semiconductor division of Fairchild is
a leading factor in the electronics component
industry, and this unit is the largest con-
tributor to the company's current sales. It
develops and manufactures high-performance
silicon transistors and diodes for military
and commercial use. Operations also cover
virtually all advanced areas of the field,
including microcircuitry.
The Space & Defense Systems division is
primarily engaged in development and manu-
facture of electronic systems and equipment
for aerospace, ground, and undersea appli-
cations. Virtually all sales are derived from
Government contracts.
The Industrial Products division makes
high-speed camera equipment, automatic film
processors, identification cameras, fac-
simile equipment, an 8mm. sound movie
camera and projector for amateur and edu-
cational use, and flight data recorders.
Other divisions and subsidiaries include
the Graphic Equipment division, manufact-
urer of electronic engraving equipment for
the newspaper and printing industry equip-
ment for the automation of typesetting ma-
chinery, electronic color scanning devices
for the graphic arts, and specialized equip-
ment for the transmission of news photo-
graphs by wire or radio (these machines are
leased and provide a steady source of rental
income); Fairchild Controls Corp., maker
of electronic devices for aerospace and in-
dustrial applications, such as precision po-
tentiometers and miniature gyros; the in-
dustrial Electronic division, manufacturer
of scientific instruments, mobile radio sys-
tems, closed-circuit television cameras, and
electronic automotive test equipment; the
Electronic Tube division producer of
cathode-ray, multiplier-photo, and direct-
storage tubes; Aerial Surveys division, works
on photographic and topographic mapping
projects, and marine sonoprobe surveys; the
Precision Metal Products division, maker of
precision components for the aerospace in-
dustry; the Cable division, fabricator of
specialized cable and harness for aircraft
and missile firms; the Davidson-Business
Machines division, maker of offset presses
and office and postage meter machines.
In 1961 (latest year available), Space &
Defense Systems division accounted for
32% of sales, Semiconductor division 31%,
Graphic division 16%, and other units 21%.
Dividends have averaged 24% of earnings
in the past decade.
Employees: 7,369. Shareholders: 11,606.
Finances
Fairchild has made provision in its ac-
counts for asserted deficiencies (still un-
determined in amount) in the income tax re-
turns of Allen B. DuMont Laboratories, Inc.
(acquired in 1960) for the years 1952 through
1958. The remainder of the tax loss carry-
forward from the DuMont merger was about
$858,000 (net) at the 1962 year end.
The company has announced plans to spend
$10 million in capital expenditures in 1963.
A loan agreement was being arranged in
March, 1963; borrowings would be increased
$10 million, repayable in semi-annual in-
stalments from September, 1963.
CAPITALIZATION
LONG TERM DEBT: $5 275 353.
COMMON STOCK: 2,53d,08l shares ($1 par).
S. M. Fairchild controlled 19.9% in January,
1963.
Incorporated in Del. in 1927.Offce-Robbins Lane, Syosset, L.1., N.Y. Pros-R. Hodgson. Sery-Treas-G. J. Wade. Dies-J.
Carter (Chrmn), W. F. Burke, Jr., C. H. Colvin, S. M. Fairchild, W. C. Franklin, R. Hodgson, W. B. Scarborough, J. B. Wharton, Jr.
Transfer Agent-Bank of N.Y., NYC. Registrar-First National City Bank, NYC.
Information has been obtained from sources believed to be reliable, but its accuracy and corn-
plebness, and that of the opinions based thereon, are not guaranteed. Printed in U. S. A.
Approved For Release 2000/05/04: CIA-RDP66B00728R000400030026-5
 Approved For Release 2000/05/04: CIA-RDP66B00728R000400030026-5
yyy ff
5 JUL 63
2$X1A
TO: M
FROM: ~ -5 5 2-?/
25X1A
25X11A
FAIRCHIM' S PR0P08AL OF ~ FOR FOUR N81i1 ARGON CA MA Bi3BBYST
IS QMED ON A FIK&D PRICE BASIS. CAN YOU PWVMX ME WITH LA TM
~TION
ON CURRENT FINANCIAL; STATUS OF FAI ILD SPACE AND DOSE SYSTBN (FWS)
WITH YOUR REC I TI0N AS TO ITS CO31DITI0N. FYI THE FIRST BE i TINA IS
SCHEDULED AT FAIRCHILD ON 11 JUL. CONTRACT AWARD WILL NOT BE MM TO
FAIRCHILD UNTIL SOME AGREED UPON DATE AFTER ISIS MCNTING WSW FY" FUNDS
NAVE BEEN MADE AVAILABLE TO ME.
SECRET
Approved For Release IA-~~~~ ~00400030026-5