Oldal 2 [2]
OCR
- page two It is obvious that such a diversification of production is very healthy indeed, As far as farm equipment is concerned, Allis Chalmers is the third largest producer after International Harvester Co and Deere & Co. This is certainly a cyclical industry, ay paren largely on the fortune of farmers. In the last years farm income has staedgly increased, coupled with higher than everage crops. This factor was the reason for the rapid mechanization of the U.S. agriculture.In the past ten years, the agricultural trectors have doubled,corn pickers trebled and combines have increased four times. For the future, on the other hand, one can sefely assume that under normel conditions and with the pledged support of the Government for farm prices - which runs to $ 2 Billions this year - the purchasing power of farmers will hardly fall off substantially.This will encourage a further mechanization of theler operations, For many years to come producers of road building equipment should habe little worries, In the United States substantial programs by both the federal and state authorities ere under way for road building and improvement. Roughly $ 60 Bilifens would be needed from now until the end of the decade to maintain and improve adequately the U.%. highwaysystem. Other parts of the world, especially underdeveloped countries are planing ambitious road constructions. This branch of Allis Chaimers should do well. Other heavy or light machineriee are subject to the general economic situation, except equipment «end supplies for power generation and transmission. Thers is today a considerable demand of electricity for various industries. Home consumption, with the increase of television,eilectric haeting and other appiiances should go up substantially. In tha production therefore, Allis Chalmers has another ready market. The new line, of course, and which sbaiád provide considerable expansion, is the electronic field. It should be mentioned here the far reaching studies made by Allis Ghalimers towards the development of atomic energy for propulsion and power productione No wonder that in the last five years sales of the Company have increased from $ 94 Millions to $ 457 Millions. 1952 will certainly top this last figure. Backlog of unfilled orders are amounting to over a year of full production. From the aboce mentioned record there is little doubt that Allis Chaimers management can be soensidered as outstending. Its main achia ment was to transform the company from an glű fegsh a Mechinery production into a vast variety of promt she devétébíténts 60.
