Document NGJwVYgmkx7KpGbRwMKwd5E0b

0. CENTRAL REGION i MONTHLY REPORT November 1975 1. FINANCIAL SUMMARY a. Results Actua1 Sales Contribution $430.7 76.8 iscussion November Budget $843.7 187.3 Var % -^9.0% -59.0% Actua1 $5,965.7 1,305.9 YTD Budget $8,463.4 1,878.9 ( Var. % -29.5% -30.5% Centra] Region November sales were unfavorable by $412,727. The major impactors in this disparity versus forecast are still the same; RepublicCanton, U.S.S.-Lorain, Copperweld, Mac Steel and the first time Republic- Warren and Great Lakes Steel. For the sake of brevity I will not repeat the Copperweld, the U.S. Steel and the Mac Steel stories. We suffered at Republic-Canton which continued in November due to the poor quality FERRUX piping problem and in their own words "inferior 669 PR0FAX". We have corrected the 669 PR0FAX situation with the best looking hot top we have supplied in years. We are still waiting for the proto type samples of our new FERRUX which we sold them in our conference in October. Great Lakes Steel, Armco and Republic-Warren were dawn drastically for November attributable basically to low steel orders. It is worthy to add at this juncture a word of caution concerning the quality of FERRUX 107AM we have been shipping to Armco-Middletown. This accout, in their own words "we have been experiencing more pipe problems this year than we have in the past several years". They are carefully scrutinizing our PR0FAX and our FERRUX. During a meeting with our quality cqntrol and product management teams, it became obvious that many of the batches of FERRUX 107AM we were producing are below minimum aluminum spec. The thought of losing any of the business at Armco-Middletown needless to say, is very upsetting. We must return to a quality FERRUX supply basis. We do have fortunately two bright spots in this region. The first one being Sharon Steel which is some $50,000 above forecast for the year, and J&L-Cleveland where we have been doing an excellent job - we are $164,000 abovfe forecast"." ' ' t '' ' The non-asbestos recipe situation for SEAL-On rings at Great Lakes Steel' is going to hit us over the head very shortly if we do not finish our .development work on this problem. We are already being grilled^n meetings with Great Lakes personnel over seal leaking and piping problems. Harry Shephard and the rest of the marketing group, have been working with them trying to help them improve their practice. Meanwhile, we have a lot of homework 2480 43Z.