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?