Show Ll 1 1 1 H 1 1 1 j 3 1 lit II IMn S inmost ol the major com- producing glass and metal con- have enjoyed above-average Except for the com- mon stocks of Cork Crown Seal and National containers issues supervised by Dabson's Reports kP Recent volume gains stemming from heightened food and beverage sales explain much of the groups profit As stock market the mere average showing of late may largely reflect uncertainty over the of the spreading mandatory deposit legislation and the intensifying market- share struggle between can and bottle A Wr The Jn the area of the container group has chalked up an impressive record of consistent ow- ing to soaring production costs and fierce competitive profit margins have been far less In 1977 for bottle makers saw n 35 result of a hike in abor costs and an approximate 25 surge in energy costs Despite increased leg and widespread improvement in pro- competition- restricted price hikes were inadequate to absorb these higher Weaker retail tableware sales also helped con- tract Jy In can makers experienced coif hike last year totaling about Protected by many long-term contracts with brewers and food metal container producers were better to pass along these added costs in the form of higher Coupled with about a 4 gain in total higher prices into r hand Production have risen 13 and 25 respectively in the past V nth 8 lt 's doubtful that these and labor absence pf market share The utilization and the reduced labor and requirements associated with not likely to Glass containers sales in on the other should benefit from recent Price the trend toward larger soft drink and the anticipated b growth in the usage of fr 38 a P 8 A n industry continue to respond favorably to in- creased worldwide container usage and wider Ad- mandatory deposit laws tain to be adopted than a dozen states will consider such legislation in may produce an initial sting but are not likely to have a permanent ef- Looking further the only ma- r problem is the threat of self- manufacture a development that would plague the entire group wi h y die Self-manufacture is now a problem w here a few large brewers food tave auk h k- f a YuJa h. Sf h It shoud be that does not at this' time pose any immediate threat to the in- The common stocks of leading most of which are protected by generous and yields plus low earnings con- sound holdings' |