Document details

Look for Disney Comeback
Report to Wallstreet

Walt Disney Productions showed a loss (the first in the companys history) of $1,342,037 (83c per share) for the fiscal year ended Oct, 1, 1960. The hard-dollar reason given for the red ink performance was a write-down of its film inventories against the income account by some $5 million. But for this hedge against possible losses on current and upcoming product, Disney would have shown a one million-plus profit. A net income tax credit of $1,300,000 was made for 1960. This compared with a provision for taxes of $3,900,000 in the prior year, when black ink to the extent of $3,400,228 ($2,15 per share) was spread on the books.

Gross income for the 1960 year was $46,409,572, approximately $12 million under '59. Of this total decline, film revenue was responsible for $7,268,872, television for $4,641,798, other income (publications, records, etc.) for $1,117,071. Disneyland Park revenues was up slightly over $1 million.

During 1959, Disney shares ros2 to a high of $60, but by the middle of the year investors started to discount the companys rising earnings curve, and a decline set in. Nonetheless, the stock closed out "59 around $47. By April, 1960, it was down to 35, and in O2tober it hit a low of 20.

What was behind the sharp deterioration in Disney shares, and what does the year ahead hold?




Source type Magazine
Language en
Document type Feature
Media type text
Page count 1
Pages p. 8


Id 4768
Availability Free
Inserted 2020-03-14