Document 4aJrm9LeeMoKYgakMRLZEoXae

FILE NAME: Eagle-Picher (EP) DATE: 1981 DOC#: EP022 DOCUMENT DESCRIPTION: Moody's Industrial Manual - EP Entry Rc . n e 1981 VOL. 1 A-I MOODY'S INDUSTRIAL MANUAL COVERING NEW YORK, AMERICAN & REGIONAL STOCK EXCHANGES & INTERNATIONAL COMPANIES w il l ia m O. DWYER, Publisher HOWARD G. KIEDAISCH, Ass'i Publisher L. JOSEPH ROGERS, C.en, Manager ROBERT P. HANSON, Editor-iu-Chief Editorial Board ROBERT W. BURKE BRIAN T. COEFEY ALFRED C. ELLINGHAM HAROLD 1L GOLDBERG ALVIN E. GOUVIA JOHN J. IERAC1 BERN.' DIANE R. KRl ' TZ J OSEPH R. LEIGH WILLIAM IE MOORE WILLIAM M. PACCIONE FRANK It PI. AT ARI ) I E MI CHAEL A. R U m i A c . sc.l'.R L JR Moody's Investors Service n15n a company of The Dun & Bradstrcct Corporation SEE FOLLOWING PAGE FOR C O V P . L U lST o : Copyright ($' 1981 In m O ( ) o y s i n v k s i ()Rs s i :ii\ k :k . i \ c n *u All rights reserved. 1092 MOODY' AU STRIAL MANUAL EAGLE-PICHER INDUSTRIES, INC. C A P IT A L S TR U C TU R E Time* LONGTERM DEBT Issue 1. Various notes and leases payable Kating Amount Outstanding $83,555,952 Charges Earned 1980 1979 8.25 12.74 Interest Dates Call Prie [Price Range 1980 1979 W . CAPITAL STOCK Par Amount Earned per Sh. Diva, per Sh. Call QiPrice Range Issue Value Outstanding 1980 1979 1980 1979 Price 1980 1979 1. $1.40 conv. pref., Series A .............................. No par 14.430 shs.) $360.98 $419.52 $1.40 l$1.40 2. $1.40 conv. pref., Series .............................. No par 44,771 shs. ( 1.40 I 1.40 3. C om m on .............................................................. $1.25 [<19,714,697 shs. [32.14 1.07 0.90 0.86 23%- 14% 25%- [See text. Based on avg. shs. as rci.ortrd by Co. For other per share data, see "StatisticalRecord' below. [Calendar y e an . [[Year end abarca outstanding. H IS T O R Y In corfp orated in Ohi< >, Jan. 10, 1867, a E a g le W hite I-reatl C o.. w h u h w as foun d ed in 1843. O n June !, 1916, m erged the Richer Lead Co. and nam e changed to Kagle-Picher Lead Co.: nam e changed to K agle-Picher Co. M ar. 27, 1945; a n d p resen t title a d op ted M ar. 22, 1966. O n D ec. 28, 1938 K agle-Picher M in in g At S m eltin g Co. acq u ired C om m erce M ining At R o y a lty Co. for $5,000,000 cash and $4,750^000 payable from earnings of newly-acquired p rop erties o n b a sis of 60% of each y e a r 's o p erating profits. I n 1952, a c q u ir e d a t c o st of $8^000,000 e n tir e com m on stock, of O hio R u b b e r Co., now o p e r ated as a division. In . 1954, com p any acquired at a cost of $9,900,000 entire com m on stock of Fabricon Products, Inc., now operated as a division. In M ay 1955, com p any purchased W ilson & H op p e Elastics, Cal.; m anufacturer of lam i nated products. In N o v ., 1956, acquired Chicago Vitreous Corp. and affiliate Lusterlite Corp., now oper ated as divisions. Lusterlite Corp. w as subse quently dissolved. In J u ly 1964, acquired A kron Standard M old Co. now operated as a division. In Oct. 1964, acquired, for cash, D avis Wire Corp. In Oct. 1965, acquired Prem ier Rubber M anufacturing Co., now operated as a divi sion. In Oct. 1967, acquired W olverine Fabricat in g At M fg. Co. for 109,031 com m on sh s., n ow operated as a division. In N o v . 1967, acquired M arkey Bronze Corp. for 136,362 sh s. qf $1.35 series B conv. pfd. (now Bearings D ivision). In N o v . 1968, acquired Cincinnati Cleaning At F in ish in g M ach in ery Co. (n a m e su b s e quently changed to Cincinnati Industrial M a chinery Co.) lor cash, now operated as a d ivi sion. In D ec. 1968, acquired Union Steel Products Co. for 205,719 sh a ies of $1.40 series C con vertible preferred stock, now operated as a di vision. In N o v . 1969, acquired R osa P attern At Foundry, Inc. (now R oss Aluminum F ound ries). a a In N o v . 1971 acquired A .D . W eiss L ith o graph Co., Inc., H ollyw ood, Fla., printer of m agazines, catalogues and other com mercial publications, for cash. - In D ec. 1971 acquired H illsd a le T o o l At M anufacturing Co. and associated com pany, D a isy Parts, Inc. for a m axim um of 162,750 com mon shares. # # In M ay 1972, disposed of the D avis Wire Corp. for $24,500,000 cash. In M ar. 1973 acquired J o h n so n Mffj. Co. for ca sh (n o w C on s.ttrruuccttion E q u i.p m en t d iv isio n ). . In Apr., 1973 acquired Plas-C hem . Corp. for com m on shares. In Ju n e, 1973 acquired F aulkner C oncrete Pipe Co. for cash. In O ct. 1976 acquired Elm ac Corp. for cash. Also acquired Pritchett Engineering and M a chine, Inc. for cash. In Jan. 1980 acquiied Agri-Sul, Inc. (now included in Agricultural Chem icals D ivision). In Feb. 1980, acquired N uclear Ceram ics, Inc., Am erican Furnace Co. and U.S. N uclear, Inc. (now included in Specialty M aterials d ivi sion). S U B S ID IA R IE S . . O w ns entire capital stock or m ajority in ter est of follow ing com panies: C hicago V itreous (C an ad a) L td., (C an ad a) C o n so lid ated In d u stria l E q u ip m e n t C o., In (D el.) . Canadian Eagle-Picher Industries Ltd. (Cana da) A.D. W eiss Lithograph Co., Inc., (F la.) H illsdale T ool and M anufacturing Co.. (M ich.) . D aisy Parts, Inc., (M ich.) Faulkner Concrete Pipe Co., (F la.) EPI International, Inc. (Ohio) D ieh l At E ag le-P ich er G m bH (W . G erm an y) O rcom atic G um m i-Spezialleite GmbH (W. G erm any) O hio Rubber Co. Premier Rubber M anufacturing Co. Pritchett E n g in eerin g At M ach in e Inc. W olverine Fabricating Co. B U S IN E S S A N D P R O D U C T S Eagle-Picher Industries m anufactures a wide variety of specialized products that are prim arily sold in industrial m arkets w orld wide thru 3 nroduct itrouos: Industrial Group: T his group is com posed of those operations which m anufacture or process basic m aterials or chem icals for internal m anufacturing and for sale and distribution to other various man* ufacturers. P$ rim o diuuLcitas iiiniu c luuu dc eu d $i1n$ tuhuiss g r o u p ua rce a g r ic u b tural m icronutrients such as com pounds of zinc, copper, m anganese and other m inerals which replace trace elem ents in soil that has been depleted and anim al feed m inerals used a s additions to feed su p p lem en ts w hich Increase nutritional value. A lso produces a pulled free flow ing water degradable sulphur com pound. K agle-Picher is also a leading producer of d i`a to m a ceo u s earth'. p. r. o.d.u c. t.s, w h..i..c..h....a...r..e...u...s..e..d. in filtration, as a soil conditioner, industrial absorbent, as a catalyst carrier and a s a filler in paint, paper and polishes. Other specialty products include porcelain enam el frit for m ajor appliances; new applica tions include frit form ulas used in the continu ous cast steel process and as welding fluxes and boron frit used in cem ent to shield nuclear devices. C oncrete pipe products are m anufactured in sizes ranging from 4 in ch es to 108 inches in diam eter for use in sanitary sew age, storm drainage and pollution control projects. Lead chem icals produced by Com pany are used as stabilizers in vinyl wire, in lubricants, crystal and glass, tire m anufacturing, in ce ramic tile an d optical glass.( In d u strial in su la tio n s p rim arily are u se d In construction of power and chem ical process ing facilities. E agle- Picher recently introduced an asbestos-free m olded pipe covering which co m p lie s w ith strict^ g o v ern m en t regu lation s prohibiting a sb esto s in con stru ction m aterials. O perations also include protective coatings for use where corrosion is a serious problem . U ses include off-shore drilling platform s, bridges and com m ercial buildings. Com pany also m anufactures printed pack aging m aterials for the foods and confection ary products industries and low pressure dec orated lam inates used in all ty p es of com m er cial construction. Eagle-Picher produces high-purity germ a nium and gallium (u p to 99.99999% pure) for sem i-conductors, m edical instrum entation and infra-red optics. C om pany is the only m anufacturer in the W estern H em isphere that separates and refines the B oron 10 iso to p e w hich U the m ost efficient m aterial available for use as control rods in nuclear reactors. Com pany m anufactures reinforced m olded products and sem i-pneum atic tires for general industrial uses. Also custom designed, cast and injection m olded polyurethane parts for autom otive oil drilling and other general in dustrial uses. , T he Orcom atic D ivision m akes precision m olded rubber products for the plumbing and construction m arkets. a Other activities are printing and publishing of controlled circulation publications such as m edical journals and periodicals serving the Southeastern United States and Central A m erica. Machinery Group: Products in this group com prise capital goods m anufactured by C om pany or parts which are sold to other capital good s produc ers for incorporation into their products. Included is a wide range of m achinery and equipm ent such as drum s and m olds used in the tire building and testing industry. C onver sion to the radial tire has required develop m ent of more sophisticated equipm ent which Eagle-Picher produces. K__aig l..e..-..P....i.c...h...e..r....i..s....t..h e so le su p p lier t o th e C at erpillar Tractor Co. of tw o m odels of elevating scrap ers, the 613, an 11 cu b ic y a r d scrap er a n a the 623, a 22 cubic yard unit. B oth o f these units utilize an Eagle-Picher patented hydrau lic drive system . M etal preparation and finishing m achinery for high volum e industrial applications are a lso am o n g th e C o m p a n y 's p ro d u cts. C o m p a ny engineered and developed a line of can cleaning m achinery capable of processing up to 3000 cans per m inute which fs particularly suited for processing the lightw eight tw o-piece can which is being adapted by can food and beverage manufacturers. N on-ferrous (alum inum , bronze and brass) castings, bushings an d bearings are used in a wide range of industrial applications serving both the original equipm ent and replacem ent m ark ets. , Eagle-Picher m anufactures a com plete line of special purpose batteries. T hese include m agnesium perchlorate, lithium , nickle-cad- mium. thermal water activated and silver- sine, nickel-hydrogen and lead-add (Care free ) m aintenance free batteries. D esign and m anufacture of proto-type electric vehicle pow ered by a nickel-iron system . Im portant applications are power system s for defense ana aerospace projects. rAulasuo uIn* tuhuias g riw ouuw p m a rre vcuoumi|#pu4$te4r m c aobtinuektu r/y.. steel shelving for the appliance industry and m aterials handling equipment^ particularly w oven wire containers which utilize a patented design and are m arketed under the trade nam e "Palletainers". T h is group also m anufactures m achinery, parts and equipm ent for the underground coal m ining and hard rock m ining industry. T h e group has widely diverse capabilities for p recision m achining And fabricating ca st ings, forgings and bar stock for the oil drilling and steefp ip e m ill Industrie*. Eagle-Picher produces high quality, precisio n a l`u m i`n `iu m c a st"in g skw1 h ich are u sed for s variety of com ponent parts by m achinery m anufacturers; defense and aircraft indus tries. A utom otive Group; T h is group contains operations which m an ufacture original equipm ent and replacem ent parts for passenger cars, trucks, buses, air craft and railroads. C om pany's "O rcom atic" m olded precision rubber products utilize a patented process that can m old single parts to precise toleranc es in quantities of m illions. "O rthane" is a form ulated proprietary polyurethane com pound which com bines the elasticity of rubber and the hardness of plastic and is used as a substitute for both m aterials. Present applications cover products from watchbands to truck brake diaphragm s. Eagle-Picher also produces engineered coat ed m etals. Steel or alum inum is continuously costed with an elastom eric com pound. T his p rod u ct Is id eal for h igh torq u e, extrem e tem perature and high com pression applications in the autom otive, refrigeration, and air-condi tioning industries. C om pany m anufactures elastom eric hose - -- w h ich in v o lv e s a p a ten ted h o se building m eth od capable of withstanding higher engine op eratin g tem p era tu res In th e em issio n con trol heating and air conditioning system s. , V ib ration dt a--m-- p-e-n---intg* .d e v. .ic--e s a- -r-e b ecom i,n--g Increasingly Im portant .in the autom otive in dustTM . T hese are engineered and m anufactured b y the Com pany. Increasingly Im portant as a feature of new* er m odels, the com pany m anufactures predsion alum inium castings, which by exam ple, are used as Impellers in turbochargers. Other products included in this group are rubber windshield wiper blades principally for the replacem ent m arket, original equipm ent floor m ats, reinforced m olded fiberglass parts and insulating m aterials. Net S a les A Inc o m e, B y P ro d u ct G ro u p (in $000); r [Hindu atrial: 1980 1979 1978 Net s a le s ............ $200,972 $197,655 $177400 Income bef. taxes 15,925 18.313 16.900 Machinery: Net sales ............ 219,787 236,551 187,700 Income bef. taxes 16,116 21459 15.000 Automotive: N e t ta le ............ 122.538 155.812 161400 Income bef. taxes 4,657 14.632 19400 --r -- * of divestitures and discontinued operations, PRINCIPAL PLANTS AND PROPERTIES Agricultural Chem icals Division: Cedartown, Ga.; Fairbury. N eb.; M ineola, T ex. A k ron S ta n d a rd Co.: A k ron At G reen w ich , O 4 C orin th , Misa.*vC u y a h o g a F alla, O . Chem icals and F ibers D ivision: Joplin, M o.: H illsb o ro , I1L; S"t. L ou is, M o.; J a ck so n v ille, Fla. C h i-V it C orporation: O ak B rook , HL; U rb an *, Ohio; Leesburg, Ala.: O ntario. C incinnati Industrial M achinery Go; Sharon villa, O. C onsolidated Ind. E q. Co.: Picher, Okl*.; BIx- b y At J o p lin , M o . ,, E lectro n ics Envision: J o p lin . S en eca At S tella , M o.; C olorado Springs, Col.: Socorro, N J f . Elm ac Corp.: Beckley. W .Va.; Rich Creek. Va.; W hitesburg, K y.; M edina, O.; Carlsbad, N .M .; M arion . 111., L o g a n an d W esto v er, W .Va.. P ikeviile, K y., Price, Utah. Rich- lands, V a. __ , , Fabricon A utom otive Products D ivision: R iv er R ouge, and K alkaska, M ich. Fabricon Products D ivision: R iver R ouge, Mich.; Philadelphia. Pa. . _,, F aulkner C oncrete P ipe Co.: 7 plan ts in M iss. At A la. MOODTS INDUSTRIAL MANUAL 1093 H illsd ale T o o ! an d M anufacturing Co.: H ills dale & Jon esville, M ich. ... Construction E quipm ent division: Lubbock. T exas. Lam in-Art: L os A ngeles, Cal. , Bearings division: Lim a, Cleveland, Delta, M ansfield & H u d so n , O.; S o u th San Frand sc o , S an F ran cisco & L os A ngeles, Calif.; S__o_u__th__B_-_e_n_d_t_. _rI_"n_.d_._.,,__N__e_w--. B. r.u n sw. i.c.k ,.. N .JJt.., ,Atlanta. G a., M ad ison H eights, Mich.; th ic a - g o . 111.: T o le d o , O h io . M in erals D iv isio n ; O a r k , L o v e lo c k <k R en o , N ev. T he O hio Rubber Com pany: W illoughby, Ohio; C on n eau tville, Pa.: S u m m erville, S.C.; D enton, Texas; Elkhart, Ind. O rcom atic D ivision: Stratford & N orw ich. Conn. P lastics D ivision : G rabill, Ind. Ashley Ind. T h e P rem ier R u bber M an u factu rin g Co.: D a y to n O hio; P a ris. IU.; L en oir C ity , T e n n . P ritch ett E n g in eerin g 6c M ach in e. Inc.: H o u s ton, Tex. R o ss A lu m in u m F o u n d ries: S id n e y 6c A von . O hio. . S p ecialty M aterials D ivision : Q u ap aw 6t M i am i, Okla.; O ak R idge, T enn. Union Steel P roducts Co.: Albion, M ien, and Elisabethtown, K y. _ ^ A.D. Wei* L ithograph Co.: H o lly w o o d . Fla. W olverine Fabricating and M anufacturing Co.: Inkster, M ich. & B lacksburg, V a.; Lee*- burg FT*- . ^ MANAQEMENT O fficers W .D . A tteberry, Chmn.'Si Chief E xec. Off. T .E . P e tr y , P resid en t 8t C hief O per. Off. T.W. P ain ter, E xec. V ice-P res. R .R .. iA x elso n , "E xec. V ice-P resi.d en t . P ow ers, feenior Vice-Pres. \V .A .^ u h re, Senior Vice-Jres. jJr..MMnr. HD iundesso. nC,rGoruopuVpicVeicPe-rPe sriedseidnet n t J.W . P atterson .jr., V ice-President UJ.RA. N a ll, V ice-P resid en t T.G. B aird, V ice-P res. W .A . S! u h re, Jr., V ice-P res. & G en. C ou n sel D .N . H all, Vice-Pre*. & Treas. C. S. D autel, Vice-Pre*. & Secretary D. W . M a tth ew s, A s s't S ecretary J .E . A dam , A s s't T r ea s. c . D .Cr u rless, A* ss`'t C~ ontroller D irectors (Show ing Principal Corporate Affiliations) W illiam D. A tteberry, C hm n. o f Bd. and C hief E xec. Off., Eagle-Picher Industries, Inc. Robert R. A xelson, E x e c . V ice-P r es., E a g lePicher Industries, Inc. C harts* M. B arrett, P res., W estern & S ou th ern Life Ins. Co. 8anford M. B rooke, C hm n. o f B d. and C hief Exec. Off., X tek , Inc. Paul W . Christensen, Jr., C hm n. o f B d.. C incin nati Gear Co. V. Anderson Coom bs, P res., W m . P ow ell Co. Jefferson W. Hudson, G ro u p V ice-P res., E a gle-P icher In d u stries, Inc. W iekllffe Jones, P re s ., R .A . J o n e s & C o., In c . Daniel W. LeBlond, C h m n . o f B d. a n d P re s ., L eB lond Inc. Chartes S. M echem . Jr., C h m n . o f B d . a n d C hief E xec. O ff., T a ft B ro ad castin g Co. Paul A. Miller, V ic e -C h m n . o f B d., C a r d in a l A m erican C orp. John W. Painter, E x ec. V ic e-P re s., E a g le P icher In d u stries. Inc. T h om as E. P etry, P r e s i d e n t & C h ie f O p e r . O f ficer, E ag le-P ich er In d u stries. Sidney J. W einberg, Jr., G e n e ra l P a r tn e r , G oldm an, Sachs & Co. Annual Meeting: F o u r th T u e s d a y in M a rc h . Shareholder Relations: J .R . N a ll, V ic e-P re s. & M g r. F in a n c ia l R e la tio n s . Tel.: (5 1 3)721-7010. D irector Meetings: F ir s t W ed . of F e b ., M a y , Aug. an d N ov. Auditors: P e a t, M a rw ic k , M itc h ell & C o. No. of Stockholders: N o v . 30, 1980: P re fe rre d , 160; c o m m o n , 10,069. No. of Employees: N o v . 30, 1980, 9,400. General Office: P .O , Box 779, C in c in n a ti, O il 45201. Tel.: (513)721-7010. INCOME ACCOUNTS CO M PA R A TIV E C O N SO L ID A T E D IN C O M E A C C O U N T , Y E A R S E N D E D N O V . 30 Net sa le s........ Other incom e. 1980 $43,297 1,592 1979 590,018 1,401 Total income . . . . . . . . . . Manufacturing costa . . . . . Selling and adm. expenses Interest ex p en se................. $44.890 449,043 $4.087 5,063 591,419 481.375 51.113 4,627 Tots! expenses . . . Income before ta x es. Income ta x e s............. $08,193 36,697 15.400 537.114 54,304 23.600 previous retained earnings. Preference dividends p ! . . Common dividends paio . . . Other d eb its.......... ................ 21,297 185,249 91 8.782 30,704 163,147 117 , 8.485 Retained earnings. N ov. JO . . . . . . . . . . 197,673 R eclassified to conform to 1979 presentation. 185,249 Statem ent o f Changes In Financial Position (In 8000): Source of Fund*: Net Incom e................ Deprec. and amort. . . I960 21,298 20,364 1979 30,704 18,864 Deferred taxes and other....................... 3,661 2.347 Issuance of long term obligations.. 28,028 7,800 Disposals of property, plant & equip...................... Issuance of com. s h a r e s .................... Total .................. Disposition of Funds: D iv id en d s.................. Additions to prop., p it and equip. . . . [31978 526,497 677 527,175 425,373 46,181 4,516 476,070 51.104 23,300 27,804 143,173 199 7,631 163,147 1,865 339 75,555 8,873 39,689 197/ 474,039 1,326 475,365 382,610 41.688 3,764 428,062 47,303 21,300 26,003 124,167 288 6.709 1976 400,315 2,046 402,361 322,327 36,494 2.480 361,301 41,060 19,000 22,060 108,107 441 5,558 143,173 124,167 2,924 301 62,940 8,602 R eductions of long term obligations . . Purchase of treasury s h a r e s ...................... O t h e r ............................ Total 36,203 Incr. in w ork, c ap ita !. 1975 .147,081 1,601 348,682 278,575 31,718 3,306 313,599 35.083 16,400 18,683 101,179 475 4,862 6,419 108,107 3.564 2.865 1,217 56,209 19,346 1974 367,294 1,079 368,373 298,600 31,266 3,778 333,643 34,730 16,700 18,030 88,194 485 4,512 47 101,179 4,688 3,569 1,110 54.172 R ecord o f Earning*, years ended Nev. 30 ( I n t i Cost and Oth. Inc. & Inc. Bef. Year Net Sales Expenses Balance Ded.(Net) Taxes 1961. 109,895 ' 105,173 4,722 111 4.833 1962. 116,006 109*350 6,656 88 6,744 1963. 116,184 110,013 6,171 520 6,691 1964. 130,674 123*265 7,409 202 7,611 1965. 164,156 154,653 9,503 175 9.678 1966. 170,914 159,089 11,825 533 12,358 1967. 179,420 165,212 14.208 502 14,710 1968 200,220 182,616 17,604 239 17,843 1969 226,94$ 206,351 20,594 483 21.077 1970 227,689 210*298 17,391 1,431 18,822 1971 227,756 210,978 16,778 1,385 18,163 1972 255.943 235.611 20,332 1,805 22,137 312,990 286,885 26,105 2,261 28,366 1973 1974................ j3u67i ,294 333,643 33,651 1,--079' 34,730 {Adjusted fon 2-for-l spUt in 1968; 10% stock dividend in 1975; 2-for-l1 split in 1977. Incom e Taxes 2,150 3.300 3,115 3.300 3,900 5.000 6,100 7,800 10,100 8.700 8.000 10.300 13,600 16.700 Net Incom e 2,683 3,444 3,576 4,311 5,778 7,358 8.610 10,043 10,977 10,122 10,163 11,837 14,766 18,030 Common D ividends 2,469 2,448 2.436 2,410 2,398 2,718 2,833 3,348 3,491 3,626 3,920 4,102 4,224 4,512 )Com. Shs. O u tstan d . 9,075,352 8.923,187 8,892.818 8.723,678 8,977,417 8.795,477 9.196,462 9.567,758 9,698,755 9,684,990 9.790.000 9.590.000 9.574.000 9.464.000 [jjEarn. Per Com. Sh. 0.30 0.39 0.40 0.48 0.60 0.80 0.88 0.99 1.08 1.00 0.99 1.18 1.49 1.85 balance sh eets oSETS: & short u-i i investment* ceivables, net ....................... jJInventorie*............. Prepaid expense*......... .. COM PARATIVE CO NSO LIDATED BALANCE SH EET. AS OF 1980 19,000 78,770 94,484 7,128 (In th o u san d s of dollar) 1979 1978 4,680 10,097 74,041 72,156 105,997 5.151 88,687 4.066 1977 11,911 62,516 78,437 3,118 Total currant m e t * ........ (TJPlm & equipm ent................ Depredation, depletion, etc.. . . 199.382 278,842 124,079 189.869 250,778 114.275 175,000 221,805 100,466 155.982 203.517 87,111 Net property................................. Patents, at coat--lea* a m o r t......... Other aaaet*............ : ..................... Excess coat of aaaet* seq.............. 154,763 823 3,776 > 6.792 136,503 851 2,994 7,128 121,339 1,263 1.884 7.465 116,406 1,538 1,018 7,801 T o ta l.......... .. LIABILITIES: AcoaunK pajtmO Accrued habil!#*: k 365,536 30/ 22,i 337,345 35,421 73,476 306.957 30.441 20,863 282,746 25,749 20.624 NO V. 30 1976 11,520 55.510 76,396 3.780 147,215 178,361 82,091 96,270 1,814 1,270 8,529 255,099 27,424 16,522 1975 26,382 44.623 56,237 3.897 131,139 151.343 73.910 77,433 2,088 1.331 6,700 218,692 18,816 12,843 1974 10,121 46,360 68,951 3.605 129.037 142.075 70,087 71,988 2,364 2,176 6,948 212,512 23,740 13,250 1094 MOODY'S INDUST L MANUAL B A L A N C E S H E E T S ( C o n t 'd ): Incom e t a x ................................. . .......................... L o n g -term d e b t (c u rre n t p o r tio n ) .................. 1980 4,026 3,516 1979 7,989 3,461 2)1978 10,496 2,453 1977 9,551 2.460 1976 10.926 6,599 1975 7.614 2,745 1974 6,968 2.695 T o ta l c u r r e n t liab ilities ......................... L ong term d e b t ..................................................... E m p lo y ee b e n e f its .............................................. D eferred F e d e ra l incom e t a x e s ...................... $1.40 A conv. p ref. sto ck (n o p a r ) ........... ] $1.35 B co n v . pref. sto ck (n o p a r ) ........... $1.40 C conv. pref. sto ck (n o p a r ) ........... j A ddit. paid -in c a p i ta l.......................................... R etained e a r n in g s ................................................ 60,515 80,040 3,290 11,307 1,954 12,500 4,268 197,673 70,347 55,576 4,098 6.839 2,415 12,500 4,306 185,249 64,252 52,464 3,199 5,390 3,430 12,500 4.767 163,147 58,384 54.970 3,005 1,069 5,688 12,500 5,425 143,172 61.471 40,840 3,436 828 549 3,288 5,806 2,344 4,888 124,167 42,017 41,518 3,108 281 554 4,417 6.131 12,344 5,317 108,107 46,654 42,865 3,595 73 600 4.500 6,470 11,275 101,179 L ess: T r e a s u ry s t o c k ..................................... 216,395 6,011 204,471 J.985 163,644 2,193 166,985 1,669 151,043 2^19 136,670 5,102 124,023 5,597 N e t s to ck h o ld ers' e q u ity . . . . ; .......................... 210,384 200,485 161,651 165,297 148,523 131,768 118,426 N et c u rre n t e m e e ts ............... ........................... 36S.536 138.667 337,345 119,522 306,957 110,754 282,746 97,598 253,099 85,744 218,692 69,122 212.512 82,383 See general note (b) below. S h a re s: 1980, 285,303; 1979, 178,772; 1978,99,709; 1977,87,585; 1976, 90,953; 1975, 190,054; 1974, 208,216. P a r: 1980-77, $1.25; 1976 & p rio r, $2.50. 1980 Comprises: (in th o u san d s) Book Value L a n d ............................... $12,043 B u ild in g s ...................... 64.998 M ach. & e q u ip ...................... 188,138 C onstr. in p ro g ............. =. 13,664 R eserves $3,028 24,459 96,593 ........... T o ta l .................... $278,843 $124,080 R e p re s e n te d by: 1980, 14,430; 1979, 15,455; 1978, 16,230; 1977, 16,335; 1976, 16,635; I97S, 16,777; 1974, 18,177 sh ares. R e p re s e n te d by: 1980 77. nil; 1976, 99,646; 1975, 133,862; 1974-72, 136,362 sh ares. R e p re s e n te d by: 1980, 44.771; 1979, 57,735; 1978, 87,696; 1977, 162,091; 1976. 175,931; 1975, 185,775; 1974, 196,058 sh ares. : , R eclassified to conform to 1979 p re sen ta tio n . (b ) Inventories are valued at the lower of cost or m arket. T he last-in first-out (L IF O ) m ethod was used for approxim ately 70% of the N ovem b er 30, 1980 inventory and 25% of the N ovem b er 30, 1979 in ven tory. T h e re m ainder of the inventory w as valued b y the standard or average cost m ethod. T he Com pany's extension of the use of the LIFO m ethod of inventory valuation to a sub sta n tia lly larger p o rtio n o f its in v e n to r y In 1980 had the effect of reducing net incom e per sh are b y 27 cents. If inventory values were show n at standard or average costs, which approxim ate current costs, rather than at LIFO values, inventories w ould have been $9,793,000 and $5,452,000 higher than reported a t N ov em b er 30, 1980 and 1979 respectively. \ (c) Depreciation is calculated principally on the Btraight-line m ethod based upon estim ated econom ic lives of the assets. W hile accelerated m ethods are used for tax purposes, tax lives General Note are generally longer, so both m eth od s result in ( a ) C o n s o l i d a t e d f in a n c ia l s t a t e m e n t s i na b o u t th e sa m e d ep recia tio n . c lu d e t h e a c c o u n t s o f a ll o f t h e C o .'s s u b s i d i a r (d ) C o st in E x c e ss o f N e t A s se ts A cq u ired ies. In te r-c o m p a n y a c c o u n ts a n d tra n s a c tio n s am ounts are being am ortized over an average a re elim inated. of 25 years. (e) Income Taxes: Although no taxes are currently payable on the undistributed earn ings of the Com pany's D IS C , a provision for such taxes has been made. Deferred taxes are provided for items included in the statement of income which are reported for income tax iiu rp o ses In p erio d s differen t inancial statem ent purposes. from those for A uditor's R eport . T he follow ing is an excerpt from the Report of Independent Auditors, Peat, M arwick. M itchell $kC o., a s it ap p eared In 1980 A nnual Report. "In our opinion, the aforem entioned finan cial statem ents present fairly the financial po sition o f Eagle-Picher Industries, Inc. and su b sid ia ries a t N o v e m b e r 30, 1980 a n d 1979 and the results of their operations and the changes in their financial position for the years then ended, in conform ity with general ly accepted accounting principles which, ex cept for the change in 1980, with which we concur, in the m ethod o f valuing inventories as described in the notes to the financial state m ents, have been applied on a consistent ba sis." S T A T IS T IC A L R E C O R D , F IS C A L Y EA R S 1980 E a rn e d p e r sh are -- p re fe re n c e ........................ $360.98 Earned per share--Common: Y e ar e n d ............................................................. $2.19 A verage ............................................................. $2.16 Fully d i l u t e d ..................................................... $2.14 QiDivs. p aid p e r s h a re --$1.40 pref. A ........... $1.40 --$1.35 pref. B ................................................... --$1.40 p ref. C ................................................... ........... $1.40 -- c o m m o n ......................................................... $0.90 P ric e ran g e-- c o m m o n ................................... 23% -14B/g Times charges earned: Before incom e t a x e s ........................................ 8.25 A fter incom e t a x e s .......................................... 5.21 N et tang, assets per sh.--pref $3,425.10 . . N e t tang , a sse ts p e r s h .--c o m m o n $20.67 N e t tang , a sse ts p e r $1,000 Ig. tm . d e b t . . . . $3,533 N e t c u rr. a sse ts p e r $1,000 Ig. tm . d e b t . : . . . $1,735 N u m b e r of sh a re s --$1.40 pref. A .................. 14,430 --$1.35 p ref. B .................................................. ........... --$1.40 pref. C .................... 44,771 -- Y ear en d co m .................. 9,714,697 -- av erag e c o m m o n ........................................ 9,967,871 1979 $419.52 $3.11 $3.07 $3.03 $1.40 $1.40 $0.86 25%-19>/, 12.74 7.64 $2,627.00 $19.36 $4,464 $1,699 15,455 57,735 9.821,228 9,999,000 1978 8267.54 82.79 82.76 $2.70 $1.40 81.40 $0.77 2S>/,-16 12.32 7.16 $1,663.90 $17.12 84.297 $2,089 16,230 87,696 9.900,291 10.059,000 1977 8145.74 $2.59 82.57 82.49 ' 81.40 81.35 81.40 B 8 0 .8 5 (322-17% 13.57 7.91 8874.07 815.14 83.837 81.775 16,335 99,646 162,091 9,912,415 10,022,000 1976 875.49 84.38 84.45 84.23 81.40 SUS 81.40 81.16 40% -25% 17.5 9.90 8472.87 826.03 84.383 82,100 16,635 99,646 175,932 4,937,722 / 4,562,000 1975 855.54 $3.69 ` $3.81 83.61 $1.40 $1.35 81.40 381.04 26% -14% 11.61 6.65 $365.56 $22.66 83,962 82,159 16,777 133.862 185,775 4,937,722 . 4,786,000 1974 $5t.43 $4.08 $4.09 $3.89 $1.40 $1.35 $1.40 $1.04 22Vrt3 10.19 5.77 $311.23 $ 22.68 $3,546 $1,922 18,177 136,362 196,058 4,301,594 4,293,000 Adjusted d a ta fo r s to c k s p lit a n d s to c k d iv id e n d s : Earned per share-- common: Y ear-en d s h a r e s .............................................. $2.19 A verage s h a r e s ................................................ $2.16 Fully d i l u t e d ..................................................... $2.14 P ric e range-- c o m m o n ................................... 23*/4-14/8 N e t tangible a ss e ts p e r com m o n s h ................ $20.67 Num ber of common shares: Year en d ........................................................ 9,714,697 A v era g e........................................................ 9,875,024 F u lly d i l u t e d ..................................................... 9,967,871 C alendar years. A lso paid 10% stk. div. A fter 2-for- Financial 8i Operating Ratios: C u rre n t a sse ts -r C u rre n t lia b ilitie s ................ % C ash & secu rities to c u rre n t a s s e ts ........... % In v e n to ries to c u rre n t a s s e ts ...................... % N e t c u rre n t a ss e ts to n e t w o r t h ................ % P ro p e rty d e p r e c i a te d ................................... % A nnual depr., etc. to gross p roperty . . . . C apitalization: % long te rm d e b t ............................................ % p re fe rred s to c k ............................................ % c o m m on sto ck & s u r p l u s ........................ Sales ~ I n v e n to r ie s .............................................. Sales -r- R e c e iv a b les.............................................. % sales to n et p r o p e r t y .......................... . . . . . . % sales to to ta l a s s e t s ....................................... % n e t incom e to to ta l a s s e ts ............................ % n et incom e to n e t w o r t h ............................... A nalysis of O perations: G ross sales, less re tu rn s , allow ., e tc ................ C ost of s a le s ........................................................... Selling, g en eral, etc., e x p e n s e s ........................ O p e ra tin g p r o f i t .................................................. O th e r in c o m e ......................................................... T o t a l ........................................................................ In te re s t p a id ......................................................... B a la n c e .................................................................... P rov. F ed . inc. tax & m in. in t............................ 1980 3.29 9.53 47.39 64.17 44.50 7.38 27.56 0.67 71.77 5.75 6.90 351.05 148.79 5.83 10.18 % 100.00 82.65 9.96 7.39 0.29 7.68 0.93 6.75 2.83 $3.11 $3.07 $3.03 25%-19% 519.36 82.81 82.76 82.70 25.50-16.00 817.12 82.59 82.57 82.49 22-17% 815.14 82.23 82.23 82.12 20.25-12.75 815.02 ^ 81.92 81.90 81.81 13.375-7.188 -------- 811.33 9,821,228 9,900,291 9,911,415 , 9,694,000 9,999,000 10,059,000 10,022,000 - 9,725.000 10.127.000 10.295.000 10,422,000 10,424,000 it; before 41V8-38V,. ( In c lu d e s 10,34 p a id p rio r to 2 -fo r-l put. 9,495.000 J 9,572.000 10,342,000 * * 1979 2.70 2.47 5S.83 59.62 45.57 7.52 21.71 0.94 77.35 5.57 7.97 432.24 174.90 9.10 15.31 % 100.00 81.59 8.66 * 9.75 0.23 9.98 0.78 9.20 4.00 1978 2.72 5.79 50.85 59.29 45.29 6.02 22.41 1.46 76.13 S.94 7.30 433.91 171.85 9.08 15.31 % 100.00 80.79 8.77 10.44 0.13 10.57 0.86 9.71 4.43 1977 2.67 7.64 50.29 58.81 42.80 6.38 24.83 2.68 72.49 6.04 7.58 407.23 167.66 9.20 15.73 % 100.00 80.71 8.79 10.50 0.28 10.77 0.79 9.98 4.49 1976 2.39 7 AS S1.89 57.73 46.03 5.64 21.57 ' 5.09 73.34 5.24 7.21 415.83 156.93 8.65 14.85 * % 100.00 80.52 9.12 10.36 0.51 10.87 0.62 10.25 4.75 1975 3.12 20.12 42.88 68.01 48.84 6.03 23.96 6.41 69.63 6.17 7.78 448.24 158.71 8.54 14.18 % 100.00 80.26 9.14 10.60 0.46 11.06 0.9S 10.11 4.7>3 $1.85 $ 1.86 $1.77 11.25-6.50 $10.31 9.464.000 9.444.000 10,202,000 1974 2.77 7.84 53.43 69.56 49.33 6.48 27.78 7.06 65.16 SJJ 7.92 510.22 172,83 8.48 15.22 % 100,00 81.30 8.51 10.19 0.29 10.48 1.03 9.46 4.55 a at MOODY'S INDUSTRIAL MANUAL 1095 LONG TERM DEBT 1. Various Not* and L m n PsyaM*: O u t standing N o v . 30, 1980, 883,555,959 com prised Of: (1 ) 824,000,000 9V i% n o te s d u e to 1999. (2) 814.500.000 5Vi% n otes due 1988. (3) 823,203,663 7y% industrial revenue bonds. . . .. (4) 819,861,278 revolvtn* credit agreem ent. (5) 81.991.010 other. Certain of loan agreem ents contain require m ent* as to levels of working capital and p ay m ents of d ividends. A t N o v . 30. 1980, all such requirem ents had been exceeded by a substan tial margin. Revolving Credit Agreem en t Co. entered in to an agreem ent with a com m ercial bank for a revolving credit which perm its Co. to borrow up to 820,000,000. Subsequent to N o v . 30, 1982. bank m a y term inate agreem ent upon g iv in g C o. 13 m o n th s n otice: h o w e v e r , a t a n y tim e prior to N o v . 30, 1982, C o. has the option to convert debt into an 8-year term loan, re payable in equal sem i-annual installm ents. Co. m ay term inate the agreem ent at any tim e. Interest rates on borrowing* under revolv in g cred it a v era g ed a p p ro x im a tely 12*/%. CAPITAL STO CK 1. E aola-Pichar Industries, Inc. 81.40 co n v ert ible p referen ce, S eries A; no par: A U T H .-- All series. 932,658 ahs.; ou tstanding, N o v . 30, 1980, ser. A . 14,430 shs.i n o par. P R E F E R E N C E S --H *s preference with other 2.se ries o v e r co m . a s to a ss e ts an d d iv s. D IV ID E N D R IG H T S --Entitled to cum . divs. of 81.40 a sh. annually, payable quarterly Jan. etc. ` D IV ID E N D R EC O R D -- Initial dividend of $0.31 p aid O ct. 2, 1964; q uarterly dividends paid regularly thereafter. D IV ID E N D R ESTRICTIO N--See Long Term Debt above. V O T IN G R IG H T S--Ha one-half vote per $h.; also, on default of 6 quarterly div., pref erence of all series is entitled to elect 2 direc tors until all accrued divs. have been paid. Cu m ulative voting for directors perm itted. Consent of 66% % of serial pref. (or, if less than all series are affected, then of affected se ries) required to (1) am end term s adversely, Including am endm ent to create, or increase authorised am ount of. serial pref. or any shs. of an y class on a parity w ith serial pref.; (2) (> ) p u rch a se __ _______ , . _ otherw ise) less than all serial pref. outstand Ing except under stock purchase offer m ade to all holders of serial pref., w hen any divs. or sinking fund obligations on serial pref. are in arrears. Consent of m ajority of serial pref. required to sell all or substantially all property, .part voluntarily w ith control thereofor consolidate or m erge, except as provided. Consent of m ajority of series A pref. re quited to issu e serial pref. if thereafter either (a) 90% of total am ount payable on redem p tion ot all such shs. then outstdg. or (b) total am ount of Involuntary liquidation preference o f all auch sh s. then o u tstd g . (exclu d in g in each such com putation accrued but unpaid d iv s.) w ould exceed $20,000,000. L IQ U ID A T IO N R IG H T S --O n liquidation, entitled to $33 a sh., if involuntary; on v o lu n ta ry liq u id ation , $36 a sh . to J u n e 15, 1974; thereafter, $33 a sh.; p lu s divs. C A L LA BL E-- As a w hole or in part on and after Ju n e 15, 1969 at $36 a sh . t o / u n e 15, 1974 and at $33 a sh. thereafter; plus divs. C O N V E R T IB L E -- Into com . at any tim e (if called, on or before date preceding redem ption d ate) at rate of 4.84 com . shs. for each se n e s A pref. sh.; n o adjustm ent m ade for divs.; cash p a id In lieu o f fraction al sh s. C on version p riv i lege protected against dilution. p r e e m p t i v e r ig h t s -- N one. P U R P O SE -- Issued (250,000 shs.) in ex change, sh. for sh., for 250,000 com . shs. of A k ron Standard M old Co. T R A N SF E R A G E N T S-- M organ Guaranty T ru st Co., NYC; Central T rust Co., Cincin nati. R E G ISTR A R S--M organ Guaranty Trust Co., N Y C ; Fifth Third Bank, Cincinnati. 2. E saie-Pichsr Industries, Inc. $1.40 convert ib le preference, serles C; no pan A U T H O R IZ E D --All series, 932,658 shs.; o u t standing N o v . 30, 1980, Series C, 44,771 shs.; no par. P R E F E R E N C E -- H as preference with other series over com m on as to assets and divi dends. D IV ID E N D R IG H T S-- Entitled to cum ula tiv e divid en ds of $ 1.40 per share annually. D IV ID E N D R EC O R D -- Initial dividend of $0.35 paid Apr. 2, 1969. R egular quarterly d iv idends paid thereafter. V O T IN G R IG H T S--Sam e as ser. A. L IQ U ID A T IO N R IG H T S --On liquidation, entitled to $33 a share, if involuntary. On v o l untary liquidation entitled to $36 a share to D ec. 15, 1978 incl.; $33 a share thereafter plus divs. C A L L A B L E -- As a w h ole or in part beginning D e c . 15, 1973 to D ec. 15, 1978 incl. at $36 a share and $33 a share thereafter. C O N V E R T IB L E -- Into com m on at any time (if called on or before date preceding redem p tion d a te) at rate of 1.822 com m on shares for each pref. share; no adjustm ent m ade for divi dends; cash paid in lieu of fractional shares. Conversion privilege protected against dilu tion. PREEM PTIVE RIGHTS--None. P U R P O S E -- Issu ed in D ec. 1968, in exchange for stock of U nion Steel Products Co. T R A N S F E R A G E N T --Central T rust Co.. N .A ., Cincinnati. R E G IS T R A R -- Fifth Third Bank, Cincinnati. 3. Eagls-Picher Industries, Inc. common; par $1.25: A U T H O R IZ E D -- 15,000,000 sh a re s; o u ts ta n d ing, N o v . 30, 1980, 9,714,697 sh s.; in tre a s u r y , 285,303 sh s.; reserv ed fo r o p tio n s, 286,680 shs.; reserved fo r c o n v e rsio n of p re fe rre d , 151,414 (series A, 69,841; s e rie s C, 81,573); p a r XI.25. P a r c h a n g e d from S i00 to $20 in M a y 1920, b y 5 -fo r-1 sp lit; fro m $20 to $10, N o v . 26, 1935, s n a re -fo r-s h a re ; fro m $10 to $5, J a n . 5, 1960, b y 2 -fo r-l sp lit; fro m $5 to $2.50, M ar. 26, 1968 b y 2 -fo r-l sp lit; H rom $2.50 to $1.25, A p r. 20, 1977 b y 2 -fo r-l sp lit. V O T IN G R IG H T S - U as one vote p er share. P R E E M P T IV E R IG H T S -H a s preem ptive rig h ts. D IV ID E N D R E S T R IC T IO N S -- See long term debt above. D IV ID E N D S P A ID -- (calendar years): O n $100 p a r shares: 0 1 9 2 1 ............. 01922-23 . .16.00 1924 ..............$1.50 O n $20 p ar 1924 ......... .$0.80 1929 ......... . .0.60 O n $10 p ar 1935 ......... . . .N il 1938 ......... . .0.10 1941-44 .. . . .0.60 1947 ......... . .1.50 1955 ......... . .1.80 shares: 1925-27 1930 . shares: 1936 . . 1939 . . 1945 . . 1948-49 1956 . . . . . . 1.60 1928 ......... . . . Nil . . . .0.40 1931-35 . . . . .N il . . . .0.60 1937 ___ . . .0.40 . . . .0.20 1940 ___ . . .0.40 . . . .0.65 1946 . . . . . . .1.00 . . ..1 .8 0 01950-54 . .. 1.50 . . . .2.00 1957-59. . . . .2.20 O n $5 p a r shares: 1960-65 . . . . .1.20 1966 . . . . . .1.35 1967 . . . . . . . 1.40 1968 ......... . .0.35 O n $2.50 p a r sh ares: 1968 ......... . .0.60 1969 . . . . .0.80 1970 . . . . .0.82>/2 1971 ......... . .0.90 1972 . . . . .0.936 1973 . . . . .0.972 01974-75 . . .1.04 1976 . . . . .1.16 1977 . . . . .0.34 O n $1.25 p a r sh ares: 1977 ......... . .0.51 1978 ........ . .0.77 1979 ___ . . .0.86 1980 ............. 0.90 0 1 9 8 1 ............0.24 [0 P aid sto ck dividend of 1 l7/io % in 1921; 100% in 1922; 11/% in O ct., 1923; 10% Dec. 10, 1951 and Apr. 1. 1975. m T o M ar. 10. D IV ID E N D R E IN V E S T M E N T PLA N -- C o m p an y offers its ho ld ers of com m on stock th e o p p o rtu n ity to b u y additional shares of co m m o n sto ck th ro u g h its A u to m atic D ivi dend R einvestm ent and V oluntary C ash P a y m ent Plan. P articip atin g share-ow ners m ay in v e st e ac h m o n th fro m $10.00 to $1,000, in ad d itio n to th eir dividend, at th eir option. P lan is adm in istered th ro u g h T h e C entral T ru st Co. of C incinnati, O. U n d e r th e P la n , th e full d iv id en d a n d a n y o ptional cash p aym ent of participating sh ar e o w n ers is a u to m a tic a lly a p p lie d to th e p u r chase of new ly-issued shares priced a t the a v erage m arket value on each q u arterly divi d en d p a y m e n t date. T R A N S F E R A G E N T 'S -- C en tra l T r u s t Co., C in cin n ati; M o rg a n G u a ra n ty T r u s t Co., NYC. R E G IS T R A R S -- Fifth T h ird B ank, C incin n ati; M o rg a n G u a ra n ty T r u s t C o., N Y C . L IS T E D --O n N Y S E (S ym bol: E P I); also listed on C incinnati Stock E xchange.