Document N2gLnvNyNe30qQ4wGyGmb5owy

IPLAINTIFFS I I "5^ * (513 2 I nn ck sties 1974 Highlights Sales (Thousands of Dollars)............................................. Net Income (Thousands of Oollars)............................. Earnings Per Share (Dollars)...................................... Dividends Per Share (Dollars)...................................... Garlock Shareholders' Equity Per Share (Dollars) Average Shares Outstanding (Thousands).............. Sales [v7S 151.2 1974 1973 1972 151,168 6.430 2.70 .86 21.05 2.377 126.022 5.592 2.35 .84 19.20 2.377 105.159 4,513 1.90 .81 17.69 2.380 1971 87.650 3.925 1.72 .80 16.65 2,277 1970 78.533 3.597 1.73 .80 15.72 2.083 Earnings Per Share 3.0 2.70 1970 1971 1972 1973 1974 1970 1971 1972 1973 1974 Income and Retained Earnings (Thousands of Dollars) INCOME Net Sales and Operating Revenues...................................... Operating Costs Cost of Goods Sold ............................................................. Selling and Administrative Expenses.............................. Total Operating Costs............................................. Income from Operations ......................................................... Sundry Charges-Net................................................................ Income Before Taxes on Income.......................................... Taxes on Income ...................................................................... Net income for the Year............................................................ Average Shares Outstanding (Thousands)......................... Earnings Per Share (Dollars)..................................................... RETAINED EARNINGS Balance at beginning of year................................................. Net income for the year............................................................ Cash dividends: Garlock Inc............................................................................... Pooled company1 prior to acquisition.............................. Other........................................................................................... .. Balance at end of year.............................................................. Dividends per share (Dollars)................................................... 1 Service Spring Company G'V oc'k Inc. and Consol- dated S^oord,-,,' $ 1974 1973 1972 1971 1970 $151,168 SI 26.022 S105.159 $87,650 S78.533 101.557 32,877 134.434 16,733 3.390 13.343 6,913 $ 6,430 2,377 $ 2.70 84.237 28.150 112,387 13,635 2,576 11.059 5,467 $ 5,592 2,377 $ 2.35 70.899 24.737 95.636 9,523 1,447 8.076 3,563 $ 4,513 2,380 $ 1.90 59.030 21.032 80.062 7.588 786 6,802 2,877 $ 3,925 2,277 $ 1.72 51.481 19.138 70.619 7.913 1.184 6.729 3.132 $ 3,597 2.083 $ 1.73. $ 37,438 6,430 $ 33,843 5,592 $ 31,283 4,513 $29,175 3,925 $27,184 3,596 (2,044) - - 41,824 $ .86 (1,997) - 37,438 $ .84 (1,849) (42) (62) 33,843 S .81 (1,706) (53) (58) 31,283 $ .80 (1,572) - (33) - 29,175 $ .80 Financial Position (Thousands of Dollars) CURRENT ASSETS: Cash and marketable securities........................................ Accounts receivable ........................................................... Inventories............................................................................... Prepaid expenses.................................................................. Total Current Assets................................................. LESS CURRENT LIABILITIES: Notes payable and current portion of long-term debt.. Accounts payable and accrued expenses ................... U.S. and foreign taxes on income.................................... Total Current Liabilities........................................... WORKING CAPITAL ................................................................ OTHER ASSETS: Property, plant and equipment........................................... Deferred charges, sundry investments............................ Excess of investment in subsidiaries over book value of net assets................................................. Total of Other Assets............................................... ASSETS LESS CURRENT LIABILITIES ............................ LESS OTHER LIABILITIES: Long-term debt...................................................................... Deferred taxes on income and other liabilities............. Total Other Liabilities ............................................. EXCESS OF ASSETS OVER LIABILITIES ..................... SHAREHOLDERS' OWNERSHIP Minority interest in subsidiaries......................................... Garlock Inc. shareholders (net)........................................ TOTAL ........................................................................ Gar'ocK Inc. and Cor.sohdaied Subsidiaries Dec 29 1974 Dec 30 1973 Dec. 31 1972 Dec 26 1971 Dec 22 1970 S 1.811 28.893 40.872 777 72.353 $ 1.880 21.745 31.510 915 56,050 $ 1.321 18.001 26.028 908 46.258 S 3,186 14.545 21.080 882 39.693 $ 1.394 12.735 19 858 671 35.158 10,809 19,214 2,567 32,590 39,763 6,223 11,818 2.658 20.699 35,352 5.873 9.383 1.350 16.606 29.652 6.030 8.196 846 15.072 24,621 4.101 6.664 2,110 12.875 22.283 33.501 1,333 5.790 40.624 80,387 28,224 2,079 5,762 36,065 71,417 27.041 946 5.769 33,756 63,408 24.701 1,400 5.505 31,606 56,227 21.324 890 5.284 27.498 49,781 23,001 4,808 27,809 52.578 19,924 3,541 23,465 47,952 16,989 2,562 19,551 43.857 12,996 1,884 14,880 41,347 13,074 1,237 14,311 49,781 2,546 50,032 $52,578 2,306 45,646 S47.952 1,814 42,043 $43,857 1,659 39.688 $41,347 1.844 33,625 $35,469 Operating Statistics Sales (Thousands of Dollars)........................................ Inventories (Thousands of Dollars)............................. Accounts Receivable (Thousands of Dollars).......... Equity (Thousands of Dollars).................................... . Net Income (Thousands of Dollars)......................... . Number of Employees............................................ Sales Per Share (Dollars)........................................ . Sales Per Employee (Dollars).................................. Payroll and Benefits Per Employee (Dollars) .... Sales/Average Equity (Ratio)................................ Income/Sales (Percentage).................................... . Income/Beginning Equity (Percentage)............... Inventory Turnover (Ratio)...................................... Accounts Receivable Turnover (Ratio)............... Expenditures on new plant (Thousands of Dollars) Depreciation (Thousands of Dollars)......................... Long-Term Debt (Thousands of Dollars)................. Total Borrowed Capital (Thousands of Dollars) .. Gar:ock inc. ana Cc"30'da:ed Subs-c.arles 1974 1973 1972 1971 151.168 40.872 28.893 126.022 31.510 21.746 105.159 26.028 18.001 37.650 21,080 14 545 1970 73.533 19.858 12.735 50.032 6,430 5.868 45.646 5,592 5,915 42.043 4.513 5.397 39.688 3.925 5.031 33.625 3.597 4.782 64 25,759 9,031 3.16 4.25 14.09 53 21.305 7.912 2.87 4.44 13.3 44 19.485 7.451 2.57 4.29 11.37 39 17.422 7.054 2.39 4.48 11.67 38 16.423 6.848 2.44* 4.58 11.67 3.70 5.23 4.00 5.80 4.04 5.84 4.16 6.03 3.96 6.17 8,844 3.337 4,545 2,918 5,162 2.713 5;025 2,207 3,721 1,824 23,001 33,809 19,924 26,147 16,989 22,862 12,996 19,027 13,074 17,175 Common Stock Review 1974 1973 1972 1971 1970 Market Price1 High ............................ . 19% Low ............................ . 12% 19% 12% 23% 17 21% 16 18% 13% Earnings Per Share1 . .. 2.70 2.35 1.90 1.72 1.73 Price Earnings Ratio High ......................... .. 7.3 Low ......................... . . 4.6 8.4 12.5 12.4 10.8 5.3 8.9 9.3 7.8 Dividend Per Share1 . .. .86 .84 .81 .80 .80 Dividend Yield (%) High ......................... . . 6.9 6.7 4.8 5.0 6.0 Low ......................... .. 4.3 4.3 3.4 3.7 4.3 1 Dollars PRICE RANGE AND VOLUME 1970 1971 1972 1973 1974 Sales by Markets Served Garlock sells annually to over 35.000 domestic and foreign customers which represent almost every industry. The following breakdown of sales for the past five fiscal years is according to industry classifications of the U.S. Department of Commerce: 1974 1973 1972 1971 1970 Distributors1 ................... 26% 24% 23% 25% 23% Machinery ........................ 15% 18% 16% 19% 22% (Other than categories below) Transportation Equipment ................. 19% (Other than categories below) 16% 18% 13% 11% Passenger Cars ............. 8% 11% 14% 13% 10% Pumps & Compressors . 11% 10% 10% 10% 10% Stone, Clay, and Glass . 4% 4% 4% 4% 5% Instruments ..................... 2% 2% 2% 2% 3% Material Handling Equipment ................. 1% 1% 1% 2% 2% Primary Metals............... 1% 2% 2% 2% 2% Fabricated Metal Products ......... 1% 2% 2% 2% 2% Chemicals & Petrochemicals ........ 3% 2% 2% 2% 2% Government & Defense.. 1% 1% 1% 1% 2% All other........................... fi% 7% 5% 5% 6% TOTAL ............... .100% 100% 100% 100% 100% 1 Resold to many industry classifications.  : Garlock Garfock Inc. ^ 1250 Midtown Tower ; Rochester, New York 14604 i t- CDF FIE Garlock Garlock Inc. 1250 Midiown Tower Rochester, New York 14604 FACT SHEET April 19, 1974 HEADQUARTERS 1250 Midtown Tower, Rochester, N.Y. 14604 FOUNDED 1887. Incorporated 1905 LISTED New York Stock Exchange - Symbols GAK FINANCIAL INFORMATION 1973 1972 calendar year) 1971 1970 1969 Net Sales* $126,022 $105,159 $87,650 $78,533 $76,561 Net Income* 5,592 4,513 3,925 3,597 3,505 Earnings per share 2.35 1.90 1.72 1.73 1.68 Dividends paid per share .84 .81 .80 .80 .80 Shareholders' equity per share 19.20 17.69 16.65 15.72 - 14.79 Thousands of dollars ORGANIZATION Operating Groups Staff Groups Mechanical Products Mechanical Power Fluid Power Oil Seal International Finance Law Corporate Development Administrative Services CURRENT DATA (as of December 30, 1973) Shareholders; 5,242 Employees; 5,915 Common Stock: 5,000,000 shares authorized. 2,377,000 shares outstanding. Present Dividend Rate; 84$ annually. (Dividend Payments have been uninterrupted since incorporation in 1905.) 2- - PRINCIPAL OFFICERS A. J. McMullen B. H. Cook J. J. Grady D. J. Camille J. E. Brennan G. P. Wiess P. S. Hanke K. W. Smith R. E. Jeffery Chairman and Chief Executive Officer President and Chief Operating Officer Vice President -Finance Vice President -international Group Vice President -Mechanical Power Group Vice President -Mechanical Products Group Secretary and General Counsel Treasurer Controller SALES BY MARKETS SERVED Garlock sells annually to over 35,000 domestic and foreign customers which represent almost every industry. The following breakdown of sales, for the past two fiscal years, is according to industry classifications of the U. S. Department of Commerce: 19731 Distributors?............................................ Other Machinery................................ Other Transportation Equipment $ 30.2 22.7 20.2 24% 18% 16% Passenger Cars......................................... 13.9 11% Pumps & Compressors............................ 12.6 10% o in in CM Stone, Clay, and Glass.................... 4% Instruments........................................... Material Handling Equipment... Primary Metalsi...................................... 2.5 1.3 2.5 2% 1% 2% Fabricated Metal Products........... 2.5 2% Chemicals & Petrochemicals.... Government & Defense......................... 1.3 2% 1% 00 00 All other....................................................... 7% 19721 $ 24.2 16.8 18.9 14.7 10.5 4.2 2.1 1.1 2.1 2.1 2.1 1.1 5.3 23% 16% 18% 14% 10% 4% 2% 1% 2% 2% 2% 1% 5% TOTAL.............................. $126.0 100% $105.2 100% ^Dollar amounts in millions 2Resold to many industry classifications -3- Typical users of Garlock components are the following industries: Aircraft Applicances Automobile Chemical Construction equipment Electronics Farm equipment Food processing Goverment Marine Machinery Metal working Missiles paper petroleum Railroad steel Trucking MAJOR PRODUCTS Garlock has technological and manufacturing ability in rubber, metal, textiles, leather and plastics with the following components engineered to specification: Oil Seal Group: Hub seals for heavy-duty trucks and trailers Noise-abating mufflers for diesel engines Custom and universal oil seals for automotive, railroad, mining and other industrial equipment Leaf springs for trucks Mechanical Power Group: power transmission components Plastic-based bearings Fluorocarbon butterfly valves Compressor and engine valves Piston rings Metal packings Specialized seals Gears and sprockets Speed reducers TFE resins Fluid Power Group: Hydraulic-pneumatic cylinders Boosters and tandem cylinders Fluid power systems Hydraulic presses Mechanical Products Group: industrial coatings Mechanical packings Gasketing Engineered molded/extruded rubber goods Mechanical seals Rubber covered rolls Rubber belts Flexible expansion joints Friction materials -4- MANUFACTURING FACILITIES IN THE UNITED STATES Square Feet Square Feet Mechanical Rubber Division Palmyra, New York 700,000 Stemco Manufacturing Co. Inc. Longview, Texas 170,000 Precision Seal Division Gastonia, N. C. 100,000 Ortman-Miller Machine Co. , Inc. Hammond, Ind. 68,000 Plastics Division Camden, N.J. 63,000 Ailing-Lander Division Sodus, N. Y. 42,000 France Products Division Philadelphia, Pa. Odessa, Texas Newtown, Pa. Coast-Winslow Filter Corp. Hayward, Calif. Coatings Division Austin, Texas 48,000 24,000 51,000 24,000 15,000 Bearings Division Cherry Hill, N. J. Spring Division Bristol, Conn. Mechanical Seal Division Houston, Texas Service Spring Company Indianapolis, Indiana 16,000 5,000 6,000 52,000 MANUFACTURING FACILITIES IN OTHER COUNTRIES Square Feet Australia Victor Engineering Pty. Ltd. Sydney 18,000 Belgium Etablissements G. Liard, S. A. Roux 16,000 Canada Garlock of Canada Ltd. Toronto, Ontario France Packing of Canada Ltd. Brantford, Ontario Fluid Power Ltd. Toronto, Ontario 110,000 15,000 48,000 England Woodville Rubber Co. Ltd. Ross-on-Wye , Burton-on-Wye 85,000 16,000 France Chromex, S.A. Lardy Societe Francaise d'Etablissements G. Jeumont Mourenx Liard, S.A. 57,000 4,000 5,000 Mexico Garlock de Mexico, S.A. Mexico City 130,000 Japan Arai Seisakusho Company, Ltd. Tokyo Tsukuba (affiliate) 41,000 53,000 -5- PRINCIPAL INTERNATIONAL MARKETING FACILITIES * Japan Switzerland West Germany United States Spain Mexico Australia Great Britain Holland Garlock, S.A., Tokyo Garlock A.G., Winterthur Garlock, S.A., Zurich Garlock GmbH, Dusseldorf Garlock International Inc., Palmyra, N.Y. Garlock, S.A., Barcelona Louis Mulas, Sues., S.A., Mexico City Victor Engineering Pty. Ltd., Sydney Garlock (Great Britain) Ltd., Newbury Garlock Benelux B.V., Sliedrecht Through exports from factories in the United States and through manufac turing operations in seven countries outside the U.S., Garlock sells en gineered components and products in more than 80 countries, primary marketing facilities are in eight countries, and these facilities are supplemented by independent distributors around the world. START COPY BOX NO./FILE DRAWER NO. <C)5J0 SIGNIFICANT NOTES (-firfact FxnasvtW | INITIALS 1 DATE ---------------------------J----------------------- SEGMENT NO.