Document Xb7kxYYV93zy3pVjeMNVYVZy

NV 1 96 t h e SHERWIN-WILLIAMS COMPANY 0007--SWP-034876 N21755 THE SHERWIN-WILLIAMS COMPANY AND CONSOLI DAT! D SUBSIDIARIES ANNUAL REPORT ISSO 0007-SWP-034877 0007-SWP-000116297 PRESIDE NT'S REP O RT Tt the SbeUuldtn: We praam herewith the Contolidated Balance dlmet and Income and Surplui Statcmenti of The Shenric-Wiliiaioi Company for the fiscal year ended Augtat 31,1960. The earninff befan Federal Ineonw Taa and providon for the Fcndon Flan are 132,02^374. The amount eatimated fee Federal Income Taa ie 113,422,053. The Board of Directed have approved 12,600,000 to be taken out of earaiagifer the Feaaion Flan. The final consolidated earning* after all deductions, are 116,006,321 aa compand with <17,516,473 fbr 1959. The Cuban Sufaddtary haa been eUainatad from consolidation aa of September 1. 1959 and income for the year ended Augtat 31, 1960 haa been cheeped with 1670,271 (a non-recurring eepenea), repnowring the Cuban Company"! indebtedaete in the peetnt company for raw maeeriata of our manufoemre thipped prior to Decwnbtr 1959. No aUpmanta ham been made nor payments received horn Cuba dace December 1959. After dednetfag 1492,614 for ftcfcrad Dividend* (be eaminp far I960 an equivalent m 14.04 pm abam on the pcemat oumaading 2,567,352 ebarce of Common Seed* ae compered with 66.50 per than on a comparable hade laet year. Had we net been faced with this write-off and could we have in* eluded the Cuban Company's earning, the coinolldated earalngt thie year would ham bean 66.33 per than, m compand with 16.625 lace year. We received wri on October 14,1960 that aw Company was nadonri* iced by dm Cuban gemnuBonc and that our American emplayact an being rained to the States. While the final ButeoaM ol thlt narinnalirtrinn cannot be fatmeen, we wfli trim all poedbie nmeturm to protect the Company's internet. The peopaodnaafmm 1959 netetmiegpderivedfromCubewee 1.6%. 1262479,262, hlgham fat dm Company*! binary, which b 4.02% over the perriuMi year on a comparable bad*. Thie net mlaa figure dom not indude intercompany omaoecdona, nor dom it include the arias of The Sharwia* WUUame Company of Canaria, Ltd. and dm wholly-owned unmmriHrietrd t-Miid* AflMfteftB mImIAv Imu 0007-SWP-03487B 0007-SWP-000116298 As in many vein put. 'super Kem-Tone and Kera-Glo again thawed sales increases. These products continue to enjoy the distinction of bernf the most widely used interior paints in the world. This year saw the introduction nationally of A-100 Latex house paint, an entirely new type of exterior finish (hr wood and masonry. Public acceptance of this new product has far exceeded expectations. Combined sales of the new A.100 paint and the conventional SWP oil-type house paint have made the year the moat successful the Company ha*ever known in the exterior paint field. Because of the need for continued rmphade on research, the Company has purchased a modem building near the Chicago plant In which enlarged research activities can be conducted in up-to-date quarters. Early in 1961, it is capectad that several laboratories now housed elsewhere will'heoperating in the new Sberwia-WUliains Research Center. In die chemical field, cemmsction hm begun on a new toluene sullbnadon plant in eonaecdoo with para-crcaol production in Chicago. This new facility, scheduled to be on stream early next year, it dofaptad so improve quality and lower production earns of para-cresoi. This chemical it becoming increasingly important in the manufacture of petroleum products and in a nwnbtr of otlur Addi> During the fiacai year the Company opened 130 new bmnehei, bringing to 1404 the number now operating. Them bnnebas serve as convenient servicing points far she Company's 4B,000-plus dealers and a ready source of supply fbr tbs requirements of pmfmtirnsl painter, industrial maintenance, product fiaishm and retail araouan in their areas. The branch program has helped dealers, pafatmn and iaduatrial plans markadly in the matmr of inventory control dace delivery ofneeded materials can nnw be made In only a mans of hours anywhere in tha eounvy. The gross amount eependerl far plant during the year waa 95,727,329. While an mqjor plant expansion is -ranmn|>fr^d4 during thv mew yev, wt do have several pcojstg under way whtehwBl peady benrik our manufacturing and dissibudon pragraaa On behalf of tha Directors, I take pleasure in rxpnwdng to the 16,000 Iherwin WBBama employees our graHAil appredadon for their dedicated tflm in the hum ef the Company and ia well-being: fntiiml, 0007-SHP-034879 0007-SWP-0001 i6299 THE SHERWIN-WILLIAMS COMPANY A Consolidatttl Balane0 Sh Auiti CcanBar Aaan Caih...................................................... Trade accounts receivable, lea allow* aneet for doubtful accounts . , . . Inventories--rawmaterialtandiupplici, in proeea and faulted oterehandbe --at lower of coet or market. To t a l Oxum Ann I 29.507.J44 30,704,447 61441.504 1121657,317 Iwvtmajrn an d Oi u Awn Seeurida of uneomolidnted Mtbaidiariea --principally at coat--Note A . . . S 5,085,107 Receivable*, advance*, and mfciella* neoua item, lea allowance* .... 529,451 5,615,258 PaortarY, Pl a n t , a n d Eq u v min t Land, building*, machinery, and equip ment--at coat, lea allowance* ior depreciation.................................... 47,021,122 Pa t w r i a w Tk a o b-Ma u i 1 Dirutun Ch a mm Advertidaf aoch and nappUea . ... 8 1,426,034 Prepaid inannea and odar item . . 1.323.777 2,751.811 4181041509 ( / Ha A--batoda Hunan** to eadfcwMd Cmk Hm wtoWwr (Rltt.00 (uajMw. wi 1 iq ii nmm h m ep---- >--w a n wadi el al eitddnla, am a Wm fand* H 111 1HT 8aMI MJ* 11a ii*ell> v* akddtory toaad iaCuha ka lea atondad kea da mm 0007--SWP--034880 0007-SWP-000116300 J ANY AND CONSOLIDATED SUBSIDIARIES ala.-n.cm Shmmt. AM.gv.mt SI, 1960 Liabilitm, Capital Stock, and Surplus CcaxtXT Lia s iu t is s Trade account! payable, compensation, and nuacallantom itema................... Dividend on Preferred Stock--payable September I, I960........................... Depants--employees and oficert. . . Accrued taxes, other dun federal taxes 00 ............................. Federal taxes on income rsrlmswi . To t a l Cu u k n t LiAku.mii. . S IS.4IS.429 121,391 1,183,74? 1.259.761 7,917.000 S 2S.900.32t Rxssavts For coerinfencies and other For pensions................... S 1.944,061 2,600,000 4.S44.06S Ca t it a l St o c k a n d Sc s k u Preferred--autboriced 393,SOtf shares (par value f100.00 each--redeemable at S109.00 per share): Outstaadinf--Cumulative Pre ferred Stock, 4% series121431 shares ...... I 12,123,100 Coeamoa--authorised 3,000,000 shares (par value SI2.30 each): Outstandinc 2,567,332 tharcsstasad capital....................... 33,172431 I Earned surplus................................... 103,303462 130,601,111 I S1S1.063.S09 ma n WCImt (HlSMSei idUfeeniBUlsU in Ml (tTSTjeot, Ceka auannikaCkanMyimUkria MuadmrtaadtaaakandaniaMm hwda da UH,M; MI-tUUMi One n.tSUSSl Aspadw HUW a aid.lid tan dn nanlliind Mdkl mummm m d'hskaka 1, man ad, iaanMhan idt atlndai hnaiadmHr OauasaadCda 0007-SWP-034881 0007-SWP-000116301 CONSOLIDATED INCOME AND EARNED SURPLUS THM WIN-WILZJAM3 COMPANY AND CONMQL.tDA.TmB StraSIDlAJUCS Yh t Undid Auguat 31. 1060 bum* Nit Mica................................................................. Dividend! received (net) from uneonialidated foreign wbridUriel--Note A......................... MiiccUancwa.......................................................... I $28X279,282 5)1,113 591,098 Deduction* Cram income: Co m of product! sold and tatting, general, and admioimdve espeme! ... .... Providon Ur pendon*....................................... Prwddan (hr depredation................................... Proviiion far foreign tone* on income and tniievilananua itema....................................... Recaivabla 5m Cuban lubddiary chanpd off . Interne axpenae.................................................. $245,963,932 2,600,000 1,458,54$ 908,817 970,271 250,554 9283,378,493 253,930,119 Imc o mk Bwons Fanuua. biooim Tama. . Federal man an income: Providon far the year -ririmanrt................... Lea adjuameot far prior yean........................... 8 13,900,000 477,947 8 29,428,374 13,422.051 Ne t Income.................................................. !MW08j321 *#- E*nui Surfbu Balaam at September 1, 1959 ............................... 8 99,271,948 tjiB tiBdUtafibuiN! ntt i&cflw ctCttbiB lUtaUlsvy at dan of do-eenaoUdadon, Scpendbar t, 1959 . Z133.215 Add: Net income far the year....................................... Dhcoone g> Ifrdirad Smcfc redeemed .... I 97,140,733 8 18,008,321 32,002 16,018.323 Lea cash dividend! declared: 811X179,058 Prefanad--94.00 par Anra. . ........................... 8 492,614 Common--82.875 par dun (effective me on mST^wTr^T !*!*. mt' ht 7,381,080 7,873,694 Bal amc b a t Ao o u r 31,1980 .................... 810S|30S|382 Mm A -- Cmr ia an taaae fer e jar aM M*m II. IMO, wpmM kr i -- ---" J, t --n-- --| ----------------* -------------r-f-| --- - - pad kr ark ......... L > (. i-U 4*i 0007-SWP-034882 0007-SWP-000116302 ACCOUNTANTS' REPORT Bowd of Director* Thr SHerwin-VVUlujni Company Cleveland, OWo We have rvamined ihecoamttdaied financial natencaa ofThe Stmia* WiUiama Company and caneaHdated tubtidiariae far the year ended Augtm 31.19*0. Our wmminnitnw wee mad* in aecotdanea with generally aeeepnd auditing nandanh, and accordingly included mch tan of the aeoaandiif leconb and Midi other auditing pracadarm a* m tehddirrd neeemaiy in In ear opinion, dm accompanying haianro ibeet and minima of in* come and earned mrpirn prevent Uriy die ronmlirlimii financial petition of The Shenrin-WUiami Company and comoiidamd mfaddiadm at Aagmt 31, 19*0, and the nonedidatart ranilta of their apetadam far the year then ended, in conformity with generally accepted arroonting prindplea applied on a bade continent with that of the preceding year. Saner fc Saner Certified Puhik Accountant! Cleveland, Ohio October 13,19dO 0007-SWP-034883 0007-SWP-000116303 THE SHERWIN-WILLIAMS COMPANY rwMIalW 101 fiancr Ava., ,V. W., Cunuuw, Oh io Mamafacturm rf Paiaa. VaraUm Colon, Scan, faaiaah, Laoqim% Zwt Pimm Dm fihamirah Uthapam Uaaaad OIL Dry Colon, Inrim Cm UmakUm. Mam Ptaak OfvalnaHThiaata-DaraaB'DaaairWairab-PlwbMfib Hubbard. Obto; OaUaad, CaL; loud Mb N. J.j Gibtabora, N. J,; Dadhiar. Ohio; DriU-Ctead.Taac Lai Af4r. CafcrHBa. Xaa.; Saa 1 indra, Cali Naanud, Tarawa, WUpi, Yuan* aad C.C1 A. RRuar. S. 1. Co o l bo i L A. IVam C i- Sana C.F.J. O. E InaaaniT P. J. Ivwa tssrsu tt. t. Via kaa CH.Wm RILWtunuHr J. D> Waaar Oftmt A.W.*mm,. . .................................... PmMm Lftltiawa. . . . A. a low.......................................... VimPnaim LtOBCUM ........................... . rmPmUm (.MViaOm '................................ HmAn Mm NfcVMlm..............................VimPttmimt aaVtamw................................ yimfmUma F.J.S KO. V. A. At*. Smmmj Tram^aAgmk Guvaura Tbsar Comuir, Oovdaad. Obia Sanaa Tbvor Ccamrr, Ni Yarfc, N. Y. Hrgidbm Canal Namat. lana. Oanllad, OUa itaaw GuMumv TawrComrr, Haw Yarb, N. Y. i t r 0007-SWF--034884 0007-SWP-000116304