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Monsanto Chemical Company
l works
ST. LOUIS, MISSOURI MONSANTO, ILLINOIS
Saint Louis .
EVERETT, MASSACHUSETTS
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ITRO , WEST VlROINIA
UABON,NORTH WALES
UNDERLAND, CNOLAND
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orriccadistrict
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NEW YORK BOSTON CHICAGO
.
SAN FRANCISCO LONDON
DIVISIONS
MERRIMAC CHEMICAL COMPANY, INC. BOSTON, MASSACHUSETTS
RUBBER SERVICE LABORATORIES COMPANY AKRON,OHIO
MONSANTO CHEMICAL WORKS,LTD. . LOKOON, ENGLAND
CABLE ADDRESS MON SANTO-ST. LOUIS
CODES A.B.C.5TM AND 6If BENTLEYS 2ND PHRASE
BENTLEYS ACME
To the Stockholders of Monsanto Chemical Company: V i, r; -
July 26, 1933.
,>
The net earnings of our Company for the second quarter of 1 933 were the best quarterly earnings in its history. Sales and profits amply reflected the improvement in general business conditions, which made itself evident toward the latter part of April. The earnings for the quarter were made on a decidedly lower price basis, thereby showing the results of the increased efficiency that has been built into our plants during the past few years.
Our net profit for the second quarter after all charges was $542,027, which was equiv alent to $1.26 per share on the 427,608 shares outstanding, or more than double the 60 cents per share earned during the second quarter of 1 932. Earnings for the half year amounted to $838,947 or $1.96 a share, compared to $ 1.24J/2 for the first six months of last year.
The attached balance sheet reflects the continued healthy condition of the Company. In spite of a net increase of $304,066 in plant facilities, and an increase of $528,362 in our investment account and payment of regular dividends, our cash and net current asset positions approximate those of the first of the year. The increase in the investment account is represented mainly by our acquisition of the controlling interest in the Swann Corporation.
The profits and current assets of our British subsidiary are included in both the at tached consolidated income account and balance sheet at the rate of $3.40 to the . Cur rent quotations are over 30% higher. The income account does not contain any undis tributed profits of affiliated companies in which we have investments.
The National Industrial Recovery Act presents many problems as well as benefits to industry. Your management, however, has anticipated the main purposes of the act. More than a year ago we voluntarily initiated the forty-hour week in our plants, and since last fall no employe of our American divisions has had duties which required him to work more than forty hours a week.
Our wage rates in general have not been reduced from the 1929 level. Therefore, I am confident that any minimum wage which may be established for the chemical industry will be below that which we are now paying. While I expect that no advance in wage rates will be required of our Company, I believe that greatest efficiency is attained by ade quately paid workers, and that the interests of stockholders will be best promoted by main taining our wage rates above future minimum requirements.
Our July shipments and sales are continuing at a high rate, although July and August normally are accompanied by a slackening of orders. Plant operation and employment consequently are in pleasant contrast to that of a year ago.
STLCOPCB4077991
DSW 331348
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STLCOPCB4077992
**
MONSANTO CHEMICAL COMPAWf,,Mnv:j:i^
(and Predecessor Company)
"
AND SUBSIDIARY COMPANIES
Statement of Consolidated Income for the Six Months Ended June 30, 1933, and 1932, and Comparison
^ Gross Profit from operations before Depreciation and Obsolescence ............................................... ......
Deduct: Selling and administrative expenses.......................... Depreciation and obsolescence................................ Research expenses ...................................................
Total. . . . ... . . .
Net Profit from Operations........................................
Other Income: Interest Received ................................................... Other ......................................................................
Total. ......................................................
Gross Income...................................................................
Income Charges: Bond Interest and Discount...................................... Other Charges . ...................................................
Total.............................................................
Net Income before provision for income taxes .
Provision for income taxes........................... ...... .
Net Income transferred to Surplus . . . .
Per Share of Outstanding Stock...........................
Six Months ended June
30, 1933
$2,298,288.74
Six Months ended June
30. 1932
Increase Decrease
$2,012,460.52 $285,828.22
$662,325.51 416,771.10 187,873.60
$1,266,970.21
$1,031,318.53
$657,311.39 464,477.71 201,828.30
$ 5,014.12 47,706.61 13,954.70
$1,323,617.40 $56,647.19
$688,843.12 $342,475.41
$19,693.19 97,570.49
$117,263.68 $1,148,582.21
$33,041.66 $13,348.47 88,782.97 8,787.52
$121,824.63 $4,560.95 $810,667.75 $337,914.46
$42,473.74 98,257.89
$140,731.63 $1,007,850.58
$168,902.99 $838,947.59
$1.96
$50,612.92 $ 8,139.18 114,470.21 16,212.32
$165,083.13 $ 24,351.50
$645,584.62 $362,265.%
111,363.46 $ 57,539.53
$534,221.16 $304,726.43
$1.24%:
$0.71%
Statement of Consolidated Earned Surplus June 30, 1933
DSW 331349
Earned Surplus of Monsanto Chemical Works, December 31, 1932 .... $2,999,251.70 Net Income for the Six Months ended June 30, 1933 ................................................... 838,947.59
Deduct
$3,838,199.29
Cash Dividends Paid..............................................................................................................$266,930.32
Organization Expenses of Monsanto Chemical Company . . . .
14,260.93
$281,191.25
Earned Surplus at June 30, 1933 ................................................................................... $3,557,008.04
Transferred to Earned Surplus acquired from Predecessor Corporation, being Earned Surplus of Monsanto Chemical Works at date of acquisition of its business and assets by Monsanto Chemical Company......................................$3,342,246.26
Earned Surplus of Monsanto Chemical Company at June 30, 1933 .... $214,761.78
Note: The earainfa of the Britieh eabeidiaiy have been converted at.the rate of $3.40 per .
STLCOPCB4077993