Document 3QOmNOjY0JEXqq1meopjaxz90

FILE NAME: Owens Illinois (OWILL) DATE: 1942 DOC#: OWILL016 DOCUMENT DESCRIPTION: OWILL Entry in Moody's Manual of Investments 2818 MOODY'S MANUAL OF INVESTMENTS Q A P iTA L STRUCTURE OWENS-ILLINOIS FUNDED DEBT . Issue Amount 't e * . - ' Outstanding 1. S in k in g fu n d deb. 3%s, 1952............. *8,000,000 CAPITAL STOCK k Msue < 1. Common --__ _______ __________ _ >Vaal*ue $12.56 3 S L O $661.204 sh*. GLASS COMPANY f&Times W , "sa?4. 58.38 8240 Earned per Sh. 1041 1546 $3.46 $8.71 In te re s t Dates li:- yjkA l u Divs. per Sb. 1941 ' IMO 12.50 12.00 (9112.50 par common--after 2 for 1 split-up in 1937. QQBefore income taxes and after depreciation CaU Price Not stated * 'Call Plica *. Price Bangs "3-*'* 1941 lM l 52%-38% El03%-% depletion and amortization. HI8TORY Ow en*s Bottl!e M} acPhinief SC*orp:., successor Zto*1?a New Jersey corporation of the same name, in corporated Sept. 3,1903. Charter is perpetual. Name changed to The Owens Bottle Co. May 1,1919 and to Owens-Illinois Glass Co. Apr. 17, 129. During 1912 acquired assets of The Owens West Virginia Bottle Co. and Northwestern Ohio Bottle Co., and on Jan. 1, 1915, assets of The Owens Eastern Bottle Co., wholly-owned Owens-Illinois Can. Co. (Del.)--Metal containeri.etc. Libbey d ia si Co. (Ohio)--Glass tumblers, etc. Madison Warehouse Co. (Mass.)--Warehouse Owens-Illinois Distributors, Inc. (Ohio)- Warehousing and sales Lauterbach Corp. (Del.)--Plastic molding ma- chinery Company owns 50% of capital stock of the Owens Stapletied Brush Co. and 49.77% of common and 11.331 preferred shares of 1OwensCorning Fiberglas Corp. (see below) The Wuncle plant is used for products of Ms Insulux Division. P lant of the Libbey G fei Co. Is located a t'Toledo, O., where company also manufactures caps and closures for tail containers. Metal bottle cap. manufacture is c_o__n_d_u_c_te_d__a_t__th__e__G_l_a_s_sb__o_ro p lan t OOwweennss--IIlllliinnooiiss Can Co. has plants at Balu* more, Md., Clearing, 111. and McKees Bocfcl Pa. Madison Warehouse Co. operates w&rehoutt in Boston. Mass. Branch warehouses are cated In Cincinnati and S t Paul. Lauterbedt ic a ^ ^ tU ^ C o 1 and O ra h i^ G ? a l? ^ o ^ fa^917 acouired Kanawha Mamifaeturers Gas Co a i9W na c a i^ e d a aMe&tUofr8subsidiy WhHney Glass&\9orks 11919 S L u k e d rim - trol of Charles BoldtGJaas Co 9m anufacturing bottles cartons a te Durintf ^ f ia araulr#a conteoi of SosSVe S^rvice cS* On l 21 took over as^t^andcont-o^ofC haS s^B old? G la^C o * ^ M a v l M S merged assets of Till- nofs Glass Co. (?ii: 1873) V iJi?* 1: Owens-Coming Fibergla* Corn.: Incorpo- rated unde,T Delaware laws Oct. 31. 1938, and acquired all the assets of Owens-Illinois Glass Co. and Corning Glass Works which had bSeiJ devoted to production and development 9lass in fibrous forms. Engaged In produc- t on of "Fiberglas" materials fox a wide va- rlety applications, including insulation, dust-stop air filters, and decorative and Indus- trial service fabrics. Plants at Newark. O., Bottle Co., including stock Co., Tavern Bock Sand Co. and Madison Ware house Co. In Apr., 1929 absorbed assets of subsidiaries, American Bottle Co. and Graham Glass Co. On Jan. 1. 1930 acquired assets except cer BUSINE8S AND PR0DUCT8 tain natural gas properties of Berney-Bond Directly and through subsidiaries manufac Glass Co. In Nov., 1930 acquired principal as tures, warehouses and sells a general line of sets of Atlantic Bottle Co. bottles and other containers for medicinal, As of Nov. 30, 1931 purchased assets of Illi toilet, pharmaceutical and proprietary prepa nois Pacific Coast Co.; properties were trans rations; for products of m anufacturing chem ferred June. 1, 1932, Owens-Illinois Pacific ists; and for foods, condiments and beverages Coast Co. being organized to operate them. (including "Stubby'* and "Steinie" bottles); In Oct., 1932 purchased, as of July 31, 1932,, also for other purposes. Company shipments Root Glass Co. of Terre Haute, Ind. In 1932 in 1937 were 38.03% of U. S glass container In- absorbed business of subsidiary Carlyle Paper dustry shipments. Also manufactures and sens Co. glass insulators used in electrical and tele- Aa of Jan. 31.1933 acquired substantially en- phone wiring, and Insulux glass blocks for tire assets and business of O'Neill Machine Co., industrial ana residential construction. A sub developing automatic bottle blowing ma sidiary manufactures, warehouses and sells chinery, using the vacuum process. As of Mar. thin blown (paste mold) tumblers (Libbey 31.1933 acquired Hemingray Glass Co. special Safedge and Libbey No-Nik); used as drinking izing in glass insulators. In. Apr.. 1933 exer glasses and as jars for packing food products; cised option on 16,000 shares of Container stemware; glassware for hotels, restaurants, Corp. of America (see general index) 7% cafes, clubs, bars and soda fountains; and cut cumulative preferred, subsequently receiving and engraved glassware. A subsidiary manu- through recapitalization 50,000 common shares facture, warehouse and. sells tin cans and. fo r p art of this holding. In May, 1933 p u r related m etal products. Another subsidiary chased entire assets of Illinois Glass Co. Dur m anufactures caps and closures for glass con ing 1933 organized In Ohio Owens-IUlnois Dis tainers. Company engages in fabrication of tributors. Lac., engaged in warehousing and straw board Into corrugated cartons for ship sale of certain products. ping glass articles, and also makes wood pack On Dec. 3L 1935 purchased entire assets of ages. Company also manufactures plastics. Libbey Glass Mfg. Co., Toledo (founded In 1898), transferring properties to new subsid Owns Interests in natural gas properties iary, Libbey Glass Co. (Ohio 1935). In Feb., 1938 acquired Enterprise Can Co., which supply some of the plants witn fuel. Glass sand requirements are purchased from McKees Rocks.Pa., through exchange of stock, oSutisiidSer ninXteirte(rstSs.* CvoiimiivpasnOy toswSnSs aTsunbSstasni- Jointly with Libbey-Owens-Ford Glass Oa. (see general index), company owns gas preperties in West Virginia supplying fuel to S t Charleston plants of both com pares. On Dot 31,1941 total territory so owned or held under lease comprised 145,701 acres, on which tbrre were 505 producing wells (book value mm $1,006,415). Company has other natural j m fields in Clarion, Pa. and Fairmont. W. v al supplying fuel as a service to bottle menu- comprises 14,697 acres and 125 producing write Fairm ont field comprises 3,569 acres and m producing wells; book value of the two ea Dec. 31, 1941 was $279,078. MANAGEMENT Off cars W. E. Levis, Chairman J. P. Levis, President C. B. Belknap, Vice-Chairman of Board . R. H. Barnard, Executive Vice-Preddeeft F. J. Solon. Vice-President F. T. Nesbitt, Vice-President C. R. Megowen, Vice-President A C. G. Bensinger, Vice-President G. Lufkin, Vice-Pres. & Gen. Mgr., Container Division 9. L. Rairdon. Vice-Pres. A Gen. Mgr., Glass Container Div. J. BT McNerney, Secretary A Treasured E. F. Martin, Asst. Sec. A Asst. Treasurer F. G. Morfoot, Asst. Sec. A Asst. Tre A. J. Riedmayer, Asst. Sect A Asst C. B. Rairdon, Assistant Treasurer. Directors R. H. Barnard. Toledo C. B. Belknap, Toledo Harold Boeschtnstein. Toledo W. H. Bochait, Miami Beach, Fla. H. B. Collin, Toledo G. P. Greenhalgh, Berryville, Va. W. W. Knight. Toledo J. P. Levis, Toledo W. B. Levis, Toledo F. H. McAooo, New York C. J. Root, Terre Haute. Ind. F. W. Schwenck. Cincinnati C. J. Wilcox. Toledo Owens-Illinois Can Co., which bought for cash assets of S t Louis Can Co. In Aug., 1936 sold entire stock of Tavern Rock Sand Co. for 15,309 common shares of Pennsylvania Glass Sand Corn., etc. Subse?[uently company bought sand requirem ents rom outside interests. In 1936 the name of Closure Service Co. was changed to Owens-Illinois Closure Co. In Apr., 1937 acquired Lauterbach Corp. On Nov. I, 1938 company transferred sub stantially all of its assets for development and production of glass fiber products to OwensCorning Fiberglas Corp. for 49.77% of U tter's common and 17,586 preferred shares. During 1939 sold Chicago Heights, I1L fac tory to Kimble Glass Co. for cash. During 1941 sold Brackenridge* Pa. factory. SUBSIDIARIES Company is prim arily an operating com pany. On Dec. 31, 1941, held 100% voting power in the following subsidiaries: Name, place of incorporation and business: Owene-nitnois Pacific Coast Co. (Del.)--Pa cific Coast sales P 11" other PurPses. Business is handled through 8 operating units, consisting of 2 divisions of OwensIllinois Glass Co.--Glass Container Division and Insulux Products Division--and 3 whollyowned subsidiaries, Owens-minois Pacific Coast Co., Libbey Glass Co. and Owens-Hlinols Can Co. PRINCIPAL PLANT8 A PROPERTIES Gl_a_s_snfiactories are located as follows: BIrtiodg.etfofnl., N. J. Waco, Texas Charleston, W. Va. Clarion, Pa. ^Clarksburg, W. Va. Columbus, O. mTerre Haute, Ind. Fairmont, W. Va. Glassboro. N. J.. GHausntCinitgyt,oInn.dW. . Va. Los Angeles, Cal. Muncie, Ind. ^ Oakland, Cal. San Francisco, Cal. TSotrleeadtoo,rO, .SI. 1 (Ulnactive during 1939-41. AH of the above active plants except Muncie are used for manufacture of glass containers, and contain automatic m achkery and other equipment for this purpose. General Counsel: Williams. Morgan. Annual Meeting: Third Wednesday ta at Toledo, O. Number of Stockholders: Dec. 31,1941. Number of Employees: Dec. 31 I04L General Office: Ohio Bldg., Toledo, 0. Management Profit-Sharing: XxecuthNB departm ent heads receive additional _e-- I sation under plan adopted Jan. 28 termined by the company's prest fund representing up to 8% of u cess of 10% of capital and surplus ginning of the year. Total of the salaries shall not exceed 10% earnings for each year. Total participant In any year shall not salary for that year. Payments made under the plan 1932. 1998. 1940- Nil $223,000 526,958 Nil 48.644 1982___ _ 1935_____ _ 1937_____ * INCOM E ACCO U NT8 COMPARATIVE CONSOLIDATED INCOME ACCOUNT. YEARS ENDED DEC. 31 (Taken from reports to Securities and Exchange Commission) [et teles, royalties A other op. rev.. 1941 $125.555.157 1940 389,297.208 (21939 $82,025.093 1938 $75406,756 1937 $91*581,094 BEBoet o f sales, royalties paid, e tc ... 95431,868 70,629,458 62.915.967 59.855.804 72490.682 BSeulng. general A adm. expenses.. 9,381,017 8.282.790 7.525,988 6,874,536 7,613.153 QlporsHng p r o f it _____ . . . . _____ 20,942472 10.384.95$ 11,583,137 $.570,010 11,677489 Idends re c e iv e d ----- ------------- - 153,873 212475 50.576 22,852 89.141 77,507 81.249 81.348 81458 79,563 it A commissions.... iUaneous other income. 473.766 5,946 300.039 r 40,326 253,964 66.673 187.887 64498 382,068 E590.849 Total . . . . -------- -a-------- 21,853,363 10.938.093 12,035.598 8.933,089 12,818,790 1999 * 3 6441,782 ~ II3B 138J8S $5.749 12A29B35 MOODY'S MANUAL OF INVESTMENTS it s'ACCOUNTS fcont'dt j '! u>. n.at'.a^oiV'cnt b o r .u s ,. M j i . t o n i i i i v i __________________________ _______ sion fo r t d d e b t?............................. -t on bonds, debentures, etc., dry expenses & losses (n et).. 1941 628.250 1.096,624 195.271 306,569 326,576 1940 48.614 789,697 146.107 308,837 87,748 1939 188,750 723.471 73.660 432,277 332,265 1938 637.1361 195.7771 540.264 146,301 1937 342 192 957,272 234.2 H 129,954 ice from sale of patent rights, etc. 19,100,072 37*509 9,557,060 49*000 10*280*156 , 37*800 7,414*211 . 303319 11,155,102 1,055,972 yees' a n n u itie s___ - ___ _ 19,137,572 1*369427 9*606,060 ' 10*317,95 7.717,431 12*211,074 income before ta x es____ ___ security ta x ____________ ____ * stock ta x ................................... ;n for Federal incom e ta x ___ excess profits tax ______ . . . . on undistributed profits_____ A foreign Income taxes__ . . . . . . 17,748.445 4,094,300 4,595,000 18,996 9.606,060 2.360,400 22,626 10*317.656 Not stated' 1,853.565 29,176 7,717,431 918,247 114.014 1*301,365 12,211,074, 852,180V 147.055 ( 1,760,155] 100,057 1936 52T-.338 V ^o.3 *0 151,155 11,448.181 1,057,500 12,505,681 12505,681 2,193,314 213436 2819 1935 348.910 506.'. 54 }1 3 2 914 47,770 8.572.635 580,000 9*132,635 9*152.635 1^69*199 income to surplus_____ _____ surplus debits_________. . . __ 9.040,149 25,512,286 6,653*010 7,223,034 23,611,660 5,322,408 8,434.915 20,499.153 5,322,408 5,39 >3,805 19.107,155 3,901,806 9351.627 18.430.943 8,648413 26.503 10,099,131 16,102,974 7.771,162 7*883,496 13,019,477 4.800,000 surplus, end o f year ____ fTARY P. Sc I,. DATA depl. Sc am ortization____ ds charged to exp en se_____ tenance Sc repairs__________ (other than incom e) _______ t i e s ________________ ___ ___ _ company's n e t in c o m e ..____ _ $27,899,424 3,824,308 1.801.248 3,115.897 2.238,732 299.117 1,213,562 $8,158,031 $25,512,286 $3,749,741 2.051.766 2,394,592 1.818,601 291,422 805.737 Not stated 323.611,660 $3.744,687 2.061.024 1,933,817 1.784,857 314.375 748.270 $7.366323 $20,409.153 $3,672.649 2.1)2.392 1,973,916 1.5*2,214 271,453 739,447 $5.060,164 $19,107,155 $2,923,500 2.028.898 2.876.964 1.293.467 251,156 962,783 $9.990,625 $18,430,943 $2,603,588 Not stated 2,052.452 482459 251,118 846486 Not stated $16,102,974 $2,286,183 Not stated 2.031481 472.967 131.270 611.458 $5456477 ial security taxes of $980,918 in 1940, 78 in 1941 and of unstated am ount in uded In cost of sales, selling expenses, eve. In 1939-41, Federal capital stock were also included in latter accounts, service annuities covering certain em- purchased under insurance company tated for comparative purposes. of sales, royalties paid, patent, deent and other operating expenses (in cluding depreciation and amortization--1941, $3,516,156; 1940, $3,435,222). (DIncludes related portions of items shown under ''Supplem entary P St L Data" below statement. [Includes $23,313 recovery of deposits in closed banks and $473,265 profit on sale of se curities. (ZJSee note S3 under Consolidated Balance Sheet below. Sale of patent rights and licenses entails a diminution of royalty receipts from oth2eNr ocodmeppraenciieastiIonn 1I9s35praonvdidseudbsoenqmueonldt sy,ejaigrss,. etc. Amount at which molds, etc., are carried in companies' accounts represents value there of at Dec. 31, 1930 as determ ined by indepen dent appraisal. All new molds or mold re placements are charged to expense. S31939: Includes damages paid re breach of contracts. $299,771. CE SHEETS COMPARATIVE CONSOLIDATED BALANCE SHEET, AS OF DEC. 31 (1941 from report to stockholders; 1935-40 from reports to Securities and Exchange Commission) hand Sc demand deposits___ w ith bks. Sc Insurance cos. asury tax n o t e s _____ . . . . . . .. S. Govt, se c u r itie s____ . . . . . table securities (cost)______ Sc accounts receivable ( n e t ) .. material in v e n to r y ..______ . . . is process Sc fin. g o o d s.._____ sup. Sc repair parts . . . . . _____ _ 1941 $7,470,899 1,000,000 2 .000,000 1,549,950 511,807 10,619.394 5,793,462 13.091,930 1940 $91,,808040,,200080 511.807 7,788308 2,707,133 1 2 , 1 1 1,000 1939 $9.940,939 1.000,000 511,807 6.835.519 2,535,872 11*309,120 1938 $6376,525 1,000,000 511,807 6.194,884 2,542,993 10,439303 1,703.503 1937 $4,174,955 1.000,000 513.680 7.307.726 4.687,613 12,128.229 2.259,419 1936 $9,513*735 1,550,000 512,500 8,205,763 2,377.609 9,461,131 2*108,100 3)1935 $8,169,999 1450,000 209,053 6.469482 1,157.011 9,084.907 1,425463 current assets_____ _____ security in v e s tm e n ts..._____ cash surrender v a lu e., insurance & other deposits., loans, notes Sc accounts rec.in natural gas property ___ _ ijr, plant Sc equipm ent_____ Deprec., depl. Sc am ortization $42,037.441 $4,054,751 " 361471 330,040 1,006,415 81,061.549 35,375,181 $34.002.956 $4,142,378 328,962 326,492 797.382 78,859.579 33.086.0U $32.133.256 $4,078,901 320.000 275,682 785.455 77,270,444 31,000,971 $28*669,214 $3471.627 329.384 397,213 926.097 78*423,835 29*613,979 $32,071,622 $826,723 366.307 403.109 937485 78,782466 28.247,379 $33,728438 $756446 173470 359,980 679,968 888,705 63433486 29.484.664 $28.065*616 $1,076*947 220,469' 220,844 1,666,497 573,829 54476437 27,821*497 property account_____ . . . . . . St patent rights ( n e t ) . . . . . . . Sc goodwill.......... .................. t Sc imp. to leased property. d insurance .............. . taxes, advertising, e t c ....... sup. Sc repair p a r t s . . . . . . . . . . . . 45,686,369 729,568 1 " 143420 601,363 3,081,546 45,773,564 842,290 f 48.548 4161,390 [282,147 1*812,443 46.260.473 946,714 321,880 171,335 329,759 1,719.978 48,809,856 1.035,536 382,901 171,329 364,807 50434.988 1,498*115 1 463.140 191,815 269.045 34.348.860 1,234,482 1 466,673 173.849 164.541 26.455*531 1447*239 1 522469 160460 126*711 LITIES payable ______. . . k' credit balances. Wages _____________ ______ general t a x e s ___ . . . . . . ____ management b o n u s______ _ estim ated Federal taxes____ bond interest . . . . . ________ fund p a y m e n t...__ _________ ^98,032,486 $5,017.507 266,899 1,184.299 359,610 314,125 9,398,785 91,667 1,000,000 88,518,353 $3,045.235 180,042 789,062 363,241 48,644 2.851,951 114.583 1,000.000 $87,337.453 $2,395,738 92,159 757,573 329,467 188*750 2,280,726 137400 1,000,000 $85,057,974 $1,756,876 170,435 622,292 273*679 1,723,939 204,167 $87.562451 $3,393,068 504,649 650,985 258.006 342,192 2489.191 218.750 $72,975412 $3,982.888 93,719 .733,838 232.047 526.958 2*354,788 $60436,766 $1,450,613 95430 468.393 1944U 348410 1*291,036 current liabilities_______ incom e ____ . . . . . . . . . ____ d e b t__ . . . . . . . . . . _______ _ long term debt_____________ for rebuilding furnaces_____ for contingencies__________- incom e ta x r e se r v e ..__ _ . stock j ________________ -- surplus ?._____ ____________ .surplus . . . . . . . . . . . ___ -- $17,632,892 _ $90,000 7,000,000 106,500 1,126,969 161*300 53,200 33,266,050 10,698.150 27,899,424 $8.392,758 $120,000 9,000,000 148.500 1*118,672 160,400 102,737 33.265,050 10,698,150 25.512.286 $7.181.913 $150*000 11.000.000 " ' > 101*500 985,043 151*400 102*738 33,265,050 10,698,150 23,611.660 $4.751487 $180,000 14,000,000 259400 1413.195 237,000 49,538 33,265,050 10*698*150 20*499,153 $7,656441 $460,000 15,000,000 335,833 873,784 115.909 49,538 33,265.050 10.698,150 19.107.155 $7424438 $1.490.000 210,000 795.094 112400 49438 33465.050 10.698.150 18,430443 $3448.794 $2420.000 240,000 710472 94408 40.058 31.180,000 5,600*000 16*102,974 a s s e t s __________________ ACCT.--A N A L Y S I S at cost-----------. . . . . . . . . . . ts or sa le s.______ ____ . . . $98,032,486 $24,404,549 $4,525,403 2,323,433 $88,518,553 $25.610.198' $8,470,170 1*881,040 $87,337.453 $24,951443 $1,814,389 2,967*780 ' $85.057,974 $23,917,827 $4,159,515 4,518,047 $87*562.251 $24,414,781 $19.773*111 4,824468 $72475412* $25,804.600 $13,712,033 4.155.447 $60436.706 $24416.820 $5.193403 3.484438 A E S E R V E --A N A L Y S IS charged to incom e_____ renewals charged to reserve a d d itio n s................... - .............- $3,628,743 1,339,578 $3,548446 1*475,846 3,645 $3,536,402 . 2,140*411 $3,458.225 2,091,625 S2.6T8466 3.956475 40.040 $2474.668 3.117,604 2,406,198 $2.995.091 2*468400 1402.378 rl includes investm ent in O w epsFiberglas Corp. des the assets of Llbbey Glass Manu- Ce; acquired D ec. 31. 1935 (se e N ote iUMarket value: 1941, $645,292. After reserve for doubtful accounts and for claim s and allow ances (1941, $1,290.768). 3]F inished products priced a t standard costs developed by company on basis of normal operations. Work in process carried a t cost* Raw materials and supplies a t cost in 1938 and subsequent years; prior years at lower of cost, or market.