Document 85dOa36B6kDp7Mg1Nd122ZRnd

MOODY'S INDUSTRIAL MANUAL AMERICAN and FOREIGN FRANK J. ST. CLAIR, Editor-m-Chief Editorial Board Lloyd C. Sweet ' George H. Parsons Arthur W. Herrmann Robert C. Riehle David M. Day Albert C. Esokait Richard Olney A. E. Combader William Strauss June 1965 Robert H. Messner, Publisher MOODY'S INVESTORS SERVICE, INC. 99 CHURCH STREET, NEW YORK 7, N. Y. PHILADELPHIA BOSTON CHICAGO LOS ANGELES WASHINGTON SAN FRANCISCO Suburban Station Bid*. 75 Federal St. 135 So. La Salle St. 510 W. Gtb St. Woodward Bldg. Run Bldg. LONDON: MOODY'S INVESTORS SERVICE, LTD. King William Street Home, London E.C. 4 Copyright, 1965 by Moody's Investors Service, Inc., New York--All rights reserved 4.8 MOODY'S INDUSTRIAL MANUAL On $1 par shares after 2-for-l split. I960TM 0.12 1961___ 0.78 1962___ 0.90 1963___ 1.02 1964___ 1.14 01965___ 0.30 E)Includes $1.50 paid -before 3-for-l split. CBAlso are share of $50 par 414% preferred A for each 20 common shares held. 0To Apr. 1. . Note: Dividends payable on last day of each month to stock of record about the 20th of same month. LISTED -- On New York Stock Exchange; unlisted trading on Philadelphia-BaltimoreWashlngton Stock Exchange. TRANSFER AGENT--Manufacturers Han over Trust Co., New York, and Registrar & Transfer Co., Jersey City, N. J. DIVIDEND DISBURSING AGENT-- Compa ny's office. REGISTRAR--Corporation Trust Co., New York. OFFERED--(210,000 shares) at $15 per share on Sept. 26, 1950 by Merrill Lynch, Fierce, Fenner & Beane, New York, and associates. Proceeds added to company's general funds. (406,000 shares) incl. 350,000 shares at $27j> a share on Dec. 15, 1960 by Merrill Lyn<jv Pierce, Fenner & Beane, New York and jTJ sociates and 56,000 to key employees at S25.<4 a share. Offerings did'not represent company financing. - Stock Options held by certain officers aas employees at June 27, 1964, on 24,000 comnw shares at prices from $22.55 to $27.37 a sha~ and 3,000 common shares at $25,575 a shaq expire to June 30, 1970 and 1972, respectively, ARMCO STEEL CORPORATION CAPITAL STRUCTURE LONG TERM DEBT , Issue 1. Debenture 2%s, series A, 1966 ____ 2. Debenture 3s, series B, 1968 --............. 3. Debenture 4.35s, 1984 .. 4. Debenture 4l/2S, a$86 -- 6. Term loan 3%s, 1960-65 _______________ Rating 0.. 0Aa. Aa_ 0.. Amount Outstanding $11,500,000 8,740,000 68,282,000SO.OOOjMO 1,500,000 Charges -Earned) 1964 1963 19.441 17.66 InterestDates A&O 1 j&J aA&O 1 J&D 1 Call Price 0-----0......... 0103.30 0103.20 Price 1964 0------0........ 100%- 98% 102 -100 HI------- 3963 ' 0___ fD-IZ102%- 5 104 -lo[ 13------ CAPITAL STOCK Issue 1. Common,_______________ Par Value $10 Amount Outstanding 14,804,641 s-hs. Earned-per Sh. a964 1963 $5.43 0$4'.45 Divs. per Sh. Call 1964 $3JOO 1963 $3.00 Price ------- Price flange 1964 1963 64 671)4-51^- 0After spec, credits; before,- $4.12, 0See text. Privately placed. Subject to change and- sinking fund- call; see text. HI8TORY Incorporated in Ohio June 29. 1917 a* The American Rolling Mill Co.; present name adopted in April, 1948, merging the properties and business of American Rolling Mill Co. (of New Jersey) and Columbus Iron & Steel Co., Columbus, Ohio. Subsequent acquisitions in clude Ashland Iron & Mining Co. in 1921; Nor ton Iron Works, Inc.; Forged Steel Wheel Co. and Columbia Steel Co. in 1927; Sheffield Steel BUSINES8 <ft PRODUCTS Company, on consolidated basis, is approxi mately the sixth largest steel company in the country and had, at Jan. 1, 1960, rated annual steel making capacity (ingots and castings) of 6,800,000 net tons, or 4.58% of total U. S. rated capacity. Parent company consists of Steel Division, National Supply Division, Armco Interna tional Division, and Metal Products Division. 1959 _______ 5,128,907 1962_________ 5,004, 1960 _______ 4,964,200 1-963_________ 5,734, 1961 _______ 5,359,205 1964------------- 6,828 Products Shipped (net tons of finished semi-finished products), years ended Dec. 1955 _______ 4,003,532 1960_________ 3,993, 1956 _______ 3,936,105 1961_________ 3,830 1957 _______ 3,807,723 1962 3.991 1958 _______ 3,640,620 1963------------- 4,163 1959 _______ 4,103,143 11964------------- 4,773 Corp. in 1930; Belfont Iron. & Steel Co. in 1934: Calco Iron Pipe. Ltd. in 1935: Hamilton Coke & Iron Co. (had had 50% interest since 1927) in 1936. (Complete details of acquisi tions appear in Moody's 1939 Industrial Manual). In 1937, acquired 47% interest in Rustless Iron A Steel Corp.; interest was later in creased to 59.9% and as of Dec. 31, 1945. the corporation was merged through an exchange of remaining publicly-held stock on share for snare On Dec. 2, 1941, Armco Drainage Sc Metal Products. Inc., was organized to fabricate and sell drainage structures and other metal prod ucts and to take over business interest and facilities of 22 wholly-owned subsidiary com panies doing business throughout the U. S. upon dissolution during period 1942 to 1946, Steel division- is one of the largest producersof iron- and steel- sheets and. strip, and special purpose steels. Products include following: Ingot iron and steel plates; hot rolled sheets, coils, and strip; cold rolled sheets, coils, and strip; long terse sheets and coils; "Zincgrip" (sheets and coils); "Alumi nized'' (steel sheets and coils); enamelizing Iron sheets. Electrical steel grades--sheets and colls. Stainless steel--plates, sheets, strip, ingots, bars, sheet bars, billets, rods, tube rounds, and wire. Wrought steel wheels. Mechanical welded steel tubing. Seamless tubing Welded pipe Rigid conduit PRINCIPAL PLANT8 A PROPERTIES The productive capacity as of Jan. 1, 1960 the company's properties is shown above der ''Business & Products.'' Location of properties are as follows: Steel Division Ashland Works--The plant is equipped 3 blast furnaces, 8 open hearth furnaces 2 basuc oxygen furnaces and) oontinwaus for the production of sheet steel. Plantcated at Ashland, Ky., along the Ohio Ed Middletown Works--This plant has blast furnaces, 186 coke ovens, ISO pen furnaces and 2 electric furnaces. Fii _ capacity includes continuous mills for production of carbon steel sheets in vari finishes and stainless steel. Also facilities manufacture of spiral pipe and- mecim incl. (now Metal Products Division). On Jan. 1, 1943, company purchased Colcord Coal Co. at Becklev, W. Va. including whollyowned subsidiary Colcord Coal Sales Co. Both companies were dissolved and assets and lia bilities thereafter merged. On Sept. 1, 1948 acquired assets of Jackson Tube Oo., Piqiua, O., now operated) as depart ment of Middletown Works at Middletown, O. On Mar. 31, 1954 acquired Southwest Steel Products Co., Houston, Tex. (merged July 1, 1960). On July 1, 1954, Sheffield Steel Corp., a sub sidiary, became a division of company, (now Above products are mainly sold to others for fabrication into a wide variety of products including automobile bodies and parts, re frigerators, stoves, washing machines, elec trical equipment, etc. Steel Division also serves Midwest and. Southwest, manufacturing steel products which include plates, -bolts and nuts, wire products, light strucxurals, merchant and reinforcing bars, track spikes, tie plates, grinding media, wire strand and wire rope. Major industries it serves are oil, agriculture, mining and manufacturing. tubing. Plants located- at Middletown New Miami, Ohio. Butler Works--This plant is equipped 6 open hearth and one electric furnace, of the pig iron used is obtained from Ashland Division and some is purchased others. Finishing capacity includes cc ous mills for production of strip, sheet, less steel sheets and forged steel car w' Plant located at Butler, Pa. Zanesville Works--This plant produces ished sheet steel processed from finished material furnished by other diof the company. A specialty of this c merged- into Steel Division) National Supply Division is one of world's is silicon alloy sheets used by the eli In Aug., 1954 acquired Princess Dorothy largest manufacturers and distributors of oil industry. Plant located at Zanesville, Coal Co., operator of Robinhood Mine in field machinery and equipment. Products in Ambridge Works--This plant is < . Boone County, W. Va,, which was dissolved clude rotary and other oil field drilling ma with tube round roughing and- finishing In 1956. .. chinery, pumping machinery, pumps, heavy and mills to produce seamless tubing, On Jan. 14, 1958, issued 264,000 Common duty torque converters, and tubular products tinuous weld pipe and electric weldshares in exchange for business and assets of the buttweld lapweld and seamless types. Plant located at Ambrid-ge, Pa. of Union for each Wire Rope 2% Union Corp. Wire (one Armco share* shares); company-' It has over ICO field stores in major oil fields, serving as the main sales outlets and) service dissolved and assets transferred to new whol points for its manufactured and purchased Baltimore Works--Plant, located on acres of land, at Baltimore, Md., inclu melting department equipped with thri ly-owned subsidiary of same name (now a department of Kansas City Plant' of Steel Division). goods. 'About two-thirds of its sales come from products made in its own and other Armco plants, while the remaining one-third ton, two 15-ton and one 25-ton Heroult trie arc furnaces having an aggregate m capacity of 108,000 tons of ingots per a Company merged National Supply Co. (Pa.), represent goods of other manufacturers. This plant is equipped with blooming, Apr. 30, 1958, by exchange of approximately Metal Products Division is world's largest billet and bar mills, and wire drawing, 2,501,271 common shares for 2,941.792 National manufacturer and distributor of fabricated cessing and finishing equipment. Its pr" common shares Feb. 17, 1958 (now a division). steel drainage structures and provides an are stainless steel ingots, bars, sheet 8UBSIDIARIE8 important outlet for company's sheet prod billets, rods, tube rounds, and wire. ucts in form of fabricated products. In addi Kansas City Works--Plant is e ^ Thteis principally an operating company. tion to drainage structures, product line in with 4 open hearth furnaces and- 3 Subsidiaries 100% of whose voting power was cludes highway guard rails, retaining walls, furnaces. Scrap iron and- steel are the owned at Dec. 3d, 1964, are as follows; foundation piling, oil and gas pipe lines, and cipal raw materials used. This plant' Name, place of incorporation and business; prefabricated steel buildings for industrial, ufactures bolts and nuts, wire and wire T-ech-built Products, Inc., Ohio Evans Coal Co., Del. commercial and farm uses. ucts including wire strand and wire Armco International Division has represen -merchant and reinforcing bars, track ( Armco Drainage Sc Metal Products of Canada, tation in countries and territories around the tie plates, and grinding media. The Ltd., (formerly Canada Ingot Iron Co., Ltd.), world- and operates plants in -K7 countries and also owns at Sand1 Springs, Okla., ( Canada, culvert and drainage structures, Armco Tekko Co.. Ohio Bellefonte Insurance Co., Ky.--Insurance. National Supply .Co. Ltd. (Can.) warehouses -in- 17- countries. Sells and distrib with an electric furnace, for the utes products of other divisions; distributes of merchant bars and concrete refsteel and other products for certain- American bars and fence posts. and foreign firms; fabricates products in, its Houston Works--Plant now oonsits Also 22 other foreign subsidiaries (three own plants abroad:; and furnishes technical blast furnace, 62 coke ovens, 8 open 7)0-85% owned). services on a fee basis for development, con and two electric furnaces and rolling Associate Companies: Company owns an interest in following iron ore mining com panies located in the Lake Superior district: Reserve Mining Co. (S0%-$23.587,399) and struction, and- operation of foreign- steel plants. Productive Capacity: Company's properties had estimated annual capacity at Jan. l, 1960 ties -to produce ,plate, merchant -bar, tural -bar, rod and- wire and wire Pr Owns and leases eo-aft and or.e pror"'' Oklahoma and Texas. Iron Ore Co. of Canada -(S.13%-$5,776,666), of 1,444,000 net tons of coke, 3,056,000 net tons National Supply Division V Carol Pellet Co. (9.98%-$1^58,278). The com of pig iron and 6,800,000 net tons of open Plant at Torrance (near Los Angele*j pany also owns 50% of the common stock of hearth and electric furnace ingots, together located on about 38 acres of land A. O. Smith- Corp. of Texas, manufacturer of with rolling, forging and other finishing facil slstlng of 31 principal buildings wim large diameter welded steel pipe for gas and ities capable of converting such steel into 611,000 sq. ft. of floor space. Is e oil transmission lines; Tenn-Tex Alloy & certain semi-finished and finished products. for manufacture of rotary drilling ma Chemical Oor-p. (20%); Iron Ore Transport Production (net tons of ingots and castings), and equipment for use In the oil Oo. Ltd. (18%); Ore Transport, Inc. (18%); years ended Dec. 31: industries; also manufactures elec Ogietoay Norton Co. (8.94%); eight foreign 1955________ 5,099,905 1957________ 5,406,646 nace steel, forgings and castings and associated companies (20%-S0%). 1956------------ 5,220,147 1958_________ 4.506J2J machinery. MOODY'S INDUSTRIAL MANUAL 49 t at Los Nietos, Cal. equipped to manu- At Dec. 31, 1964, Reserve had outstanding at Kansas City, Mo. works; and additional XtoSurface pumps for oil industry, $108,000,000 Series A and $86,000,000 Series B steel melting facilities, vacuum degassing t-at Houston, Tex. is employed in the first mortgage bonds. equipment, a new wide-flange structural icture and repair of drilling: and1 pro- Plant consists of a primary ore crushing beam mill, and) a new plate mill at Houston, l equipment used in the oil and gas plant at Babbitt, Minn., an interplant railroad, Texas, works. Gainesville, Tex. manufactures - units for oil wells. - Ordnance Plant, Cincinnati, is -r^uvit-owned gun tube plant, mainstand-by condition. ^ Plants: Metal Products Division op plants in the U. S., and Armco JZ & Metal Products of Canada, Ltd a secondary crushing plant, grinding, con centration and agglomeration plant, a harbor, docks, equipment for loading ore boats and a power plant at Silver Bay, on Lake Su perior, 47 miles distant from Babbitt. Com bined: rated capacity of above two plants is about 9,000,000 tons of pellets annually. The process takes taconite with an iron content of about 24% to 25% and by beneficia- In 11965 items to toe completed include a continuous casting machine at Sand 'Springs, Okla. works; a continuous casting machine and a vacuum degassing unit at Butler, Pa. works; soaking pit enlargement to increase plate capacity at Houston, Texas works; and installation of automatic gage control equip ment on hot strip mill- at Ashland, Ky. works. i g plants in Canada. tion produces an iron ore pellet with over MANAGEMENT iMInes--Company owns or leases coal 60% iron content. Plant was completed in Officers: ` west Virginia with reserves of over 1956. L. T. Johnston, President POO tons of coal, and in Oklahoma with Taconite iron ore properties being develop R. E. Redohielderfer, Exec. Vice-Ftres. 2iof 48,000,000 tons. Also additional re- ed by Reserve Mining were leased to it in E. A. Correa, Vice-Pres. & Sec. jjj Oklahoma of 86,000,000 tons not 1939 by Mesabi Iron Co. B. D. Bilhnan, Vice-Pres. (Pers. & Public *d for mining. Under lease (as amended) Mesabi is to re Rel.) foia_Company does not own or con" ' iron ore mining companies or ore other than those acquired in Texas ceive a fixed royalty of approximately $1 per gross ton of pellets. In addition, Mesabi Iron will also share in royalties that will be paid W. C. Higdon, Vice-Pres. (Mfg.) L. H. Juengling, Vice-Pres. (Purch. & Transp.) i purchasing most of its requirements for its ownership of 20% in the fee title of T. F. Oil, Vice-Pres. (Research & Tech.) tpnfi-inls from others. As indicated the ore-bearing property. Remaining 80% of R. F. Kuhnlein, Vice-Pres. (Oper. Steel ` ader "Associate Companies," howcompany owns stock interest in a ownership in the fee title is held by others or their heirs. Div.) G. H. McClure, Vice-Pres. (Distribution) ' engaged in the mining of iron ore Reserve Mining estimates that its holdings W. S. Newell, Vice-Pres. (Sales--West interests in iron ore .properties of 10,000 acres of taconite-bearing land in the Steel Div.) __ Superior region which furnishes Minnesota area, contain 1,500,000,000 tons of M. B. Wilson, Vice-Pres. . of the company's ore requirements, taconite, which should yield 500,000,000 tons W. O. Robertson, Vice-Pres. (Gen'l. Mgr. r'f iron ore requirements have been of over 60% iron. (Metal Div.) by an ample supply of iron ore far Expansion Program: Company and subsidi C. W. Verity, Jr., Vice-President (Gen'l i'future by participation in two major aries spent approximately $59,000,000 for Mgr., Steel, Div.) nent projects. In 1955, company re- buildings, machinery and eauipment during t shipments of iron ore from Labra- 1964, as compared with $68,000,000 in 1963 on R. H. Etnyre, Vice-Pres. (Gen'l Mgr. Natl Suppl. Div.) : Project of Iron Ore Co. of Canada comparable basis. J. W. Holton, Vice-Pres. (Mgr. Managing _il index) in which company has a Facilities completed1 in 1964 included' a Dir. Armco Int'L Div.) flpTship, vacuum-are melting furnace and' a 2,000-ton F. D. Damord. Treasurer company received first shipments forging press at Baltimore, Md. works: a C. W. Howies, Controller ` " irmed' Carol Pellet Oo. in which pulverized coal injection! system on Belle- Directors: a 9.98% interest. Carol Pellet fonte 'blast furnace at Ashland, Ky. works; G. R. Brown, Houston, Texas i its raw ore from Iron Ore Co.. substantial blast furnace improvements, addi E. A. Correa, Middletown, O. tional annealing furnaces and expanded fin J. C. Denton, Kansas City, Mo. ____ Plant: Reserve Mining Co. is ishing and shipping facilities at Middletown, L50% by company and 50% by Republic O. works; and' a vacuum stream degassing (see general index). Total of $285,- unit for ingot casting at Torrance, Calif. J. C. Donnell, II, Findlay, O. J. B. Hall, Cincinnati, O. L. T. Johnston, Middletown been invested in a beneficiating In 1964: a new $600 million capital expendi G. P. MacNichol, Jr., Perrysburg, O. production of high-grade iron ore tures program was announced:. This is most J. A. Mayer, Pittsburgh tic taconite at Babbitt and Silver comprehensive expansion and improvement C. S. Payson, New York The two shareholders are obli- program in company history. This program D. E. Reiehelderfer, Middletown, O. principal amount of first mort- includes a new cold reducing mill and zinc T. S. Shore, Cincinnati of Reserve is paid in full) to take coating line at the Ashland, Ky. works; addi- E. J. Thomas, Akron, O. iction of Reserve, and' as to each to pay 50% of Reserve's operat- ional steel melting facilities, vacuum degass ing equipment, processing facilities for elec General Counsel: Breed, Abbott & Morgan, New York. aad interest charges. If and to the trical steels, and a new temper mill at Butler, Auditors: Haskins & Sells. t Reserve shall not have made Pa. works; additional steel melting facilities, Annual Meeting: Third Thursday in April f payments, each shareholder is vacuum degassing equipment, a new hot strip at Middletown, O. itcd to pay one-half oif amounts mill, a new cold reduction mill, a new con No. of Stockholders: Dec. 31, 1964, 67,626. Reserve fOT (a) fixed' sinking fund tinuous coating line and other processing and * i and' final maturity amount on finishing facilities at Middletown, O. works; No. of Employees: Dec. 31', 1964, 37,242. and (to) certain future capital additional steel melting facilities and1 an ex General Office: 703 Curtis St.. Middletown, pansion of wire and wire product capacity O. >UNT8 COMPARATIVE CONSOLIDATED INCOME ACCOUNT, YEARS ENDED DEC. 31 (Taken from reports filed with Securities and Exchange Commission) 1964 1963 1962 1961 1960 Lleas returns, etc. $1,063,520,485 $933,439,216 $918,561,213 $887,969,799 $937,998,519 sold-- 874,681,299 765,272,800 771,495,008 721,958.844 740.391,578 J Sc admin, expense__ 80,920,443 77,513,976 76,417.927 75,243,680 76,727,455 doubtful accounts___,, 1,005,567 534,167 746,356 643,232 1,783,563 r profit_________________ n associated cos______ Jeocurlties & reeeivables. vnt ventures, etc., net-- other income_______ 107,513,176 8,172,456 5,284,424 9,107,574 582,977' 90,118,273 6,730,802 5,256,761 8,469,799 3,623,465 69,901,922 6,601,474 4,373,681 8,986.620 274,654 90,124,043 7,4)84,103 5,697,237 8,650.755 1,232,115 119,095,923 7,791,691 7,984,697 7,447,444 2,393,538 1959 $1,022,428,742 806,269,429 75,963,981 271,567 139,923,765 8,359,426 6,180,831 6,498,526 461,009 1958 $867,390,908 694,387,620 69,741,666 103,261,622 6,951,771 3,761,221 5,908,862 410.327 I of fixed assets t. Income deductions____ neg-term debt i of bond discount Sc exp. 130,660,607 208,257 5,855,414 157,847 698,517 114,199,100 209,003 6,177,344 144,512 133,792 90,138,351 1,645.384 6,464.564 147,303 40,283 1-13,188,253 547,731 6,42-71,450 120,106 775,353 144,713,293 809,702 6,357,930 120,843 289,678 161,423,557 286,559 5,820,678 75,773 58,824 120,293,803 1,308,577 185,853 3,633,943 115,474 113,873 feral income tax"" atp Income taxes____ i income taxes__ 123,740,572 38,323,056 2,315,413 1,715,217 107,534,449 42,682,538 1,871,747 2,045,315 81,840,817 33,724.804 1,270,869 952,359 105,317,613 44,837,490 1,574,972 1,388,395 137,135,140 63,346,166 1,803,648 1,526,045 155,181,623 74,070,128 2,255,259 1,791,987 114,936,083 54,333,195 1,563,752 1,526,985 rAe-a. r . 80,386,886 60,934,849 4,928,709 45,892,785 57,,516,756 70,459,281 77,064,249 57,512,151 a ti.JUTPlus E peginning of year__ 80,386,886 478,886,961 44,410,990 65,863,558 457,434,368- 44,410,965 45,892,785 455,952,346 44.410,763 57,516,756 442,881,240 44,395.650 70,459,281 416,759,109 44,387,150 77,064,249 384,072,277 44,377,417 5*-Oec. 31- $914,862,857 $478,886,961 $457,434,368 $455,952,340 $442,831,240 $416,759,109 , -J?'& L. DATA repairs_______________ "PL Sc amorfiz_______ Income________ $102,402,041 62,531,068 21,617,975 $85,430,619 61,387,182 20,209,369 $81,802,697 57,382,960 19,893,515 . $78,586,464 43,916,239 18,680,015 $83,318,099 40,162,979 18,072,447 $79,892,616 36,937,862 15,863,241 i- ii i1, lincons. subs'-- ` ancon*, tubs 6,852,524 5.658.000 4.758.000 6,170,341 6.064.000 4.264.000 5,678,642 4.026.000 3.119.000 5,997,835 5.288.000 4.814.000 5,528,973 $7,466,000 4,150,000 5,083,991 $6,393,944 4.900,944 "7Iam j < * |pO iO WUU|VW Note: (a) Wages, salaries and benefits (in $): Other, net______________ aer debenture and credit 1964______ 340,114,719 1959--------- 293.941,370 t fexes (1964, $10,304,587). I tix? subsidiary less B&f^hning of 1958 re-stated 1963______ 1962______ 1961______ 1960______ 308,796,082 300.414,355 293,970.805 292.871,724 1958______ 1957______ 1956______ 1955______ 268,642,435 227,155,377 212,756.218 189.933,354 Source & Disposition of Funds: (in $1,000); Total _______________ Disposition of Funds; Capital expend. _______ Dividends paid _______ L. t. debt retired____ earned surplus of the (Source of Funds:____________ 1964 Incr. in recedv. ______ Net earnings ___________________ 80,387- Incr. in invent. 01 ltems shown Depr., amort., etc.____________ 62,531 Incr. in invest. tWProximately $322,000,000 Def. income taxes____________ <18,357 ""T & L data" beiow Incr. in pay. to vendors, empl Total ________ etc. 1,246 Incr. in cash Sr m)r+ 57,512,151 0370,763,456 44,203,330 $384,072,277 $70,307,736 34,456,960 13,095,715 4,235,000 $6,308,037 3.051,344 2,073 157,880 59,100 44,411 7,838 28,304 9,304 2,586 151,543 50 MOODY'S INDUSTRIAL MANUAL Record of Earnings, years ended Dec. SI (In $): Cost and Operating year Net Sales Expenses Profit VMS_______ 220.144.6i8 197,620.737 22.S23.911 1946 .. . 231.930.810 201,980,807 29,950.008 1947 ___311,685,322 269,875,924 41,809,398 1948..^____ 382 563 8111 329 731,365 52,832.446 1949 _______ 341,350,147 295,643,349 45,706,798 1950............. .. 439,296,931 345,645,244 93,651,687 1951________ 534,834,687 433,365,028 101,469,659 1952________ 518,575,218 445,498,507 73,076,711 1953 . 588,919,900 505.559,395 83,360,500 1954" _ .. 532 045.314 453,272,737 78,772,577 1955 . 692,683,234 564,828.982 127,854,252 1956 ............. 761,800,102 645,212.907 116,587,175 1957 776,736,401 677,025,213 99,711,188 19681_" 867,390,908 764.129.286 003,261.622 Oth. Inc. & Ded. (Net) 1,293.025 334,278 57,867 d 164,358 5,074,484 2,586,006 4,070,130 2,318,245 2,254,498 5,861,529 4,558,507 9,733,560 10,527,178 11,674.461 Inc. Bet. Taxes 23,816,936 30,284,281 41,867,265 52,668,088 50,781,282 96,237,693 105,539,789 75,394,596 85,615,603 84,634,106 132,412,759 126.320,735 110,238,366 104,936.083 Income Taxes 10.424,740 11,731,790 16,865,054 20,637,376 19,863,080 49,237,188 70,535,302 44,057,095 51,712,541 43,533,840 68,062,150 63,706,924 55,698,151 57,423932 Net Income 13,392,196 18,552,491 25,002,211 32,030,712 30,918.202 47,000,505 35,004,487 31,337,861 33,902,462 41,100,266 64,350,609 62,613,811 54,540,215 57,512,1Kt _ Common Dividends 2,295,003 4,050,666 6,481,046 7,783,051 9,767,996 15,701,546 14,758,593 15,640,669 15,640,891 15,645,892 20,625,713 27,709,798 35,957,901 44,203,330 Com. Shs. Earn. P Outstand. Com. Sh 3,241,315 3,241,315 " 3,241,276 3,909.361 3,909,352 3,954,333 5,214,997 5,214,997 5,214,989 5,229,573 10,634,112 10,879,827 11,993,471 14,783,537 0358.00 based on 3.891.526 average number of shares outstanding during year. BALANCE 8HEET8 COMPARATIVE CONSOLIDATED BALANCE SmEKT, AS OF DEC. 31 (Taken from reports filed with Securities and Exchange Commission) ASSETS Marketable securities (at cost)-------Trade notes & accounts receivable.. Other notes' & accounts receivable-- H]Inventories 1964 $125,704,483 53,288,141 114,955,080 7,231,251 241,220,348 1963 $106,574,525 66,081,814 88,390,024 5,492,535 231,916,049 1962 $80,813,330 80,867,599 89,883,765 5,805,163 210,624.372 1961 $86,533,368 71,111,007 100,251,014 6,231,336 255,776.915 1960 $103,505,995 114,341,907 86,822,830 7,911,538 237,810,923 Total current assets____ $542,399,303 $498,454,947 $467,994,229 $519,903,640 $550,393,193 Cash & secur. for expansion . Investments: Investment in & adv. to subs---------Invest. & adv. assoc, cos----------------Miscellaneous investments Other receivables, etc., not eurr----- 8,455,621 33,881,675 1,800,174 9,411,853 9,308,866 34,631,249 7,022,731 12,017,743 35,159,657 4,741,833 3,568,058 9,504,048 35,061,157 3,605,146 3,574,774 6,757,879 29,553,309 4,720,032 6,483,335 1959 $125,589,048 58,718,045 114,382,616 5,569,215 229,692,673 $533,951,597 53,500,000 9,212,241 29,718,492 5,030,737 6,983,089 1958 $115,061,858 20,157,388 95,280,395 6.861,839 230.519,927 $467,881,4(8 9,740,171 29,572,267 2.706,06} 4,717,505' Total Less reserve for impairment.. 53,549,323 50,962,846 55,487,291 51,745,125 47,514,555 50.944.559 100,000 46,736,0091 Investments--net__________ Property, plant & equipment . Less: Depreciation reserves .. 53,549,323 1.063,585,710 599,775,118 50,962,846 1,011,265,562 543,027,719 55,487,291 955,947,117 491,593,415 51,745,125 876,179,716 442,788,135 47,514,555 804,832,653 406,401,342 50.844.559 749,355,449 372,596,952 46,736,01. 723,066,239 345,624,889' Net property account. Prepaid expenses_________ 463,810,592 4,257,323 468,237,843 5,276,646 464,353.702 7,126,909 433,391,580 5,027,578 398,431,311 7,329,382 376,758,497 6,626,424 377.441,359 4,8773" Total LIABILITIES Notes payable_________________________ Accounts payable ____________________ Reserve for income taxes____________ Other taxes accrued__________________ Accrued liabilities-------------------------------Long term debt, current_______________ $1,064,016,5411 $480,111 46,341,752 35,082,367 6,837,478 42,089,268 4,870,000 $1,022,932,282 $779,635 31,374,267 32,723,285 6,727,418 37,980,821 4,870,000 $994,962,131 $299,070 30,188,439 24,585,650 6,429,887 35,503.966 6,745,000 $1,010,067,923 $49r724 40,574,934 31,368,138 5,788,463 30,731,829 7,370,000 $1,003,668,441 $124,719 38,205,316 36,381,296 4,662,864 29,408,286 7,370,000 $1,021,681,077 $706,767 49,772.551 51,637,509 4,467,962 33,662,010 6,370,000 $896,936, $43,826, 42,655 4,173,1 29,884, 6,370, Total current liabilities Long-term debt____________ Deferred credits___________________ ___ Reserve for repairs, etc_____________ __ Insurance reserves Miscellaneous reserves_______________ Common stock ($10)__________________ Paid-in surplus--___________________ Earned surplus Total stockholders' equity_________ $135,700,976 130,152,000 20,547,731 6,317,70(1 594,745 1,720,946 148,046,407 106,074,079 514,862,857 788,983,343 $114,455,426 137,990,000 28,820,337 5,980,511 564,475 2,114,071 148,046,412 106,074,089 478,886,961 733,007,462 $103,752,012 144,735,000 27,472,784 6,092,5S0 605,810 749,029 148,046.494 106,074,084 457,434,368 711,554.946 $115,883,088 151,480,000 25,279,200 6,168,742 522,969 716,433 1)48.035,833 106,029,312 455,952,346 710,017,491 $116,152,481 158,850,000 24,544,399 6,109,220 220,111 1,164,993 147,970,126 105,825,871 442,831,240 696,627,237 $146,616,799 174,599,000 22,908,995 5,900,279 239,093 928,754 147.955.157 105,773,891 416,759,109 670.488.157 $126,909,7 107,056," 18,782," 5,568" 285, 918, 147,835 105,508, 384,072 637,162,1 Total_______________________________ $1,064,016,541 $1,022,932,282 Net current assets_________________ ____ $406,698,327 $383,999,521 $994,962,131 $1,010,067,923 $1,003,668,441 $1,021,681,077 $364,242,217 $404,020,552 $434,240,712 $387,334,798 ,936. ,971 PROPERTY ACCT.--ANALYSIS Additions at cost Retirements or sales________________ Other additions_____________________ $59,100,000 6,780,000 $67,996,000 12,677,000 $90,504,000 10,737,000 $76,034,297 8,055,187 3,367,952 $61,328,512 8,210,097 2,358,789 $37,116,458 13,889,051 3,061,812 $61,086 9,131 10,879. DEPREC. RESERVE--ANALYSIS Additions charged to income_______ Retirement & renew, chgd. to TeaOther additions____________________ _ $62,531,000 5,784,000 $61,387,000 9,952,000 $57,383,000 8,578,000 $43,916,239 7,,529,446 $40,162,979 6,358,589 ------------ $36,937,862 9,965,790 ------------ $34,45 7,64 2,62 1964: Equity per reports of associates, $83,812,399. Book Values Related and a domestic insurance company are' Reserves included. After reserves (1964, $2,126,336). Other 80.147.000 40,845.000 (b) Under restrictive provisions of At Dec. 31. 1964, the major portion is Const. in progress 28.149.000 ture covering sinking fund debentures carried at cost as determined on the lifo bank credit agreements $329,006,000 was method: 1964 1963 Total $1,063,586,000 $599,775,000 restricted as to payment of dividends at Raw mat. & suppL $85,282,420 $82,035,449 Depreciation Policy: Depreciation is com 31, 1964. Sin. & semi-finish. 155,937,928 149,880,600 puted on the straight line basis for all assets (c) Results of operations of National Su. acquired prior to Jan. 1, 1955 and on the de Co. have been Included from Jan. 1, 1958. Total _________ $241,220,348 $231,916,049 clining balance method for assets acquired accounting purposes, merger has been tr" 1964: Approximate market, subsequent to that date. as a "pooling of interests". The excess Principal ``paid-in' surplus" changes follow: Rates of depreciation (straight line basis) 299,352) of par value of Armco's shares 1959: After crediting excess over par of used were as follows: Building and structures, over par of National Supply's shares so stock issued for cash under option plans, 2% to 10%; machinery and equipment, 3% verted has been charged in part ($9,590 $221,550; crediting treasury stock transactions, to 20%; furniture and fixtures, 6.7% to 15%; to capital surplus and remainder (S708, $43,696. automotive equipment, 16.7% to 33.3%; lease to capital contributed in excess of par 1958: After crediting excess over par of stock issued for net assets and business of Union Wire Rope Corp.. $9,471,000; excess over par of stock issued for cash under option lans, $356,816; debiting expenses in connec,on with merger, $194,438; debiting treasury stock transactions, $18,510. holds, life of leasehold: emergency facilities, 4% to 4.25%; facilities certified for amortiza tion over 5-year period, 20%. Beginning with year 1962 depreciation charge is based on shorter guideline lives pro vided by revised U. S. Treasury Department regulations issued during 1962. of -common stock. Income retained in ness of constituent companies has been . bined. ." (d) Company has guaranteed certain tingent liabilities of consolidated subsidJ an associated company, and certain o tions of foreign subsidiaries not consoli. Book Related General Notes amounting to approximately $10,300, 1964: Values Reserves (a) Consolidation basis: Statements include Dec. 31, 1964. At that date, commitment* Buildings _________ $135,181,000 $66,971,000 accounts of all domestic and Canadian oper purchase of property, plant and equi, Machy & equip, .. 620,109,000 491,959,000 ating subsidiaries; other foreign subsidiaries amounted to approximately $78,000.000. FINANCIAL A OPERATING DATA Statistical Record: Earned per share--common Cash flow per share--common_______ Dividends per share--common______ Price range--common Net tangible assets per share--com.. Times fixed charges earned: Before income taxes________________ After income taxer _ Price range--4.35s, 1984 --4)4s, 1986 Net tang, assets $1,000 lg. tm. debt____ Net curr. assets per $1,000 lg. tm. debt Number of shares--common_________ 1964 $5.43 $9.65 $3.00 76%-64 $51.94 19.44 12.98 100)4-98)4 102-100 $6,908 $3,125 14,804,641 1963 S4.12 $8.26 $3.00 67)4-51)4 $49.51 17.66 10.44 102%-99 104-101)4 $6,312 $2,783 14.804,641 1962 S310 $6.96 $3.00 71)4-40 $48.06 13.30 7.90 102%--98)4 103)4-100 $5,916 $2,517 14304,649 1961 $3.89 $6.86 $3.00 79)4-67% $47.96 15.39 8.85 102)4-96 101-98% $5,687 $2,667 14,803383 1960 $4.76 . $7.46 $3.00 77)4-57 $47.08 21.26 11.41 100)4-94% $5,385 $2,734 14,797,013 1959 $5)21 $7.71 $3.00 80)9-64% $45.32 27.06 13.94 98)9-94)4 $4,840 $2318 14,795316 67,e MOODY'S INDUSTRIAL MANUAL '51 ... . Odratine Ratios: -r- current liabilities ^securities to current assets ' r to current assets-----------[it assets to net worth-------depreciated---------------------- .Oepr.,, depl., etc. to gross prop. Itsaa upaoJil% term debt. _____stlc. Sc surplus- :*S58SSLr= : to net property-------ta total assets------ae to total assets ae to net worthel Operations: : go_o_d_ss'old tc other exp.--------------------profit ------------------------------- ' income __ disc., Sc exp. , ^deductions .. before inc. taxes, etc-------i taxes Sc min. int.------------------- ____________________________ 1964 4.00 33.00 44.47 52.89 56.139 5.88 14.48 58.52 4.41 9.25 229.30 99.95 7.58 10.45 100.00 82.19 7.70 10.11 2.18 12.29 0.57 0.09 11.63 4.07 7.56 1963 4.36 34.64 46.53 52.39 53.70 6.07 15.84 84.16 4.02 10.56 199.35 91.25 5.96 8.31 100.00 81.98 8.37 9.65 2.58 12.23 0.68 0.03 11-52 4.99 6.53 1962 4.51 34.55 45.01 51.19 51.42 6.00 16.90 83.10 456 1052 197.81 92.40 4.61 6.45 % 100.00 83.99 8.40 7.61 250 9.81 0.72 0.18 8.91 3.91 5.00 1961 4.49 30.32 4950 56.90 50.54 5.01' 17.58 82.42 3.47 8.34 204.89 87.91 5.69 8.10 % 100.00 81,30 8.55 10.15 2.60 12.75 0.82 0.07 11.86 5.-38 6.48 1960 4.74 39.58 4351 62.33 50.50 4.99 18.57 81.43 3.94 10.80 235.42 93.45 7.02 10.11 % 160.00 78.93 8.37 12.70 2.73 15.43 0.69 0.12 14.62 7.11 7.51 1959 3.64 34.52 43.02 57.77 49.72 4.93 20.66 79.34 4.45 8.94 271.37 100.07 7.54 11.49 % 100.00 78.86 7.46 13.68 2.10 15.78 0.58 0.02 15.18 7.64 7.54 1958 3.69 28.90 49.27 53.49 47.80 4.77 14.38 85.62 3.76 8.49 229.81 96.71 6.41 9.02 % 100.00 80.05 8.04 11.91 1.96 13.87 0.43 0.19 13.25 6.62 6.63 stock split; before, 84%-65%. Blneludes $0.90 paid prior to 2-for-l split. E)After special credits, $4.45. ,tkrm debt n Rolling Mill Co. sinking fund i series A: due 1966: -All senes, $100,000,000 senes , .1,000; outstanding, series A, Dec. 31, 0 000 r. 1, 1946. . _ -Apr. 1, 1966. r--A&O 1. t -- Chase Manhattan Bank, New No optional redemption may be effected each Aug, 1, 1967-85 plus similar optional pay prior to Apr. 1, 1964, from moneys borrowed ments. Payments will retire 95% of issue be at lower interest cost. . , ,. . , , fore maturity. Callable for sinking fund (which see) at SECURITY, ETC.--Same as under debenture 100. 4.35s due 1984. SINKING FUND--Annually beginning Mar. LEGAL--For savings banks in Me., N. H. and 31, 1963. cash (or debentures) equal to $1,875,- N. J. 000 in 1963 to 1966, and $3,750,000 in 1967 to LISTED--On New York Stock Exchange. 1983, plus similar optional payments, to re PURPOSE -- Proceeds to prepay $50,000,000 deem debentures at par on next Apr. 1. Pay notes due Dec. 31, 1962-64. ments will retire 95% of issue by maturity. OFFERED--($50,000,000) at 99% (proceeds to .___ -As a whole, or in part at 104 to 1950 and at % of 1% less each year SECURITY --Not secured. In event company or any subsidiary mortgages any blast fur nace facilities or steel ingot producing facility company, 98%) on May- 23, 1961 by Smith, Barney & Co., Inc., New York, and associates. Other Debt: Also outstanding, $1,500,000 FOND--Annually Mar. 31, 1947-65, ___ dent to redeem on next ensuing ()- $1,500,000 of series A debentures; at company's option, an additional it, or any lesser multiple of $50,000. '--Not secured by any lien. RESTRICTIONS--Company will any dividends (except in stock, , exceed $1,000,000 aggregate in any year on preferred) or make any dis- onor acquire for value (except in for or from proceeds of other stock) of stock, unless thereafter (1) all irsements shall be less than $10,000,- or rolling mil) or facility for manufacture of tubular steel products located in United States and deemed to be a principal property, it will secure debentures equally and ratably there with; excepted are (I) purchase money mort gage on property acquired; (2) any mortgage on such property in favor of the U. S.; (a) to secure partial payments to the company under provisions of any contract or statute or (b) to secure borrowings by the company for purchase or construction of property mortgaged; (3) any renewals of the above and (4 provided debt secured is not increased nor mortgage lien extended. 3%% notes payable $1,500,000 annually to Dec. 31, 1965; issued by National Supply Co., assumed by company in merger. Reserve Mining Debt; In December, 1953, Reserve Mining Co., capital stock of which is owned equally by company and Republic Steel Corp. negotiated private sale of $148,000,000 first 4%s, series A, due June 1, 1980, of which $108,001,000 outstanding Dec. 31,1964, also $86,000,000 series B bonds. For obligations of owning companies, Armco and Republic Steel, see under Taconite Plant on a preceding page. or minus deficit) consolidated net SALES AND LEASEBACKS--Indenture pro CAPITAL STOCK Jan. 1, 1950 and (2) consolidated _ capital shall at least equal $100.Dec. 31, 1964, $329,000,000 of earned i not so restricted. Proceeds used to retire bank loans preferred. :$40,000,000) sold privately in 1946 Life Assurance Society of the Rolling Mill Co. sinking fund ^series B; due 1968: -All series. $100,000,000 series outstanding, series B, Dec. 31, ,, .1.1948. IWan^l, 198$. Manhattan Bank, New . a whole, or in part at 103 to -and at % of 1% less each year . .. - - -Annually Dec. 31 (a) 1949, $740,000, and (b) 1950-66, aic.OOO, of series B debentures on -.au-1; plus (c) at company's -itional like Amount, or any .lie ot $50,000. OVISIOseNcSu--reSdabmye aansyNlioe?nl. above. 'iToceedi used to finance modem- "xpansion including purchase of at Houston, Tex. SPjSSft.OOO) sold privately in Feb.,ft Dec. 30. 1948 to Equitable Society of the U. S. *UM?rp- *'n't`ng fun<i dehen- hibits sale and leaseback by company and subsidiaries .of principal properties unless net proceeds therefrom are at least equal to fair value of such property and such net proceeds are applied within 120 days to retirement of funded debt. DIVIDEND RESTRICTIONS--None specified in the indenture. RIGHTS ON DEFAULT--In event of -default (30-day grace period for payment of interest or sinking fund installment), trustee or 25% of debentures may declare principal due and payable. INDENTURE MODIFICATION -- Indenture may be modified, except as provided, with consent of 66%% of debentures. LEGAL--For savings banks in Me., N. H. and N. J. LISTED--On N. Y. Stock Exchange. PURPOSE--Proceeds for expansion of Ash land, Ky. open-hearth capacity; additional cold rolling and processing facilities at Butler, Pa.; additional coating unit at Middletown, O.; additional steel making capacity and new plant for manufacture of bar joists at Kansas City, Mo., and development of coal property in Oklahoma. OFFERED--($75,000,000) at 100 (proceeds to company, 99) on Apr. 1, 1959 by Smith, Barney Sc Co., New York, and associates. 4. Armco Steel Corp. sinking fund deben ture 4Vis, due X986: ____ Rating--Aa AUTHORIZED--$50,000,000; outstanding, $50,- 000,000. DATED--June 1, 1961. MATURITY--June 1, 1986. L Armco Steel Corp. common; par $10: AUTHORIZED--24,000,000 shares; outstanding, Dec. 31, 1964, 14,804,641 shares; reserved for options, 187,600 shares; in treasury, 2,910 shares; par $10. $10 par shares split 2-for-l, June 13, 1955 by issuance of one additional share for each share held. Note; Company has 150,0000 shares of $100 par preferred stock authorized; none issued. Dividend Record (in $) ($100 par shares--predecessor N. J. company) (31900-05 Nil 1906_____ 5.00 0)1907- 10.00 1908____ Nil HI1909. 10.50 ($100 par--after 100% stock dividend) 1910-13 12.00 1914_____ 11.00 1915______ 8.00 HI1916. 9.00 1917_____ 11.00 ($25 par shares--present company) 1917___ 155 OH1918. 4.00 (H1919-20 3.00 DH1921. 255 2)1922-30 2.00 1931___ 0.50 1932-34 Nil 1935___ 0.30 1936___ 1.95 1937___ 2.00 1938-39 Nil 1940___ 055 1941___ 1.40 1942-43 1.00 1944-45 0.80 ($10 par shares) H946___ 155 1947--48 2.00 1949___ 2.50 1950___ 4.00 1951-54 . 3.00 1955___ 0.90 ($10 par shares after 2-for-l split) 1955__ 1.40 1956___ 2.S5 1957-64 3.00 fsill969 0<75 (DPaid 18% stock in 1905. EPlus 331/3% stock. HIPlus 100% stock. HIPlus 23.38% stock. BQPlus 5% stock. EFlus stock dividends of 5% ir 1919 and 30% in 1920. HIPlus stock dividends of 5% each in years 1924-30 inclusive. HJPlus stock dividend of 20% in 1948 paid Feb. 6 prior to cash dividends. To Mar. 12. Dividends payable quarterly. Mar. 11. etc., INTEREST--J&D1 at office of trustee. to stock of record Feb. 11, etc. Rating--Aa '5,000,000; outstanding. Dec. - 1.1959. S'--Apr. 1, 1984. S*P1 at office of trustee. National City Bank, New TRUSTEE--Chemical Bank" New York Trust Co., New York. DENOMINATION--Coupon, $1,000; registerable as to principal; fully registered, $1,000 and multiples thereof. C&R and denomina tions, interchangeable without any service charge. DIVIDEND RESTRICTIONS--See long term debt, above. VOTING RIGHTS--One vote per share. If stockholders signify their desire to do so at least 24 hours before a meeting for the elec tion of directors, they may vote cumulatively at such election. PREEMPTIVE RIGHTS--Has rights with re CALLABLE--As a whole or in part at any spect to common but has no rights with respect time on 30 days' notice to each May 31 ind. to shares of any other class of stock or bonds, as follows: debentures or other securities convertible into 1965_ 103.40 1966_ 103.20 .1967-- 103.00 or exchangeable for shares of any other class; wlthout amy 1968_ 102.80 1969-- 102.60 1970-- 102.40 or any preferred stock convertible into or ex 1971__ 102.20 1972_ 102.00 1973-- 101.80 changeable for common stock. sleast 30 days 111 Part at any notice to Mar. 31 1974__ 1977.. 101.65 101.20 1975-- 101.50 1978-- 101.05 1976-- 101.35 LISTED--New York Stock Exchange. Also 1979-- 100.90 unlisted trading on Boston, Pacific Coast and 1980__ 100.75 1981-- 100.60 1982-- 100.45 Cincinnati Stock Exchanges. --103.10 S - ------ 102.50 $. HS----- iOl.90 Iso "76-----101.30 i*i 5*79-----100.70 "82----- 100J.0 1968____ 102.90 1983__ 100.30 1984-- 100.15 1986-- 100.00 DIVIDEND PAYING AGENT--Company. 1971____ 102.30 Not callable prior to June 1, 1966 from funds TRANSFER AGENTS -- Morgan Guaranty 1974____ 101.70 borrowed at interest cost of less than 4.55%. Trust Co., New York, Northern Trust Co., Chi 1977____ 101.10 Callable at 100 for sinking fund, (which see). cago, and company's office, Middletown, Ohio. 1980____ 100.50 SINKING FUND--Annually, cash (or deben REGISTRAR--First National City Bank, Nerw 1984-___100.00 tures) to redeem at-par $2,500,000 debentures York, and First National Bank, Chicago. 52 MOODY'S INDUSTRIAL MANUAL ISSUED--(371,755 510 par shares) Dec. 31. 1945. in exchange share lor share lor publicly-held common stock of Rustiest Iron Sc Steel Corp. (20.000 $10 par shares) issued in Sept., 1940 together with cash to acquire Jackson Tube Co. (see "History" above). (254,000 shares) in Jan., 1958 to acquire Union Wire Rope Co. (2,501,271 shares) in Apr.. 1958 on merger ol National Supply Co, (see "History" above). Subscription Rights: Common stockholders ol record Feb. 26, 1951, had right to subscribe lor 819,737 additional common shares at $41 per share on basis ol one share lor each 5 shares held. Rights expired Mar. 14, 1951. Stockholders subscribed for 766,517 shares. Balance of 53,220 shares was acquired and sold by underwriting group headed by Smith, Barney Sc Co. and W. E. Hutton Sc Co. Stockholders of record, Jan. 9,1957 had to subscribe for 1,088.179 shares at $56 23 share on basis of one share for each 10 sh?3 held. Rights expired Jan. ten by Smith, Barney Sc C24o..,19N5e7.wUnYdoerrktm.SS3t associates. **> Stock Options held by key employee, J Dec. 31, 1964 on 187,600 common- share. * $74,375 a share. ^A OAPITAL STRUCTURE DONG TERM DEBT Issue 1. Notes payable__________________ BURLINGTON INDUSTRIES, INC. Rating Times Amount Charges Earned Outstanding 1964 1963 $181,680,810 11.60' 12.03 Interest Dates Call Price Price Range 1964 1993 CAPITAL STOCK Issue L Common________________________ SJFiscal yeara. Par Value $1 Amount Earned per Sh. Divs. per Sh. Call Outstanding 10-3-64 9-23-63 10-3-64 09-28-63 Price 12,252,983 shs. $4.15 $328 $1.42 $1.20 _____ Price Range 1964 60 - 41% 1963 44% HISTORY In Nov., 1960, acquired- assets of Princeton Ely & Walker 1 Incorporated in Delaware, Feb. 15, 1937, as Burlington Mills Corp. Shortly thereafter ac quired all assets, property and good will of Burlington Mills Co., Inc. and subsidiaries. Rayon Fabrics Corp. and subsidiaries, and Duchess Fabrics Corp. (all dissolved) in ex change for 350,270.8 shares of common stock. Present name adopted Peb. 3, 1955. Original Burlington Mills, Inc., was incorpo rated in 1923. In 1934 Burlington Mills Co., Inc., succeeded to business ol Burlington Mills, Inc., and of five other corporations and ol Burlington Mills Co., which had been engaged in the same general business since various Knitting Mills, Inc., producer of high-pile knitted coatings, liners, and rugs, and knitted fabrics for underwear, sleepwear, negligee, dress, sportswear, shoe, and industrial trade. On Mar. 25, I960, acquired assets and as sumed liabilities of James Lees Sc Sons Co. (see appended statement) in exchange for sufficient common shares (not exceeding 2,166,936) to entitle Lees' stockholders to receice 2% shares for each common share held. Business is now operated by a new James Lees Sc Sons Co., a wholly-owned subsidiary of Burlington. In Jan., 1962 acquired' 90% interest of Erwin The Adler Co. Home Furnishings Products Burlington House Fabrics Co. Catlin Farish Co. Charm Tred Mills Cheraw Weaving Mill James Lees and Sons Co. Monticello Carpet Mills Other Operations Burlington Automotive Fabrics Co. Burlington Yam Co. Goodafl Vinyl Fabrics Foreign Operations k dates subsequent to 1923. Rayon Fabrics Corn, Mills, Inc., Durham, N. C. for about $23,000,- Burlington Export Co. and Duchess Fabrics Corp. commenced busi 000 (subsequently increased to 100%). Burlington- International ness in 1931. In Jan. 1963, Klopman Mills Inc. subsidiary For properties acquired during period 1938 acquired Fabrex Corp., New York textile PRINCIPAL PLANTS AND PROPERTin] to 1945, see Moody's 1948 Industrial Manual. In Aug.. 1946, company purchased and estab lished as a new operating division, Cramerton Mills, Inc. (N. C.), manufacturers ol fine combed cotton fabrics and rayon mixtures. Earlier in 1946, plants and equipment ol Flint Manufacturing Co. ol Gastonia, N. C. and Steele Mills ol Rockingham, N. C. were ac quired. In 1947, company, through its sales subsid iary Burlington balls Corp. ol New York, ac quired certain assets ol Duplex Fabrics Corp., and assets of Concordia Gallia Corp., New York, in order to extend activities in convert ing or styling ol dress fabrics. In addition, Burlington Mills also organized a new sub manufacturer, for $5,400,000. In Oct. 1963, acquired substantial interest in Stoffel AG, St. Gallen, Switzerland, textile manufacturer operating 5 plants in Switzer land. SUBSIDIARIES As of Oct. 3, 1964, company owned 100% voting power (unless otherwise stated) in fol lowing subsidiaries; Erwin Mills, Inc. (N. C.) Southern Bleachery Sc Print Works, Inc. (Del.) (9921%) Textile Operations, Inc. (Del.) (100%) James Lees & Sons Co. (Del.) (100%) Klopman Mills, Inc. (Del.) (87.09%). Company has 126 plants in U. S,, rf which 64 are located in N. C., 15 in Va,, lo fi S. C., and- 37 in Ala., Ark., Cal, Fla, Mass., Miss., Mo., N. J,, Okla., Pa., Tenn., T and W. Va. Of these,. 37 are prindpengaged in spinning and weaving of -- made fibers, ao in spinning and weaving wool, 6 In- manufacture of decorative fab 29 in spinning and- weaving of cotton, 3 j* Tricot, 2 in Dyeing and Finishing, 3 j* manufacture of Ribbons, 65 in knitting a ` finishing of hosiery, 1 in production plastic fabrics, 6 in manufacture of and carpets, and 5 synthetic yarn thro and miscellaneous. sidiary, Duplex Fabrics, Inc., which acquired certain assets ol Duplex Fabrics of California. In July, 1948 acquired assets and facilities of May McEwen Kaiser Co. by issuance of 608.000 common shares. In Dec. 1948, through Burlington Mills Note: In addition company has 26 domestic subsidiaries of which 3 are inactive, and 10 foreign subsidiaries not considered signifi cant. BU8INE88 AND PRODUCTS m addition, Ely & Walker of St. Mo., a distributor to retail trade of products of its own manufacture and verting, has 9 garment manufacturing p and leases a warehouse at Memphis, Te Corp. (N. Y.), a subsidiary, purchased capital Company directly and through subsidiaries Aggregate floor area of domestic plant* stock of Wheatley Fabrics, Inc., a New York is engaged in the manufacture of woven and about 29,000,000 sq. ft. Production machin textile converting company that sells cloth to knitted fabrics from rayon, acetate, nylon at .these plahts includes 41,000 looms, 2,000 women's apparel industry. In Aug., 1950 acquired 97)4% interest In Brighton Mills, Inc. In Jan. 1851, purchased Arthur Bone, Inc., Los Angeles, manufacturer, dyer and bleacher and other synthetic yarns and blends; also cotton and wool and combinations of nat ural and synthetic fibres. In addition, it oper ates throwing and spinning units for the pro duction of yarns for its own use and to some spindles, 7,000 knitting machines and, addition, complete dyeing and finishing f ities in the various dyeing and plants. of worsted yams. extent cotton sales yarn; and merchandises Company also has office building and ' In Mar., 1952, company acquired stock in ail of its products through its own sales divi oratory at Greensboro, N, C.t and - terest in National Mallinson Fabrics Corp. sions and wholly-owned subsidiaries. portation terminals and- warehouses at and in May 1952 acquired assets of com Principal woven and knitted products are Hngton, Fayetteville, Gastonia, N. C,, Du pany, remaining minority stockholder* being fabrics for dresses, lingerie, and suitings tor and Lynchburg, Va., Rossville Ga,, Green offered Burlington Mills common on a share the women's wear trade, and suiting, shirting S. C,, Sherman, Tex., Los Angeles, CaL, for share basis. and sports wear for men's wear trade. Other No. Bergen, N. J. In May 1952, company acquired- Sarfert Hosiery Mills, Inc., Philadelphia; in Nov., 1952, acquired Peerless Woolen Mills for $15,000,041 and 421,950 common shares. Company also exchanged 40,000 common shares for all out oroducts include automotive and industrial fabrics, upholstery and drapery materials bedspreads, curtains and other fabrics for the home, also synthetics and blends with natural fibers. Company is also engaged in textile tions in Canada, Mexico, Colombia, Africa, France, Germany, Spain, and zerland. standing shares of Peerless Textiles, Inc. In Dec., 1953, company purchased assets of Manufactures ladles full-fashioned and no seam hosiery and men's half hose. Also man MANAGEMENT Interstate Hosiery Mills, Inc. ufactures ribbons and other narrow fabrics. Officer* In July 1954 acquired controlling interest With acquisition of James Lees Sc Sons on H. E. Rauch, Chairman in Pacific Mills, Boston, merged Nov. 19, 1959. Mar. 25, 1960, company entered the rug and C. F. Myers, Jr., Pres. & Chief Exec.. In July 1954 acquired controlling interest carpet business. E. R. Zane, Chrnn., Exec. Comm. in -Goodail-Sanford Inc., Sanford. Me. The business is integrated from purchase, H. M. Kaiser, Vice-Chairman In 1955 acquired Mooresvllle Mills, Moores- spinning and throwing of yams to finishing J. C. Cowan, Jr., Vice-Chairman ville, N. C. cotton textile producer, now oper of manufactured products an'd their sale and S. L. Upson, Vice-Chmn., Gen Cou ated as a division. delivery either in greige or finished state. Chmn. Fin. Committee In Sept. 1955, acquired control of Ely Sc Walker Dry Goods Co., St. Louis, Mo,, manu MARKETING AND OPERATING W. E. Greer, Jr., Exec. Vice-Pres. & Chmn. Exec. Committee facturers, converters and distributors of cot DIVISIONS E. R. Callaway, Jr., Exec. Vice-Presi v ton fabrics. In 1956 acquired entire capital stock of Woolens, Worsted* and Men's Wear Burlington Men's Wear Hess, Goldsmith & Co., Inc., New York, weaver of fibre glass, with plants at WilkesBarre, Taylor and Plymouth, Pa., Cedar Cleveland Woolens Pacific Mills Worsted Co. Raeford Worsted Co. Grove. N. J. and Pomona, CaL Man-made Fiber Products In Nov., 1956, acquired stock control of Atwater Throwing Co. F. H. Leslie, Exec. Vice-President W. G. Lord, Exec. Vice-President J. D. Barbee, Exec. Vice-President A. L. Burnet, Jr., Vice-President J. L. Eskridge, Vice-President R. A. Gilliam, Vice-President J. T. Higgins, Vice-President Klopman Mills, Inc., producer greige (un finished) textile goods with plants at Asheboro and Bamseur, N. C. In Aug., 1957, acquired assets of Henrietta Mills and Martel Mills Corp., producers of staple cotton fabrics with plants in No. and So. Carolina. In Nov. 1958, acquired 82% Interest In Sidney Blumenthal Sc Co., Inc. (subsequently in creased to 100%). Merged in Nov., 19a. In 1959 acquired Adler Co., producer of Burlington Greige Sales Co. Burlington Industrial Co. Burlington Throwing Co. Burlington Tricot Fabrics Co. Hess, Goldsmith & Co. Klopman Mills Cotton Products Erwin Mills Galey & Lord Leslie, Catlln Sc Co. Mooresvllle Mills R. E. Kassar, Vice-President James King. Vice-President R. P. Lynn, Vice-President W. S. Markham, Jr., Vice-President B. M. McConnell, Vice-President C. A. McLendon-, Vice-President G. E. Norman, Jr., Vice-President W. H. Ruffin, Vice-President J. B. Russell, Jr., Vice-President E. A. Schutz, Vice-President W. B. Sellars, Vice-President men's and women's sport socks; Charm Tred Southern Bleachery and Print Work* F. C. O. Wedler, Vice-President Mills, Inc., manufacturer at tufted man-made Consumer Products A. E. Weiner, Vice-President fiber and blended rugs; Cheraw Weaving Burlington Balfour Mills J. B. Cave, Treasurer Mill, weaver of fancy drapery fabrics from Burlington Hosiery Co. E. J. Mack, Controller man-made fibers; and Ivey Weavers, pro Burlington Retail Fabrics Co. D. M. Orr, Secretary ducer of combed-cotton fabrics. Burlington Ribbon Mills R. E. Osmer, Sr. Asst. Coot