Document 5LbD5kVaz6OGoGz63rrrr4B0R

1977 was a record year for export sales at $2,003,000, which is a T3% increase over 1976. The 1978 budget is 13%/higher than 1977 actual. A record monthly high of $243,000 was set in May 19^7. Export sales dollars were 38% of the asbestos total and tons were 31%. A summary of sales by country is attached. The major developments in 1977 were as follows: 1. Sales of R6-144 and RG-244 to 8razil were 76 tons and $124,000. Based on their estimates, the 1978 budget is 150 tons and $229,000. I spent one week in Brazil making customer calls with Carbide sales personnel. Most of the RG products go into automotive sealants, adhesives, etc; but they also have a couple of good polyester accounts. Sales to Brazil should increase dramatically if their economy holds up. 2. UCAL has obtained a major share of asbestos requirements from the largest floor tile manufacturer in Australia. We shipped 657 tons in 1977 and have budgeted a conservative 700 tons for 1978. Sales of RG-144 and RG-244 were $41,000 in 1977 and budgeted at $69,000 for 1978. 3. Sales to Tomoe in Japan were $1,020,000, which represents 51% of export sales and 19% of our total sales. Tomoe. also buys CSV from Montello, but have developed (unintentionally) a usage for HPO in geothermal drilling fluids which should use 50 TPM. A patent problem in 1978 could affect HPP sales to acoustical tile manufacturers. 4. SX-24 shipments to Grace-Europe were 367 tons, or 70% of the domestic RG-244 sales. The 1978 budget is 400 tons and should be conservative unless the health question becomes more severe. UCC 005532 Mr. G. R. Adams 2- - February 16, 1978 5. Willy Gertsen, who handled HP products for Grace-Europe, resigned to form Mercomed, his own sales company. Grace agreed to let him have most of the HP business and we now have a sales agreement with Mercomed. Willy has been very active in the last six months and our HP sales should improve. He is also trying to develop some floor tile business. 6. Daubert purchases for export to Holland were dismal in 1977 but began to pick up at the end of the year. Their orders for the first quarter of 1978 are 106% of the total budgeted for the year. 1977 was a good year and 1978 should be even better. The health problems are ever-present but have not approached the ll.S. situation yet. The West Coast Longshoreman's contract expires June 30 so we could have some shipping problems if there is a strike. Trips should be made to Australia, Japan and Europe. JLM:da1 Attachment UCC 005533 I EXPORT SALES SUMMARY Rep./Country TEC/Oapan Grace/Europe Merc./Europe Australia H&C/Canada WRG/Other Daubert/Holland Mexico Brazil S. Africa Puerto Rico Hong Kong N. Zealand 1977 Actual mTons 5740 637 9 692 146 24 216 55 76 10 20 11 1 1020 528 2 106 91 25 45 39 124 18 3 2 1 % Budget Tons X 111 no 90 75 -- 127 96 99 97 55 68 45 47 -- 136 124 100 100 -- -- - 1978 Budget Tons 5810 540 300 750 120 0 150 60 150 20 0 0 0 1132 544 45 139 85 0 32 42 229 25 0 0 0 TOTALS ( / 7639 2003 107 95 7900 2273 UCC 005534