This Week In Business - C&EN Global Enterprise (ACS Publications)

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This Week In Business look for stock prices, is the trend in profits. A study by the Office of Business Economics casts a sobering light on corporate profits. Since 1948, the Commerce Department agency finds, profits consistently have failed to keep pace with corporate output

(corporate gross product). Over this period profits, before taxes, are up by about 6 0 % and after-tax profits by 2 5 % , while output rose by 1 1 0 % . Labor costs climbed in step with output, but both depreciation allowances and taxes on sales and property have

DECEMBER

10,

1962

expanded much faster. As a result, pretax profits have declined relative to output—from 21.3% in 1948 to 15.7% this year. Most of the decline occurred between 1951 and 1957, but a more moderate drop has continued since then.

DEC. 10, 1962 C&EN

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