Lethbridge Herald, The (Newspaper) - November 28, 1974, Lethbridge, Alberta
12 THE LETHBRIDGE HERALD Thursday, November 28, 1974 Industrial firms profit declines OTTAWA Industrial corporations suffered a drop in third quarter profits to 26 billion from billion during the second quarter this year despite moderately higher sales, Statistics Canada reports The latest report follows another Statistics Canada statement that the level of in- dustrial production dropped during a September to a 1974 low because of slumping con- sumer demand New durable goods orders and retail sales during the month both regarded as im- portant indicators of the nation's economic health also dropped markedly on the eve of Monday's federal budget proposals by Finance Minister John Turner. The report released Friday covers 25 industrial groupings from mining and manufactur- ing to primary metals in- dustries and wholesale and retail trade companies, whose financial reports are surveyed quarterly for current informa- tion about their operations The survey covers about 000 corporations, each with assets over million, ac- counting for more than 70 per cent of total assets and profits in the industrial sector. YAMAHA ORGANS New and Used COLLEGE MALL Phone 328-3694 It shows sales by industrial corporations gained to billion during the third quarter from billion in the second quarter this year. But operating expenses also increased, to 73 billion from 26 billion The sales and profit figures are broken down into three, broad categories manufac- turing industries, mining com- panies and other industries. Measured on a year to year basis, this breakdown shows all industries managed to increase their third quarter profits by million on billion more sales from the corresponding 1973 quarter. This is measured in current dollars, and does not discount inflation during the period. Mining industries had a gain on year to year profits of 181 million on million more sales. Manufacturing in- dustries recorded million additional profit on billion additional sales. Sign pact MONTREAL (CP) Montreal Engineering Co. Ltd. and Kaiser Engineers Inc of Oakland, Calif., an- nounced here they have agreed to combine services for the design, engineering and construction of fossil fueled power plants in the U S and eventually overseas. The two companies will provide all engineering and construction services for fossil fired thermal plants. Japanese expand aircraft industry Onward, ever onward A New York hot dog vendor refuses to let the weather immobilize him Wednesday as the city experienced a cold, windy day. Food price increases in U.S. to continue Dial-a-friend Zenith 6-6O14. Just call us toll-free from anywhere in Alberta Or ask your travel agent to reserve a room That way when you stay in Calgary, you'll stay with friends Downtown Calgary. 9th Ave. 1st St., next to the Calgary Tower. WASHINGTON (AP) Retail food prices in the United States will continue climbing at least through mid 1975, partly because of drought reduced grain harvests this year and cuts by livestock producers, the agriculture department reports Consumers can expect food prices to go up "on a fairly broad front" through mid year, the department's Outlook and Situation Board said But officials said they cannot predict whether the 1975 increases will match the big gains of the last two years "Although consumer de- mand may be moderated by a slowdown in economic ac- tivity, recent and prospective increases in farm prices for both crop and livestock related foods are likely to sur- face at the depart- ment said Officials said the outlook "largely reflects the adverse impact" of weather this year, including last summer's drought and early frosts this fall which reduced grain and soybean prospects Larry Summers of the department's Economic Research Service said food prices might rise two to five per cent in the first quarter of 1975 from their average dur- ing the last three months of this year. Last January March prices went up an average of 4.5 per cent from the final quarter of 1973. Retail food prices are ex- pected to be up 14 to 15 per cent for all of 1974 on a 12 month average almost iden- tical to the 1973 increase TOKYO (Reuter) The Japanese aircraft industry, which developed powerful fighters during the Second World War, is expanding again to close the gap with Europe and the United States in both commercial and mili- tary production. The Japanese Aircraft Man- ufacturers Association says the industry "is an area which we must develop further if we are to become a really .knowledge-orientated in- dustrial nation." Poor in natural resources, Japan should manufacture more and more sophisticated machinery with a high technological value, the association says. The country now wants to catch up with the aircraft technology of the U.S. and Western Europe. Japan's wartime aircraft in- dustry was disbanded in the immediate post-war years. The Cold War and the out- break of the Korean War in 1950 led the U.S. to change its policies towards Japan, hur- riedly reviving its industrial base. Despite this the aircraft industry has remained the Cinderella of the Japanese in- dustrial world BUILT UNDER LICENCE Most of the aircraft manu- factured here have been fight- ers and trainers built under U.S. licence for the self-de- fence air force. The manufac- turers' association says that aircraft, including military planes, built last year totalled a record million, an increase of 30.3 per cent over 1972. Early in the 1960s, the YS- 11, a turboprop medium-range civil transport, was developed with all-Japanese techniques, except for the use of British Rolls-Royce Dart engines, and sold in Japanese and overseas markets. But the operation, which produced 180 aircraft during a 10-year period ended in 1973, left a large deficit of mil- lion despite heavy govern- ment subsidies. Now the industry has de- cided to go ahead with a U.S.- Japanese-Itahan project to develop a new medium-range jetliner. Boeing is to share 51 per cent of the total cost, with 29 per cent borne by the Japa- nese government and industry and 20 per cent by Aeroitalia. The Civil Transport Devel- opment Association, which represents five Japanese air- craft makers, says it is set- ting conditions to ensure the Japanese firms do not be- come mere subcontractors in the tripartite project. It says the object in taking part in the project is to learn techniques, install facilities and tram manpower for fu- ture development. Japanese engineers say they are confident they can design new military and civil tran- sport aircraft on their own if enough government aid is provided They note that the C-l me- dium-range transport, devel- oped by Japanese makers for the self-defence air force, has shown excellent test perform- ances. Engineers also say Japan is making progress in the devel- opment of its own aircraft en- gines. A turbo-fan jet engine de- veloped under a government- sponsored project was suc- cessfully tested for the first time last year. Its low-pollu- tion engine is designed for en- durance during frequent takeoffs and landings, fuel economy, low noise level and low engine temperature. LITE-BRITE Meet a proud Canadian. Your first taste will tell you why we're proud of Royal smooth and mellow flavour. In fact, in actual taste tests, Canadian rye drinkers preferred its character and quality to one of the best-selling brands. Make the Royal Reserve discovery yourself. Royal Reserve. By Corby. P.S. Use our new back label to show that you're a proud Canadian too. detailed taste test results write: Corby Consumer Services, 1201 Sherbrooke Street West, Montreal HO, Quebec. Corbv. Good taste in Canada since 1859. By Hasbro. Ages 5 to adult. 23-3191 Reg. SPECIAL............. 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