Document 2Jb6GrV82mw2ZpJ63KYM6MXBr

UC 149-2 >v.. INTERNAL CORRESPONDENCE A 'l/cta- 7"' ^7 METALS DIVISION. p. o. box 579 -4625 royal ave, Niagara falls, new yqrk 14302 To (Name) Q. R. AdaiTlS - 39th FlOO Division p. j. Shortsleeve/R. W. Rebhol2 Location 33th FI OOT 270 Park Avenue New York, NY 10017 copy to r_ e, Byrne, Jr. W. B. DeAtley "Tl" nici1^i".cn File Date Originating Dept. September 10, 1980 "Calidria" A Answering letter date Subject 1981 Sales B Attached is a copy of the Subject for your review and approval. Because plant costs are estimated to increase 30%, we have budgeted price increases to recover part of the lost gross margin. Planned price increases are also noted on the attached sheet. They are obviously very challenging and we may have trouble implementing all of them. To my knowledge, this is the first time we have budgeted price increases. If we used 1980 prices, the 1981 NIFS would be $7,588,000; so the price increases give us an additional $872,000, or 11.5%. Assumptions which were made in developing the 1981 Sales Budget include the following: 1. Atlas will not operate. 2. GAF advised their maximum requirements at Long Beach would be 3000 tons. We have included 2400 tons of SG-103-7 for them. They will require 6000 tons at Vails Gate but we cannot compete with Canadian on a cost/ performance basis. They may use SG-103-7 for certain tiles, but we have budgeted nothing for Vails Gate. 3. Canadian and Cabot price increases of about 10%. 4. No price breaks for quantity purchases - we have kept tile grade price increases as low as possible and will avoid discounts. 5. A 10<t/lb. price increase for SX-24 for Grace-Europe on 10/1/80 and 7/1/81. This may be1very difficult. 6. Mo loss of volume due to price increases, although this may be a problem, especially in drilling mud products. 7. Part of the CSV sales may be UNIVIS (SG-200-X) but only 50 tons have been run and performance results are not known. 8. Improvement in Japanese economy over end of 1980. Also attached is a sheet comparing 1980 Budget and Forecast IV with the 1981 Budget. Please advise if you have any questions or comments. rVj i/1/1 ji p UCC 025349 Product SG-103-5 -7 -9 SG-104 -130 -200 -210 HPP HPO RG-100 -no -144 -244 CSV SHUR UNIVIS DOM. TOTAL SG-100 -102 -130 -210 AS-20Q HPP HPO T-135-P RG-144 SX-14 RG-244 SX-24 EXP. TOTAL TOTAL CALIDRIA ASBESTOS 1981 SALES BUDGET (JLM 9/9/80} ` Budget Tons $M 1500 3600 0 10400 200 360 300 20 740 480 220 400 440 3300 1140 0 198 475 0 1186 34 57 73 4 179 281 59 260 1212 594 205 0 23100 4817 CL Prices, FOB Plant, $/T Current PIanned % Increase 122 122 -- 106 170 160 220 204 220 560 240 560 2500 160 160 -- 132 132 -- 114 188 176 242 224 242 650 270 650 2900 180 180 -- 8.2 8.2 -- 7.5 10.6 10.0 10.0 9.8 10.0 16.1 12.5 16.1 16.0 12.5 12.5 -- Ave. 189 208 10.3 3100 440 180 0 1100 2620 480 100 250 90 400 540 9300 409 58 32 0 174 529 116 71 162 40 1080 972 3643 125 120 164 -- 144 184 220 648 560 390 2300 1500 Ave. 346 132 132 180 -- 158 202 242 710 650 450 2700 1900 . 392 5.6 10.0 9.8 -- 9.7 9.8 10.0 9.6 16.1 15.4 17.4 26.7 13.1 32400 8460 Ave. 234 261 11 .5 /dal UCC 025350 Product S G-103-5 -7 -9 SG-104 -130 -200 -210 HPP HPO RG-100 -110 -144 -244 CSV SHUR UNI VIS DOM. TOTAL Change ^Change CALIDRIA ASBESTOS SALES ESTIMATES (JLM, 9/9/80) * TONS '80 Budq. 80 Fcst. IV 2100 1560 200 9400 560 360 595 0 1270 320 320 490 520 1800 600 0 1500 1800 373 10500 160 420 400 30 637 380 200 370 380 3000 1000 100 20095 - 21250 + 1155 - + 5.7 '81 Budq. 1500 3600 0 10400 200 360 300 20 740 480 220 400 440 3300 1140 0 23100 + 1850 + 8.7 '80 Budq. 247 184 24 940 88 49 119 0 254 144 70 245 1144 259 86 0 3853 - - $M '80 Fcst. IV 182 218 45 1100 25 62 98 6 152 192 54 223 910 480 160 16 3923 + 70 + 1.8 '81 Budq. 198 475 0 1186 34 57 73 4 179 281 59 260 1212 594 205 0 4817 + 894 +22.8 SG-100 -102 -130 -210 AS-200 HPP HPO T-135-P RG-144 SX-14 RG-244 SX-24 EXP. TOTAL Change iSChange TOTAL Change ^Change 3100 550 200 0 920 2930 665 no 300 130 370 540 9815 - - 29910 - - 2900 450 100 24 920 2400 900 no 300 100 420 600 9224 - 591 - 6.0 30474 + 564 + 1.9 3100 440 180 0 1100 2620 480 100 250 90 400 540 9300 + 76 + 0.8 32400 +1926 + 6.3 372 64 30 0 121 498 135 64 147 . 47 766 756 3000 - - 6853 '- - 362 54 17 5 131 440 198 71 168 41 977 930 3394 + 394 +13.1 7317 + 464 + 6.8 409 58 32 0 174 529 116 , 71 162 40 1080 972 3643 + 249 + 7.3 8460 +1143 +15.6 /dal UCC 025351