Document Edpk5x2ZkmBv19Gmzn62B56Z0

IS E U r? <3 I A- PAC I FI C CORPORATION 1969 ANNUAL REPORT CONTENTS Financial Highlights 3 President's Commentary 5 The Company 6 The People 12 The Product 17 The Future 22 Financial Review 26 Statements of Consolidated Income 29 Consolidated Balance Sheets 30 Statements of Changes in Capital Stock and Consolidated Surplus 32 Board of Directors 34 Officers 35 SGP 0030392 The Company `.'is:s' "-'.-cis o: : eac-eo olid oiant The problem: define Georgia-Pacific. Not easy. To start simply, the dry words cf a prospectus might be Dest: "Georgia-Pacific is a leading, fuily-integrated manufacturer and distributor of a wide range of forest, gypsum, chemical ana other products. Most of the Company's plywood, gypsum and other building products are sold to oealers. industrial accounts and major contractors through a nationwide chain of 105 Companyowned distribution centers . . The prospectus continues: 'Georgia-Pacific owns, grows and harvests timber, which is converse into a full line of forest prod ucts in its fully integrated manufacturing facilities. ' Further, the prospectus exolams. 'it has long been the ooncv of Georgia-Pacific to attempt to maximize profits from its timber and other resources by converting me by-products of successive manufacturing operations into various end products " All of which is fine, of course: a basic corporate definition. But it stops too soon. It's too quiet, it does not reflect the vitality of management, the spirit of achievement. It leaves out the emotion and humanity of Georgia-Pacific. :s oroducts and its Deople. For Georgia-Pacific. 1969 was a year to look outward. Outward beyond previous years, outward oeyond previous policies. Out ward toward a bright and wider future. Georgia-Pacific stands prepared to deal with the new ufe-styles of the 1970's, proud SGP 0030393 Pollution controls eliminate virtually all but pulp mill water vapors Water storage of its achievements during the 1960's. But more than that, Georgia-Pacific stands firmly in control of its many and varied marketing operations, its wide and expanding line of products, its increasingly sophisticated distriDution system; its vast, inter national stands of softwood and hardwood timber, its mines and quarries, its mineral rights, its programs of exploration into new interests through research and development and its belief m. and action toward, improving the quality of man s environment and in its encouragement of recreation and public enjoyment on much of its forest land. Add a further startling fact to the prospectus' definition: Georgia-Pacific is the world's largest producer of plywood. And here's another: Georgia-Pacific is one of the largest private owners of timoer and timberlancs in the United States, owning in fee some three and one-half million acres of timberlands. which, taken together, would be almost as big as Connecticut and Rhode Island. Additionally, one million acres are owned in fee in Brazil and Eastern Canada. Georgia-Pacific's timberlands represent prime forest areas from Maine to Florida, from Wasnmgton to California, and include stands in Canada and m the Amazon Basin in South America. The Company also has timber concessions consisting of 232.000 acres of timber in the Republic of the Philippines and 400,000 SGP 0030394 oo acres n Ecuador Througn Ketcmkan Pulp Company, 500/o cwneo Pv'Georgia-Pacific, n nas cutting ngnts in Alaska's Tongass National Fores; on 855.000 acres of timoer. Curing "969 Georgia-Pacific acquired new tracts of quality timoenancs in Arkansas. Louisiana. Mississippi. Norm Carolina anc ,,o Texas as wei as substantial new timoer concessions ana "arvestirg r.gnts in icano. Mississicpi ano Texas Looxing further outward, tne Ccmoany is completing pians witn the government of maoresia for harvesting ngnts on 300.000 acres of prime TODicai narcwoocs Acquiring and maintaining timDer and timberianos is only part of tne cet nition. however. The Company pursues an aggressive crcgram m strengthen ana buna its timDer reserves. A poiicy of scientific restoration provides the Company a peroetuai supply of wooa ;cr the future in forests which are unaer constant care. To accomcany its aaaitional `orest acquisitions anq harvesting ngnts. anc as a maior part of its policy of integrated production. eorgia-Pacitic bunt or acquired lumper mills m Arkansas, anfornia. Fiorica .cano. Louisiana. South Carcima Texas and Wasnmgion during 1969 These new mills add tc and comple ment the Company s previous 37 iumoer mills. Still another hem m the area of important coroorate definition: SGP 0030395 Georgia-Pacific ranks among the too ten producers of puio paper ana paperboara in the Unitea States Here too. the Com pany's policy of integrated procucticn s rejected. Pud and paper producing facilities are 'ocatec near oiywooa ana lumper plants or adjacent to ouip-tyoe timoer ~ms provices reacnyavailabie wood cmps for 19 of the Company s 20 pup ~Cs An other example of the Corporation s outward look ,s me 1969 acquisition of the Louisiana Forest Products Corporation a non qualify narowooo kraft puio mill at Port Hudson Louisiana The definition crows more and more spec.he Georg.-a-Pacmc owns 34 paper converting plants receiving approximately naif the Company s pud production anc converting t into a caper rainbow of products extencmg ail me way Horn the everyesy utility of corrugated containers to caper 'or Bibies tomato soup labels and annual reports Georcia-Pacific s specific corporate cehnit.cn continues to grow the Company is the third `arcest manufacturer pf gypsum procucts in the United States ana. m 1969 accounted `or some 15 percent of this country's total domestic gypsum production. The addition of one new plant drought the Company s gypsum pro duction facilities up to 10 with a total annual production capacity of over 1 800.000.000 sauare *eet of gypsum board. Gypsum products are sold, aiong with many other Georgia-Pacific Drocucts. through the 105 Comoany-ownea dis tribution centers, still another far-reaching and successful car; i SGP 0030396 New oo'o 'acuities of the Corooration s marketing strategy: an mportant part of Georgia-Pacific 3 outwara 'cck Ana nere 3 an often overlooked Out no ess .mportant part of Georgia-Pacific s definition: Cur-ent'y toe Company operates 2a chemical anc wooc by-prooucts oiants n an parts of tne country Georgia-Pacific s chemical ocerat.cns .vere startec n the ear'y 1960's to suppiy the require ments or is own caoer arc c.ywood manufacturing operations, ana t presently uses approximately two-thiros of its chemical output -cr sucn curcoses. Georgia-Pacific manufactures a wide /arety of noustr'ai ana houseroid cnemicais and wood oyprcoucts. many of tnem created from the use of ' waste'' mate rials `rom wood ana caper manufacturing. Obvcusiy a snort, ccnc.se cefinition of Georgia-Pacific ;s diffi cult f net mpossicle Once tne prospectus aigest :S founa maceauate tne Company s weil-managea `crest 'anas. Os growng so'twcca and harcwooc ember concessions, ns aiverse oiywcca 3~a paper production ,ts Pulp procuct'on ns lumper mills ts manufacture of gypsum ana otner cunamg products, its pr-emesi and wood by-oroaucts. its leasee mineral rignts. mciuamg some 230 mnnon recoverable tons of coal, natural gas and oil anc 'ts orovision of thousands of acres of recreation lands `or the growing Umtea States cccuiation ail aca up to a definition even the most seasoned financial writer would be hard pressed *0 snrnk sown to a oaragrapn m a prospectus -ernacs a two-word ohrase can do it better Looking Outward." Zhio jmcadmg SGP 0030397 0 f The Product The prospectus. cogent ana terse, defines the Georgia-Pacific product. Tis is a leading, fully-integrated manufacturer ana distributor of a wiae range of forest ana related products. ' it adds, after a nod to the Company's distribution network. `Lum ber ano Daoer Droducts are sold througn separate divisional saies organizations ,n tne United States and through inceoendent agents overseas Good e.nougn ;or a start, out the prospectus has not noted that Georgia-Pacific products are basic to many parts of :He American society, piywooa. both softwood ana hardwood: puio ana oaoer. .n graces reacnmg from newsprint through coated ana uncoatea stock to scented household tissue: other paoer products: u.mcer: more than a score of oasic and housenold chemicals, mciuamg swimming pool purifiers: gypsum products: coal oil ana "aturai gas leased on a royalty basis from Company lanes L teraily thousancs of products are created by the Com pany It 'ists 85.000 active accounts of whicn no one customer accounts tor more than 2% of consolidated sales. These oroducts are constantly added to and refined as world and national markets change. New oroducts are introduced and others are withdrawn n an intelligent program started by Gecrgia-Pacific's research ana development teams, continued by management people and concluded by the Company's mar keting ana distribution divisions. The ena result :s the anticipation and fulfillment of today's market demands ana tomorrow s changing requirements. This sort of farsighted approach to quality marketing and prod t uct development oavs orf in increasing consumer confidence. SGP 0030398 <ralt oacer And this, m turn, is reinforced ana complemented by the Com pany's comprehensive service-oriented distribution system for building product markets. The Company offers immediate ser vice to thousands of retail outlets, industrial accounts ana con tractors who can order to fill their immediate neecs without having to carry large inventories. The oroximity of plants to distri bution centers assures the ultimate convenience in delivery ser vice and underlines the importanc 1 of the Company's integrated approach to its markets. All this service is particularly welcome and even necessary in this age of hign interest rates ana fluctu ating levels of construction. During 1969. new distribution centers were opened m Alabama. Iowa, North Carolina and Tennessee. New centers m New Hampshire. Louisiana, California and Indiana reolaced former centers which no longer met increased service demands. Keeping up with today's increasing marketing and service neeas is a full-time responsibility to which Georgia-Pacific ,s well aoie to respond. The Company's outward-looking marketing and distribution attitude, because it blends tomorrow into today, is 9 SGP 0030399 I r most attractive to consumers. :n crier, then, here are a few recent proauct aeveiopments attuned to today's marKets New gypsum -aciant heating panels gypsum fire retarcant panels, new decorator textured ana souna-ceacemnc caneis A new "aisposaoles' marxet otters a wiae ana exciting fu ture Georgia-Pacific s first cisposaoie oaoer product wnl De announced m oroduction in 1970 Satincote printing paper, an uncoatea stccx whicn prints witn coated stock quality at uncoatea stocx prices. New Leatherneck coated cartonooara ana many xmcs of colorful consumer pacxaging. Eight new cciors in the Graomcweave ana Carrara tine paoer lines for hign-grade ormting. Dimension V. factory-finished hardwood plywood paneling m walnut, bircn oax and three finishes on Brazilian narcwooa. Ana, to conciuae this abbreviated list or achievements, the Comoany is marketing a complete une of doors, windows and sash which are especially aoplicable today as reoiacement units for urban renaoilitaticn markets. t SGP 0030400