Document 2qB6KxMepJr6EJnD4GO5gOKna

n=i rsgi p=5 p=a n=S NET WORTH 1953-SEVENTY-FOUR MILLION r=i c=l |i r'^B r^dii r^rii ' ( | ----l I mmmmmg \ ' ,,i'i.-J j . n., ..4 /V>wH '^*..vI J4 '; I | <-*-"i-t--. a' _J2H555S LmJS^S5 g JsSSm L.S I . nrSa !-\ ..y *?, 1946-THIJITYNltfjf MJL^IOJ ,v . K ' `** 23 W I___sS33 I .,.ff*-Trl ' i--SSL- I^<^-M*1M-1M4 { MIMMM) /I s-vvli* l___w--*< I .aasnait ' I___gaswrfS - IfM- TWENTY-HGHT Ml IPTM1 1 11 nmmaMUmmmmtfmm** . ' _ ! $;.-. * *>' . .;_ - .*' - '* * If ? vv'i'fcO^J I ^wwa .. mmmmi 7 aBBBttamt J sjammsmej ifiy-THRii mil l io n H <*Wf i/ Tkm GiMtiem Cfmpmmgi Sttjhmm. Proiww, Vegetable <Hui ltinmS* ftfeMtatilftt ItiUwf ,' - ' ;s"&s m Annual Report of The BOARD OF DIRECTORS ADRIAN D. JOYCE ALEXANDER D. DUNCAN DWIGHT P. JOYCE B. W. MAXEY PAUL E. SPRAGUE JOHN H. WEEKS JOHN A. PETERS R. D. HORNER JOHN P. RUTH W. G. PHILLIPS WILLARD C. LIGHTER OFFICERS ADRIAN D. JOYCE, Chairman, Board of Directors DWIGHT P. JOYCE, President PAUL E. SPRAGUE. Vice-President JOHN P. RUTH, Vice-President ALEXANDER D. DUNCAN, Vice-President B. W. MAXEY, Vice-President, Finance and Accounting WILLARD C. LIGHTER, Vice-President HARVEY L. SLAUGHTER, Vice-President NEWELL BEATTY, Vice-President R. D. HORNER, Secretary W. G. PHILLIPS, Treasurer G. S. WARNER, Controller W. P. STETZELBERGER, Assistant Secretary Tmafar Agents THE NEW YORK TRUST COMPANY New York City THE CLEVELAND TRUST COMPANY Cleveland. Ohio Registrars THE CHASE NATIONAL BANK New York Citr CENTRAL NATIONAL BANK OF CLEVELAND Cleveland, Ohio GL038A5B Glidden Company TO THE STOCKHOLDERS January 11, 1954 SUBSTANTIAL achievements in the growth and development of this diversified and decentralized organization continue to characterize its operations. The chart on the cover portrays 36 years of growth of your company. In fiscal 1953, net profit after taxes and all charges was $7,109,272 compared to $6,948,805 in 1952. This was equal to $3.10 per share on the 2,290,794 shares outstanding at the close of the year October 31, 1953, and compares favorably with 1952, when earnings were equal to $3.04 per share on 2,284,739 shares outstanding. Regular cash dividends totaling $2.00 per share were paid during 1953. Dividends have been paid continuously since 1933. Taxes continue to be extremely burdensome, with Federal and State income taxes amounting to $3.37 per share on the shares outstanding at the fiscal year end. Physical volume of sales was 4 per cent above 1952 and reached a new high. Dollar volume of sales amounted to $211,758,522, an increase of $6,645,218 from last year. Working capital at the end of the year totaled $46,004,697. Current assets were $67,429,973, and current liabilities were $21,425,276, a ratio of 3.15 to 1. Our inventories are exceptionally well balanced and low in relation to sales volume. Year-end inventories, after deduction of LIFO Reserve of $2,235,334, amounted to $33,307,058, a reduction of $10,150,096. This reduction was partially due to market changes from a year ago. Satisfactory hedging operations against our major commodity inven tories have been carried out, and this, together with our LIFO plan, assures adequate protection against unusual market variations. Our other current notes and accounts receivable, advances and investments were up this year due to margins on trading accounts, certain receivables, com modity transfers and advances on purchase commitments. Short term loans of $4,000,000 were created in October, 1953, for the purpose of carrying seasonal inventories accumulated during the crop harvesting season. These notes will be paid early in 1954 as inventories are processed. The first installment of $1,500,000 on our long term loan was paid during 1953. Net worth of the company increased in 1953 by $2,680,428 and rose to $74,324,321. As the chart on the cover indicates, this continues the steady growth in net worth, which was $28,000,000 in 1936 and $39,000,000 in 1946. Our federal income tax returns have been approved by the government through 1951 and we are not anticipating any difficulty with the years still open. Government review of renegotiable business has been completed through the fiscal year 1952 and no adjustments are contemplated. Retirement funds for employees deposited with bank trustees now total $6,136,098. Gross plant additions during 19S3 amounted to $4,149,373 and maintenance expenditures were $2,311,790. PAINT DIVISION: Sales and Profits in this division were the highest in the history of the company and the percentage of sales gain exceeded that of the paint industry as a whole. This sales record was achieved largely because of the great popularity of Spred Satin and the increased use of Nubeloo by the industrial trade. One of the important additions during the year was the estab lishment of an efficient manufacturing plant in Atlanta, Georgia. This was done through the purchase of the Eagle-Picher paint plant there, and the adding of the necessary buildings and equip ment to increase its capacity to the point where it will now be able to service our many dealers, industrial customers and our own stores and warehouses in the great Southeast. We have also added 108,000 square feet of storage and pro duction area to our Nubian Industrial Paint Division in Chicago. The Canadian Paint Division established a splendid record and plans have been worked out to add a new research laboratory at Toronto and to build a new paint manufacturing plant in Montreal. The Montreal plant will serve Quebec and the Maritime Provinces and permit us to grow with this rapidly developing territory. At the Cleveland plant we are adding to our paint manufactur ing facilities essential equipment that will increase greatly our production of synthetic resins and polyesters. With the additional facilities for 1954, and with the introduction of new prod ucts from our paint laboratories, we believe that we will develop additional sales and profits in 1954. DURKEE FAMOUS FOODS DIVISION: This division had a successful year and several new items are now being placed on the market which we believe will add materially to our volume. Additional facilities have been added to the Durkee plants at Louisville, Kentucky, Elmhurst, Long Island, and Chicago. Tank storage capacity has been markedly increased and efficient hand ling devices installed. VEGETABLE OIL DIVISION: The Vegetable Oil Division had a difficult marketing situation because of inadequate conversion margins on meal and oil from soybeans and flaxseed. Fortunately, our policy of developing manufactured products from meal and oil has helped carry the load and promises to be of great importance in the ensuing year. Our Protein products, Soya Flour and Lecithin are continually gaining in acceptance. CHEMICALS, PIGMENTS AND METALS DIVISION: This division has experienced a fine gain in both sales and profits. Our Titanium pigment manufacture is proving profitable and Cadmium pigments continue to lead in this field. NAVAL STORES DIVISION: This division, with plants atJacksonville, Florida, and Valdosta, Georgia, has continued its intensive research on rosin based specialties and terpene products and the results are beginning to be felt in the Naval Stores profit picture. We are looking for a steady improvement in profits in this division. RESEARCH: We are continuing research and development in each of our 28 laboratories, and our big Central Laboratory in Chicago, with its capable personnel, is working to the benefit of all the smaller laboratories and is devoting its attention especially to creating greater utilization of the products of the soybean and expanding our edible oil research for the Durkee Famous Foods Division. We look forward to the future with confidence and believe the coming year will be one of further growth. Our manufacturing facilities are in top shape to produce quality products economically, and our rapidly expanding sales organization is prepared to do hard and enthusiastic selling. The management is constantly on the alert for new products, processes or methods which might be acquired by purchase and developed to the advantage of the company. Finally, but of utmost importance, many of the young men brought into the company since 1946 are now stepping into areas of great responsibility where they will have opportunities to apply their aggressiveness. The loyal help and cooperation of all our people is deeply appreciated. Adrian D. Joyce Chairman of the Board Dwight P. Joyce President GLD38463 r RAW MATHtlAlS RESEARCH SHORTLY after the company was Created is 19X7, founder Adrian Di Joyce launched The Glidden Company on a carefully planned program to control raw material supplies and to diversify the firm's products.. The results were phe nomenal. By the early thirties, GUdden was operating 11 paint plants and was established in pig ment production, metals refining and vegetable oil production and had become a major producer of margarine, spices and other food products. Its Soya Products, Naval Stores and Feed Mill units were added within the next few years. The company's remarkablegrowth already promised a great future. GLD3846* GL038465 Consolidated Balance S ASSETS CURRENT ASSETS Cash........................................................................................... S Trade accounts receivable, less allowances of $459,0X0 for doubtful accounts.............................................. 8,230,545 17,511,525 Inventories --raw materials, in process, and finished 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 (accumu lated average) or replacement market............................. 33.307,058 Other current notes and accounts receivable, advances and investments.............. .......................................... 8,380,845 TOTAL CURRENT ASSETS. .................. ................. $ 67,429.973 OTHER ASSETS Cash surrender value of life insurance.............. $ Prepaid insurance and expenses......................... Miscellaneous notes and accounts receivable, advances and investments............................ 840,678 840.270 404,433 2,085,381 PROPERTY, PLANT, AND EQUIPMENT Land--at cost..................................................... $ 3,207,499 Buildings, machinery, and equipment--at cost . 52,320,074 $55,527,573 Less accumulated depreciation, depletion, and amortization..................................................... 22,293.330 33,234,243 $102,749,597 GLD38A66 Sheet THE GlIDDEN COMPANY AND SUBSIDIARIES OCTOBER 31, 1953 LIABILITIES, CAPITAL STOCK, AND SURPLUS CURRENT LIABILITIES Notes payable to banks: Short-term loans.............................................. $ 4,000,000 Serial notes maturing July 1, 1954 .............. 1,500,000 $ 5,500,000 Accounts payable....................................................................... Accrued taxes, insurance, royalties, and interest.................... Federal, state, and dominion taxes on income -- estimated........................................................................ . 6,358,282 1,692,162 7,874,832 TOTAL CURRENT LIABILITIES ......... $ 21,425,276 LONG-TERM DEBT Serial notes payable, maturing $1,500,000 annu ally in 1955 and 1956, and $4,000,000 in 1957, interest 3%................................................................... 7,000,000 CAPITAL STOCK AND SURPLUS Capital stock: Common without par value: Authorized 3,000,000 shares (100,000 shares reserved for sale to key employees) Issued including treasury shares, 2,291,330 shares Stated capital.......................................... . $ 5,728,325 Capital surplus..................................................... 26,875,642 Earned surplus (includes $4,056,570 of surplus of Canadian subsidiary). . . . $41,733,083 Less 536 treasury shares --at cost 12,729 $32,603,967 41,720,354 74,324,321 $102,749,597 OLD3846? THE GUDDEN COMPANY AND SUBSIDIARIES Year ended October 31, 1953 Consolidated Income and Surplus INCOME Net sales............................................................................................$211,758,522 Cost of goods sold, selling, administrative and general expenses, including provision of $2,185,184 for depreciation and amortization......................... 197,231,463 $ 14,527,059 Other income............................ 664,985 $ 15,192,044 Interest expense.............................................................................. 357,772 INCOME BEFORE TAXES ON INCOME . . . . . 8 14,834,272 Taxes on income--estimated: Federal normal tax and surtax . . . , . . . . Dominion and state taxes..................... $ 7,150,000 575,000 7,725,000 CONSOLIDATED NET INCOME ......................... ... $ 7,109,272 SURPLUS CAPITAL SURPLUS Balance at November 1, 1952, and October 31, 1953 .... $ 26,875,642 EARNED SURPLUS Balance at November 1, 1952 . . . Add net income for the year .... Deduct dividends paid -- $2 per share Balance at October 31, 1933 - $ 39,202,349 7,109,272 $ 46,311,621 4,578,538 $ 41,733,083 tfWMliN vr- ' 44*-- Jv,-' . Gto 58A68 Glidden Divisions The Glidden Company Central Region Cleveland, Ohio The Glidden Company Mississippi Region The Campbell Pa* Varnish Company $c Louis, Missouri The Glidden Company, Ltd. Toronto, Oacario, Canada The Gliddeo Company, Ltd. Montreal, Quebec. Canada Durkee famous Food* Elston Avenue, Chicago, 111. Durkee Famous Foods Louisville, Kentucky PAINT The Glidden Company Eastern Region The A. Wilhelm Company Reading, Pennsylvania The Glidden Company Northwest Region Minneapolis, Minnesota The GUdden Company Pacific Region San Francisco, California FOOD Durkee Famous Foods Elmhurst, Loog Island, N. V. Durkee Famous Foods Iron Street, Chicago, Illinois Durkee Famous Foods Macon, Georgia The Glidden Company Southern and Texas Region The AnerjcM Paler Works New Orleans, Louisiana The Glidden Company Nubian Industrial Division Chicago, Illinois The Glidden Comnaoy Midwest Trade Sales Region Chicago, Illinois The Glidden Company Southeastern Region Atlanta, Georgia Durkee Famous Foods Norwalk, Ohio Durkee Famous Foods Berkeley, California CHEMICALS, PIGMENTS AND METALS The Glidden Company Chemical Pigment Metals Division Sc. Helena (Baltimore), Maryland The Glidden Company Chemical * Pigment - Metals Division Collinsville, Illinois The Glidden Company Chemical Pigment Metals Division . Oakland, California The Glidden Company Chemical - Pigment - Metals Division Hammond, Indiana The Glidden Company Euston Lead Division , Scranton, Pennsylvania SOYA PRODUCTS AND VEGETABLE OKS The Glidden Company Chicago. Illinois The GUdden Company Indianapolis, Indiana The Glidden Company Buena Park, California The Glidden Company Jacksonville, Florida NAVAL STORES The GUdden Company Valdosta, Georgia E. W. Colledge, General Sales Agent, Inc. Jacksonville, Florida FEED MILL The GUdden Company, IndianapoUs, Indiana Glidden Consolidated Copper and Zinc Mines Shasta County, California MINES The Glidden Company Barytes Mines Battle Mountain, Nevada Toaopah, Nevada Retail Stores and Wort^ovNi in ih Principal Cftits AFFILIATED CORPORATIONS Growth Product, Comp.oy Pascagoula, Mississippi JacktooTille Procsssiai Corporation Jacksonville. Florid, ' '*? 3 1 -a Accountants' Report ERNST & ERNST C LEVEL AND 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, 1953, and the related state* ments of consolidated income and surplus for the 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 considered necessary in the circumstances. In our opinion, the accompanying balance sheet and statements of income and surplus present fairly the consolidated financial position of The Glidden Company and subsidiaries at October 31, 1953, and the consolidated results of their operations for the year then ended, in con formity with generally accepted accounting principles applied on a basis consistent with that of the preceding year. Cleveland, Ohio December 15, 1953 ERNST & ERNST Certified Public Accountants GLD38470 d iv er s if ied pr o d u c t s by g u d d en FOODS Durkee's Margarine Durkee's Stayfresb Coconut Durkee's Dixie Cut Coconut Durkee's Mayonnaise Durkee's Whipped Salad Dressing Durkee's Sandwich Spread Durkee's French Dressing Durkee's Famous Dressing Durkee's Shortening Durkee's Salad Oils Durkee's Deep Far Frying Oil Durkee's Spices and Extracts Durkee's Worcestershire Sauce Durkee's Bakers Margarine Special Ingredients for Bakers and Confectioners SOTBEAN PRODUCTS Alpha* Protein Beta* Prorein Prosein* Soya Meal--Flour--Flakes Lecithin Fine Chemicals--Steroids Edible Emulsifiers LIVE STOCK AND POULTRY FEEDS Glidden Cattle and Hog Feeds Glidden Poultry Feeds Glidden Feed Concentrates PAINTS, VARNISHES AND LACQUERS s pr ed s at in SPRED GLOSS Endurance* House Paint Endurance* Imperial House Paine Japalac* Rtpoiin* Enamel Spray-Day-Lite Brush-Day-Liie $peedWall* Gliddenspar Varnish Florenamel Pli-namei Glid-Tone Scains Graphic Arts Finishes Glidair Aviation Finishes NubeHte* N'ubelac* Nubeloo* Xubelyo* Nubeloid* Nu-Pon* Spatterloid* Spattertone* Hammerlotd* Metalescent* Vinyl-Cote* Bombay Black* Glidvar* Wire Coatings Nuflex* Paper Coatings Spedene* A. D. Synthetics Stains, Fillers, Sealers, Varnishes and Lacquers for Wood! Furniture VEGETABLE OILS Soybean Oils Cottonseed Oils Coconut Oils Peanut Oils Corn Oils Palm Oils Linseed Oils CHEMICALS AND PIGMENTS Zopaque* Titanium Dioxide Sunolith* Lithopone Cadraolith* Cadmium Colors Euscon* White Lead Bleached Barytes Oil Weil Barytes Zinc Sulphate Crystals Coal Tar Products METALS AND MINERALS Powdered Copper and Lead Cuprous Oxide Cupric Oxide Cubono - Brazing Compound Barite Ilmenite NAVAL STORES Nefio* GN and NXDGum Rosin Nelto* Gum Turpentine Sunny South* D.D. Turpentine Ptgmentar* (Pine Tar) Alpha and Bern Pinenc Guaia-phene* and Glidcol* Antt*Skin Agenta Terpene Chemicals N'opol. Campheoe, Myrcene Rosin Oils Gloss Oils--Lobeite* Hard Rosin Terpex* Synthetic and D.D, Pine Oil Ester Gum, Rosin Bated Resins Mere* Metal Resinates Pine Wood Charcoal Rubber Compounding Agents 'Trad* Mark RggifUrtd Much of Tho Gliddon Company'* busiimsi comot from tho procouing and production of raw motoriah for tofo to othor induttrms. 36 YEARS OF GROWTH AND PROGRESS Founded by Adrian D. Joyce in 1917 as a producer of paints and vamisheB, The Glidden Company today is among the foremost of America's industrial concerns. Its broad, yet integrated diversi fication, its continued intensive emphasis on research and develop ment, promise even greater growth and progress in the years ahead. GLD3B472