Document NNGZ7DYNX3MppG31g0RqwJ41D

control, was completed in January, 1973. A substantial part of our antimonial lead and lead oxides is sold to battery producers for the automotive after-market. The high production rate of new automo biles is continuing, and sales of replacement batteries are expected to increase in the future. N L Industries, through its Magnus Bearings opera tion, has long been the leading producer of solid journal bearings for the railroad industry. This has become largely a stable replacement business for repairs to rail cars with similar equipment. Under recent regulations, all new freight cars, as well as cars undergoing major overhaul, must be equipped with roller bearings. We have been producing roller bearings on a limited basis for several years for the qualification tests of the Asso ciation of American Railroads, and production is being expanded. With the electronics industry almost totally converted to solid state circuitry, demand for flux systems and solders designed specifically for solid state printed cir cuits has been growing, and our line of Hy-Pure solders has been outpacing the industry generally. Precision automated material handling systems for delicate operations, made by our Jonathan Systems op eration, were until recently custom-designed exclusively for the military. They are now being offered to commer cial producers and are receiving considerable interest. Titanium. Metals Corporation of America (TMCA), a subsidiary jointly owned by the company and Allegheny Ludlum Industries, Inc., reported a profit of $1,398,000 on sales of $65,262,000 for 1972. In the previous year, TMCA had reported a loss of $9,853,000 on sales of $37,277,000. In July, 1972, TMCA acquired the Standard Steel Division of B-L-H, Inc.; results for the year include the sales and earnings of Standard Steel since that date. TMCA's Timet Division produces titanium sponge, ingot and mill products. Losses from titanium metal op erations were substantially reduced from levels of the two previous years. Shipments of titanium mill products rose approximately 13 %. Procurement or ordering of aircraft, which represents the major market for titanium metal, began to rise in 1972 after a lull of several years, with some indications for stepped up ordering in the near future. Industrial uses of titanium, the smaller part of the market, are continuing to grow at a rapid rate. Standard Steel Division produces machined steel rolled wheels and axles for rail cars, seamless rings and a variety of types of forgings for industry, and makes its own specialty high-strength steels. Standard Steel Divi sion's sales were held to 1971 levels primarily because hurricane-induced floods halted production for several weeks. New orders during the year and year-end back log, however, represented records, and a further in crease in shipments and new orders is expected for 1973. Products which have been showing strength in clude specialized forgings for nuclear power-generating installations, and low-noise mounted wheels designed specifically for urban mass transit systems. Titanium Pigment Division, Sayreville, N.J. Titanium pigments and chemicals. , Kronos Titan-GmhH, Leverkusen, West Germany Titanium pigments; gellants; lead pigments. Canadian Titanium Pigments, Limited, Montreal, Canada Titanium pigments; gellants; lead pigments; stabilizers; zirconium and titanium compounds. Kronos Titanium Pigments, Limited, London, England Titanium pigments. Kronos SA/NV, Brussels, Belgium Titanium pigments; gellants; lead pigments. Earnings of the Pigments Group were substantially improved during 1972, as consumer demand for the products of our major pigment-using customers--manu facturers of paint, paper, plastics, rubber and ceramicspicked up. The industry-wide overcapacity that had plagued the titanium dioxide industry for several years disappeared Kronos Titan A/S, Fredrikstad, Norway Titanium pigments; gellants; lead pigments; stabilizers. Titania A/S, Hauge i Dalane, Norway llmenite ore mining. *Societe Industrielle du Titane S.A. (93%). Paris, France Titanium and lead pigments. Affiliates included in consolidation on an equity basis only, therefore not included in consolidated sales or operating profits percentages. Figures in parentheses represent percentage of voting securities owned. N J, f ------------------- ^ *002624 in the latest year. Current supply and demand are in relatively close balance. In late 1971, we ended our unprofitable calciumextended pigment and chloride process operations, which together had represented some 9% of our then theoretical North American capacity. A 17-week strike during 1972 at our St. Louis pigment plant impaired pro- N 3943 Consolidated Sales Chemicals Group 1972 25% 50% Baroid Diviaton, Houston, Texas Oil well drilling materials and services. Chemicals for petroleum industry, geliants for grease; water treating chemicals. Well perforation and completion, nuclear well logging. Pigments & Chemicals Division, Hightstown, N.J. Antimony and lead oxides; chemicals; anti-corrosive pigments; geliants and stabilizers. The Baker Castor Oil Company, Bayonne, N.J. Castor oils and chemical derivatives, polyurethane products. DeLore Products, St. Louis, Mo. Barium and calcium pigments. Baroid do Brasil, ltda., Salvador, Brazil Oil well drilling materials. Baroid of Canada, Ltd., Calgary, Canada Oil well drilling materials, services. Baroid International, S.p.A., Borne, Italy Oil well drilling materials. Baroid of Nigeria, Limited, Lagos. Nigeria Oil well drilling materials. Baroid (U.K.) Limited, London, England Oil well drilling materials. Oncor SA/NV, Langerbrugge. Belgium Anti-corrosive pigments. Operating Profits WT SBLL 75% 100% 25% 50% 75% 100% Perubar, S.A., Lima, Peru Barite mining. Pigmentos Minerals Industrial e Commercial Pigmina, S.A., Salvador. Brazil Barite mining. Abbey Chemical* Limited (70%), London, England Geliants and stabilizers. Baroid Australia Pty., Limited (99%), Sydney, Australia Oil well drilling materials. Baroid of Libya, Ltd. (49%), Benghazi. Libya Oil well drilling materials. Baroid de Venezuela, S.A. (92%), Maracaibo, Venezuela Oil well drilling materials. Bentone-Chemie GmbH (70%), Nordenham, West Germany Geliants. The Carter White Lead Company of Canada, Limited (50%). Montreal, Canada Lead pigments; oxides; stabilizers. 'Baroid Trinidad Services, Ltd. (50%), Trinidad, West Indies Oil well drilling services. 'Affiliates included in consolidation on an equity basis only, therefore not included in consolidated sales or operating profits percentages. Figures in parentheses represent percentage of voting securities owned. The steadily expanding demand for energy, along with Treating chemicals originally developed for oil field an already pinching shortage of oil and gas, has spurred use have been amplified into a range of chemicals for an increase in exploratory and drilling activity through use by other industries. Barochem and Surflo Brand out the world, particularly in Canada, the North Sea, products for industrial water treatment are expected to Nigeria, Southeast Asia and the Middle East. have a good growth rate because of tighter environ The upsurge in this activity, accentuated by our own mental controls and greater penetration of this market. growing penetration of this market, provided an increase In 1972, the sales volume of our Pigments & Chemicals in both sales and earnings for our Baroid operations in Division increased in pigments, geliants, plastic addi 1972. This trend is expected to continue. The shortage tives and flame retardants. Although these chemical of energy reserves will require increased exploration compounds go into a wide range of end uses, many of and improved technology in stimulating deeper drilling. those, in turn, are used ultimately within the broad con Both aspects call for greater use of essential drilling texts of the automotive and construction industries. In fluids and for our specialty engineering services. both those industries, current demand is high and is The largest part of our Baroid Division's supplies and expected to remain so for the future. services to the oil industry is oriented to drilling new The use of flame retardants is growing rapidly as the wells, but there has been growing acceptance for our result of government regulations and consumer concern ancillary chemicals for the treatment of crude oil on the over safety in inherently flammable materials. N L Indus surface, and for our specialty engineering services, tries' antimony-based retardants are highly effective in which use sophisticated electronic and physical tech retarding combustion in flammable plastic materials. niques to make drilling operations more efficient and Two new and more sophisticated types of antimony- economical. based flame retardants were introduced this year with One new system allows certain types of drilling opera considerable success. tions to be carried out in offshore areas without danger More stringent heat resistant requirements for wiring of polluting the surrounding waters. It has already been used in domestic and industrial construction, as well as used successfully in the North Sea, the most active area in electronic, automotive and other equipment, are of new offshore drilling activity today. prompting demand for such new plastic additives as iVL T10 002827 Chemicals for drilling fluids are vital to develop new energy sources.