Document KE6DLwEn9V7KDJeKGrMO8OL0

* PLAINTIFFS 1 EXHIBIT 1 BEA-70 KOPPERS COMPANY INC. 1964 ANNUAL REPORT SC-BE-05270 ... Our Year in Brief Total Koppers Sales Million* 0 50 100 150 200 O o IIjis l*ci M u te Fred C. Fov. Chairman Fletcher L Byrom, President To Our Stockholders: lanuary 25,1965 Koppers sales and earnings were both improved in 1964. Net income for the year totaled $9,950,000. This was equivalent after payment of preferred dividends to $4.21 per common share. Earnings in 1964 were substantially higher than the $7,281,000, or $3.01 per share, earned in 1963. An increase in dividends to common stockholders re flected both the Company's improved earnings in 1964, and a promising outlook for the future. In October the Board of Directors increased the regular quarterly dividend on the Company's common stock from 50 to 60 cents per share. In addition, a year-end extra dividend of 30 cents per share was declared and paid in the fourth quarter. Total dividends of S2.40 per common share in 1964 represent a 20 per cent increase over the $2.00 paid in the preceding three years. Total Company sales in the year just completed were $334.8 million, a record high for any year in the Company s history, and a 14 per cent increase over 1963 sales of 5292.8 _ million. The overall sales improvement was spread generally through the Company, with across-the-board increases achieved in most of our major products and services. We are especially pieased with the growth in our manu facturing volume. Manufacturing saies in 1964 were 520.3 million higher than in the previous year, an especially gratify ing increase in view of the fact that some 59 million in sales of the Lock Haven (Pa.) dyestuffs plant, which was a part of our 1963 sales, was not consolidated in our Company's 1964 sales. As reported in last year's Annual Report, our dvestuffs business was merged late in 1963 with the dyestuffs activities of Philips Electronics and Pharmaceutical Industries Corpora tion. American Aniline Products. Inc., the new company which was formed, is jointly owned by Koppers and Philips. We should point out that earnings realized to date bv the American Aniline Products joint venture have been re invested in that business, and our 1964 income includes no Aniline earnings or dividends. American Aniline will begin paying preferred stock dividends to the two parents in 1965. 2 NEi SALES BY DIVISIONS* (In Thousands or Doilars Divisions 196* 1963 196Z 796T I960 19S9 7958 7957 7956 7955 Tar & Chemical** S 84.257 . $ 88.575 $ 96.921 S 94.^66 S 98.760 S 88448 $ 87,525 $ 92,104 $ 78.097 S 72.086 Plastics 61,794 54.929 52.423 51.617 52.652 50437 43448 43,376 - -f Chemical Forest Products 68.517 57,920 51.907 42.062 -- 47.166 --'-- .. 45,860 4T.610 ' S3029 ` 70,492 49.204 56J&20 38462 Metal Products 40.754 37,194 37,153 34.348 31.092 28,470 : ,25407 . 35039 33,128 22.907 Associated Operations . TOTAL MANUFACTURING Engineering & Construction 3.620 $258,336 74408 $238418 SUS2 $238,404 61.680 $222,613 49,865 -- - ' j.-.-.r-- `' ' ----- $229,670 $213415 '$197490 .^$224,448 "$230,921 72,105 . .27481 JiiijBiISS; ^'r>4047 $189,975 37,907 Other Sales 1.573 . -1464- 1,064 965 764 S1 TOTAL $334417 - $232434 $301,148 S273.443 $302439 . SJ4102O. ($2$9447 > - - .$228473 *Sales from Internationa/ Operations are-induded in the appropriate to indude two wholly-owned foreign subsidiaries. **Indudes the former Chemicals & Dyestuffrand Tar Products Divisions, Fundamental Changes Occurring at Koppers A number of significant changes and developments have been taking place within the Koppers organization in recent years. Some of these are apparent from our published financial in formation, while others are not so readily discerned. One such change concerns the basic comcetitive strength of our Companv. Creation of the Sinciair-Koppers partnership in thermoplastics (please note full description on the follow ing pages) completes a program to put each of the maior areas of our business on a sound and competitive basis, rela tive to competing producers of the same goods and services. How favorably we fare against these competitors in fu ture years depends, of course, on how well we do our jobs. We are now satisfied, however, that in all principal product lines we are fully competitive in every respect--in raw material integration, plant efficiency, product quality, technical serv ice. and management and marketing ability. Our operating and overhead costs have been steadily re duced. In the last four years alone we have shut down 14 plants, and transferred their operations to other, more effi cient locations. The efficiency and throughput capacity of a number of our chemical and plastics plants.have been greatlv improved, and our metal fabricating facilities have been sub stantially modernized. The average number of Koppers manu facturing employees in the record sales year of 1964 was 'Continued on page -> 3 Illustrated on the opposite oage are two maior building products sole ov \ooce-f - :oji' tar piccn ouiit-uo roots, ar.o LSIT ammateo beams , Container machinery suen as tne HOOPERSWIFT printer-siotter. ioider-giuer above:, ana DYUTE exoanaaole ooivstvrene tor foam packaging left', are contributing to Xopcers growing -aies to the packaging market. The Evolving Forest Products Division The recent growth of our Forest Products Division provides a good illustration of the extension of our operations into new and promising areas, while continuing to develop traditional markets. Until a decade ago this Division was almost solely con cerned with markets for pressure-creosoted wood (railroad cross ties, utility poles, foundation and marine piling, and highway posts). Sales to railroads alone, in the period from World War II untii the mid-1950's, made up about half of the Division's total saies volume. We have continued to compete aggressively for railroad business; our 1964 sales to this market were, in fact, the highest since 1957. Other segments of the Division s opera tions have been growing at a faster rate than the railroad market, however, with the net effect that sales to railroads now account for onlv about 25 per cent of our substantially larger total forest products business. The Forest Products Division, in addition to expanding tra ditional markets for treated wood, has also moved into areas where conventional preservatives such as creosote were not entirelv suited to market needs. These new markets include areas where wood was not iormeriv used at all. or where untreated wood was used. In recent vears we have developed , and introduced two new pressure treatments for wood, each with its awn market and each with characteristics heretofore unavailable in chemically treated wood. nON-COm fire protected wood has now been accepted bv substantially all of the insurance industry for partitions and roof decks in fireproof buildings. Since it retains all of the characteristics of wood in addition to its fire protection quali ties. NON-COM lumber is finding increasing application in mercantile, industrial, educational and institutional construc tion. Sales or nOn-COm fire protected wooa in 1964 showed another substantial increase over the preceding year. Con tinued rapid growth of this product is foreseen. CELLO.n-treated wood is one of the latest developments or Koppers research. The CELLON process, while providing the same protection against insects and decav as other pres sure treatments, aiso combines the deepest preservative pen etration vet achieved with an exceptionally ciean. natural ap pearance. CELLON-treated wood can. if desired, be painted. Crowing areas oi work tor the Engineering and Construction Division are facilities for the continuous casting oi steel (above', basic oxveen steelmaking plants ileitl. and installations such as sewage treatment oiants above, .'eitbuilt bv the Maian Department. Reflecting the results of this decade of change, total sales oi the Forest Products Division last vear were 568.5 million, more tnan doubie the 1954 voiume of 532.6 million, with fur ther growth expected in future years. Shift in Construction Emphasis Within the engineering ana construction field, our sales pat tern has been undergoing a marked realignment. In 1957. for examoie. more than 35 per cent of Kopoers S102 million con struction volume was in the designing and building of sinter ing piants. open hearth shops, coke ovens, and blast furnaces for American steel comDames. In recent vears construction of sintering piants and open hearths has been slowed bv changing economics and newer technoiogv. And. vvniie the long-range outlook for coke oven and biast furnace work remains favorable, improvements in blast furnace feed pretaaration. increased blast temperatures and furnace pressures, and supplementary fuel injections have boosted the iron output or existing biast furnaces and reduced coke reauirements. tnus causing a temporary lull in new con struction in this area. In the meantime, we have moved into other tvpes of con struction. In 1964. more than two-thirds of our engineering and construction voiume was derived from basic oxveen furnace oiants. continuous casting plants, and overseas proiects--all relatively promising areas of future work. Our construction business was further diversified eariv sn 1964 with the purchase of the .Maian Construction Comoanv of New York City, a firm specializing in the construction of water and sewage treatment plants, and military and space in stallations. It is gratifying to report that during 1964 the .Maian organization received S31 million in new business, only a small part of which was included in our 1964 saies. with the remainder falling into 1965 and succeeding years. We expect Maian to make substantial contributions to our future con struction voiume. Hardinge Company Joins Koppers *' Early in Januarv of 1965. we Durchased the assets of Hardinge Company, Inc. of York, Pa. Hardinge Company is a ieading desiener and manufacturer of eouipment used to dr/, grinc. Sew lechnoioev at Koooers is represented hv :ne oroaucvon or riiament wound reinforced plastics jt .ante* nau-tres. acouirea in 1963. Hundreds or stranas or :iberciass above era are used in such products as figntweten:. corrosion-resistant HYSTRAN reinforced esow oioe rt: ana remiorced piastre raaomes sons e for air r.-jmc ar.d navigational svstems. knoiders. Common stockholders received totai dividend ments or S5.3 miilion. equivalent to $240 per share outcmg. comoared to $4.3 million or 52.00 per share paid 963. Our expenditures for acquisitions, investments, plant conction and expansion, and modernization of existing tacili- totaled 515.0 miilion during 1964, compared to 518.0 !ion in 1963. Our total capital expenditures in 1964 were er than we had anticipated earlier in the vear. largelv due delavs in the deiiverv of maior pieces of equipment for rent exoansion programs. Capital expenditures in 1965 I be sigmficantlv above the 1964 level. Cash flow from ooerations during the vear--consisting ot income, depreciation, depletion, provisions for deferred eral income taxes, etc.--totaled 524.1 million, equal to 1.57 per share, compared to 523.5 miilion or 510.32 per re in 1963. Our ratio of current assets to current liabilities at year end s 3.1 to 1. Inventories on December 31 amounted to 550.5 ilion. and receivables totaled 559.9 million. The increase receivables over the 550.5 million at the beginning of 1964 reflects the Company's substantial^ higher sales volume durmg the vear just completed. Future Outlook The outlook tor the future continues promising, end we ex pect to report further gains in sales and earnings during 1963. Our backlog or orders on hand at the end ot 1964 totaled si50 miilion, up from 5741 miilion at the beginning of the year. For the Board of Directors. FRED C. FOY. Chairman F. 1. SYROM. President 11 Transformation or the Eregli plant site The Eregli Integrated Steel Plant Project F'ed C. rov Since establishing an International grouD in 1956 to coor dinate our international operations. Koppers has become in creasingly active in world markets. We are presently operating or selling in 67 countries. Our international activities include the designing and building of industrial plants, the rendering of technical and management assistance to firms in developing countries, the export sale of products made in our U. S. plants, and participation in foreign manufacturing affiliates--usually on a joint basis with resident business interests. A unique aspect of our overseas work is Koppers ability to assist in the planning and development of large new industrial enterprises. Through the vears KoDpers has assembled the skills needed to help bring a new company into existence, and to help it successfully through the earlv difficult vears. 12 The services performed for our customers in such under takings include the making of initial technical and market studies, evaluation of raw materials and plant locations, co ordination and assistance in developing a financial plan for the enterprise, design and construction of the required plant, and follow-through help in management, operations, and personnel training. Eregli Demir ve elik Fabrikalari T.A.$. The integrated steel plant now in the final start-up phase at Eregli, Turkey is a good example of the range of services that Koppers can be called on to furnish a major overseas indus trial venture. This new steel piant is owned and operated by the Turkish im E'e"ii Demir . e Cehk Fabrikaiar: T A.5. creg'.i iron and Steel 'Aorxs. now known in Turkev as Erdemir. It is located on he v.'acK Sea coast. 100 miles east or Istanbul. NOOpers nas been cioseiv involved rrom the inceotion or this oroject. U'e heiped to perform initial feasibility and mar ket -todies ana heiDed the customer to set jd j comorehensive financial pian for the project. Then. :n cooperation .virh 3!aw-\nox Companv and Westinghouse Electric Inter national Corporation, we assumed responsibility for the de sign. suoervision or construction, and furnishing of maior eauioment tor me piant--ana aiso became minority stock holders m the new venture. In addition. Koooers will continue to assist the Eresli firm throusn a five veer technical and management advisory con tract. which is aireadv in effect. Shipments of finished steel products trom Erdemir have commenced, and the entire piant is expected to be in fuii operation in March. 1963. With the coooeration and he;o or both the Turkish government ana Turkish private business interests, and of the other American firms involved in the job. we have fulfilled the 42 month construction schedule agreed to in 1961--an ambitious time schedule considering the size and complexity of the job. It now appears that the Turkish economy, which has for some time badly needed the flat steel products (plates, sheet, tinplate, etc.) being produced at Eregli. will almost immedi ately absorb the entire initial output-of the plant. It is prob able that an early expansion program will be required at Eregii to meet the increased demands from steel users, which we know from our experience in other deveioomg countries can Maior production units at Eregli include 74 Koppers coke ovens (above, leiti: ' a large Koppers blast furnace (abovei: and a combination blooming, slabbing and plate mill ileit) supplied bv 6/aw-Knox Companv. be expected to expand rapidlv once the dependable avail i Public/Private Cooperation ability of this tvpe of domestic steel is assured. | Created the Eregli Plant i3 This plant will be one of the most up-to-date steel pro i The planning and building of the new Erdemtr steel plant pro ducing facilities in the world. Turkish coal from nearby loca vide a truly fine example of cooperative effort between the tions will be carbonized in 74 large-capacity (15 ft. high) I Turkish government and private Turkish interests, European Koppers-Becker underjet coke ovens. Pig iron will be smelted . companies, and the United States government and private in a 28 ft. heartn-diameter blast furnace, the largest in the J American business and banking firms. .Middle East, using coke from the Koppers ovens as well as I I _______________ ( Turkish iron ore and limestone. Steel will be made via the . The U. S. Agency for International Development, through the latest method--the basic oxygen furnace process--in two 80- 1 largest single industrial loan ever granted bv the U. S. govern ton vessels, the only oxygen furnaces in the Middle East. Hot ment. has supplied a substantial part of the total capital re- | quirements of the project. and cold rolling mills and auxiliaries of the latest design have j ------------------- been engineered and supplied by Blaw-Knox. Westinghouse ' Chase International Investment Corporation of New York as Electric provided all electrical equipment and an oil-fired ; sisted in financing the project through a direct loan. 40.000 kva power plant. 14 The industrial citv oi Izmir greets the arrival. .'ate in 7964. oi the first shipment or steel sheets from Eregii. ospective Turkish private investors iearn about Erdemir _ through dispiavs and pe'sor.ai presentations. Five L. 5. comoames piayed important roles in the design, furnishing of equipment, and construction of the new plant. In addition to Koppers Associates (the Koppers. Blaw-Knox, Westinghouse partnership), Foster Wheeler Corporation perrormed fieid erection of material at the plant site, and Mornson-Knudsen Comoanv did most of the foundation work. | i ! A number of companies in France and Germany supplied a portion of the equmment needed bv the Eregii plant. ' ---- -- - i iI Several agencies of the Turkish government supplied direct j financial aid, as well as encouragement and support for the protect. Private Turkish individuals to date have purchased ' stock in the enterprise valued at 80 million iira <S9 million.'. It is important to note that, while the governments of both Turkey and the United States are lending substantial help to this project, Erdemir is a privately controlled and operated company. This is a first in Turkey, where private ownership of such a large basic industry is a new concept. Turkey to Gain rrom the Eregii Project The Turkish national economy will benefit directlv and sub stantially from the Eregii plant. Initial plant employment is 2,500, with' additional personnel to be added as expansions occur. It is estimated that at least three to four times that number will be employed in mineral processing industries, distribution of raw materials and fin- The Eregli plant at night ished steel products, and new steel-consuming industries cre 1 program has been established, and customer accounts cur- ated through the availability of Eregli steel. 1 rently number 2.200--including of course a number or quite ; modest users of steel. The flat steel products from Eregli will heip to stimulate and strengthen the Turkish economy. Although a steel plant has | New steel-consuming industries in Turkey are encouraged bv been operated at Karabuk, Turkey tor the past 25 vears. pro , the imminent availability of Eregli steel. Capacity at a pipe j duction at that location is confined to structural sections, j plant in Izmit, for example, has been more than doubled and l bars, and rails--with no capacity in the flat steel products ; this one plant alone will consume an estimated 75,000 tons which will be made by Erdemir and are now increasingly ; of steel annuailv. And Turkey's 53 canning factories have been needed bv the country's expanding industries. in dire need of a reliable domestic supply of tinplate to pre- . serve and package Turkey's meat, fish, fruit and vegetables. The only flat products heretofore available were imports, I ______________ necessarily restricted in quantity due to the need to conserve Development of the Turkish mining industry has been accel- Turkey's foreign exchange reserves. i erated by the presence of the Eregli plant. Coal, iron ore. and Steel shipments from Eregli will have impact throughout the Turkish economy. A comprehensive distribution and sales limestone--the three principal materials used in the making of iron and steel--ail are being supplied from Turkish mines. 16 Koppers International Operations: Th.e Eregli project, while excepjtjoraily large and dramatic, is but one example of Koppers expanding international interests. During 1964, for instance, our Company: completed the design, and assisted in the construction oi the world's largest basic oxygen steelmaking plant lor ITALSIDER S.p.A. at Taranto, Italy; j-| began construction of a new Koppers blast furnace for Empresa National Siderurgica, S.A. at Aviles. Spain; and another for Compania de Acero del Padfico S.A. at Conception, Chile; entered into an agreement with Higan Integrated Steel Mills, Inc. to design, coordinate the construction, and help to man age a new integrated steel plant in the Philippines; assisted in the management of four large steel operations in as many countries, three chemical plants, and a cement firm;. produced, in companies fointly owned with foreign partners; more than 75 million pounds of styrene monomer and poly- styrene and polyethyleneplastks- IriBrazifaridArgentina; exported many, millions of dollars in plastics, woodproducts;ar-basedl ery, . pisto_n. rings and ,, With"* bread a truly , *;yp,. 4!f\ " ' V. v. - - ... f.. . V y. .. ... . y^iuem^ftirihtd. .f-- Board of Directors We were aeeoi'v saddened bv the deaths curing :r.e vear or two rormer Chairmen or tne Koopers Board or Directors. I. Peter W illiams, ir. and W. F. Munnikhuvsen. ano trie oassmg or an active Director. |. -Mbert Wooes. ). Peter Williams. |r. contributed signiticantlv to KoDpers growth and prosDentv during his 36-vear association with the Comoanv. He became President of Koppers Coal Company in 1930. President of Koopers Company in 1939. and was the first President of Koppers Company. Inc. at the time of the incorporation of the present Company in 1944. Mr. Williams aiso served as Chairman of the Board of .Coopers Company, Inc. from 1944 until 1930. Following his retirement he re mained a Director until 1956. The career of W. F. Munnikhuvsen spanned 47years of distinguished service to Koppers. Mr. Munnikhuvsen was elected Vice President and General Manager of the former Wood Preserving Division in 1938, Executive Vice President of the Company in 1950, and Chairman of the Board in 1955. He served as a member of the Board of Directors for five years fol lowing his retirement in 1958. J. Albert Woods, formerly President of Commercial Solvents Corporation and Chairman of the Board and President of Courtaulds North America Inc, was a member of the Board of Directors from 1961 until his death last spring. WALTER P. ARNOLD Executive Vice President Koppers Company, Inc. JOSEPH BECKER Former Vice President Koppers Company, Inc. VANCE BRAND President, /nternat/onai Investment Co. STANLEY N. 3ROWN Former Vice President hoppers Comoanv, Inc. FLETCHER L BYROM President Koppers Company, Inc. FRED C FOY Chairman ol the Board Koppers Company, Inc. CURTIS E. JONES Vice President. Mellon National Bank and Trust Comoanv T. C. KEELING, JR. Vice President Koppers Company, Inc ROBERT H. McCLINTIC Chairman of the Board Cordon Lubricating Company J. Peter Williams, Jr. W. F. Munnikhuysen Albert Woods 18 RICHARD K. MELLON Chairman of the Board Mellon National Bank and Trust Company ROBERT S. OELMAN Chairman of the Board National Cash Register Company NATHAN W. PEARSON Vice President and Governor T. Mellon and Sons ARTHUR B. VanBUSKIRK Vice President and Governor T. Mellon and Sons Changes in the Board of Directors: Lawrence N. Murray, former President of Mellon National Bank and Trust Company, retired from the Board of Directors early in 1964. He had served as a valued member of the Board since the in corporation of Koppers Company, Inc. in 1944. Arthur W. Knight, Director of Courtaulds, Ltd. London, resigned as a Director in January of 1964. Three new Directors were elected to the Com pany's Board during 1964: Curtis E. Jones, Vice President of the Mellon National Bank and Trus Company; Nathan W. Pearson, Vice Presiden and Governor of T. Mellon and Sons: and T. C Keeling, Jr., Vice President of Koppers. Mr. Keel ing, who joined Koppers in 1945. served from 1958 to 1963 as Vice President and General Man ager of the former Chemicals and Dyestuffs Divi sion. He joined the International Division in 1963, and in 1964 succeeded George W. Naylor who retired during the year. Mr. Keeiing is now Director in charge of International Operations. Officers of Koppers Company, Inc - -- * - C i\ ,,,, d r P. 01 ue-t Company Vice Presidents V. ALTER 3 ARNOLD ;\ecuf'.e v ce pru,"Oent Co.-oorate Croum P'annrj -I A GEnnv Je^e-ai Manase' Ergiree'mg s-a Canstructtd" .on CHESTER E. 3ROWN- DAVID L. EVNON. |R. Gene'ji Manager. Plastics Dmsion Corporate Crown f'ar.mng HARRY 3. CUMMINGS Genera; Manager Meta/ Products Division GOLGLAS CRYME5. JR. General Manager -orest Proaucts D'stsion =RED DENIG 'ie'-jtionai Ooerations ROBERT R. HOLMES executive vice President CHS G. IONES ^"'OdJiea Ooerations ~ C. sEELING. ir. Director :n Charge. ".e'^ationa, Ooerations OH\ . SPEARS "rej-'C/rer " :gu ;?n:or scDoe'S crf'cers retiree 2w-z :~e ear: Ceorge M. Waiker. associates vacoe'S lines '929 arc Execut-ve ce 'esicent ct the Comcanv since '95eti'ec: .n trie :ai!, Mr. Waiker neiDec to tuice our Comoanv through :he earn, ears ,n :ne oiastics meustrv. Cecrse `A. Nav.or conduced a `6-vear tareer \v:tn me Comoanv in Novemcer o: '64. in ms caoaciiv as Vice P'esicen: anc General Manager or me International G \i.-ion. ne directed the Comoanv j overseas ooerations since the initial formation or tr.e Division in .936. Dr. Paui W. Bachman, former Vice 3resiaent and Director of Researcn anc more recently a memoer of tne Corporate Growth Planning Grouo. retirea in August. Divisional and Departmental Vice Presidents VV. A. ANDERSON IOHN H. HAUSER Engineering and Construction Div. Tar and Chemical Division carl h. pottenger Director or Research JOHN M. CRIMMINS NICHOLAS KAY Cenerai Counsel. Law Department Metai Proaucts Division I. D. RICE. .Manager Procurement Department DONALD L. DeVRIES Metal Proaucts Division W. EUGENE KOGER. Manager FRED W. RYS industrial Relations Department Engineering and Construction Div. ROBERT T. EAKIN DONALD MacARTHUR Engineering ana Construction Div. Washington Criice IOSEPH B. SCHMITT* Plastics Division J. A. HAGAN 1. C. MACON. JR. Engineering and Construction Dw. Tar ana Chemical Division FRANK B. VARGA International Operations ). F. HALEY. Manager Trariic anc Transoortation Deot. P. V. MARTIN B. OTTO WHEELEY, .Manager Engineering & Construction Div. Marketing Department MAX C. HANISCH forest Proaucts Division PAUL C. McCONNAUGHEY Tjr ana Chemical Division IAMES P. WILLIAMS Engineering and Construction Div. i. A. HARTZELl E. 1. McGEHEE Er.gmeerng ana Construction Div forest Products Division R. G. WILSON Engineering and Construction Div. Other Officers JOHN M. CRIMMINS Secretary WILLIAM P. RAINES Manager, Public ana Community Relations Department 'Transferred to Stncteir*M3opers Company- elective unuarv \ :?63 19 i Transfer Agents Mellon National Bank and Trust Companv Mellon Square. Pittsburgh 30. Pa. Bankers Trust Companv I 16 Wall Street. New York 15. N. Y I j Harris Trust and Savings 8ank 111 W. Monroe Street. Chicago 90. 1:1. Stock Registrars I Pittsburgh National Bank j P. O. Box 746. Pittsburgh 30. Pa. i j Morgan Guaranty Trust Company of New York | 140 Broadway, New York 15. N. Y. , Continental Illinois National Bank and Trust Company of Chicago | 231 South LaSalle Street, Chicago 90. III. i 1 i ! Dividend Disbursing Agent Mellon National Bank and Trust Companv Mellon Square. Pittsburgh 30. Pa. Report of Certified Public Accountants ARTHUR YOUNG & COMPANY CERTIFIED PUBLIC 4CCOUNT4NTS >*30 Seventh Avenue Pittsourgn. Pa, 13219 j j The Board of Directors and Stockholders Koppers Company, Inc. ': j We haveexamined the accompanying consolidated j balance sheet of Koppers Company, Inc. and consolidated j i subsidiaries at December 31, 1964 and the related consoli dated statement of income and earnings retained in the business for the year then ended. Our examination was made in accordance with generally accepted auditing standards, and accordingly included such tests of the accounting rec ords and such other auditing procedures as we considered necessary in the circumstances. In our opinion, the statements mentioned above pre sent fairly the consolidated financial position of Koppers Company, Inc. and consolidated subsidiaries at December 31, 1964 and the consolidated results of their operations for the year then ended, in conformity with generally accepted accounting principles applied on a basis consistent with that of the preceding year. ARTHUR YOUNG S, COMPANY Pittsburgh, Pennsylvania January 21, 1965 I II i 20 1 Consolidated Statement of Income and Earnings Retained in the Business ... Our Year in Brief Total Koppers Sales Million* 0 50 100 150 200 O o IIjis l*ci M u te