Document 3xz8MeQn4zO1dNQMrROVb153

Cleveland. 14, Ohio OFETATinO ANALYSIS c -p -m d iv is io n s October 1?, 1959 MW OCT* O'959 Mr. Dwight P. Joyce cc: Hr. W. C. Lighter Hr. C. H. Halsey Mr. B. W. Haxey ^ Mr. O. 8. Werner Mr. D. E. Erskine The .fiscal year Just closed vas one of general readjustment so far as the ChemicalPigment-Metals Division 1* concerned. During this period the operations of St. Helena were merged with those of the new Adrian Joyce Works, leaving only the production of Cadmolith colors at the old plant. Around midyear the sale of the White Lead business at Scranton was negotiated and finally conaunated early in June. While sales of C-P-M products during 1959 were off slightly from the year before, there are some bright spots in the picture. In spite of the general recession which caused the metals business at Hammond to fall off considerably and had some effect on Collinsville, we were able to report nice gains from the Baltimore opera tions. While their export sales took a decided drop, the domestic sales were In creased sufficiently to more than offset that loss, especially with the much greater sales to our own paint divisions. A sunrary of sales and gross profit by division follows: Balt.-Domestic " Export Total-Beg. Sales Sales to Pt. Div, Total Balt. SALES IN H t ire* -m y 9,278 8,939 225 V 867 - 2,417 Haraaond-Feg. 2,856 4,668 Scranton-Feg. Collinsv.-Heg. " Sales to Pt. Div. Total Collinsville 515 1,292 S 82 T737S 1,101 1,489 270 177^ * Incr. (Deer.) 44 (744) n. 65.1* 15.* (39.*) (534) (134) (724) (24) QD0S3 PDCFIT IN M * 1958 2,638 77M rM 2,775 288 3,063 838 485 791 59 116 201 244 16 44 ST 253 * Incr. (Deer.) <P (E. U.i T5- (394) (494) (18.*) (64.*) (2?4) TOTAL C-P-M 18,239 ^ 19,751 (84) 4,423 5,096 (134) GLD019321 OEEPAWN0 ANALYSIS C-P-M DIVISIONS 2October 17, 1958 A breakdown of the sales by product which follows clearly points out tbs gain In Zopaque sales at Baltimore. The sales in Cadmolith colors continues to drop as it has since 1950 but at a much slower rate of decline. In recent years this business was railing off at the rate of 3OJt per year and in 195$ the drop diminished to about ll. The gross profit on this product Is being pinched. With lover pro duction and increasing costs to keep the product equal to or better than the com petition, who have strengthened colors without a corresponding increase in price, it Is making it constantly more difficult to maintain the good percentage gross that has been enjoyed In the past. Although Bsunond's detail by individual product Is not summarized below, the reduction in sales dollars exists on all items and ranges from a 12$ drop in Tin Powder to 7^ drop in Copper pigment, with the lead and copper powders averaging about 3 The sales dollars in Hammond were down 39j as Indicated in the above summary, but the actual tonnage or sales volume is down only 26$, shoving that the price reductions in the metal products accounts for a sizeable portion of this decline. Considering the tremendous drop In automobile sales and other products making use of Hammond's goods, tbs 1953 sales decline was practically unavoidable and should pick up Just as quickly as the business of all concerns using their products gains momentum. While the sales of Lithopone at Collinsville have slipped somewhat, sales to our own paint divisions reflects the greatest percentage decline. The regular sales were off only lfcjt in tons snd 13 in dollar sales. The summary of sales by products is as follows: GLD01932? onEFvATIMQ ANALYSIS C-P-H DIVISIONS October 17, 1958 VOLUME IN TONS SAILS - M $_______ GROSS PECFIT-M $ Incr. Incr. Incr. 122 1957 (Deer.) 1958 1957 (Deer.) 1958 1957 (Deer.) ZOPAQUE: 10 & 32 Balt.-Dooestic Export Total Regular Sales to Paint Div. Total Salt. 16,212 m ib,660 7,650 2?73I3 15,211 1,763 is$Jir 4,567 2I&Z 1,001 8,144 (1,315) 225 T3Et) 3,083 3,965 577S? 12733? 7,494 867 B735T 2,387 157758 650 2,421 (642) T ,43667 1,570 T7538 952 3,446 2,492 288 57783 830 y,6io (71) (221) (292) 122 078) CAD. RED: Io 1T32 Balt. -Reg. Sale* to Paint Div. Total Balt. 189 227 (38) 794 1,097 (303) 113 175 (57) 5 155 3 530 2 21 14 (35) 813 I7IH 7 (595) m3 30 173 (57) CAD, YEL: 10 6 32 Balt.-Reg. Sales to Paint Div. Total Balt. 152 156 27 15? T3BS (4) 340 (5) 5 0) 3?3 348 16 38? (8) (n) 99 2 IS) 1ST 108 (9) 5 (3) S3 (15) TOTAL CAD: 10 & 32 Balt.-Reg. Sale# to paint Div. Total Balt. 3*1 383 (42) 1,134 1,445 (3H) 217 233 (66) 7 358 10 m w m 26 T7IE3 30 I7?f3 (4) (3197 5 8 "591 (f(e3)) METAL PROD. 27-gacJoond-Reg. 3,841 5,169 (1,328) 2,856 4,668 (1,813) 485 791 (306) WH. IPAD 8^scranton-Peg. LITH. & TITAN: 35-CollinB.-Reg, Sales to Paint Div, Total Collin*. 1,494 2,972 (1,1*78) 515 1,101 8,650 10,084 (1,434) 1,292 1,489 521 1,829 STITT nfife 82 270 1737? 17759 (585) 59 116 (57) (197) 201 (188) 16 (335) m 244 (43) 44 (28) 83 (71) TOTAL 39,164 41,988 (2,824) 10,239 19,751 (1,512) 4,423 5,096 (673) CLD0193P3 -4- OFERmUG ANALYSIS C-P-M DIVISIONS October 17, 1953 A review of the operating expenses la lined up below by division and excluding Scranton for better comparison between years since the solo of the Scranton plant around the middle of the year would create a slightly distorted picture if included. The suamary by division follows: OFEPATING EXH-'NSE (Excluding Scranton) 1958 Baltimore Less Conn. Tfrs. Balt. Aft. Conn. Tfrs. 621,373 (37,033) 50S34O Collinsville 216,938 Less Ccsu. Tfrs. (166^241) Colls. Aft. Com. Tfr. $0,097 Heunoond 139,377 1957 637,659 (43,355) sihWi 194,076 (200,764) 133,912 Incr. (Deer.) (16,206) (6,322) 22,862 w 5,465 > To Feg. Sales fesr ' 1957' 4.55 .27 1.59 1.22 "^7 1.02 3.99 .27 T72 1.22 1.26 rw) .84 TOTAL OPEP. EXP. APT. CCKM. TFPS. 774,414 721,523 52,866 5.67 4.52 Because of the combination of increased sales effort and reduced sales volume, parti cularly at Hanoond and Collinsville, it is only natural that the ratio of operating expenses to net sales should increase. The following breakdown of the operating expenses will indicate the particular items that have increased to the greatest extent: CLD0193 24 OPENATIMQ ANALYSIS ' C-P-M DIVISIONS -5October 17, 1958 (Excluding Scranton) Sales. Sal. A Conn. Salesmens' Exp. Other Terr. Chgs. Net After Cotas. Tfrs. Office Sal. A Loc. Adra. Adv. Local Cash Discount Prntg. A Stat. Sales Dev. Ltrs. AH Other Exp. Expenditures 1938 1957 194,288 99,208 143,950 69,991 24,389 145,009 53,842 91,915 5,930 20,199 139,634 20,248 129,844 56,653 89,129 9,424 17,956 184,333 $ Incr. (Deer.) * Incr. (Deer.) iW ~mrft to Beg. Sales ... 50,338 29,217 35-0 41.7 1.42 .73 .90 .44 4,141 15,165 (2,811) 2,706 (3,494) 2,243 (44,699) 20.5 11.7 (5-0) 3.1 (37.1) 12.5 (24.2) .18 1.06 .40 07 .04 .15 1.02 .13 .82 .35 .56 .06 .n 1.15 TOTAL 774,414 7a, 528 52,886 70 5.67 4.52 By noting the increase in the 1958 per cent to sales over the last year ratio, it can be eeen Just where the greatest drive vu made, with Salesmens' Salary and Cocciesion taking the largest bite, sod the Salesmens' Expense a close second. Apparently even greater efforts in this direction will be needed before really worthwhile results can be expected. Considering the various changes made during 1953 with the shifting to new facilities sad & stepped-up selling program the results were not too bad. I believe last year can be looked upon as the rock bottom springboard from which every division should be able to take off and show tremendous progress and gains throughout the current year. The month of September just closed already gives an indication that this is about to take place. HAC:lds H. A. CBCWL GLD019325