Document 1gzMowe1Rz4KjZk0kqMVeVB5

Thirty-Third Annual Report Fiscal Year Ended October 31st, 1950 THE GLIDDEN COMPANY GUD3841* THE GLIDDEN COMPANY CLEVELAND, OHIO BOARD OF DIRECTORS ADRIAN D. JOVCE JOHN A. PETERS WILLIAM J. O BRIEN JOHN P. RUTH DWIGHT P. JOYCE NESTOR B. BETZOLD PAUL E. SPRAGUE RALPH G. GOLSETH CLIFTON M. KOLB ALEXANDER D. DUNCAN . W. MAXEY OFFICERS ADRIAN D. JOYCE, Chairman Board of Directors DWIGHT P. JOYCE, President CLIFTON M. KOLB, Senior Vice Pres, and Secy. PAUL E. SPRAGUE, Vice President WILLIAM J. O'BRIEN, Vice President NEWELL BEATTY, Vice President ALEXANDER D. DUNCAN, Vice President LOVELL Y. PULLIAM, Vice President JOHN P. RUTH, Vice President RALPH G. GOLSETH, Vice President JOHN A. PETERS, Treasurer B. W. MAXEY, Controller W. W. CONANT, Assistant Secretary R. D. HORNER, Assistant Secretary Transfer Agents THE NEW YORK TRUST COMPANY New York City THE CLEVELAND TRUST COMPANY Cleveland, Ohio Registrars THE CHASE NATIONAL BANK New York City CENTRAL NATIONAL BANK OF CLEVELAND Cleveland, Ohio THE GLIDDEN COMPANY CLEVELAND, OHIO To iHF. St o c k h o l d e r s or Th e Gu d d e v Co mm.v v : January 9,1951 Your company continued to progress during the last fiscal year which ended October .51, 1950. An excellent illustration of this progress is the unit volume of production and sales, which rose more than 209c above that for any previous year in your company's history. Total sales volume in dollars, of course, did not reflect a similar increase because selling prices per unit were lower. f iscal highlights of 1950 were the following: Net sales amounted to S188,607,965.92, compared to S160,143,275.90 for the year 1949. Net profits, after taxes and all charges, totaled $8,561,660.08, compared to 86,191,923.16 for the previous year. Profit per common share amounted to $4.11 on 1,971,623 shares, compared to a profit of $3.23 per share on 1,780,536 shares last year. Net worth of your company increased during the year from $56,837,492.20 to S66,194,159.66. This is almost double the $35,115,554.33 net worth of the company in 1945. At the end of the year the company was free from bank loans and funded debt. 1'he company has a reserve under the LIFO plan of $4,001,193.57 to take care of market fluctuations. Comparison of sales and inventory at the close of the fiscal year shows more than S28,000,000 increase in sales and less than $2,000,000 increase in inventory. The company's retirement funds for employees now total $2,998,153.16, deposited with Trustees: Our pension plans are non-contributory, the'company paying the entire cost. For the fiscal year just closed, each of the company's divisions showed satisfactory profits. The Paint and Varnish Division, in fact, attained the largest sales and profits in the history of this division, largely due to the splendid success of our wonderful new washable wall paint, Spred SATIN. This division is finding it difficult to keep up with the demand for this excellent product. The Durkee Famous Foods, Chemical and Pigment, Soya Products, Vegetable Oil, and Naval Stores Divisions also showed gains over the results for 1949. Our Soya research laboratories succeeded during the year in improving a synthesis and com pleting the initial production of Cortisone. Satisfactory costs, however, have not yet been attained. Sales of the Soya Division's Alpha Protein are the highest in history. GLD38416 Bulk production ot' related hormones and steroid compounds from soybeans set new high records and raised the gross profits earned to date in this field by our Fine Chemicals Department above a million and a half dollars. In pursuing our work on cortical compounds, our Soya research laboratories have succeeded in developing other important hormones and fine chemicals which will broaden the scope of the Fine Chemicals Department. In addition to the foregoing highly satisfactory results, our wholly owned Glidden Company of Canada showed a 25% increase in sales and a 35% increase in profits. During 1950 the Company invested $2,632,692 in plant additions and spent $2,377,833 for maintenance expenditures. Our policy of producing our own important raw materials, the diversification of manufactured products, and the decentrali zation of manufacturing plants has proven wise and profitable. Your company is in a very sound position to meet the changes in our economy w hich will result from partial mobilization. During the years since the close of World War II we have spent approximately $20,000,000 in rebuilding and modernizing our productive units and research laboratories, and all of our facilities are now in excel lent condition. Our $3,500,000 soybean processing plant in Indianapolis was completed early in 1950, bringing to 37 the number of manufacturing units operated by your company through the I'nited States and Canada. Our new Titanium pigment plant at St. Helena, Maryland is expected to be in operation in March enabling us to more than double our production of this essential white pigment. Our experience in World War II clearly indicates that all of our main divisions can easily be converted to a wartime status. The demand for food products is ever increas ing, our other regular products have many military applications, and we can readily manufacture many special products needed in the mobilization effort. In addition to these physical assets, the Company's working force, at all levels, is of top caliber. New personnel policies initiated since the war have enabled us to improve our already high standards of employment and to reach a new peak in quality of personnel. Some of our people have already been called into the Service of our country. When they return, they will find their jobs awaiting them. These highly encouraging factors indicate your company will continue its progress during the coming year even though it will be a period of mobilization. The loyal cooperation of all the executives and the employees is gratefully ac knowledged. DWIGHT P. JOYCE ADRIAN D. JOYCE President. Chairman of the Board. * 4 GLD38417 CONSOLIDATED PROFIT AND LOSS AND SURPLUS The Glidden Company and Subsidiaries Fiscal year ended October 31,1930 STATEMENT OF PROFIT AND LOSS Net sales.....................................................................................................$188,607,965.92 Cost or" goods sold, selling, administrative and gen eral expenses, including provision of $1,753,845.41 for depreciation and depletion............................................................ 174,259,592.85 $14,348,373.07 Other income............................................................................................. 384,864.23 Other deductions: Loss on advances to and investments in affiliated companies ............................................................ $ Interest on notes and loans . . $14,733,237.30 214,966.13 80,611.09 295,577.22 Pr o f it Be f o r e Ta x e s o n In c o me ........................................$14,437,660.08 Taxes on income--estimated: Federal income taxes................................................ $ 5,600,000.00 Dominion and state taxes........................................ 276,000.00 5,876,000.00 Co n s o l id a t e d Ne t Pr o f it .................................................$ 8,561,660.08 S)MMSSSaK9=S3BHBB .Vote .V--Consolidated net profit includes {374,331.91 tor the Canadian subsidiary representing that subsidiary's net profit for the year after giving effect to adjustment of its net current assets and miscel laneous other assets to rate of exchange at October 31, 1950. .Vote B-- Federal taxes on income have been estimated in accordance with provisions of the Revenue Act of 1950. The Company does not anticipate that retroactive tax legislation will require any significant change in such estimate. ,,c Ca p it a l Su r p l u s SURPLUS Balance at November 1, 1949 ................................ Add proceeds of sale of 178,535 shares of common stock in excess of stated value of shares issued . Balance at October 31, 1950 .................................... $13,270,513.41 4,461,590.99 $17,732,104.40 Ea r n e d Su r p l u s Balance at November t, 1949 ................................ $29,785,805.32 Add net profit for the fiscal year............................ 8,561,660.08 Deduct dividends paid: Convertible preferred--$2 25 per share........................ Common --$2.10 per share $38,347,465.40 $ 448,983.29 3,910,279.10 4,359,262.39 Balance at October 31, 1950 . 33,988,203.01 To t a l Su r p l u s At Oc t o b e r 31, 1950 $51,720,307.41 GLD38418 \ CONSOLIDATED The Glldden Comp ASSETS Cu r r e n t As s e t s Cash.........................................................................................................$ 5,412,295.09 Dominion of Canada Victory Loan Bonds........................................ 143,898.34 Trade accounts receivable (includes notes S242,73694)............................................................ SI 5,243,061.24 Less allowances for doubtful accounts................ 495,510.77 14,747,550.47 Octobei t I i Inventories--raw materials, in process, and fin ished goods: Principal raw materials are stated at cost (last-in, first-out method) which did not exceed replacement market; other items are stated at the lower of cost (accumulated average) or replacement market............................................. 31,095,011.92 Other current notes and accounts receivable, advances and investments................................................................ 2,638,375.09 To t a l Cu r r e n t As s e t s ..................................................... 854,037,130.91 i I Ot h e r As s e t s Advance payment on account of possible federal income tax assessment........................................ $ 1,000,000.00 Cash surrender value of life insurance 765,605.00 Miscellaneous notes and accounts receivable, advances and investments................................ 687,996.02 Estimated refund of federal and dominion taxes on income of prior years.................................... 248,511.17 2,702,112,19 Pr o p e r t y , Pl a n t , a n d Eq u ip me n t Gross amounts represent cost less write-down in 1932 Land.....................................................................$ 2,881,330.13 Buildings, machinery, and equipment .... 42,672,851.51 $45,554,181.64 Less accumulated depreciation, depletion, and amortization ..................................... 18,632,139.78 26,922,041.86 De f e r r e d Ch a r g e s Prepaid insurance and expenses......................................................... 649,968.61 I ~S84,311,253.57 GLD38419 BALANCE s h e e t ny and Subsidiaries 31, 1950 LIABILITIES, CAPITAL STOCK, AND SURPLUS CfRRE.vr Lia b il it ie s Accounts payable................................................................................ S 8,520,441.14 Accrued taxes, royalties, and insurance . ......................................... 769,068.18 Federal, state, and dominion taxes on incomeestimated ................................................................ ............................ 6,327,584.59 To t a l Cl r r f .x t Lia b il it ie s ............................................ S15,617,093.91 Re s e r v e For contingencies................................................................................. Ca p it a l St o c k a x d Su r p l u s Capital stock: Convertible preferred 4Vifft cumulative, par value $50.00 a share redeemable at S52.50 a share, each share convertible into approxi mately 1.498 shares of common stock: Authorized 200,000 shares Issued and outstanding 199,540 shares . . S 9,977,000.00 Common without par value: Authorized 3,000,000 shares Outstanding including treasury shares, 1,994,585 shares Reserved for conversion 298,911 shares Stated capital.................................................... Capital surplus........................................................ 4,986,462.50 17,732,104.40 S32,695,566.90 2,500,000.00 Earned surplus (includes $2,677,344.52 of surplus of Canadian subsidiary)................ $33,988,203.01 Less common stock in treasury 22,962 shares, at cost (including 19,197 shares reserved for sale to certain officers and key em ployees) ..................................... 489,610.25 33,498,592.76 66,194,159.66 $84,311,253.57 .Vo/f--Assets of Canadian subsidiary included herein comprise net current assets and miscellaneous other assets, 41,896,553.77, alter adjusting tor exchange at October 31, 1950, and property, plant, and equipment, 4563,989.03, at cost to the subsidiary. GLD38420 J ERNST & ERNST CLEVELAND UNION COMMIRCK ILt>NC Board of Directors, The Glidden Company, Cleveland, Ohio. We have examined the consolidated balance sheet of The Glidden Company and subsidiaries as of October 31, 1950, and the related statements of consolidated profit and loss and surplus for the fiscal year then ended. Our examination was made in accordance with generally accepted auditing standards, and accordingly included such tests of the accounting records and such other auditing procedures as we con sidered necessary in the circumstances. In our opinion, the accompanying balance sheet and statements of profit and loss and surplus present fairly the consolidated financial position of The Glidden Com pany and subsidiaries at October 3i, 1950, and the consolidated results of their operations for the fiscal year then ended, in conformity with generally accepted accounting principles applied on a basis consistent with that of the preceding year. Cleveland, Ohio December 18, 1950 ERNST & ERNST Certified Public Accountants The Glidden Company't efitieni tux soya Processing plant in Indianapolis, completed u l50 t is representative of the company's thirty-seven modern operating units. GLIDDEN DIVISIONS `['he Gfidden Company Cleveland, Ohio The A. Wilhelm Company Reading, Pennsylvania The American Paine Work* New Orleans, Louisiana Durk.ce Famous Foods Klscon Avenue. Chicago, Illinois Durkee Famous Foods Iron Street. Chicago, Illinois Durkee Famous Foods Norwalk, Ohio PAINT The Campbell Paine & Varnish Co. St. Louis, Missouri The Gladden Company Minneapolis. Minnesota Nubian Paint St Varnish Company Chicago, Illinois FOOD Durkee Famous Foods Portland, Oregon Durkee Famous Foods Louisville, Kentucky Durkee-McCadam Company Cambridge, Mass. The Glidden Company, Lrd, Toronto, Ontario, Canada The Glidden Company San Francisco, California Adams St Citing Company Chicago, Illinois Durkee Famous Foods Berkeley, California Durkee Famous Foods Elmhurst, Long Island, New York Durkee Famous Foods Macon, Georgia CHEMICALS, PIGMENTS AND METALS The Chemical it Pigment Company The Chemical & Pigment Company- The Chemical St Pigment Company St. Helena (Baltimore), Maryland Oakland, California Collinsville, Illinois Metals Refining Company Hammond. Indiana fcu>con Lead Company Scranton, Pennsylvania SOYA PRODUCTS NAVAL STORES FEED mil l The Glidden Company Chicago, Illinois The Glidden Company Indianapolis, Indiana The Glidden Company Jacksonville. Florid, The Glidden Company Valdosta, Georgia E. W. Cofledge, General Sates Agent, Cite Jacksonville, Fla. The Glidden Company Indianapolis. Indiana The Glidden Company Buena Park, Caiiforni; VEGETABLE OILS The Glidden Company Berkeley, California The Glidden Company Portland, Oregon MINES The Chemical Sc Pigment Company Barytes Mines Battle Mountain, Nevada Yadkin Mica and llmenite Company Lenoir, North Carolina Retail Stores and Warehouses in the Principal Cities AFFILIATED CORPORATIONS Growth Products Company Pascagoula, Mississippi Jacksonville Processing Corporation Jacksonville, Florida GLD38422 DIVERSIFIED PRODUCTS BY GLIDDEN FOODS Durkee's Grade AA Margarine Durkee's Mayonnaise Durkee's Whipped Salad Dressing Durkee's Shortening Durkee's Bakers Margarine Durkee's Coconut Durkee's Spices and Extracts Durkee's Famous Dressing Durkee's Worcestershire Sauce Special Ingredients tor Bakers and Confectioners SOYBEAN PRODUCTS Alpha* Protein Prosein* Soya Meal Lecithin Fine Chemicals -- Steroids Soya Sterols Cortical and Sex Hormones Soya Flour Soya Flakes Edible Emulsifiers LIVE STOCK AND POULTRY FEEDS (Hidden Cattle and Hog Feeds (Hidden Poultry Feeds (Hidden Feed Concentrates PAINTS, VARNISHES AND LACQUERS SPRED SATIN SPRED Flat SPRED Luster Endurance* House Paint Endurance* Imperial House Paint Japalac* Ripolin* Enamet Spray-Day-Lite Brush-Dav-I.ite Speed-Wall* Gliddenspar Varnish Florenamel Pli-namel Glidair Aviation Finishes N'ubelite Nubelon Glid-Tone Stains Industrial Paints Industrial Lacquers, Enamels and Varnishes Finishes for all Manufactured Products GLID-N Specialties: Insecticides Liquid Cleaners Floor Wax Furniture Polish Brush Restorer VEGETABLE OILS Soybean Oils Cottonseed Oils Coconut Oils Peanut Oils Corn Oils Palm Oils Linseed (Sis CHEMICALS AND PIGMENTS Zopaque* Titanium Dioxide Sunolith* Lithopone Cadmolith* Cadmium Colors Litharge Red Lead Euston* White Lead Cuprous Oxide Bleached Barytes Zinc Sulphate Crystals Copperas Coal Tar Products METALS AND MINERALS Cubond* Brazing Compounds Powdered Iron, Copper, Lead and Tin Glidden Type Metal Babbitt Metal Barite llmenite NAVAL STORES N'eiio* Rosin Sunny South* Turpentine Pigmentar (Pine Tar) Alpha Pinene Beta Pinene Guai-a-phene* Glidcol Anti-Skinning Agents Terpene Chemicals Camphene Anethole Nopol Rosin Oils Gloss Oils Sunny South* Pine Oil Terpex Merez Metal Resinates Nelio* Resin Pine W'ood Charcoal Pinap Solvents Rubber Compounding Agents *Trademark Registered .Much of The Glidden Company'* business comesfrom the processing and production of raw materials far sale to other industries V SOME LEADING CONSUMER PRODUCTS BY GLIDDEN BLACK PEPPER NUTMEG --r1. .. i J A/tie# Ua AJmkk CiNKAMQNl CLOVESl GINGER It'M'MjVVMM** Mtl Durkee's Own Grade AA Margarine is made under the most exacting standards. Comes in yellow, quarterpound prints in -tacts permit ting sale of the pre-colored prod uct. Elsewhere, the convenient Color-Ease package is available. Durkee's Spices have been favorites with the best cooks for more than one hun dred years. Carefully ground and blended from the finest in gredients in the world, Durkee's spices have always been leaders in quality, flavor and purity. Durkee's Famous Dressing! made from a secret recipe, has been America's favorite forgetseration*. 11 adds zest tocountless dishes, from salads to meats. Durkee's Coconut, with its natural coconut flavor, comes two ways: fancy-shredded in the familiar blue and yellow carton and extra-moist in air-tight tins. Spred Satin, with its synthetic rubber emulsion base, is the first truly wash able interior paint. Endurance Im perial was the first and is the leading one-coat outside white house paint. Ripolln is famous throughout the world as the finest interior white en amel ever produced. Japalac Enamel is the perfect quick dryi ng, high gloss fin ish for most interior or exterior surfaces. These are typical of the many top-quality consumer products made by The Glidden Company. Ask for them at your retail store. i Ii 6LD38424