Document 7xZaRv0okxKd7bRYnLK9Ee9R

--> z PLAINTIFF'S / s' EXHIBIT /1969 Annual Report BE A- 7 5.. .9 Pj>perUif XOPPERS COMPART, & LAW DEPARTMENT KOPPERS Five Years at a Glance* Contents Letter to Stockholders............................... 2 Net Sales by Division................................. 4 Source and Disposition of Funds............. 7 ( Koppers New Design for Marketing........... 8 j The Competences of Koppers............ center j Operating Highlights..................................10 Koppers Sales by Consuming Industry... 11 3oard of Directors........................................ I4 Officers of Koppers Company, Inc............. 14 | Financial Statements ; Report of Certified Public Accountants .15 j Consolidated Statement of Income and Earnings Retained in the Business. .16 Consolidated Balance Sheet............. 17-18 Notes to Financial Statements..............19 Ten-Year Financial Highlights............. 20-21 Location for Annual Meeting: The next annual meeting of the stockholders of the Company will be held at 11 a.m. on Marctr2S, 1963, in the Chatham Ballroom, on the second floor of the Chatham Center office building, Pittsburgh, Pa. 11 Million* 0 50 100 ISO 200 250 300 350 400 450 1967 5341,582.000 sais.4zg.coo Manufacturing Sales 1965 S2aZ.73a.aQQ 1964 S26'!83.aca 1963 sz45.5sa.cca Millions a 50 11 1967 1966 si2.a46.aaa Net Income 1965 $12 73T.GQQ 1964 S10 798.000 1963 S 7.657 caa Million* 0 10 12 14 I KOPPERS 1967 1 ! 1966 S2 34- ; Earnings 1965 S2 53 !i Per Share | 1964 S2.T6 | ^ ! 1963 Si.49 i Dollars 0 0.50 1.00 1.50 2.00 2.50 3.00 1967 s ; 1966 51.40 ! Dividends Paid | to Common 1965 SI.20 \ Stockholders | 1964 ST.20 ! 1963 St00 Ooltars 0 par shara 0.50 1.50 Results prior to 1967 have been restated here and throughout this Report to reflect the merger of Buffalo Slag Co.. Inc. into Koppers in 1967 on a pooling of interests basis. A New Look In the Markets We Serve The continuing growth that Koppers is experiencing today is the result of strategic planning that was initiated in the early 1960's. Since then, the Company has re directed its marketing efforts to the end that the great majority of its sales volume is achieved in the more significant growth markets of the economy. In 1967, sales of products which we did not sell in 1960 accounted for about $127 million or 28 per cent of total Company sales. New facilities have been built and existing capacity modernized to sup port growing product lines. Improved, more integrated mar keting strategy among all units of the Company is making itself felt in all key markets. An essential part of this marketing strategy is to speak with a single clear voice wherever Koppers is represented. The new design of the Company signature, used on the cover and throughout this Report, and the new corporate brochure, "The Competences of Koppers," that is included, illustrate the nature of this new strategy. HOPPERS So" annual as?C3T January 29, 1969 To Our Stockholders: Koppers made substantial progress in 1967 Net income was up 16 per cent Total sales were a record $448 million Sales of manufacturing operations were up 7 per cent, to $341.7 million New manufacturing capacity substantially expands capability for continued growth Koppers sales and earnings for 1967 exceeded those for 1966 despite the effects of major strikes in some key markets, softening of prices in cer tain product areas, and heavy start up and relocation costs associated with new plant investment. Net income for the year was 313,972,000, up from $12,046,000 in 1966. After payment of preferred dividends, earnings were equivalent to $2.70 per share of common stock _ outstanding, compared with 32.34 in 1966. These income figures for 1967 include 3727,000, or 15 cents per share, resulting from a year-end re duction in Federal income taxes realized from a net operating loss accumulated over several years by Universal Moulded Fiber Glass Corp. This tax benefit partially offsets de velopment costs incurred in the fiber glass reinforced plastics segment of our business in 1967. Total-Company sales in 1967 were a record $448 million, compared with 3443 million in the previous year. Manufacturing sales continued a healthy growth trend and more than offset a $16 million decrease in en gineering and construction sales from a record level in 1966. Our con struction business was again profit able in 1967 following its first loss year in 1966. Record Expansion Program In 1967, Koppers invested $30.1 mil lion in plant construction, expansion and modernization and in new do mestic and overseas investments. During the period 1965-1967, S108.7 million--over twice the average an nual investment level in the five years 2 prior to 1965--has been invested in a new manufacturing facilities to en able Koppers to take full advantage of its leadership potential in rapidly growing markets. In the plastics operations, the an nual capacity of Sinclair-Koppers plants has been considerably more than doubled--from 870 million pounds to about 2 billion pounds currently--and a strong raw mate rial supply position has been estab lished. Substantial new chemical and tar processing capacity has been added and existing facilities have been modernized. Capacity increases of from 30 to 50 per cent have been effected in power transmission couplings, cor rugating and box-making machinery, and industrial piston rings. The Company's capacity to treat wood by newer processes and to produce laminated wood structural products has also been substantially increased. F. L Byrom Succeeds F. C. Foy As Chief Executive Officer Fletcher L. Byrom, president of Koppers since 1960, was elected to the additional position of chief executive officer of the Company as of January 1, 1968. He succeeds Fred C. Foy who has served as chief executive officer since 1955. Douglas Grymes, executive vice president since December of 1966, was elected to the additional posi tion of chief administrative officer of the Company, to succeed Mr. Byrom. The action was taken by the Board of Directors on the recommendation of Mr. Foy in order to provide for an orderly transfer of chief executive responsibilities. Mr. Foy reaches Koppers mandatory retirement age of 65 in January of 1970. Mr. Byrom is 49 and Mr. Grymes is 53. Mr. Foy will continue as board chairman, a position he has held since 1958. KOPPOR5 *36r ANNLAu aS=C^" - Koppers Sales Reached ' a New Record in. 1967 . ~ -- , ~.M\ \ (Sales infhousands of Dollars) f.:': s. "?," V/ 7r y- ,''*7?* .... MET SALES BY DIVISION" Forest Products Meta! Products Plastics Operations}: Associated Operations TOTAL MANUFACTURING Engineer- c & Construction OtherSales TOTAL ;--*Salr haw' itlorial Operations are Included In-the,approprtetr'" " itftb Include two whoity-owned foralgh substi ' _____j'Chamfcat Division; Includes ialesof .:^.^Staih^^Ll9W,^p^^taiMraof Slnclalr-Kppper? .->L `-7.--- ...: .. -'i i! :.Zl:w " '--7''"r-- ....... swgcgsj&gp8 4 . . . 1961 -: . 1960 1959 '. 1958^-; ' I' '-'.' $100,863 '.. .$105287 ` ' $ 97,204 $: 95,21# 42;082 47,166 45,860 *_ ' v-->; 41,610-V 34,348 31,092 28,470 .25,207- '.V'v 51,617 52,652 : 50,537 4324S- -- 1. . .. -- .:ig To sustain the momentum generated by this record expansion program, future capital expenditures are likely to continue at this higher plateau, financed principally with funds from Koppers increasing annual levels of depreciation and retained earnings. In 1968, capital expenditures and investments will be in the area of $30 million. Most of this investment will be in new or expanded facilities for such products as polyester res* ins, low-density polyethylene, phthalic anhydride and styrene. The expan sion of Koppers newer wood treating processes will also continue in 1968. $228,910 $236,497 $222,071 $205,276 49,865 . 965 . 72,105 764 i* *'*v*sfffiSnBy ' '.m&S3SBEz m^-596^ $279,740 j $309,366 $250,084 $267,533 *. Current Stockholders: 16,959 if " ..... - .Employees.-13,178'. ' ' " Plants:- ITS'-, j...-'s-'v-vi =.\\. " * ** . ./r*, ,v Investment Credit Koppers investment credit in 1967 amounted to 57 cents per share, refleeting the completion of a number of major plant units during the year. It was 28 cents per share in 1966. Financing Long term financing was arranged during 1967 to provide the flexibility needed to help insure continued growth. On August 1, the Company entered into an agreement with a group of institutional investors to 0 earnings to common stock depreciation a depletion oeferreo income taxes HOPPERS '96? ANNUAL REPORT 6 take $50 million in Koppers Company notes. These notes will bear interest at the rate of 6 per cent per annum and are due in 1992 with repayment to start in 1977. As of year-end 1967, $26 million of these funds were drawn down. An additional $12 million was received in January of 1968, and the balance will be received on or before April 1, 1968. The funds have been and will be used to repay bank loans which had been drawn down on the Company's former $65 million re volving credit agreement. This latter agreement was concur rently revised so that Koppers can borrow up to $40 million on a revolv ing basis until September 1,1969. At that time, the amount borrowed be comes a term loan to be repaid in semiannual installments over the next five years. Other Financial Matters Total Koppers common stock out standing at the end of 1967 amounted to 4,956,628 shares. In December of 1967 the Company issued 265,671 previously authorized but unissued common shares for use in the acqui sition of the Buffalo Slag Co., Inc. (see discussion on page 10). Common stockholders received total dividend payments of $6.8 mil lion ($1.40 per share) during 1967, The "Palace of Poles." as featured in LIFE (.Feb. 2). dramatizes the versatility of wood treatedby the CEU.ON process. This unique, five-level Greenwich. Connecticut home has an intricate structural system of ISO beige-coatedCELLON utilitypoles. Thispro prietary Koppers process protects the poles from decay, yet leaves the surface of the wood clean, dry and unchanged m appearance. The centra! living room (below) illustrates the natural warmth and interesting interior design created by the 40- foot timbers. > J j i J J ccmcared with So.7 million (S1.-10 per share) in 1966. Dividends total ing S600.C00 were paid to preferred stockholders. Cash flow from operations during the year--consisting of earnings ap plicable to common stock, deprecia tion, depletion and deferred income taxes--totaled S30.8 million, equal to So.22 per common share. This compares with cash flow of $25.8 million, or S5.27 per share in 1966. Inventories on December 31,1967, amounted to $66.2 million, compared with $61.9 million at the end of the prior year. Receivables at year-end 1967 totaled S87.7 million, as against S34 million on December 31, 1966. ' Personnel We continue to accelerate efforts to obtain the qualified people needed for our growing company. Internal management development activities are increasing and intensified re cruiting efforts on college campuses and in other areas are showing good results. During 1967, labor negotiations were successfully carried on at 29 plants, resulting in mutually agree able work contracts. In 28-of-these settlements we were able to estab lish agreements of two or more years duration. There were just four work stoppages during the year which, while unfortunate, had no major ef fect on operations. Company Backlog The Company's backlog on Decem ber 31, 1967, was $223 million, com pared with $246 million at the end of 1966. The manufacturing backlog was relatively unchanged. The con struction backlog was reduced dur ing 1967. but remains at a substantial level and is in excess of a full year's construction sales at the 1967 rate. Source and Disposition of Funds (In Thousands of Dollars) Source 1967 Net Income................................... .... Depreciation and Depletion......... Increase in Long-term Debt......... Decrease in Other Assets........... $13,972 17,368 4,519 6,241 $42,100 1966 $12,046 14,065 33,669 9.786 $69,566 Disposition 1967 Dividends Paid..................................... S 7,365 Capital Expenditures and Investments.. 30,118 Increase in Working Capital............... 4,617 $42,100 1966 $ 7,275 48,742 13,549 $69,566 Outlook The effects of Koppers record 19651967 capital investment program will begin to be reflected more signifi cantly in our 1968 sales and earn ings. The heavy start-up costs which we experienced in 1967 are behind us. This will serve to offset other factors that will affect our 1968 per formance such as higher deprecia tion charges, a substantially lower investment credit, and the possibility of a tax increase. With all factors considered, we expect the Com pany's sales and earnings in 1968 to show continued improvement. Fred C. Foy ^ Chairman ol the Board !967 ANNUAu sS3CaT 1967 Sales by Competenc A New Design for Marketing It is no longer true that people will beat a path to the door of the man who makes a better mousetrap. And it is equally valid that the "new" Koppers described in the brochure, opposite, will not achieve optimum results, unless the Company makes every reasonable effort to communi cate its "newness." This must be done with present and potential cus tomers, current and prospective employees, financial institutions and the investing public and, in short, with anyone whose business or other interests in any way influence the future of Koppers. Consequently, the Company embarked on a program two years ago to redefine its capabilities in more meaningful and useful terms. This analy sis resulted in the identification of six broad areas of competence which now form the basis for Koppers current marketing strategy. These are: Architectural and Construction Materials Engineering and Construction Chemicals and Coatings Engineered Products Plastics - Environmental Systems The new distinctive design of the Compands signature, as illustrated ir, this Report and the booklet on the opposite page, is the unifying symbol of these diverse areas of competence. Copyright 1967, Koppers Company. An essential characteristic that distinguishes a company from all others is the nature of the particular skills and capabilities that have evolved during the course of its development. This booklet is designed to reflect the particular areas of competence that best describe Koppers today, and to suggest how you may employ these skills in your own activities. The competences of KOPPERS Architectural and Construction Materials Plastics Chemicals and Coatings Engineered Products Environmental Systems Engineering and Construction KOPPERS *5rjr ANNLAw =c3C7 Some peode know Koppers as a chemical company. Others classify it as a building materials manufac turer. An important part of American industry thinks of the Company as a maker of precision-machined metal products. You perhaps think of Koppers as an organization of engi neering and construction experts. Koppers is all of these, but it is also a great deal more. Some people who once knew all about Koppers hardly recognize the Company today. Koppers has grown and changed. Koppers today is highly diversi fied, with more than 125 major prod ucts supplying 34 of the nation's 85 major industrial and consumer market classifications. This diversification provides a springboard for continuing expan sion into related fields. It gives a degree of insulation against the effects of sudden technological change or deterioration in any one market. The Company's operations are closely related to the essential re quirements of our customers and have evolved logically from Koppers earliest capabilities. Each new prod uct has been developed to supple ment a competence area in which the Company is already a leader, or one where it is well on its way to achieving a position of leadership. Before examining Kocpers capa bilities. here are a few facts and fig ures about the Company: Headquartered in Pittsburgh, Pa. Annual sales now approaching a half-billion dollars One of the 200 largest U. S. indus trial corporations About 17,000 stockholders and more than 13,000 employees More than 70 sales offices in most major cities Over 100 plants, located in 32 states, Canada, western Europe, Australia, and Central and South America Marketing operations in 67 foreign countries One of the most modern and bestequipped industrial research centers in the world The Company was organized more than 50 years ago as a con struction organization. As recently as 1960, it was often thought of as primarily an engineering and con struction firm. This area of the busi ness, however, today represents just one part of a large, growing company. KOPPERS c-sr annua.. ===ca Keepers has experienced a signircar.t transformation over the years. Most of the Company's quarter Pn'licn coi.'ars of assets and invested capital is now appiiea to manufacturr.g. Sales of Koppers manufactcrec crccucts have increased at an average rate of 10 per cent per ye3r thus far in this decade. During this same period SS new products have been introduced mat new account for an important part cf annual sales. During 1965, '66 and '67, over 31 CO million has been invested by Koppers in an expansion and modernization program to provide additional capacity and higher efficiency in many of its existing or newer product lines. About 70 per cent of product sales are concentrated in markets that are expected to grow over the next ten years at a faster average rate than that of the national economy. Thus, the strong emergence of manufacturing is a major factor lead- ing to the present diversified structure of Koppers. The following pages describe each of six major areas which are the base for KoDpers strength ... arc ns continued growth. The six areas are:. Architectural and Construction Materials P'astics Chemicais and Coatings Engineered Products Environmental Control Systems Engineering and Construction : j | j ; | j j j j ' j : i j i > j j ] | j ; ! i I ; j . ' i . iI The measure of worth of any company is determined best by the caliber of its employees. In every successful company there is a vital two-fold need: to fino anc use the best capabilities of its people, and to attract other talented men and women. Only a growing company, offering oppor tunities and challenges, can keep its tooflight people or attract caoable. new indi viduals to its ranks. The competence of Koppers people is the reason for the Company's growth, and for its appeal to people who want an ooportunity for added responsibility--and challenge. HOPPERS Architectural and Construction Materials Koppers know-how in the field of architecture and construction is evi dent in products that are either per manent in themselves or that give permanence to other materials of construction. These products pro vide advantages over competitive materials and enable customers to realize economies in three ways: Savings in construction costs Savings made possible by latitude in design Savings through reduced main tenance costs over the life of a structure About 40 per cent of Koppers manufacturing sales are accounted for by architectural and construction products. A significant part of Koppers com petence in this area comes from the Company's ability to upgrade and protect wood to make it an even more versatile and durable construc tion product. Koppers is a pioneer in this field. Wood is impregnated with Koppers chemical formulations to make it resistant to fire, insects, moisture, mildew, fungus, and vari ous soil conditions. Wood is also KOPPERS !967 ANNUAL a3CPT Architectural and Construction Materials laminated by Koppers to give it flexi bility in shape and to enable wood's beauty and strength to be used in a growing number of applications. Architects have long considered laminated wood beams, arches, trusses, columns, and roof decking as attractive and highly functional structural elements. They have used them with dramatic effect in churches, schools, and institutional and commercial buildings. Now in dustrial builders have found that these components are economical as well as functional in many types of buildings, especially where wide, clear spans with unobstructed inte rior spaces are desired, and where the threat of corrosion is a problem. Koppers has pioneered in the technology of laminated timber con struction, and has led in bringing forth new and imaginative structural designs. Laminated structural prod ucts are easily erected, are highly fire-resistant1, will not corrode and have a great strength-to-weight ratio. '.copers laminated wood products provide s.-tce. c-ear scans for industrial structures With 28 plants in 25 states. Koppers is also the world's largest supplier of chemical-impregnated wood. During this decade, our total forest products business, on the basis of new processes and invest ment. has been growing at about twice the rate of the lumber prod ucts industry. One of the most recent of these new processes is the CELLON treat ment, which provides the deepest preservative penetration yet achieved to give wood long-lasting protection against insects and decay. Unlike most other treating processes, the CELLON treatment leaves the wood with a clean, natural appearance. The use of CELLON treated utility poles is growing. Lighting standards available in many attractive colors are produced using laminated CELLON treated wood. So are our pre-wired, colored street light poles, designed for use with underground residential wiring systems. New sta diums in Atlanta, Washington, and New York have seats made of CELLON treated wood. It is being used in roof decks, electric utility transmission lines, marinas, sign posts, outdoor furniture and in many other ways. NON-COM fire retardant lumber and plywood provides built-in pro tection against the spread of fire. The four nationally-recognized, model building codes, as well as the codes in most major cities, recognize NON-COM lumber as a full alternate to non-combustible materials in high-rise apartments and office buildings. It is also being used to protect wood structural and roof ing systems in fertilizer and chemical storage facilities and has aided in reducing fire insurance costs on structures of this type. A new fire-retardant process has been developed by Koppers which has opened the way for a greater use of Western red cedar shingles and shakes on the roofs of apart- I ments. motels, churches, schools, restaurants, resort structures and other light construction without the high insurance schedules required for untreated materials. wolmanizeo lumber--wood that has been pressure-impregnated with WOLMAN preservative salts--has a broad range of applications in indus trial, residential and farm structures. Millions of board feet are now used as sub-flooring and roof decking, and in greenhouses, stadium seats, boardwalks, floor sills--wherever lumber is exposed to insects, mold growth, and rot. The oldest and most conventional treatment is impregnating wood under pressure with creosote. This type of treatment is saving the coun try many millions of dollars each year by providing wood products with many years of protection against termites and decay. Koppers has been the nation's foremost supplier of creosote-treated railroad cross-ties, utility poles, fence posts, foundation and marine piling, and construction lumber for over 30 years. Top left--Laminated wood arenas gr*e a warm, dramatic effect to enuren interior Top right--clockwise Fire-retardant shakes ana snmg'es pro vide attractive shadow lines on reef o: resort structure NON-COM studs used in walls of ngn-nse motel Washington Hihon protected by fleecers built-up roof CELLON treatedseats in new Atlanta stadium HOPPERS 96r ANNUAL ae?CP.T Architectural and Construction Materials Other Koppers construction prod ucts are used to make structures impervious to water. Flat and low slope roofs are con structed from Koppers coal tar roof ing materials to keep rain and other elements out. The alternate layers of tar and tar-saturated membrane in a Koppers roof provide the type of long range protection that can be bonded against leakage for up to 20 years. Applied to foundations, Koppers waterproofing materials protect against attack by moisture from below. The alternate layers of coldapplied tar and fabric supplied by Koppers provide a moisture barrier that insures the structural integrity of the foundation and keeps areas such as underground parking garages free from seepage. Asphalt pavements are given long-lasting protection from damage caused by water, oil drippings, and gasoline spillage, by Koppers pave ment sealer. This coal tar coating is used to protect and beautify residen tial driveways, parking lots, gasoline stations and airport runways. Koppers supplies the growing highway construction market with a broad line of road materials in cluding road tar and asphalt, asphalt emulsions, and aggregates. A new type of flooring material produced by Koppers looks like terrazzo, but surpasses all of terrazzo's advantages: attractive appearance, wear resistance, ease of mainte nance. The difference is that the colorful marble chips are held in a polyester resin rather than cement. This high-luster material is pro duced in 12' x 12* tiles or is poured and finished in such areas as build ing lobbies, stores, hospitals, or any high-traffic area where impact- and stain-resistance is needed. A number of Koppers reinforced plastic (RP) products are basically construction materials. RP pipe is used in the construction of industrial processing plants and effluent sys tems. RP structural shapes are spe cialized building products, of great value where extreme corrosion is a constant problem, where a high strength-to-weight ratio is impor tant, where a material is needed that will not conduct electricity nor inter fere with electronic signals, or where .an unusual shape or design is de sired that is not possible with more conventional materials. Koppers experience with so many basic materials of constructionwood, plastic, steel, reinforced plas tic, and chemicals--and with its competence in the technology of architectural products and construc tion, gives the Company a unique position from which to serve this vast field. Top left--Kopperspavement sealerprotects asphalt parking areas Lower left--Foundations and underground facilities at Cape Kennedy kept moisturefree by Koppers waterproofing materials Below--Koppers high-luster polyester flooring material--for high-traffic areas KOPPERS Plastics o o o o (9 Koppers knowledge in plastics is pri marily concentrated in thermoplastic resins and glass-reinforced plastic products and thermosetting resins. Thermoplastics are a family of plastics that become soft when ex posed to sufficient heat and then harden to a desired shape when cooled. Our participation in this field is through a partnership--the Sin clair-Koppers Company. Sinclair-Koppers is a totally inte grated plastics producer with a pro duction capacity that has been doubled during the past three years. This has enabled the Company to continue as one of the prime com petitive forces in the growing U. S. thermoplastics industry. Sinclair-Koppers plastics are sold to the molders and extruders of thousands of plastic products that are so commonplace in so many ways, in so many places--in kitchens and toy chests, in drug stores and supermarkets, in hospitals and in dustrial plants, dyute foam plastic is perhaps the most widely recog nized of these materials. This is a truly exciting material. It is produced as small, white beads. These expand and fuse together under steam and pressure to form a cellular foam plastic that can be molded to almost any shape, oyute weighs as little as 13 ounces per cubic foot, yet it is strong and shockabsorbent. It sheds water. It insu lates well. It imparts no taste. DYLITE has achieved outstanding success in the throwaway hot and cold drink cup market. Billions of these cups are used each year. In the form of sheet. DYUTE is used in trays to package meat and produce sold in many food stores. It is also ^o .0 being widely used to mold packag ing for such delicate articles as glass ware. cameras, stereo sets, and elec tronic components, dyute is being used in ice buckets and picnic coolers; in small boats and flotation items and as a core material for insu lated building panels. Sinclair-Koppers is the nation's major producer of this expandable polystyrene foam plastic. The Com pany's capacity to produce this amazing material, along with other styrene-based products, is more than 300 million pounds per year. ABS plastic is a high quality, high performance material which SinclairKoppers has trademarked DYiEL. It has excellent impact resistence and is easy to chrome plate which is important for such applications as telephone cases, auto grills, appli ance housings and many others. Regular polystyrene, called DYLENE by Sinclair-Koppers, is the rigid plastic used in radio and TV cabinets and housings for many other appliances. It is also used in containers, packaging, toys, housewares, lighting fixtures and a broad range of products. DYLEX latex, the fourth member of the styrene-based group of mate rials, is most familiar as the main ingredient in latex water-based paints. It is also used in coatings for fine papers and in tufted carpeting to bond the tufts to the rug backing. HOPPERS :367 ANNL-i. assnaT Plastics Sinclair-Kopcers also has facilities to orcduce over 2C0 million pounds annually of the high- and lowdensity oolyethylenes--a plastic famiiy that one leading trade publi cation has called "a fantastic success star/ for the chemical industry." Dylan is a family of low- and medium-density polyethylenes--the familiar "squeeze bottle" type of soft, flexible plastic. These are used in various industrial parts, sheeting, toys, housewares, and bottles, cvlan also is used by SinclairKcopers to produce DURE7HENE pciyethylene film, widely used in packaging soft goods, produce and many other items. The film also finds broad' use in construction and agri cultural operations. Sinclair-Koppers produces another type of plastic now gaining increased acceptance by U. S. housewives: SUPER DYLAN highdensity polyethylene, being used to make non-returnable plastic milk bottles. The volume of polyethylene for these new milk containers could dwarf the1 amount going into such otner fast-growing applications as bleach and detergent bottles, bever age cases, bottle closures, film and sneeting, and automotive parts. With a new.plant capable of turn ing out 500 million pounds of eth ylene each year, and with other new facilities providing styrene monomer and ethylbenzene, Sinclair-Koppers will be able to supply its own raw material requirements for the fore seeable future. rzz --Oolite net and cclc cr.n.K zuo 7:c ' --'cr greeter convenience--nonrat^rraae o/asuc rank settles r gr:--Tne Mice wcr*d cf 2'U7--many cses hr e grty versatile material c re r . : r 2 ss :;e- 'e-r.-ctte-c c-.-s; : :: a :.v;, ce- .c'vj :s -\i-r-. c es-r'- : -33 -ere 3 .-.-'c-e ~e.-. :3~.-. e--:: - r.eyrg rrate-a-s case s-c .-as fc-jr.d its -.V3V ."tc ---C'ecs ot crrc- lc:s b.3t:g"sG c js: c "as 3 r.r- s::ir-c.;r-:c-.\e.g-: yc. -as e.*.- cecdcrai :3_:e :? cc'trsy. rr.cisture 3r.c r~cac: 3 a." e'lre!- lent eiectrca: t.s_ a:ct. Voic:rg 3-d racrcaccn *s 'eis:.\e:v easv. 7.-e vsnef. c? -P rtccacts bei.-c ryjcec ds <crce-'3 -s rrr\vrg 3c.clv .reuses c re :cr :~e o<: anc :re.'rica; cra-cess^-g nd-s:r;es cressure '-"Sir's ;.-e ct sy-c- arc strectcra^ s-aces /.e -rs..` sa- :ran 7-ese s"ares 'rr:rda s:;'jc- t'_,'3i cars, -ce3~s 3_c:es c.-a-- -eis. vacr/g s-e?:s e:er:rca .-'s::- 3:cri r-~c a:?v. s-.s y e:ec:.-ra! ca-CGits - ~j--rer at c:~ir R? rrccccts -a.e cee~ scesraliv de- s-g-ed ov .<rcce's :rt ~se e-ec:r- ca. d'strcLfcr s-.s:e--s a-c:ret araa. re Cc~ca~/ crrraces are :rc~: seefors y :t,r\ ccces -r cn tre rare a-c ;e-ce-s ate ,~ciced -r. c~e sec: r- tdrccers e:;c-:s - r e -- e.'r ate :ccusee: or :-e -e.-.e- -te=s r; :ec-- r.eiccy f--2-re-: a _-r -g r: rcJar c-rd_c:s :c--.-_r.s rrdy-- r; s-aces a-c a-ges arc a :r-e- src-c -g cacac : r. - ;:'a ..: re ~3::~ec-~e:a.-r e-~: r -: c: . at - c-s :e~s C.-rcstr- - -- s e ' r'r -a - e.a . 3 resets res : rarer : : car-ae r: es"* -es'-s `~r '.~:ra :~e--r- sa:: -r c as: r e " r :-r re - rase -'e'"" :se:` - r r : = : rs :a-e ce-~a^e-` _3Cr .-.-7' e-c c'ess-'e r-'e tc-; :"r -e ~o: s r:e" ^ t er 'Tra'--' hoppers Chemicals and Ccatings Keepers is tre nation's largest pro ducer cf ccai-casec crervcals. Vve are also in tre corrosion crever.rcr. business The Company markets a croac ime cf protective coatings and coating resins usee in a multitude cf a o plications --from underground pipelines to the interior cf tne Statue cf Liberty. Most cf Koopers cr-emcsls are recovered from tne distillation cf cos! tar. a bv-oroauct of tne coking orocess. They are used in our own coeraticns and fcv otn.er cr.emical c'ccesscrs to produce a.nti-oxidants, resins for coatings, solvents, gaso- < "e and lube oil additives, ana in tr.e orcducticn of esmts. herbicides, cner.ciic resms. cisinfecrsr.ts. anc countless other crcducts. .Vitnin its enemies! operations. Xcocers :s . one cf tne major U. S. pre- cucers of pntr.aiic annydride--an -'ocrisni industrial cr-emicai usee r oiasticxers. aikvd resins for oair.t. ce vaster resms dyes, insect reoel- ents ar.d onarmaceuttcais: . . a Significant crocucer cf re- scrcmci. a scecieitv cnermcai usee aGresives for tne lamination of .vcoc and m oor.cmc the rubber treec to the tire core m near;/ every r-ccer tire made: . s ms;cr suociier c? creosote, usee .n cur own forest orocucts operations anp soic to ctr.er weed t'eate's to pressure-impregnate v. ccc tc protect :t frcm termites ttecav and '-rc-s :_T ~ largest producer e'SCfore cmcer c-tcr -.cne pound o' o s -sec r t'a orccucfon of se.e~ cc-"os cf a.ummum; ncctie's :-e'~ ca. ccerst.ons -.e-. e CO. oeo a ; 'cnc case for g; cc--- - os o'e.e't c osoac-.i ties. ~ : ooe :a- ooet-ngs -j.e : -- ~ '"a'-etec for over 50 .' mo re oooecec as me starc- r a to::''os ."oergree-nd C'.oe- -es a-o ;o- exterior agams: many seve-e trxscr crot ems m ether '.ncustria! anc "anre aocixa: c-$ Water gas. a"' cetrcieum. exer-es and storage tar.ss. c'otected pv t~ese costings have been d-c uo :r ~- scection after 30, eg 3rr = _- years of service--ar.c defect has been found a sme e Where an esoeciailv *pearance is also imocr -nve aooocers broad line cf ccicreo nxa - based coatings can f li: , .-oifxa- tion. They are available in over 33 color shades. They can be procuxec using such bases as eoexv. a -.v o vinyls, acryiics. chlorinated .-uxcer or zme-rien formulations rc crcv ce protection against a wide ra-ge c: corrosive elements. iNESTOL coatings from Kocce-s are well-known in tr.e water a~c sewage treatment field. Thev ax a.sc wiceiy used in the steei. oetro-eu-- chemical, ar.d oulp and oacer incus - tries. They protect and beau: fv str- ace and process tanks, c-ic-' res buildings and walls, structra stee masonry anc concrete surfaces a~c many other types of installations This extensive corrosion ore-.ac tion know-how has also oee~ marketed m the recreance f.e c vvnere Keepers swimming cec' paint, ra.muc enamel. has become recognized as tr.e leader m tr.e he c -s'-........- v-..-Mwymx '"m-.'.v MJt'VHie J;.,-.- - >.-- l." yx -- r.-_- Etcinesred Froriucts Koccers was originally built cn a knowledge cf design and engineer ing. This fcas;. tapabilitv is evident in many areas of the Company's manufacturing output tccav. Keepers engineering ccmoeter.ce is particularly strong in the metal working field. The Ccrr.cany has earned a position of leecershic In several areas where we ccmm-je ;o develop proprietary products. Kopcers, for example, is one cf the world's largest producers cf in dustrial piston and sealing rings. These include piston rings for high speed ciese! engines, medium- and large-bore diesel and dual fuel enemas seeling rings for jet aircraft engines, rings ref hydrauiic cylinders a no born lubricated and ren-iubr:cated compressors. i'z :s.~=' ~; ;r 5 --s-:ccr: cf.s .' :t ? ~i zr.-i'V : ; --=sa: Keepers rl-ex.r.e :z~Z`-rc z..s - Xaoce'S has a strong pcsittcn in ness is '-e largest r tre .vcf\: tre held z- m.merai processing 'Ccuphrgs are -ir- to rats." : tn.-cucr tre Harcinge heavy ma- pcv.sr :.-c-~ zre -ctat-g = -af: :z cn.rery manufacturing operations. arct.rer. arc to compensate m s- Harpmge's specialized line of equio- alicnnerr.i These zz-z~.-r.cs ra"ge men: includes grinding and pulver ir. Size from r.ne larges: mam drr.es , izing mills, classifiers, thickeners, fcr steel railing mils :z smar s.r.-z-.e , feeders, dryers, and coders. motor cm. es suer. as eu~cs. T'-'ere ; Keepers industrial fans, from 35 are Xcocers coup- ~zs fa* " gh- inches to 35 feet in diameter, are soeed. r,gr.-zer:z--'arze h.a~- used in cooiing towers and radiator- misalignment arc *or a-: o. oes o? type coolers throughout industry. special industrial .'ecu-reme-'ts. The Company has long had a Keepers r.s z: zzr.zy.-z arc prominent position in the design and container m.acomer-.- .v-cr converts ! production cf specialty equipment krsft pacer -nto cc-rugatee ecare for the steel industry. Charging con srd tne corrugate: aca-c ;tc trols. skip hoists, stcck line recorders, printed be <es. s t-e sta~ai'c ~'Z- hot biast stove burners, beil hoists. cn.nerv c: tre eac,`.azmg "custr. , stock vaives. automatic stove chang- ing equipment and much other spe cial equiement is designed and built bv Xcpcers to conform to customer requirements. Koppers has engineered huge laminated wood arches to be fitted into a church structure like a piece into a jigsaw puzzle. The same type cf competence in reinforced plastics has enabled .Koppers to develop spe cial. problem-solving utility ooie hardware and large, one-piece units for trailer trucks that form the heed and fenders . Environments! Systems The reed to cor.trci envircnmerts. ccnciticns has beer imccrtarv: ;c science and industry for many years Now the quality of cur evervcav environment--air. water, and laana the quality of life in c. suburbs and rural areas--nas come a high-priority matter _ national concern. Kcppers has been involved in vari ous aspects of environment centre! for some time. Electrostatic precipitators, de signed, built and installed b'. KoDpers. remove sciid and licuic particles from process gases or in dustrial waste gases in the steer cement, pulp and pacer, utility chemical and other industries Koppers also has comcetenca in --e design and construction cf ctypes of industrial air. gas and ilc__ treating facilities. Koppers designs and builds "dear rooms." These are enclosures where research, processing, or fabrication and assembly must Gccur in tne near total absence of dust or other air borne impurities--end where tem perature and humidity often must ce ! rigidly controlled. ! In another are3 of environmental control. Koopers has soecial knowl edge and ability in reducing ieveis of noise ranging from the noise c: flushed water to the roar of powerfu: gas turbines. The Ccmcar.v's crocristary sound control eauicment is used to quiet building air condition ing systems end to almost siier-ce stationary jet engines. Xocos-s sound-proof paneis are used to pro vide quiet office space witmn a no is-, ir.dustrial'environment. i _ss:--.r / dsr ar.d u rr.iz in z si --fu i.<ns'j:z :rcm cc-n' snz. 'zn s ncc : <zzc.in snc::zz:=: ; :n. : :t5 : ~3 "Vi ':f.r " "3 2'3" 2"3 5-'333 "32-- 332 zi i'Z'.iss ~j:2: . :.a ~~i 2zr~- -- 3" - 3 ` s - rr/cri on ;ss :r 5 z::.\ -z "5:3. -3 ~mZ'Zi-z z 3$: : 3rcc.:;s 2:3 .3 -33 3 3 3" .':-5.-:=. :z~:-z. 3 3 3r:3-Si :-3. 2'3 5'.'Z'Z ZZl- .-.3 z~: '35 ;:3_: :: 23-33.2- 2-3 -- 32--;: 2-3 3.55V--5 -: = - <ccc3's = - 3 33 '35.5:3 t~3 :C"32" 2.~3 5 3'35 3" " .3-3-5 .'.35:3 3 5CC53: 5.3:5 -- 5 - = = *3' 33-3 5 3.'3 .53-: :~3 ~:3' ; : -3;-33:3:33 5: < ;2'5 3-c :-.3-.2 5 3 3 3'3 'r53 2'3* 3-3 33.3 33- -- 3"' 3" 3 '25 - 2.3 333- 53 '* -3-- = -. :-3 I:~: 5 - ; ;- --- .3-:3'3 = - 3-; 2-3 -5.3 3 -- . c -- 23;3 '-3 :*5 33 -: 3- 3 :3 5--s ::-3' -3.5V 35 - 1-' 3'3 2 3 - 3 3533 -. : .3-3-: 3* : v - :--3.-. 33 .2 3 3.35' 32 - 3 335 '3-25 :'3 '2' 2' 3'332- 35 :: --3'3.3 j'3 ' 3 " 5 3 r `5 23 23 3' . "3-----3~ 3 1 Engineering and Construction Kcooers is tre wo,-id's lesdmg ; N'prtr. America, wr.rf :rs-r ccal 3~c contractor ir, tre design anc cor.- , eexe ranciir.g ar.c cr.emicai recover struction cf basic oxvger steeim.ak- ; facilities, have peer, buiit cv Keepers me plants, -bout 0"e-:r,rc of ail ' Ovens cf our -atest cesign are =0 rne basic oxygen iurr.ace capacity ' feet long and 20 feet hign--largest in the United States was designed j in the Western Hemisphere. These cv Keepers. | new ovens will operate at faster cox ! We ha-, e buiit mere than 120 blast ! ing rates and produce SO per cem furnaces throughout the woric. more coke in a given time than anv These have a total annual capacity ; others in this hemisphere. of almost 4-0 million tons--about Otner types cf installations de one-eighth of worid capacity. Blast signed and buiit by Koppers induce furnace equipment supplied by opan hearth furnace plants, sintering Koppers is installed in 99 per cent plants, materials handling systems, of all U. S. blast furnaces. fuel injection systems, het bias: Keepers personnel have been cucolas. automated coke wharves, associated with continuous casting j anc cr.emicai processing facilities,. ; since tr,e initial deveiccment work : Keepers engineering anc con i was begun well over 15 years aco. i struction sales oyer the years exceec ! The Company designed and buiit S2 billion, attesting to tre compe .' tr.e first cprr.merciai-scaie cor.tinu- tence deveiccea m this area cf our ! ous casting machine in North . diversified Company. America. We new have more tnan ' 70 continuous casting strands either I _e;:--i in full-time commercial production ! = or under construction. : -j.-mer " More than 21.400 coke ovens in i r> 'zcci'S : C'Sj: r- Keepers RssTict only been in the forefront of the latest developments of modern steelmaking processes, but also is one of the few firms in the world having the competence to build an integrated steel plant cn a "turnkey" basis. 'P'-e Comoany's capabilities ex tend f'cm the oerfcrmance of feasi ble/ studies and the develcoment cf a fi.oaroai plan ... to engineering design, crccuremeni of equipment, construction, and startup cf the ccmcieted piant. jfeiy ^y*,>y,:lt,", !r.cernat;cnal 'ccce's e-cer; :a-i piss: "eta redacts s-t: ere- :: meet re e-.c.rc -c neecs td r.e'seas mar-ats 7re Ccm.ea"7 "33 C'a^ed :.'e355C emphases c"- :.~e estaol.sro: ove'seas rarufactu'rc ar'iates m recent vear5. -Ae na\e " i c; rase 3ff:i:atss wnicn mciuce clast.os ccerj;-cos r Sea r -'g="- t na. Sr3zii and .Vieioco r.e prccuc. ten cf piston rings in Itaiy feres; orccucrs facilities ..n Centra! Amerca a^d t-ne Cariboean area. cement crcdu-ct'on <n Chuie arc c."S"\cai and tar erocsss.rg ,n Aust'alis. In estabi-sr -c new overseas "snufacturr.g ccerafcns Xcocers cc.icv is to ;cn wr. iocai ;vestcrs. Our ce^e-ai sccrcac- -s tc e-<:e~a cr c'ccueticn aacac as .ntc ~ar-<ets where our ccmcetence and excenen.ee mesn ,v.tn the needs cf 3 earfc-Jar ceunt'Y or region. The Comoar.vs cacaoc tv re cesign arc construct new steel darts and maior stee1 oiar.t units also ex- ter.es into re Tre-natic-al f.ec. Kecpe'S enjoys a strong ocs.ctc" r. tne overseas co^st'cct cn '~ar\e: Recent overseas contracts -nci-ce the cesign. construct on. arc sta'tuc acnvtv of stee n-atmc :sc I't.es m Turkey. re ' 00 ~e~ Sea " Chile, itaiv 0: c"-3m-;a or zees-~g plants n Brazil A.-gentma Vene zuela anc of a military installation ! In Australia. I * si :... ; r..r.- : *.* 7''' *vvi".y.-1.*.J4V'.'v'd-jjy/i; yir UTir "yxsv.i.'r-.'* rrrrr^rrrzr <;"Cr'3 i3 3 Ccmcarv ur.aoCUS- :c~ec :c Icoicng cac<. excact es : :c-,: ce a guice :o :~e future \e'.er:-e;ess. : rav be .r.terastirg :c review me growm, arc develop mart cf *.r,e Comcanv. and :c observe "cv. \r.c-.\ledge and ability acquired one field led naturally irto ccrr.oetencs m a related field. Research has Seen basic to Soccers development and diversi fication. It has led to valuable con tributions to the Company's varied cacaciiities. Indicative of Kcpcers eariv interest m research was the creat.-on cf the Company's research cecartment m 1 SI 5. Today our labora:orv's one of tne finest industrial rssaarcn facilities in the country. <scca's 'ese-";" me me Zcmco.--/ sea-* . o- a-: ~ a;;; j'.vsvs ~ cograss -Vest cs acts ra .-ne'er, .e-, etas nr -ere mm n--/..... ;-~r n. <:ccas cca-ct ~e-eye~J-.' : -ee: nner' --ome: m nmo..-;.-- me;.- . ere enncmmir.-es S-nr-e n' mese ere. nr co.ree. .imc-'e'-se r -si.-e /-t sscstctrsi pcrttor c- C.-onem 'ere-".'" ehor; -s tea croaa '-up: o' c err e-: o.-smcj.'s Ct.-.ar .vor.< r - r_.'~ e'eer is .sod tacsoiccy scar carpc~ cat::;-, a'- 'ornec? stsst-c stroctoras. a-c - irr ; , caseous e-'-Vem tract-mart St-` ot.-ar -e seercn .s -css::. one'ver >n ne-veo - r. s:as'ma< pm-sirs ma:a"iis. e-n s.-im cra.arcor 5. s'v .-eseer:.- actr.rtv or o-o-e:: e .--s :o i'lOO'. er "e.v rroa/'asga ro re: .<sccars 3rd ts costsmars cress sa --cra .re' ] sails g orscocts i^c to as--a. a --era a" s.a-t s-oisetonrs scar:-: :'- T~e sterv of Koops's s.rce mesa *5-2--Ccmp.'eteo co-sr-crc- c` early davs has been one of con styrene-butadiene piar.t cuiit and tinued expansion and diversification. operated for Federal Government a: Koppers stil! maintains a prominent Kobuta. Pa. position in the construction of facil 19A4--Company reorganized from ities for steel producers. However, 100 subsidiaries to a single ccrpo- tr.e present Com.panv is enmaniy a ; rate unit; stock soid publicly for first diversified manufacturing firm. Tne : time manufacturing operations have i evolved logically from Kopoers origi i 1946--Purchased Kobuta plant in nal capability in the construction of order to enter the plastics industry coke ovens. For example: I 1947--Began work on the design A growing need for heavy indus j and construction of the Company's trial equipment in its construction ' first integrated steel plant project-- operations led Koppers into the fab i at Conceocion. Chile rication of metal products: 1949 --Extended construction capa- Extensive know-how in the proc i bilities through acquisition cf lead essing of coal tar recovered from the ing designers and builcers of blast coking cycle was the basis for the furnaces, open nearths and auxiliary Company's chemical operations; . equipment Koooers Company owes its name ;nc origin to a young German engi~eer named Heinrich Koocers. Around 1900. Dr. Koppers cevei- i | : ' Keepers basic interest in creosote, the major product recovered from coal tar. motivated the Company's entrance into the wood treating field; The growing markets for plastics . 1954--Introduced CYLiTc expanda ble polystyrene plastic in U.S.; began producing polyethylene elastic coed a new tvoe of coke oven that :cu!d economically recover the : offered opportunities for Koppers to take advantage of its basic position . ! 1955 -- Established International Division cnemicais produced as waste by- ' in the production of manv of the raw ; 1958--Formed a separate Plastics c'cducts of tne coking brocess. materials used in these versatile I Division 'terested American steei croducers orcught Dr. Koooers to tr.e United ; products. The road to the development of ; I 1351--Dedicated modern new research center near Pittsburch Stares to buiid his advance-cesign evens. The first battery of ovens-was completed at Jc'iet. Illinois m 1907. Dr. Koooers mccrocrated the "H. : . j i I the present-day Koooers Company has many significant milestones along its path. Here are just a few of them. 1515--Koppers research deoartmen: l ! 1962--Exosnced wood activities by entering the field of glue-laminated structural wood products: estab lished Fc-rest Products Division <ocoers Company" m March, 1912. i established 1953--Established operations in the crices m Chicago in 19^ American investors cur- 1920--Acquired facilities to begin coai chemical processing operations new and growing field cf reinforced plastic products :cased me majority interest m. tne company from Dr. Koooers and i'crtlv tnerea;':er established its ~cme crice anc neacouarters m the ' : ' , 1927--Added metal fabrication capability with the purchase of two plants of the 3artlett-Hayvvard Com pany. Baltimore : : 1954--Ccm.pieted construction of 500.000 ton-per-year integrated steel piant in Turkey on schedule-- after 42 months of work stee'cao.talc:the ac,!d---irtsourgh. '355--Jcmed t.ne Plastics'Division 530--Wood treating cce-at cr.s into an ecuai parenersnio wtn were started through tne combina Sinclair Petrochemicals. Inc. to form tion of several small firms the Smclair-Kcccers Company '5"5--Chemical and tar processes oceraf.ons were integrated ntc : =r 1 356-57 --Carrisc cut the largest capital expansion program in the and Chemical Division i Company's history -t"--`<?COi'S rssari-. ii-Kir M._. J p. j 1 94Q--Formed Wood Preserving Division 1 J 1 IJ Per additional cooies ot "The Ccmzster.css of Kozcars" or of a compan dor, deeds; listing all Cemcany predicts, slants and aaias offices, pleasa v/n;e to Kccos'-s Company. Inc.. 1 ~25 Keep arc Side.. Pittsburgh, Pa. 15219. WJJStps Operating Highlights Ail of Keepers major manufactur ing units shared in the 7 car cent increase in manufacturing saies achieved during 1967. Organic Materials The Organic Materials Division (for merly the Tar and Chemical Divi sion) is expanding on its traditional product lines and markets based on coal tar, to include materials derived from other sources. An example of this diversification is our recent move into the production of aggre gate materials in those areas where _ we serve the road building market. The Company, late in 1967, com pleted a transaction to merge Buffalo Slag Co., Inc. of Buffalo. N. Y., into these operations. Buffalo Slag has been active for almost 40 years in the processing of blast furnace slag and the production of crushed stone, sand, and gravel. Buffalo Slag will be operated as a wholly-owned sub sidiary under its present name and by its present management. Sinclair-Koppers The Sinclair-Koppers partnership continued to expand its position in severai of the fast-growing markats for plastics and to increase its em phasis on the production cf end products during 1967. In particular, Sinclair-Koppers has maintained its strong position in the Vew 'ech.ves sr i>rc:s:r-<zzca'z. ;j Pi Ztsr;-->_. "i -tzirar. e . s: is i.mziC -me sra: <'c= . nr ieme -r:o r-a: trr.-r -re-' SL-csmrras O'. z; sra: s i-iz .zg-z `-v egg csr::rs. fwf. ar.c .7*3-$. m many efrer packaging acc- cavers ;f Keepers Manufacturing Sales Mcvinc into Grcwinc Markets Distribution of 1967 Manufacturing Sales to Consuming Industries 1r1 . n SALES T'-cusarc NCN-BUJLDING CONSTRUCTION \Poaca. Sewers. etc.j : 3 56,011 ARCHITECTURAL CONSTRUCTION i a_ 33. /12 (Structures. Houses. *`arus. etc.) PLASTICS s 33.3S2 CHEMICAL a HL'ESER s 36.532 7P.ANSPCRTAT1CN s 34.341 . UTILITIES: Electric 1 Telephone s 25.CC5 PAPER s 23.717 IRON a STEEL 3 21.275 MACHINERY s 12.333 GOVERNMENT (Defense) s 10.233 NCM-FERRCL'S METALS 3 9 -162 LL'MSSR S 5.334 NCN-METALLIC minerals (.Mining) UTILITIES: Gas 9 3 4.39 3 3.". 30 AGRICULTURE 3 4 422 TEXTILES UTILITIES: Sewer a V/ater 3 2.902 s 1 934 MISCELLANECUS 3 r.os* -:--L MA *iLPACT`J" NG SALES tlv i:.552 - Mc-<e:s c-c-v -c at a -ate := l\*r :r=- a- arac-i 5'C.vtr. =.<G"C:e-: *cr 'av.cr.ai eccr.cmy over next ten years (4.4% _____ M = .'<e:s grew ~z a: 3 rate slews. trar. a 9'3S3 s<35Cj3*J *cf rzi.zrz' econc'ny over next ten years. -r ^`nk5' re-~wsr-pn^i ><1 m "Tv1* 17 J\ : -.2 ----r --- --..............-' - . 1.aa es .'e-a-ae 3. :'2c:':cr.. J - : . = ^ 'i -5. 2. e~i"; : "as: :-e -a--.;:- ,.~e . 5 32 -.53 :~e .- : a 3-: 3 ~ < sa:: es. 3a is .-.ave Sri" a-ea: y ecas-cea r :r.e : eaa-save-a'-e: s-a r Zz\zz=r. 3 -s'3 r-Kzzz = 's s:2':ea aa a re-.v 2 2-: ~ T = ~S3, -eras ; s-asal/ r: .=-. ere aa:: es :a 3 -2.2' 2:3- :,2i' :: -c-se.-.a 3 aracucas. S -; 2 '-`-.aaae's 2 S3 es:as' srea 2 -i.-. z'zz.z: :- ra: 32:3 25 c; r 13" 'r57 T`i -iv. Z'~. F'Z- 3. ::2s 2= Es:'ere 3 A. ae C.7. 7'::esa , .v ' 2e 'C3a:=c "ear ,Me:<- ;; I > 3-3 A 3'3 2 - 3 i i.<23-222.e 23 /s:>'5".i 3:-.ir:2.-=: a-aiys:1/- i"i 2'3 AES 'iS 2 3 '2' -Si 2y Vi.(- :2~ 2 as: 3 ae's, ^'aaess .-.as ..--_ C2.j"3::2~ 2"/=:= . e< 2 a- -.is'2-s -2,' c:-s:,'_::.2- 223-ess. tar. = ;'2-2s 3: 22-::-2-2'-s 2as:'n,c ssoac- ..=- = aa-a.e-.ea 3: :.v3 -222: crs. "2 3" 322.:.3-3! 35 s:-2.-23 2'i "2.v ' .2'2-S s:23is 2' 23-S:r3C:.2.3. : 3 = -:.22 2' v ~32':a,-: -ew ..e-e - :e e -'i 22.3 -? 3iS. 2" 3-3 22~- = a- 2' 2 : are-. 55 3 22: 23-2 2.i-s 2 2222 i 2; 2'2:.2r: zZ 2 i' 2i-: "Vi 22*.i '"a" 2'. i*S 2CV,' 2 2i"i'2, 23i :r S 22-r:,'V. Tresi 3C-:22: - 2* a.ers a- : 3:.: se :~i -zs:-zz<.rz aes.ar 3.-3 aaeraa.-c <rc-.v-:'2v/ 22:2:--e2 :rzr~, :ne 13' 3" -22 2i223"s:' = : 3- 2. e~s aa-:: ear .i' 2: zzr >'i3'">. a.. 3 a.-:. 7-= seccrd sc.-trac: is ic' the a-aes: a:as: -_'-ace eve-- 212.2: :rs is:e.-- ,-e.-s2-ere. ': -.ave a ;-ia-:- 3 a--i:e' 2' 35 ;ii:. ara- / s.2- 'zr e.e-:-2 i.<aa."s;cfi :a 37.5 fee:. :s - :.a :as z~ asaacay -.vl! 2i 5.3CC :r-s 2: :z~ re: say. Overseas 7a 2 .2..-; . iV.'iS Ar'i iS:22. S.--i2 r. A-st'a 2 22.'-2 re yea.'. 7-.= 2-2-32 2'3 32 3*. 3- -r-:s 322 iXSiCteC K 2 2 2i"$ -3S:.'2 2 .= .'2 2.' i'.ary, L " .tea `zr-- ea .;,2 Fea.-aary z; :96~ :z zrzz.zi a avs: 's-ae a; caai :=' ava-aats. ~~e s ;c -:- / CA-ea ay Xaaae-s 2.2c 3.-2<e2 Pra areas." 0:r~as-y 2-1:23 ir-- 3'^Af -t"~ c'z z~zzr a. L's.ra 232. :a' a*: a:re.' ay-araa- j::s `-a- 3 A.7, s 23' r: raes: a's <AP a '. -raa-ae -aa-'.-s.e-a 3 = '- 22- e ec:'3-3i 2-ae- 2:2-. -222 2 2.-2 ~a:er a s 22' - a 2 a* 2-e;- s::e a-2 2 .2' i:y a- 2 --e- a 2;_a 2 as ~a^e:s 2 e ae.e aaea .- Seaaer-.ai- -P -ea :' = 3- -22s:-es - ~ ea "e eaa-; 2'2 2-22' : 3:2 a : :s` a.: - 2 : = a. : : ~ - atae'- 'S- 3 v- 2'7 3 _ T f i ' - ' f I' Z ' l -` r'"- is --2 -2 3 2' --y ' 3". -- -" i'i-T 2 ae ~es '3-2 s a .. : ~2--.e: " A-s:-a 2 s -: r - - 22:2 - e-y -a:-'2 ass re1 rrz-'^rrrsryzpr: Eoard cf Directors /arc2 Brand nte'^at.onai investment Co. Stanley N. Brown sprmer V*ce President Soccers Company. Inc. F-eicher L. Byrcm President <2ccets Company* Inc. Fred C. Fey Chairman of the 3oard Keepers Company. Inc. Ccugias Grymes Executive Vice President Kopoers Company. Inc. Curtis S. Jones /,ca 3-esicent Mellon National Sank and Trust Company Thomas C. Keeling. Jr. C>ar--an snd 3,esident Koccers !flte"taticnaf. C.A. Ar.draw V/. Mathieson V;oe 3,es.de<*.t and Governor 7 Mencn and Scn3 Pocart H. McCiintic i-r--an the Scare Sc'dcn__sr-cat.rg Comoany Fcber. S. Oefman Oa rma'* 2' :~e Scarp____ Nat-cr.a. Case Peg:ster Company Nathan W Pearson * :? 3*-js.re-t arc Governor Me .0" arc 3 :ns C' 3-y'crc S.'evsr :`-is 2**: *-Ve c" i'Z *. - - -crr.ss "'ss 0*-: : "C J ' - ZC'Z2'2X Gf Officers ^''gd C. r 0V C ' i.M~nar. cl the Scard r etcher L. Syrcm Resident Ccugias Grymes E<ecut<ve Vice President Company Vice Presidents A. William Capone T-easL-rsr Thomas C. Cochran, Jr. Gererai Counsel and Sec*et3fy harry 3. Cummings General Manager Met3. 3*cduc:s Dmsicn '.Viiiiam 8. Jackson Ge-e'si Manager C'gan.c Materials Civision Thomas C. Keeling. Jr. D,rsc:cr n Charge trte'-at.onal Operations 5. C*tc Wheeiey Manager Market.n.g Department Fees'? G WttSCO Ge^e-a* Manage' nee'irg arc Construct D'.isicn Divisional and Departmental Vice Presidents William A. Andersen E-g<reefng ac Construct,on 0 /sicn T. Hayward Bartholomew C-gansc Materials Division Burnett G. Bartley, Jr. sorest 3roduct3 Civision Arthur W. Cowles Executive Oeoartmgpt Donald L. DeVries Metal Products Division Robert T. Eakin Engineering and Construction Division David L. cynon. Jr. Corporate Growth Planning John A. Hagan Engineering and Construction Division James F, Haley Manager T'ansocrtation and Traffic Ser/icas Max C. Hanisch Porest Prccucts Division Alfred H. Jones , Manager Procurement Ceoanmer.t Jor.n 0. Jones -Manager Industrial delations Department --...... " '^flsgB5^iJgg3gg%SaBEaS5jitWW3^^ c-o'as Kav v-*2 :': r-_ts Z .-s cn 2:-a'd .MacArtr.ur i3" '~:cn C"*ca = r-:C VcCcr-socrev *>-2;*'--Si: i'*' =?; :: - c `.M:*' s 5 . . ; - =>c;ten<;er : 5esea*tr .i;< Z ?:cs '-ie' ?" 2 ' s-c" '-eocc-e 2 Ta-ce-ec< - * -5*. :*! 2 : v. r-2-< 5 Varga - - -. --i -2, .`i='r~=r! ' -!-: -.. :-s 3 is:* r-;-' E i'se J- Cr-ii-.r-. -- 2 . s:- ryUTpr Exscutive Chances Tm maicr executive :-a.-ges .vere nace curing tS67. A. WILt/AM CAPCNS A. William Capcne was eiectec vice oresicsnt. oner `ma-cia. ct'icer arc :.-ea3urar o' ire Cornea.--.. ns succeeded Jcr.n E. Scears. cmg- `inarciai pricer ci tre Ccmcary s:rce '962. wnc 'etired o-urg tr.e ..ear Esocre `2= seen :nvc ved .n vancus erases ci '-copers cpmestic arc i-te'-aticcs: `'-a.-ciai cpe'aticr.s s.rce `9-5. P-cr to his present position. Mr. Caccne was man ager of finance for tne Company s inter national Operations. naccrt af Certified Public Accountants A=7:-'_-= YCC.'iG i CCV.= i VCi=-.s =r rus-c ACCCL.'.'i'.Ts A30 Se'.er;- s.e-.e Pltasi;.;.'. =1 ';C-3 Tr.e Scare cf directors and Stockholders Keepers Company, Inc. We nave examined the accompanying consolidated balance sheet of Koppers Company. Inc. and ccnsoiidatec sucsiaiaries a: December 31. 1957 ana :.-.e' re'ated ccnscvdsted statement of income and earn ings 'etair.ee -n ;ne business 'cr the year tree e-ced Cur examination was made in 3cc0.-ca.nce with esnerally accented auditing standards, and acccrcmciy nc.uced such tests of the accounting recc.-cs and seen otn.er auditing procedures as we csns.cersc necessary in tr.e circumstances. In our opir.icn. tr.e statements mentic.-ec aceve crese.nt fairy tne consoficated financial pcs.tic- ;< ``epeers Company, 'r.c. and ccnscticaiec sucsiciares at Decemcer 31. 1957 a.nc the ccrscicatec 'esuits ci t.neir operations for tne year tr.er e-ceo. co.-'cm.ty witr generally accepted accounting ct-r.cip es aoc.iec c.n a basis consistent wtn trst p: t-e precsc.r.g year. Pittsourgn. Pennsylvania January 22. 1963 set J XA'C Sc! J Ka:;. manage' ci the western -eg.cn ar.p neacc-arte'ec - _os Arce es was acccmtec vice cress-dent. :',cr to nis -ecen; aoocs-:me-t Mr Kate -ac cee- -ac re c-str c: se es -a-ager z` ire Crga-ic Mate-as 2-.-s 0- s-:e rj moved to fe West 2 cast t?A3 alter .c.ng ser,.ce - --e 2;~ca-.. o-en.ca: anc tar sa es a:: . es " me Cnicago area. Transfer Agents Xliilen Vat'sr.31 San. and Trust Comcany Me Su-a-5 = cj;-.-;-.. =a.-.SCCC San.a-a "r-s; Carrisr.v.'5 Wan Siree: S'e* va< \ r -s.-ns Trust and Savir.53 3an< `.lent:* Si.-ee:. CX.css; ii SCSSfl Sa.-< si America 'laucnai Trust and Savin;s Assoc.ai.cn C-- S:-:- ran '.ass A.e-us. San X*3nc.sc3 On. Isrma S-t'Ct Stock Registrars - "sc-r;n Sa:.^--a = " I Ecc"~-c 31 *: Wc.'jan oi-aranr/ T,*,st Ccmsany 3- n v :o, Ccn;j*'e":ai iiimeis Nit:cnal Ejnx antf T:ass Comsarv ~,i * -2* 5<x:i -iSji e C^-caco. "! 6CSSC .*/. s - a-A 'j a si.* r'anc;scc Ca.if3/'*-j 2a*:; Dividend Disbursing Agent 'u:.3*531 3mx jro T/3t Comcany .0" Sj'-or? 5::::c?a. 1522C Consolidated Statement of Income and Earnings Retained in the Business Y 52.'3 er 3". 1367 2P: :S-' tying is; Net sales ............................................................................................... Coer=ting exeenses (Ncte 2): Cost of sales............................................................................... Decreciaticn and depletion.................................................... Taxes, other than income taxes........................................... Sailing, research, general and acnmr.isirative expenses Operating profit................................................................................... Other income: Dividends (Note 1). interest, etc............................................ Profit on sales of capital assets.. ........................... Other exoense: Interest .................................................................................... Minority shareholders interest in suosidisnes' income Provision for income taxes: Federal (Note 3)......................... State a.nc foreign .... . , ................ ............................................. Income before extraordinary item.......................................................................................... Income tax o'enefiis of ccerating losses of a merged scosidiary.................................. Ne: income for the year.......................................................................................................... Earnings retained :n tne business at the beginning of period......................................... Earn mgs retained in tne business at January 1. 1S66 of: Buffalo Slag Co., Inc. fNcte 1).......................................................................................... Ctnsr companies accuired m. 1366 .................................................................... Cas" dividends paid: Cr preferred stock. S-.GO cer snare............................................................................. On common stock. S'-.-O cer share .......................................................................... By Eofta'.o Slag Co.. Inc. prior tc merger (Note II...................................................... Soecial charge, net of apolicable income taxes................................................................. Earrings retained ..n the business at tne enc pi cercd, ......................................... P/e-ags nemo er of snares'of corr'-or. stock cutsts'c/rc cornj /ear FSf 5.C ='9 0- CO>T,..TiCr. SfCCA; Earnings oefere extraordinary iter', ^r^ .nsry item ,'iet eariincs 1367 SPP3.1P3.111 355.051.665 17,367.329 7.361 .S6P PS.105.St 7 P26.337.2S5 21.760.315 1.P05.3C6 251,512 1.656,913 23.P17.73P P.5SS.31P 63.PI 3 4.663.232 1S.75P.502 P.235.Pol 1.213.SC6 5.503.367 13.2P5.135 727.237 13.972.372 9-.515.373 --. -- 10S.-c7.750 6C0.C00 o.S.'S.. 1P 138.SP2 7.365.PI 6 -- 7.355. P15 1 cc "ioj -.-56.52S 52 55 .75 S2.r; S---2\c r. / r- 357 257 -as 1-.065.253.C80.155 p3.253.0p7 P23.365,615 19,252.179 1.P66.P72 1.07P.P09 2.5P0.SS1 21.733.C6C 3 3-5,561P9.333 3.P35.3P7 13.237. r- 3 5.553.C51 553.521 6.251.572 12.0p5.5p1 -- 12.0p5.5p1 85.130.527 5.2S3.P25 1.163.394 1C3.533.3S7 6G0.0C0 5,430.333 193.3CS 7,274.755 1.343.213 9.123.CCS S 9-.515.373 P.57C 5ft 22. J-- 52.2- vrn?.': "ir-- ? y'.i* w r: : II 1,1.\j1 r^' Ii a ii >> .-n N!' o-- Kop Consolidated Balance Sheet .c Current assets: Cash........................................................................................................................................ Marketable securities a; cast which aocrcxi-ates market.................................. Accounts receivable less allowance of S43C.S31 forccuctfu! accounts m 1957 S 1',330,339 3.547.353 37.7-17A23 s inn:- ~ -v Inventories. at lower of cost or market: Product mver.tcr;es Inciucinc work 7" crccess.................................... Raw materials and supplies....................................................................... Frecaid insurance anc taxes............................................................................... Total current assets........................................... .............................. Investments at cost less reserve: Investments in non-consolidated subsidiaries and 50% owned companies (Note 1).......................................................................................... Cther investments (Current value at December 31, 1S67--S14,149,QC0) Notes and accounts receivable due after one year............................................. 5!, 313.723 14.375,246 1,165.531 170.330.352 43,454.367 12.422.133 _1.C2S.363 170.031.632 S.923.112 9,439.472 2.572.309 21.940.393 9,400.269 10,837.503 5.255.SOI 25,493.578 Fixed assets, at cost: Euildings and equipment......... Less accumulated depreciation Depletable properties, less accumulated cepieticn Land..................................................................................... Intangible assets, less amcriizaticn........................... Deferred charges 300.063.703 179,399.932 120,653.771 2.236.309 8.103.512 1.995.530 133.050.772 947.659 275.423.731 165.243.432 111,130.299 3.047.309 7.603.793 2.263.315 124,100.716 561.595 532S.519.775 S320.137.621 HOPPERS :ar:v. ire. sr.d Consolidated Subsidiaries Consolidated Balance Sheet December 3:. '957 ar- '955 See acccmra-'.--c L.' /* ~ t Currant liabilities: Federal ncome tax .......................................................................................................... Other accrued taxes................................................................................................. Accounts payable and accruals other than taxes.................................................... Advance payments received on contracts................................................................. Term debt due within one year................................................................................ Total current liabilities............................................................................... Term cect cue after cne year (Note 4); S% notes cue S3.CC0.GGC annually commencing August 1. 137"................ N'ctes payaoie to banks............................................................................. .. ... 5.3% promissory notes aue SoTO.CCO annually commencing August 15.1372. CtPsr Ce'emed comcensation (Note 3;........................................................................................ Geierrea income taxes (Note 3)............................................................................................ M.ncrny sbarehcicers' interest in suosidianes................................................................. Total liabilities ........................................................................................ 1967 $ 1.149.006 3.CS3.S14 35.022,355 10.470.619 2.164,792 54.301.236 . 25.CCC.CC0 30.CC0.0C0 10.0CC-.0C0 5 -134.664 T2.4S4.66-i 1.526.373 7.451.203 334.736 137.243.753 S-GCKHGLGEFS' EQUITY Cumulative preferrea stock. S1C0 par value: Autr.crtzec 3C0.0C0 shares: issued 150.0C0 shares. 4% series Cc~m.cn stcc-c. authorized 6.000.000 shares of S5 par vaiue. ssuea 4.373.523 shares in 1367 ana 4.940.233 shares in 1366 t.Nctes 1 a.nc 5i . Gao-tai m excess c-' oar value (Notes 1 and 5)................................................................. Earn'-gs reta re-z m tne business iNcte 4)...................................................................... Zz^rrcr, s:oc.< ;? comrrcr. stock ir. treasury, a: cost. ec'-Jity ; "ota! prererr^c ar.c s* 'c/rcic-fs* ac. 5.0C0.CCC 2-i.337.6-10 43.362.596 *'-.362.675 5. 75 1 ars 3.031.472 45.753.372 5.339.370 2.047.722 53.567.373 55.000.000 10.CCG.0C0 _2.S66.4li 57.966.411 1,454,155 7,132.045 __ 1.372.520 137.442.504 15.0C0.00C 24.701.415 43.523,324 94.515.373 ; 32.745.117 S320.137.521 1 965 $335,338 S21.352 S'.123 S7.808 512.731 $2,53 S'! .20 S'.-1.351 32, *2 i 735 15.5*13 So.5-11 S23.SCS 333.373 S3-1.2S5 31 C6.622 $239.C23 $95 3C3 332 39 196S3-15.-H-1 S20.352 SI .355 S3.sea S10.793 S2.15 51.23 315.233 S3,23 -1.715 15.133 S-i.553 SI 5.720 532.555 $23,052 ;oo -os 3213 2'' So-. >36 1963 $302.31 S S15.982 $1,241 S7.C34 S7.657 SI.49 SI.CO 313.179 S2.73 4.733 15.813 S2.393 S18.334 S91.317 522.738 --S35.853 SI 80.391 S74.133 S32.2S 1962 S312.713 S15.45C SI .252 S8.116 S3.082 .00 SI.00 S11.913 S2.48 m$:2 16.307 S2.742 S'3.744 S32.GS7 S29.711 S35.207 SI 93.251 $30,157 S31.53 1951 $230,339 Si -1.6---i SI,301' $6,346 So.997 SI.32 SI.00 S11.937 32.48 4.343 15.-3SI .505 S22.625 SS5.553 S31.077 S35.77S S'31.317 S75.3~3 S32 Si 1 960 S310.315 SI 5.352 $959 S7.529 S7.364 SI.50 SO.35 S'3.316 S2.75 -.339 16.983 $127 320.113 $97,533 S23.4S7 S33.339 SI 37.317 S75.04S S3C.75 1959 1553 $251,500 3253.522 SI 3.SCO ' $14,773 $747 SI,167 So,646 S6.114 So,407 S7.492 31.20 $1 -2 S0.30 31.03 S11.252 Si 0.522 S2.32 S2.17 4.35- -.352 16.941 $364 16,611 S2.056 S12.649 SI 0,043 393.212 $35,039 320,959 S27.555 S73.605 331,339 $146.101 S155.631 $i 9.1Go S33.602 S29.S5 S29.55 " = r ; Noiss to Consolidated Financial Statements December 31. 1 sez 1. rr-ncrptes c: ccnsoiidat'cn ~~e cc-sc'icated statements include tre accounts of {Re Company. ail of .:s ccmest.c sucsiciaries ard whc.iy-cwr.ed foreign sucsiciaries and the Company s 5Co snare of the assets and 'faonitres and income and expenses of S.ncfairKocoers Company, a partr.ersmp owned by the Company and SiPcair = e:rccr.emicais. !nc. a sucs.c.a'y of Si--c`av Oil Corporation. Sased upon the latest avaiiab'e fmancia1 statements, in some instances as yet unaudited. the Comoany s ecuity in the -e: assets c! -cn-ccr.sciidatec subsld'ares anc 5C3s owned ccmcar.ies at Cecemcer 31. 1957 exceeds the carry mg value of me Ccrr.ea.oy's investment t.-erein by 31 375.C00 Toe Com pany's eouity ;n the operating profit of these com.caries in '.967 amounted to S677.2C0. This was more than onset by --'ea.iced 'c.-eigo excna.-.ge esses estimated a: 377" CCC. Divioencs o> 556 395 were received from mesa ccmcar.es .r, 1967 a~c tate.n into oor.sC'oated .ncome. Cur:.-g 1367. 3uf`a:c Slag Co . Inc was merges --to the Ccmoar.y in excnance xr 363.571 Company common snares, "re transaction was acoountec for as a pooling or interests. "-e `'nancia: statements for 1967 include the cceratic-s of the me'gec company ''or tne enure year anc me `:na-c:a' state- for 1956 were rgstateo to mc.uoe the ope'at:c"s of tne merged company for mat year. Capital in excess of par va'ue was reduced S90.361 m 1967 'eo'esenting me cos: of treasury snares issues as additional cons.aeration for i company acquired in 1965 and accounted frr as a pociing of interests. 2. Pension olar.s 7-.e Comoany anc ns consolidated subsidiaries nave several t'-.steeo pension plans covering substantially ail their em? cyess The tetai pension expense for 1967 was 33.1C7.0CC. cn m.ciuces 3511.C00 for interest on ard amortization ci c-'-cr service cos: ever a 38 year period. A.I pension orovisions are paid into tne trust funds. The unfunded prior se-nce cost .rear =' p ans a: Decemcer 31. 1967 approximated 39,320 COO --or. incudes Si.ICC000 *esui:mg from irc'sased penefits ,,-Cer certain piars tor ncur y employees g-arted in 1967 3. Income taxes --e P'C.-stcns `or .n.ccme taxes -a-.e cee- reduced by 33 z-'- 3CC and 31 373 CCO in 1967 and 1966 respective -/ ter me nvestme-t credit. Tne Company provides deierrep income taxes for me excess c-.ce -ne oeoreciation c aimed for tax c.rccses o.er occx oecrectat.c'' es: mated taxes oayaoie -cc- eve"fua' transfer or earrings o: consolidated toreign. suosid.anes to me pa??'". cc-ncary anc ce`e."ed cc-oersatico tn.e oa a-ce s-ee: me provisoes `or tne `irs: t.vc -terns a-e ncuced - ce'e'-ec taxes and the provision fcr tne latte- item is -etted against fhe related liability account, i. Term debt due after one year Tne note agreements contain various restrtetters as to d-vidend payments anc incurrence of acciticnai term dec: Under the most restrictive provisions, at Decemcer 31. 1957 317 J06.CC0 of consciidatec earnings retamec in the cosiness was avaiiaole for cash dividends anc the Comoany could ir.c^r accitional term debt of Sa3.S25.OCO. The notes payable to banks bear interest at the come rate (6% at December 31. 1967) and are representeo by SC cay notes wnen are automatically renewaoie until September 1 1969. at which time they can be convened irtc term notes wnich will be payable !n ten eoual semiannual -rstaJ-e-ts commencing March 1. 1970 and cear interest a: tne p"-e rate plus '/3o. 5. Stock option plan During 1967 under the Company's stock ccttcn pan mofficers and key employees, options on S SCO snares we-e granted. 35.3-15 shares were issued on. exerctse of cotters a: prices ranging from Si7.00 to S30.3C per share, and cc;:c-s covering 800 shares were terminated. At December 31. 'So' options covering 76.295 shares were outstancirc anc 32.5-:.: snares were avaiiabie for future grants. Cpucr.s granted prior tc January 1. 1 Sc-i were at S5aa c` market value at dates of grant anc are exercisaoie eve' a seven year period. Options granted after January 1. 196- were at :0Co of market vaiue at dates of grant and are exe'csae-e over a five year period The S-125 235 -e: excess of preceeos over the cost of treasury snares arc par value of previous y unissued common snares resulting from exe'Ctse cf opt.o-s during the year was credited tc capital in excess of par a ,,e 6. Commitments and contingencies Tne 1963 rentals on properties cce-ated by me Cc-mca- es under long-term leases will amount to 32.25O.CC0. In acc.t.ctne Comoanies are required to pay taxes. 1nsur3r.ee. reoa-'S and maintenance and alterations under certain of tne leases The unexpended balance of open fixed asset expend.tu'e authorizations at Decemcer 31. 1967 amounted to 3'3 660 200 Tne Conpar.. has guaranteed S9 2CCC0C mceote-oness :` 50j owned companies ar.c other ooroorations. T-e Company is defencant in a oivn action .n. wnen. :-e o-aintihs aifege breacn of a management ass'sta-ce co-trac: ard are seexirg damages in a suosta.-'.ial amour: T.ne Com pany a.-d us :egat aevisers cei.eve tne su.t :c oe without -e- ' TURN PAGE =01 IC-VEAP piGHUIG.-'S ). Keepers Company, Inc. and Consolidated Subsidiaries Ten-Year Financial Highlights t 'Ail Ugures in thousands, except per share information and number of stockholders) Revenue from sales and other income...................................................................... Income before income taxes and interest charges andafter minority interest Interest charges .............................................................................................................. Income taxes..................................................................................................................... Net income......................................................................................................................... 'Earnings per share of common stock...................................................................... Dividends declared and paid, per share of common stock.................................. Total of all taxes..................................................'........................................................... 'Taxes per share of common stock............................................................................ 'Number of shares of common stock outstanding............................................... Number of stockholders at year-end.......................................................................... Earnings retained in the business............................................................................... Gross additions to fixed assets and investments.................................................... Net book value of land, buildings, equipment and depletable properties.... Term debt due after one year....................................................................................... Wages, salaries and pension expense........................................................................ Materials, supplies and services................................................................................. Working capital at year-end.......................................................................................... Book value per share of common stock outstanding at year-end....................... 1565 $-*49,305 $445,159 $23,354 $21.644 S4.600 $3,347 S4.782 $6,251 SI3,972 S12.046 $2.70 S2.34 $1.40 $1.40 $12,644 $14,332 S2.55 32.93 4.S57 4,391 16.959 16,890 So.607 $4,771 $30,118 $48,742 S131.054 $121,837 S72.485 S67.966 $117,100 $118,990 S284.058 S232.036 $115,680 Sill,064 $35.16 $34.40 Tfiesults prior to 1967 have Pesn restated to retlect the merger of Buffalo Slag Co.. Inc. into Koppers in 1S67 on a pooling of interests basis. 'Based on average number of shares of common stock outstanding during year.