Document ZBezx1B29QmkJzZMd1OYG6jv0

Thirty-Third Annual Report Fiscal Year Ended October 31st, 1950 THE GLIDDEN COMPANY GLD002778 THE GLIDDEN COMPANY CLEVELAND, OHIO BOARD OF DIRECTORS ADRIAN D. JOYCE JOHN A. PETERS WILLIAM J. O'BRIEN JOHN P. RUTH DWIGHT P JOYCE NESTOR B. BETZOLD PAUL E. SPRAGUE RALPH G. GOLSETH CLIFTON M. KOLB ALEXANDER D. DUNCAN B. W. MAXEY OFFICERS ADRIAN D. JOYCE, Chairman Board of Directors DWIGHT P. JOYCE, President CLIFTON M. KOLB. Senior Vice Pres, and Secy. PAUL E. SPRAGUE, Vice President WILLIAM J. O'BRIEN, Vi:e President NEWELL BEATTY, Vice President ALEXANDER I). DUNCAN, Vice President LOVELL Y. PULLIAM, Vice President JOHN P. RUTH, Vice President RALPH G. GOLSETH, Vice President JOHN A. PETERS, Treasurer B. W. MAXEY, Controller W. W. CONANT, Assistant Secretary R. D. HORNER, Assistant Secretary Transfer Agents THE NEW YORK TRUST COMPANY New York City THE CLEVELAND TRUST COMPANY Cleveland, Ohio Registrars THE CHASE NATIONAL BANK New York City CENTRAL NATIONAL BANK OF CLEVELAND Cleveland, Ohio GLD002779 THE GLIDDEN COMPANY CLEVELAND, OHIO To t h e St o c k h o l d e r s o f Th e Gl id d k s Co mp a n January 9,1951 Your company continued to progress during the last fiscal year which ended October 31, 1950. An excellent illustration cf this progress is the unit volume of production and sales, which rose more than 20% above that for any previous year in your company's history. Total sales volume in dollars, of course, did not reflect a similar increase because selling prices per urit were lower. Fiscal highlights of 1950 were the following: Net sales amounted, to $188,607,965.92, compared to $160,143,275.90 for the year 1949. Net profits, after taxes and all charges, totaled $8,561,660.08, compared to $6,191,923.16 for the previous year. Profit per common share amounted to $4.11 on 1,971,623 shares, compared to a profit of $3.23 per share on 1,780,536 shares last year. Net worth of your company increased during the year from $56,837,492.20 to $66,194,159.66. This is almost double the $35,115,554.33 net worth of the company in 1945. At the end of the year the company was free from bank loans and funded debt. 'The company has a reserve under the LIFO plan of $4,001,193.57 to take care of market fluctuations. Comparison of sales and inventory at the close of the fiscal year shows more than $28,000,000 increase in sale:; and less than $2,000,000 increase in inventory. The company's retirement funds for employees now total $2,998,153.16, deposited with Trustees. Our pension plans are non-contributory, the company paying the entire cost. For the fiscal year just closed, each of the company's divisions showed satisfactory profits. The Paint and Varnish Division, in fact, attained the largest sales and profits in the history of this division, largely due to the splendid success of our wonderful new washable wall paint, Spred SATIN. This division is finding it difficult to keep up with the demand for this excellent product. The Durkee Famous Foods, Chemical and Pigment, Soya Products, Vegetable Oil, and Naval Stores Divisions also showed gains over the results for 1949. Our Soya research laboratories succeeded during the year in improving a synthesis and com pleting the initial production of Cortisone. Satisfactory costs, however, have not yet been attained. Sales cf the Soya Division's Alpha Protein are the highest in history. g LD002780 Bulk production of related hormones and steroid compounds from soybeans set new high records and raised the gross profits earned to date in this field by our Fine Chemicals Department above a million and a half dollars. In pursuing our work on cortical compounds, our Soya research laboratories have succeeded in developing other important hormones and fine chemicals which will broaden the scope of the Fine Chemicals Department. In addition to the foregoing highly satisfactory results, our wholly owned Glidden Company of Canada showed a 25% increase in sales and a 35% increase in profits. During 1950 the Company invested $2,632,692 in plant additions and spent $2,377,833 for maintenance expenditures. Our policy of producing our own important raw materials, the diversification of manufactured products, and the decentrali zation of manufacturing plants has proven wise and profitable. Your company is in a very sound position to meet the changes in our economy which will result from partial mobilization. During the years since the close of World War II we have spent approximately $20,000,000 in rebuilding and modernizing our productive units and research laboratories, and all of our facilities are now in excel lent condition. Our S3,500,000 soybean processing plant in Indianapolis was completed early in 1950, bringing to 57 the number of manufacturing units operated by your company through the United Stt.tes and Canada. Our new Titanium pigment plant at St. Helena, Maryland is expected to be in operation in March enabling us to more than double our production of this essential white pigment. Our experience in World War II clearly indicates that all of our main divisions can easily be converted to a wartime status. The demand for food products is ever increas ing, our other regular products have many military applications, and we can readily manufacture many special products needed in the mobilization effort. In addition to these physical assets, the Company's working force, at all levels, is of top caliber. New ]>ersonnel policies initiated since the war have enabled us to improve our already high standards of employment and to reach a new peak in qual ity ot personnel. .Some of our people have already been called into the Service of our councry. When they return, they will find their jobs awaiting them. These highly encouraging factors indicate your company will continue its progress during the coming year even though it will be a period of mobilization. "1 he loyal cooperation of all the executives and the employees is gratefully ac knowledged. ADRIAN D. JOYCE Chairman of the Board. DWIGHT P. JOYCE President. GLD002781 CONSOLIDATED PROFIT AND LOSS AND SURPLUS The Glidden Company and Subsidiaries Fiscal year ended October 31, 1950 STATEMENT OF PROFIT AND LOSS Net sales...................................................................................................$188,607,965.92 Cost of goods sold, selling, administrative and gen eral expenses, including provision of $1,753,845.41 for depreciation and depletion . ... ................................................... 174,259,592.85 Other income....................................... $14,348,373.07 384,864.23 Other deductions: I.oss on advances to and investments in affiliated companies ........................................................... $ Interest on notes and loans.................................... $14,733,237.30 214,966.13 80,611.09 295,577.22 Pr o f it He f o r e Ta x e s o n In c o me....................................$14,437,660.08 Taxes on income --estimated Federal income taxes....................... ....................... $ 5,600,000.00 Dominion and state taxes ........... 276,000.00 5,876,000.00 Co n s o l id a t e d Ne t Pr o f it ................................................$ 8,561,660.08 Note /f --Consolidated ne: profit includes 1374,331.91 for the Canadian subsidiary representing that subsidiary's net profit for the year after giving effect to adjustment of its net current assets and miscel laneous other assets to rate of exchange at October 31, 1950. Note B -- Federal taxes on income have been estimated in accordance with provisions of the Revenue Act ot 1950. The Company does not anticipate that retroactive tax legislation will require any significant change in such estimate. __ Ca p it a l Su r p l u s SURPLUS Balance at November 1, 1949 ............................... Add proceeds of sale of 173,535 shares of common stock in excess of stated value of shares issued . Balance at October 31, 1950 .......... $13,270,513.41 4,461,590.99 $17,732,104.40 Ea r n e d Su r p l u s Balance at November 1, 1949 ............................... $29,785,805.32 Add net profit for the fiscal year........................... 8,561,660.08 Deduct dividends paid: Convertible preferred--$2 25 per share................................$ Common --$2.10 per share . . $38,347,465.40 448,983.29 3,910,279.10 4,359,262.39 Balance at October 31, 1950 ............................................................... 33,988,203.01 To t a l Su r pl u s At Oc t o ber 31, 1950 ............................$51,720,307.41 GLD002782 CONSOLIDATED The Glldden Compa October ASSETS Cu r r e n t As s e t s Cash ................ Dominion of Canada Victory Loan Bonds $ 5,412,295.09 143,898.34 Trade accounts receivable (includes notes $242,736.94) ................................................ ... . $15,243,061.24 Less allowances for doubtful accounts................ 495,510.77 14,747,550.47 Inventories--raw maierials, in process, and fin ished goods: Principal raw materials are stated at cost (last-in, first-out method) which did not exceed replacement market; other items are stated at the lower of cost (accumulated average) or replacement market ..... Other current notes and accounts receivable, advances and investments . ................................ Toi a l Cu r r e n t As s e t s ..................................... 31,095,011.92 2,638,375.09 $54,037,130.91 Ot h e r As s e t s Advance payment on account of possible federal income tax assessment........................................$ 1,000,000.00 Cash surrender value of life insurance................ 765,605.00 Miscellaneous notes and accounts receivable, advances and investments.................................... 687,996.02 Estimated refund of federal and dominion taxes on income o: prior years.................................... 248,511.17 2,702,112.19 Pr o p e r t y , Pl a n t , a n d Eq u ip me n t Gross amounts represent cost less write-down in 1932 Land...................................................................$ 2,881,330.13 Buildings, machinery, and equipment .... 42,672,851.51 $45,554,181.64 Less accumulated depreciation, depletion, and amortization .................................... 18,632,139.78 26,922,041.86 De f e r r e d Ch a r g e s Prepaid insurance ami expenses 649,968.61 $84,311,253.57 GLD00 27 83 BALANCE SHEET ny and Subsidiaries 31, 1950 LIABILITIES, CAPITAL STOCK, AND SURPLUS Cu r r e n t Li a b i l i t i e s Accounts payable ................................................................................ $ 8,520,441.14 Accrued taxes, royalties, and insurance .................................... .... . 769,068.18 Federal, state, and dominion taxes on income -- estimated ... ........................................................................... 6,327,584.59 To t a l Cu r r e n t Lia b il it ie s ............................................$15,617,093.91 Re s e r v e For contingencies............................................................................... Ca p it a l St o c k a n d Su r p l u s Capital stock: Convertible preferred A%% cumulative, par value $50.00 a share redeemable at $52.50 a share, each share convertible into approxi mately 1.498 shares o 'common stock: Authorized 200,000 shares Issued and outstanding 199,540 shares . . $ 9,977,000.00 Common without par value: Authorized 3,000,000 shares Outstanding including treasury shares, 1,994,585 shares Reserved for conversion 298,911 shares Stated capital................................................... Capital surplus....................................................... 4,986,462.50 17,732,104.40 $32,695,566.90 2,500,000.00 Earned surplus (includes $2,677,344.52 of surplus of Canadian subsidiary)............... $33,988,203.01 Less common stock in treasury 22,962 shares, at cost (including 19,197 shares reserved for sale to certain officers and key em ployees) ................................... 489,610.25 33,498,592.76 66,194,159.66 $84,311,253.57 A s/e--Assets of Canadian subsidiary included herein comprise net current assets and miscellaneous ocher assets, $1,896,553.77, after adjusting for exchange at October 31, 1950, and property, plant, and equipment, $563,989.03, at cost tc the subsidiary. g LD00?784 ERNST & ERNST CLEVELAND UNION COMMENCE OUILDINO Board of Directors, The Glidden Company, Cleveland, Ohio. We have examined the consolidated balance sheet of The Glidden Company and subsidiaries as of October 31, 1950, and the related statements of consolidated profit and loss and surplus for the fiscal year then ended. Our examination was made in accordance with generally accepted auditing standards, and accordingly included such rests of the accounting records and such other auditing procedures as we con sidered necessary n the circumstances. In our opinion, the accompanying balance sheet and statements of profit and loss and surplus present fair v the consolidated financial position of The Glidden Com pany and subsidiaries at October 31, 1950, and the consolidated results of their operations for the fiscal year then ended, in conformity with generally accepted accounting principles applied on a basis consistent with that of the preceding year. Cleveland, Ohio December 18, 1950 ERNST & ERNST Certified Public Accountants GL00*785 The Cliddm Company's tjfaunl neta soya processing plant in Indianapolis, completed in l</50, it repres, ntatiae of tie company's tkirly-seoen modern operating units. GLIDDEN DIVISIONS The Glidden Company Cleveland, Ohio The A. Wilhelm Company Reading, Pennsylvania The American Paint Works New Orleans, Louisiana Durkee famous Foods Klsion Avenue, Chicago, lllnw s Durkee Famous Foods Iron Street, Chicago, Illinois Durkre Famous Foods Norwalk, Ohio PAINT The Campbell Paint & V'arnish Co, St. Louis, Missouri The Glidden Company Minneapolis, Minnesota Nubian Paint 6c Varnish Company Chicago, Illinois FOOD Durkee Famous Foods Portland, Oregon Durkee Famous Foods Louisville, Kentucky Durkee-McCadam Company Cambridge, Mass. The Glidden Company, Ltd. Toronto, Ontario, Canada The Glidden Company San Francisco, California Adams k Elting Company Chicago, Illinois Durkee Famous Foods Berkeley, California Durkee Famous Foods Elmhursr, Long Island, New York Durkee Famous Foods Macon, Georgia CHEMICALS, PIGMENTS AND METALS The Chemical & Pigment Company St. Helena (Baltimore), Maryland The Chemical 6c Pigment Company Oakland, California The Chemical k Pigment Company Collinsville, Illinois Metals Rehning Company Hanniond, Indiana Euston Lead Company Scranton, Pennsylvania SOYA PRODUCTS Ihc Glidden Company Chicago, Illinois The Glidden Company Indianapolis, Indiana NAVAL STORES The Glidden Company Jacksonville, Florida The Glidden Company Valdosta, Georgia E. W. Coiledge. General Sales Agent, Inc Jacksonville, Fla. FEED MILL Ihc Glidden Company Indianapolis, Indiana Ihc Glidden Company Buena Park, California VEGETABLE OILS The Glidden Company Berkeley, California I hc Glidden Company Portland, Oregon MINES The Chtmica St Piemenr Company Ba-ytes N*me* Battle Mountai i, Nevada Yadkin Mica and Ilmcniie Company Lenoir, North Carolina Retail Stores and Warehouses in the Principal Cities AFFILIATED CORPORATIONS Growth Products Compary Pascagoula, M issttiippi Jacksonville Processing Corporation Jacksonville, Florida GLD002786 DIVERSIFIED PRODUCTS BY GLIDDEN FOODS Durkee's Grade AA Margarine Durkee,s Mayonnaise Durkce'r Whipped Salad Dressing Durkee's Shortening Durkee's Bakers Margarine Durkee's Coconut Durkee's Spires and Extracts Durkee's Famous Dressing Durkee's Worcester shire Sauce Special Ingredients lor Bakers and Cotrcctioneis SOYBEAN PRODUCTS Alpha* Protein Prosein* Soya Meal I.ecithin Fine Chemicals -- Steroids Soya Sterols Cortical and Sex Hormones Soya Flour Soya Flakes Edible Emulsifiers LIVE STOCK AND POULTRY FEEDS Glidden Cattle and Hog Feeds Glidden Poultry Feeds Glidden Feed Concentrates PAINTS. VARNISHES AND LACQUERS SPRED SATIN SPRED Hat SPRED Luster Endurance* House Paint Endurance* Imperial House Paint Japalac* Ripolin* Enamel Spray-Day-Lite Brush-D;-.y. Lite Speed-Wall* Gliddenspar Yarrish Florenarnel Pli-name' Glidair Aviation Finishes Nubciite Nubelon Gild-Tone Stains Industrial Paints Industrial Lacquers, Enamels and Varnishes Finishes for all Manufactured Products CLID-N Specialties: Insecticides Liquid Cleaners Floor Wax Furniture Polish Brush Restorer VEGETABLE OILS Soybean Oils Cottonseed Oils Coconut Oils Peanut Oils Corn Oils Palm Oils Linseed Oils CHEMICALS AND PIGMENTS /opaque* Titanium Dioxide Sunolith* Lithopone Cadmolith* Cadmium Colors Litharge Red Lead Euston* White Lead Cuprous Oxide Bleached Barytes Zinc Sulphate Crystals Copperas Coal Tar Products METALS AND MINERALS Cubond* Brazing Compounds Powdered Iron, Copper, Lead and Tin Glidden Type Metal Babbitt Metal Barite Ilmenite NAVAL STORES Nelio* Rosin Sunny South* Turpentine Pigmentar (Pine Tar) Alpha Pinene Beta Pinene Guai-a-phcne* Glided Anti-Skinning Agents Terpene Chemicals Camphene Anethole Nopol Rosin Oils Gloss Oils Sunny South* Pine Oil Terpex Merez Metal Resinates Nelio* Resin Pine Wood Charcoal Pinap Solvents Rubber Compounding Agents * Trademark Registered Much of The Glidden Company's business comesfrom the processing and production of raw materials for sate to other industries. GLD002787 SOME LEADING CONSUMER PRODUCTS BY GLIDDEN I lM-Mf Wu }iIa L tm NUTMEG ; tuklll MWOUS X1MI JjuJmii Wuhhuii !l)uh^i c in n a mo n ! c l o v e s ! g in g e r ? [ M*>| Durkce s Ov/n Grade AA Margarine is made under the most exacting standards. Comes in yellow, quarter, pounc. [vints in states permit ting sa c of the ire-colored prod uct. KImwhere, ehe convenient Color-F.jse package is available. Durkee's Spices have been favorites with the best cooks for more than one hun dred years. Carefully ground and blended from the finest ingredien ts in the world, Durkee's spices have always been leaders in quality, flavor and purity. Durkce s Famous Dressing, made from a secret recipe, has been America's favorite for gen era tiors. It adds zest to countless dishes, from salads to meats. Durkee's Coconut, with its natural coconut flavor, comes two ways: fancy-shredded in the familiar blue and yellow carton and extra-moist inair-tight tins. Spred Satin, with its synthetic rubber emulsion base, is the first truly wash able interior paint. Endurance Im perial was the first and is the leading one-coat outside white house paint. Ripolin is famous throughout the world as the finest interior white en amel ever produced. Japalac Enamel is the perfect quick drying, high gloss fin ish for most interior or exterior surfaces. These are typical of the many top-quality consumer products made by The Glidden Company. Ask for them at your retail store. GL0002788 N 2081.01