Document XRg6ggjzoRpjEZmkbo0exJbay

jxjrt is the "Cube Concept"--7 cubes symbolizing (lie 7 operating divisions of the company; each related to the other within the "Cube Concept" for corporate growth; all related to the business of creating shelter. This concept compels consideration not only of building mate rials but of all of the other elements that make up the total living environment including systems for in-plant manufacture of complete units. It is this concept that logically led to the acquisition of Multi color Company, producer of functional and decorative, coverings for internal wall surfaces. Tne concept also led to the acquisition of Binswanger Glass Company and of Hamilton of Indiana, fabricator and installer of structural glass products, windows and mirrors. More re cently, it led to the acquiring of DMH Corporation, a lending pro ducer of mobile homes. The acquisition included Mobilife Corpora tion, a land development division of DMH. H. K. POUTER CO., INC. Net sales in 1070 were $278,014,530 compared to $289,838,712 in 1969. Net income from operations for the year amounted to $1,844,662 compared to $3,899,579 in 1969. After extraordinary items, Porter had a loss in 1970 of $1,911,264 compared with a profit in 1969 of $4,113,231. Capital expenditures for plant and equipment totaled $11,051,000 during 1970, exceeding depreciation by $5,003,408. The man agement took drastic steps during 1970 to reduce corporate debt, to increase liquidity and to reverse the downward trend in earnings ex perienced since 1966. Porter sold plants having a book value of $9,281,321 for $5,343,607 and has filed for a total cash income tax carry-back of $2,269,760. In addition, certain operations were closed during the year and the machinery, disposed of. Thi' Thermoid Division concentrated on consolidation, cost re duction, product improvement and new product development during 1970. .Although the Nephi Works was sold, its conveyor, elevator and transmission belt' production was transferred to the Quaker Works. Hydraulic hose will be made at the Ballcfoutaine Works. With the sale of the Russell Works, clutch facing and brake lining products were transferred to the Richmond Works. The St. I-ouis Works and the Davidson Works, both small asbestos textile plants, were consolidatcd into the larger and more modern facilities at the Charlotte and the ncnuettsvillc Works. Also sold were Brown Rubber Works and the old Trenton Works, which had been mostly abandoned. Dustfree Portersitc asbestos insulation and rewritable lagging for ship building made major contributions to all-time sales records in the asbestos textile area. Pacific Asbestos Corporation, Copperopolis, California, experi enced a decrease in sales volume in 1970 due to an 11-week strike by production employees and less demand by manufacturers related to the iiomebuilding industry. Improvements in all activities combined with the installation of new mining and milling equipment should reflect in increased production and lower ojieraling costs. For 1971, sales projections indicate high volume at increased net prices with a greater percentage of sales into the U.S. market. Peg* 48 ASBESTOS --June 1971 o