Document NE7X3Or91xekQrMqr7GvjzeKg

THE GLIDDEN COMPANY sh a reho Ide r i n fo nn a t io n and dividend notice \\ July, m;2 ________.__________________________ is GL0002 Summer Promotion Features Credit Plan Most people recognize the warm spring and summer months as the test time to paint their homes, and Glidden is in the midst of an intensive advertising and sales pro motion program to bring these customers to Glidden dealers and company stores for their painting needs. A special feature this year is a "Paint Now--Pay Later" plan, which offers the homeowner liberal credit terms for purchase of paints and related items. Easy credit terms can be a significant factor in persuading potential customers not only to use Glidden products, but also that painting their houses need not be an unusual The laboratory is vital in the development and qual ity control of all Glidden paints. Outside the lab, exterior field tests are made in widely scattered geographical arms to test the paints under various kinds of wmther. Pro fessional painters also test the products to evalu ate ease of brushing, hid ing qualities and all round performance. 2 GLD002 413 financial drain. Glidden customers will have six months to pay, no interest, down payment or carrying charges. We tested the credit plan last year in ten cities. Results were successful, and this year it is being promoted nationally. Glidden offers a house paint for virtually every need and application. This year's campaign is designed to increase the sales of these products, all with familiar names: Spred House Paint, Endurance House Paint, Endurance NonChalking Trim, Endurance Mildew and Fume Resistant Paint, Endurance Velvet, Endurance Imperial One-Coat, and Spred Glide-On. Spred House Paint, Glidden's acrylic latex paint, is re ceiving a major portion of the promotional effort. It features many qualities to make it especially attractive to the householder who has experienced blistering and peeling of old print. Blistering is caused by moisture. It is estimated that the amount of moisture vapor added to the air in a household of four may be as much as six gallons of water a day. This moisture comes from use of hot water for showers, laun dry units, cooking and uncounted other kitchen and household activities. Even breath contains moisture. GLD002414 Moisture-laden air, especially in the cold winter months, seeks a low pressure area, such as the colder outside air. Finding its way into the inner wall area of a structure, moisture condenses on the back side of the cooler outside wall, accumulates until the wood fibers are saturated, and then move? to the outer surfaces of the wood. Heating and sun aid this movement, creating vapors with suffici ent steam-like pressure to blow blisters in the paint. These blisters soon dry out, crack and peel. The latex film of Spred House Paint literally "breathes," allowing the moisture to escape without breaking the protective skin of paint. However, in order to enjoy the full benefits of Glidden's Spred House Paint, the old peeled or blistered oil-based paint must be scraped and sanded down to the bare wood. Customers who apply this product correctly are assured that blistering problems are over. For areas such as Florida, southern California and other warm regions where masonry houses are common, Spred Glide-On vinyl latex paint is receiving intensive promo tion. Spred Glide-On, with many of the same character istics as Spred House Paint, is formulated for application on brick, stucco, concrete and asbestos shingle siding, and letsi It is impt unde smoj for t In a End GLD002415 These wooden panels, the same type used in home con struction, dramatize Spred House Paint's anti-blister ing qualities. An ordinary paint was painted on the left half of the panels, while Spred House Paint was applied to the right half. Both sides were subjected to exactly the same conditions at the same time. lets the surface "breathe" to reduce blistering and peeling. It is especially resistant to fading--a feature especially important in warm, sunny climates - and it holds up well under extremes of heat and cold, salt water spray, mildew, smog and chemical fumes. It can also be used as a finish for basement painting. In addition, Glidden is actively promoting a full line of Endurance products: GLD002416  Endurance House Paint is a well-established oil-base product. It comes in many colors, has excellent hiding characteristics, is self-cleaning and long-lasting. F Endurance Imperial white, especially designed for one-coat paint jobs, gives extra hiding and coverage with a "built-in" second coat. It is self-cleaning and will last for several years' hard use. T Non-Chalking Trim white will not chalk or streak on masonry or dark painted areas. It can be tinted to obtain modem pastel tones. N w fc N Mildew and Fume Resistant white protects against tc chemical fumes, salt spray, heavy smog, smoke or re ) mildew. m Pastel-toned Velvet gives a flat finish for shingles, shakes and siding. It has a breather-type finish to guard against blistering, flows on easily and dries in an hour. It is available in white and 24 pastel tones. Spred House Paint is ap plied as easily as Spred Satin. It has little brush drag, dries dust- andbug.free and rainproof in 20 minutes. Painting tools can be easily cleaned with soap and water. It can be applied to wood siding, shingles, stucco, concrete or metal and is offered in white and 38 colors. t: of pc F( ar. qc ce: sir th be of Gr Wi ere for GLD002417 int is a well-established oil-base nany colors, has excellent hiding -cleaning and long-lasting. white, especially designed for jives extra hiding and coverage Dnd coat. It is self-cleaning and jars' hard use. vhite will not chalk or streak on nted areas. It can be tinted to tones. '.esistant white protects against spray, heavy smog, smoke or gives a flat finish for shingles, , has a breather-type finish to ng, flows on easily and dries in le in white and 24 pastel tones. Spred House Paint is ap plied as easily as Spred Satin. It has little brush drag, dries dust- and bugfree and rainproof in 20 minutes. Painting tools can be easily cleaned with soap and water. It can be applied to wood siding, shingles, stucco, concrete or metal and is offered in white and 38 colors. President's Letter June 29, 1962 To the Shareholders: Net sales for the nine months which ended May 31,1962, were $172,709,305 compared with sales of $148,393,233 for the similar period in the previous fiscal year. Net income for this period amounted to $4,164,807 equal to $1.68 per share after providing for preferred dividend requirements. Last year, net income for the similar nine months was $3,386,279 or $1.47 per share. The figures for the current year include operating results of Pemco Coiporation which was acquired through a pooling of interests. For the full nine months, net sales were up 16 per cent and net income increased 23 per cent. During the third quarter, sales increased 14 per cent and net income 8 per cent. This slowdown in the rate of gain was anticipated since we experienced a very rapid business recovery in the spring of 1961 and are now comparing against the better ope rating results obtained during the latter part of the past, fiscal year. Both the Chemicals and the Foods Groups registered sizeable gains in sales and profits. While sales of the Coatings and Resins Group also in creased, a reduction in margins resulted in lower profits for the third quarter. 6LD0024i The regular cash dividend of fifty cents a share was declared at the May meeting of the Board of Directors. It is payable July 2, 1962, to shareholders of record at the close of business June 8,1962. Chairman and President CONSOLIDATED INCOME STATEMENT THE GLIDDEN COMPANY AND CANADIAN SUBSIDIARY Nine Months Ended May 31, 1962 Nine Months Ended May 31, 1961 Net sales............................... . $172,709,305 $148,393,233 Operating costs: Cost of products sold....... $128,708,012 Selling and administrative' expense................ ^......... 35,091,747 $109,199,551 31,786,598 $163,799,759 $140,986,149 Income from Operations..... . '$ 8,909,546 Other income--net........................ . 783,011 Interest expense........................ . 1,068,750 $ 7,407,084 646,632 1,113,437 Income before Income Taxes.. . $ 8,623,807 I*rovision for income taxes........ 4,459,000 $ 6,940,279 3,554,000 Net Income._....;.. . $ 4,164,807 l $ 3.386.27SI Net income available per common share after providing for seven months' preferred dividend re quirement..................................... . $1.68 $1.47 This is an unaudited interim statement. M9