Document 08RyZ9gE9aQngv3JOLZNLrVJ

FILE NAME Keene KNE DATE 1964 DOC KNE015 DOCUMENT DESCRIPTION Excerpt from Annual Report - 1964 Review of Operations Bi 711031 Operations for 1964 showed a 67 increase in sales over 1968. Sales amounted to 22,011.321 in 1964 compared to 13.207.983 in 1963. Despite this record growth of sales a disappointing loss resulted amounting to 981.548 compared to net income of 217.916 for 1963. This loss can be attributed to three significant events which occurred during the year In February 1964 the Company acquired the insulation contract division of Mundet Cork Corporation The op- erations of this division accounted for most of the Com- pany's increased activity However the acquisition involved start and other related nonrecurring expenses ch contributed materially to the loss for the year These penses are now behind us and management looks for- ward to significant progress by this division in 1965 and future years In our annual report for 1963 we outlined the arrange- ments made with MacAndrews & Forbes Company of Camden New Jersey for the menufacture and finishing of mineral board and tile acoustical products Unfortu nately these arrangements proved to be completely unsatisfactory and were terminated for the reasons outlined in the notes to financial statements The Company is presently seeking to recover the losses sustained by it by arbitration under the rules of the American Arbitration Association The joint venture which the Company entered into with the Pall Corporation in 1962 to make fiber glass pipe covering was assigned to the Certain Fiber Glass Corporation in July 1964. The original experimental machine,, ywas abandoned The investment in this equipment and other related costs resulted in extraordinary expenses of 629.326 The development of improved machinery proceeded under the joint venture agreement at a cost of 333.000 On February 10 1965. after the new equipment was completed it was mutually agreed to terminate the joint venture The machines are being installed at our Trenton plant and fiber glass pipe covering will be pro- duced at that location We have every expectation that the operation of this equipment will contribute favorably to future profits During the year the International Division concluded licensing agreements with Swedish and Japanese firms This Division continued to give technical assistance to our various foreign licensees On October 1. 1964. Mr. Harold 1. Humes assumed the responsibilities of Technical Di- rector of this Division On October 1. 1964. Mr. William H Hii announced his retirement Mr. Hill founded Baldwin Company in January 1935 and was its President until August 1954 At that time he became Chairman of the Board of Baldwin Inc. He served in that capacity until August 1960 and as Chairman of the Executive Committee until April 1963. when he resigned to devote his time to the international operations In July 1964 Mr. Anthony J. Dilenno joined the Company as Director of Finance and was elected Vice President in March 1965 The losses incurred during 1964 are not of a continuing nature The Company is in a sound financial condition and earnings are anticipated in 1965 Our employees have been most cooperative during this year of readjustment We are grateful for their loyal sup- port With them we look forward with confidence to the challenge of the coming year Alvin M. Elefor Alvin M. Ehret Jr. Chairman of the Board t ty Eahnee! (ES Edward R. Stevens President