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/t?3 MOODY'S INDUSTRIAL MANUAL PLAINTIFF'S EXHIBIT f.ps <?*?*? a ass ^s s t ggssssssfess sssi^sesug assess) s a il sa: ss; sssscg i~i zs: $p as ; es DIVIDEND RECORD--Initial dividend of PREEMPTIVE RIGHTS--None. &#sided ftecord (Ik 31.40 paid Sept. 24, 1968 (covering regular : CALLABLE--In whole or part on 30 days' (No par shares) quarterly dividend of $1,19 plus 21 cents ! notice, beginning June 1, 1973, to each May per share to cover period from effective j 31, inch, as follows; 1973, 105; 1975, 104: 1976, date of merger to beginning of first full ! 103; 1977, 102; 1978, 101; thereafter, 100. dividend period); quarterly dividends paid CONVERTIBLE--At rate of 2V* shares com regularly thereafter. ; mon for each preference share. Cash or DIVIDEND RESTRICTION--See Debt, above. Dong Term i scrip for fractions. No adjustment dends. Dilution protection provided. for divi PURPOSE--Issued in June 7, 1968 merger of VOTING RIGHTS--Has one (non-cumulative) , Westinghouse Air Brake Co. on basis of one 1929___ 1932___ 1937-- 1940-- 1943-48 1949___ 1953___ 1953-- i.mt 0.10 0.66 0.40 0.40 1J25 0.25 1930__ 1833-35 1938... 1941-- 1947___ 1950-51 LS7tt Nil 0.15 9.60 1.00 1.50 1931___ 1936___ 1939___ 1942---1948___ 1952___ ($5 par shares) 1.00 1954_____ 1.28 1955___ (MS 9J0 0.30 m 1.34 vote per share, voting with the common and i share for each two Westinghouse common not separately, on each matter on which ; shares. common entitled to vote. If six full quarterly dividends unpaid, votes separately as a class to elect two directors, and with common to elect remaining directors. Consent of at least two-thirds of preference required to author ize or increase authorized amount of any LISTED--On NYSE (Symbol: AST Pr A). TRANSFER AND CONVERSION AGENTS-- Company. REGISTRARS -- First National City Bank, New York, and National Bank of New Jersey, Westfield, N. J. class of stock ranking senior to preference. Consent of at least a majority of preference 3. American Ine. par 1956-- 1.40 1957-- 1.10 1958-- 0.55 1959-- 0.75 1960-63 0.80 1964-70 1.00 1971-- 0.55 1972-- 0.40 E31973-- 0-.10 CD To Mar. 25. Dividends payable quarterly, Mar. 24. te,, to stock of record about Feb. 19. etc. VOTING RIGHTS--One vote per share. PREEMPTIVE RIGHTS--None. LISTED--On NYSE (Symbol: AST). Also unlisted trading on Pacific, Midwest, Detroit, PBW, Cincinnati and Boston Stock Ex required to authorize or increase authorized changes. amount of stock ranking on a parity with preference. LIQUIDATION RIGHTS--Entitled . to $73.20 per share if involuntary and, if voluntary, to AUTHORIZED--30,000,000 shares; outstanding 12,992,190 shares; in treasury, 205,226 shares; TRANSFER New York. AGENT--`Company's office ml reserved for options, 1,233,910 shares; par $5. REGISTRARS -- First National City Bank, par value changed from no par to $5 Apr. i New York.; National Bank of New Jersey! 24, 1953, share for share. Westfield. N. J. $105 per share to May 31, 1974, inch; there after, existing redemption price. DIVIDEND RESTRICTION- -See Debt, above. Long Term DIVIDENDS DISBURSED--At company's of- AFITAL STSHJOTUffli CRANE CO. LONG TERM DEBT Issue 1. S.f. debentures 6Va, 1992 2. S.f. subord. deb. 7s, 1993 3. Conv. subord. deb. 5s, 1993 4. Subord. deb. 7s, 1994 ______ 5. Conv. subord. deb, 5s, 1994 _____ -___ 6. Term loan, due 1974 ________________ Rating B B Amount Outstanding $35,761,000' 18,002,4001 18,063.6001 52,077,000! 34,762,600 3,000,000 Times Charges Earned 1972 1971 Interest Dates J&D X A&O 1 A&O X J&J 1 J8cJ 1 Call Price Price Range 1972 1971 89YZ- 83 86 - 75% 89V4- 82 84 - 75 109Vs- S3 100 - 75% 85 - 81 82ft- 74 9370 85 - 69 7. Other debt .........................................-- _ 8. Crane Canada Ltd. s.f. debs. 1985 9. Crane Ltd. (Eng.) bk. Ins. 1972 & 1973 10. Glenfieid & Kennedy 53is. 1982 11. CF&I Steel Corp. l.-t. debt W-l I-.. 5f~ 634.654!' 7.004.000 4.230.000 3.551,722 62.990,400 1.89 1.66 GB. . . . . . . . 4::::; 12. Huttig Sash Sc Door Co. 13. Miscellaneous 2.625.000 2,001,192 L- CAPITAL STOCK Issue 1, 33/*% cumulative preferrred _____--__ 2. Common -- Par Value $100 12.50 Amount Earned per Sh. Outstanding 1972 1971 28.837 shs. $43-1.84 $353.22 5,076.405 shs. 3j 22.41 ((111.95 Divs per Sh. 1972 1971 $3.75 $3.75 $1.03 1.60 CaU Price 104% Price Range 1972 1971 42 - 42 42 - 42 3)24%- 16 50 - 33% Includes SO.40 paid on old $25 par stk. before 2-for-l split. XPrivately held. llSubject to change, see text. g]After 2-for-l spilt; before. 53ft-43ft. AFor other per share earnings on fully diluted basis, etc. see Statistical Record below. |On average shs. as reported by Co. Before extraordinary credit; after: 1972, $2.80; 1971, S2.12. Adjusted for 2-for-l stock split May, 1972 a Also 2% stock dividend. HISTORY Incorporated in Illinois in Feb., 1865 as the North Western Manufacturing Co. Company's name was changed several times, the present title being adopted Jan. 23, 1922. In Nov., 1951, acquired Hydro-Aire Inc., Burbank, Cal., for approximately $4,000,000 cash and 11,666 com mon shares and in May, 1952. acquired operat ing assets of Toledo Desk 8c Fixture Com., Mournee, O. (sold in 1958). On Dec. 30, 1958. Cramet. Inc. was dissolved and assets distributed equally to Crane Co. and Republic Steel Corp. On Dec. 31. 1958, Hydro-Aire, Inc., Corwith Corp. and Repeal Brass Mfg. Co., all wholly-owned, were dis solved and operations continued as divisions. In Aug.. 1959, sold assets of and dissolved Crane Co. of Minn. On Sept. 30, 1959, new subsidiary, Chapman Valve Manufacturing Co. (Del.) (see Moody's 1959 Industrial Man ual) acquired for $11,197.377 cash assets of Chapman Valve Manufacturing Co. (Mass.). On Nov. 1. 1959, acquired for cash assets of Pipe Fabricators, Inc., East Chicago, Ind.; and Canadian Pittsburgh Piping Ltd. (name changed to Crane Piping Ltd.) became a sub sidiary of Crane Limited, Canada. * On Feb. 1. 1960, acquired for 15,150,000 cash properties and inventory of National-U. S. Radiator Corp. On Jan. 14, 1960, acquired for cash assets of Autronic Division of Swartwout Co.( Cleveland. In 1960, also acquired General Air Conditioning Corp,: Miami Products, Inc.; Cochrane Corp.; T. McAvity & Sons, Ltd., St. John. N. B., Can.; Howard Furnace 8c Foundries, Ltd., Toronto, Can.; Tylors Hold ings, Ltd. Sussex, and Rhodes, Brydon & Youatt, Ltd.. Chesire, Eng. In Mar. 1961, acquired properties and inven tory of Midwest Piping Co., Inc., for approx imately $18,000,000. In May I960, under company's offer of S10 a share. 55,700 common shares of Briggs Man ufacturing Co. increasing holdings to 231,674 shares, (disposed of in 1961). Following acquisitions were made in 1961: Deming Co., Salem. O., maker of pumps, packaged water systems and accessories, now a division. AllianceWare, Inc. (sold to Alli ance Ware Corp.. in 1963). Also, through subsidiary. Crane. Ltd. (Canada), acquired Southern Industries, Ltd., Marievllle, Que,, makers of water systems, circulators and water softeners. In 1963 acquired commercial line of Hydro statics, Inc. Sold Pottstown, Pa., plant to Mayer Pollock Steel Corp. Acquired 88% in terest in Fundiciones Ituarte, S.A., Bilbao, Spain, for over $2,000,000. In Jan. 1964 Cyclotherm Div. was sold to Oswego Package Boiler Co., Inc.; on Sept. 30, 1964 acquired Thatcher Furnace Co., makes of furnaces, boilers and air condition ers. for 51,300,000. Sold in Nov. 1968. In July 1965 acquired Chempump Div. of the Fostoria Corp.; also sold Swartwout Div. to Barber-Coiman Co. In May, 1966. through subsidiary. Crane Ltd., acquired Glenfieid & Kennedy Holdings Ltd., Kilmarnock, Scotland, producer of water works valves and water treatment equipment. In' Dec., 1966, acquired Acheson Manufacturing Co., Rankin, Pa., manufac tures of quality fittings used in plumbing, heating and industrial trades. Also in 1966. acquired, through a tender offer, 2S5% of Sawhill Tubular Products, Inc., Sharon, Pa., fabricators of steel pipe and tubing, which was disposed of in 1967. In July 1967 acquired Flomatics Inc., Folsom, Cal., manufacturers and designers of control valves and operators. In Aug. 1967 Canadian subsidiary acquired Reff Plastics, Ltd.. Toronto, Canada, designer, developer and manufacturer of fiberglass re inforced plastic modular bathroom units. In Dec. 1967 acquired majority interest in Crane Nederland N. V., manufacture of mal leable iron fittings, steel flanges and plumbing brass. In Jan. 1968 acquired 45,084 shares (19%) of Huttig Sash & Door Co. (increased holding to approximately 55% in Dec. 1969; 87.0% in Mar. 1971 and 91.27% in Mar., 1973--see appended statement). In Mar. 1968 acquired all stock of Crane & Ordway Co., St. Paul, Minn., wholesale distributor of valves, pumps and plumbing fixtures. In Nov. 1968. sold commercial steel boiler operation at Middletown, Pa. to Orr Sc Sem- bower, Inc. In Nov. 1968, sold heating operations at Garwood, N. J. to Amana. In Jan. and Feb. 1969, purchased as an investment, 122,775 shares (approx. 20%) of the outstanding stock of North Jersey Na tional Bank, Jersey City. N. J. (merged into Garden State National Bank in Jan. 1971-- see Moody's Bank & Finance Manual). In Aug., 1971, all North Jersey National Bank shares were exchanged for appraisal pro ceeds. In June 1969, acquired 2.566.298 shares, a controlling interest, in CF&I Steel Carp. Sub sequently increased to 90% of outstanding stock by Mar., 1973. In Aug. 1969, sold 50% investment of CraneGlenfieid Ltd. (South Africa) in I.E.S. En gineering. In July, 1970, Glenfieid & Kennedy Hold ings Ltd. (subsidiary) sold its interest in Crane Glenfieid (S.A.) (Pty.) Ltd., a South African valve manufacturer, to Stewarts & Lloyds of South Africa. Ltd. In 1972. acquired Adel Aerospace Division product line from DeLaval Turbine Inc. and through its subsidiary, CF&I Steel Corp,, acquired Fountain Sand & Gravel Co., Pueblo, Colo, and Rocky Mountain Paving, Inc. of Colorado Springs. SUBSS&iMSI This is primarily an operating company. At Dec. 31, 1972, owned 100% voting control (ex cept as noted) of the following: ffiCF&I Steel Corp. (Colo.) (90.19%) Colorado & Wyoming Railway Co. (Colo.) CF&I Engineers, Inc. (Colo.) Fountain Sand and Gravel Co. (Del.) Crane S.A.--France (France) (83.66%) Crane Australia Pty., Ltd. Crane-Demins? de Mexico. S.A. Crane Canada Ltd. The James Robertson Co., Ltd. Kranko Holdings Ltd. Crane Limited (England) Glenfieid & Kennedy Holdings Ltd. Glenfieid & Kennedy Ltd. Crane-Fisa. S.A., Spain Crane Nederland N.V. (Netherlands) (77.84%) (TjHuttig Sash & Door Co. (Mo.) (91.27%) See appended statement. business & pm0000x8 Company is engaged in following lines of business: Domestic industrial and Construction Prod ucts: Manufactures and sells in U. S. a va riety of products for industrial, building and construction industry, including valves, pumps, fittings, water treatment and con ditioning equipment, plumbing fixtures, and heating systems. These products are sold throughout U. S. by means of Co.'s own sales force, independent distributors, manufactur er's representatives, and company-owned wholesale branch warehouses, which, under a g=aa.gs. *>5S ? 1332 ^?73 MOODY'S INDUSTRIAL MANUAL the name of Crane Supply Co., also sells re lated products manufactured' by others. Steel and Steel Products: Through its sub sidiary. CF&I Steel Corp., Company manu factures and sells in U. S, a variety of steel, steel products, aggregates and paving prod ucts, used in the construction, petroleum, mining, metal-working, transportation, farm ing and ranching markets. Distribution of these products is primarily through Co.'s own sales organization, although independ ent distributors and consignees are also in volved. Company principally services the Bocky Mountain area and the western part of the United States. Sash, Door and Millwork Products: Through its subsidiary, Huttig Sash & Door Co.. Company is a wholesale supplier of sash, door and millwork products. The principal markets for its products are building mater ial dealers and residential and apartment building contractors. Its products are distri buted through branch warehouses. The busi ness is dependent upon building and con struction activity which is characteristically subject to fluctuation. Aircraft Accessories Equipment: Through its Hydro-Aire Division, company designs and manufactures brake control systems, fuel and hydraulic pumps and other accessories for the aerospace industry. Sales are made di- to airframe manufacturers and as parts to airlines. It also sells to the federal government through prime and sub contractors. Canadian Operations: Company's whollyowned Canadian, subsidiary manufactures and distributes a variety of products for the building and construction industry including plumbing fixtures, valves, pumps, heating equipment and water conditioning equip ment. These products are sold throughout Canada by means of Company's own sales force, independent distributors and represen tatives, and Company-owned wholesale branch warehouses which also distribute sim ilar and related products manufactured by others. International Operations: Through both wholly and majority-owned subsidiaries, company manufactures and sells industrial and building products for the construction industry including valves, pumps, fittings, water conditioning equipment and heating systems. These products are manufactured and sold in the United kingdom, the Common Market countries, Spain, Mexico and Aus tralia, through a combination of independent distributors, manufacturer's representatives, the Company's own wholesale branch, dis tribution centers (the United Kingdom), and its paid salesmen. Analysis of 1372 Net Sates dollar (in $000): Amount % Crane-TJ.S.A. $284,634 34 CF&I Steel Corp. _ 282,039 33 Huttig Sash & Door Co. 84,300 10 Hydro-Aire Division 14,755 2 Crane Canada Limited 102.324 12 International Oper. 76,343 9 Total .... _____ $844,395 100 mmmp&t. plants & properties Company plants in U. S. consist of; 18 In dustrial and construction products plants (7, 041,000 sq. ft.) including 4. plants leased under agreements expiring thru 1003; 1 aircraft ac cessory product plant (148,000 sq. ft.); 8 steel plants (800 acres), including 2 plants leased under agreements expiring thru 1977 and 5 mines. Company also has 10 plants located in' Canada with 1,325.000 sq. ft. of space and 10 plants located throughout world with 2,202,000 sq. ft. In addition, Company operates 62 wholesale branch warehouses and a distribution center in U. S,, of which 31 are owned. Huttig Sash & Door Co. has 25 branch warehouses in U. S. which 7 are owned. There are 22 Crane Supply branch warehouses in Canada and Great Britain, of which 17 are owned. CF&X Steel Corp. has 3 warehouses of which 1 is owned. mmmmM&nr Officers T. M. Evans, Chairman D. C. Fabiani, President Vice-Presidents B. J. Barnes J. p. Kirniane R. L. Biller J. C. Klein W. C. Dackis J. F. O'Brien, Jr. E. L. Hannon, Jr. J. L. Huss R. K. Whitley, Controller Norman Pacun, Vice-Pres., Sec. & Gen. Cotins. J. C. Henshaw, Treasurer J. K. Whitely, Controller L. P. Cook T. M. Evans T. M. Evans, Jr. D. C. Fabiani J. D. Garrison B. A, Gimbel Directors L. B. Harder F. A. Potts J. V. Quarles S, R. Sutphin R. Arthur Williams Auditors: Ernst & Ernst. New York. Annual PfteeiSag; Fourth Tuesday in April. No. of Stockholders: Dec. 31, 1972: Pre ferred, 336; common, 9,543. No. of Employees: Dec. 31. 1972 (approx.). 29,000. Executive Office: 300 Park Ave,, New York 10022. INOOfRE AOOOUNTS COMPARATIVE CONSOLIDATED INCOME ACCOUNT. YEARS ENDED DEC. 31 (Taken from reports filed with Securities and Exchange Commission) Sales, less returns, discts. & allow__ GDCost of goods sold________________ Selling, general & adm. expenses.'. Provision for bad debts _________ / $844,395,000 727,889,000 81,456,000 $791,508,000 680,476,000 80,376,000 1970 $680,207,000 584.892,000 75,276,000 1969 $550,707,177 464,565,938 67,360,814 1968 $409,548,665 338,839,859 (55,293,667 1 157,476 Balance .... .... ......... . .... ...... ...... Other Income 35.050,000 1,780,000 30,656.000 3,232,000 20,039,000 3,441,000 18,680,425 5,618,216 15,257.663 2,780,282 Total Income______________________ Interest & amort, of debt diact., etc.. 36.830.000 19.476.000 33.888.000 20.430.000 23.480.000 20.639.000 24.298,641 13,646,905 18,037,945 4,675,658 Balance __________________________ Federal income tax _ Minority interest in earnings_________ 17,354.000 4,901,000 13,458,000 3,169,000 2,841,000 cr5,414,000 10,651,736 1,158,267 13,362,287 4,829,222 38,558 1967 $403,360,619 329,859,812 54,292,716 42,811 19,165,280 736,880 19,902,160 2,314,957 17,587,203 7,098,887 260,066 1966 $405,906,737 331,825,432 61,144,147 499,192 22,437,966 334.504 22,772,470 2,554,631 20,217,839 9,033,780 cr67,026 Net income before spec, itemsSpecial credit ________________________ 12,453,000 2,020,000 10,289,000 873,000 8,255,000 9,493,469 2,108,830 8,494,507 2,503,047 10,228,250 11,251,085 Net income after spec, items___ Earned surplus beginning of year _ iM% preferred dividends____________ Common dividends (cash) ___________ mother charges to surplus 14.473.000 82.245.000 109,000 4.252.000 1.027.000 11,162.000 77,727,000 111,000 4.078.000 2.455.000 8,255,000 75,192,000 115,000 4.050.000 1.555.000 11,602,299 70,904,493 122,754 4,018,390 3,173,900 10.997,554 66,998.029 105,129 3,970,462 2,935,499 10.228,250 59.940,093 1,482,152 178,564 3,981,809 492,093 11,251,085 66,068,102 150.022 197,765 3,319,091 14,012,260 BfflEarned surplus end of year SUPPLEMENTARY P. & L. DATA Maintenance & repairs______________ EOTaxes other than income------------Rents & royalties---------------- ----------Depreciation & amortization_______ $91,330,000 $51,918,679 25,074,790 12,025,369 28,276,882 $82,245,000 $38,232,732 22,750,491 11,481,993 26,837,153 $77,727,000 $38,450,875 20.992,090 9,399,550 22,458,887 $75,191,748 $22,886,630 13,332,899 7,332,014 14,354,342 $70,904,493 $11,109,153 9,186,811 5,246,232 9,145,942 $66,998,029 $12,074,635 8,270,542 5,177,514 8,632,062 $59,940,093 $10. ,148,789 8,169)218 4,365,870 8,124.427 (TjIncludes payroll taxes (1972, S14.0S2.591). Principal "other surplus charges" follow: 1972: Represents excess of cost over par value of reacquired shares (292 pfd. and 110, 800 com.) less 9,682 issued' under stock options. 1971: Represents $621,000 excess of cost over par value of reacquired shares and $1,834,000 market value of shares issued as 2% stock dividend. 1970: Represents $174,000 excess of cost over par value of reacquired shares and $1,381,000 market value of shares issued as 2% stock dividend. 1969: Represents excess of cost over par value of 5,870 preferred shares and 48,300 common shares reacquired less 6,169 shares issued under stock options. Market value of 50,084 shares issued as 2% stock dividend. 1968; Represents excess of cost over par value of 8,530 preferred shares and 16,500 common shares reacquired, less 16,876 shares issued under stock options; market value of 49,627 shares issued as 2% stock dividend. 1967; Represents excess of cost over par value of 3,660 preferred shares and 20,600 common shares reacquired in year less 20,614 shares issued under stock options. 1966; Includes market value of 413,652 shares issued as 20% stock dividend; excess of cost over par value of 12,700 reacquired common shares. Principal "other surplus credits*' follow: 1967: Represents restoration of balance of $482,152 from $2,500,000 charges to earned sur plus in 1962 to provide a reserve in foreign exchange fluctuations (after $2,017,848 applied as extraordinary deduction on adjusted earn ings for 1962) and restoration of $1,000,000 added to reserve for foreign contingencies in 1965; total, $1,482,152. 1966: Represents excess of par over cost of reacquired preferred shares: 2jS6S, 14,100. SJIncludes related portions of items shown under "Supplementary P. & L. Data'1 below statement. S3As of Dec. 91, 1972, $9,847,580 was not re stricted under terms of s.f. debs. 1971 and prior years restated for adjust ments of $1,676,243 (net of $1,547,000 tax credits) resulting from settlement of anti trust litigation pertaining to 1963 and prior. General Note (a) Company's operations outside U. S. and Canada represented 16.2% of shareholders' equity at Dec. 31, 1972 and contributed net income of $449,000 after deducting a loss of $1,004,000 in closing two operations in West Germany. (b) Giving effect to restoration of reserve for foreign exchange fluctuations (see note [1)1967 above) restatement of balance sheets would eliminate reserve of foreign contin gencies of $1,482,152 in 1965 and 1966 and increase earned surplus by such respective amounts in three years. Source & Disposition of Funds: Source of Funds: Net income ... Depreciation Incr. l.-t. debt____ Deer, in invest.___ Prop., etc. sold Other, net _______ 1972 $14,473,242 28,276,882 977,500 12,325,697 8,153,120 1,675,018 1971 $11,161,777 26,837,153 7,625,000 24,818,481 5,017,078 674,205 Total _________ KiM Disposition of Funds: Capital expend. $38,372,018 Dividends ________ 4,360,431 Deer. l.-t. debt___ Stk. reaeq. ______ Other 18,190.804 2,168,771 11,704,392 $76,733,694 $50,788,861 4,188.763 4,646,740 19,749,27:1 1,651,952 2,651,577 Total _________ Work, cap. deer. -- $74,796,416 d$8,914,957 $83,677,164 d$6,943,470 Record of Earnings, years ended Dec. 31 (in $): Cost and Operating Year Net Sales Expenses Profit 1952............... 319.271,069 302.559.805 16,711,264 1953............... 315,677,790 299,767,253 15,910,537 1954 299.791,010 291.064.123 8,726,887 1955............... 1956............... 331,421,289 375,220.848 316.576.709 356.9S7.890 14,844.580 18.222.958 1957________ 378,948,173 360.258,230 18.689,943 1958 336,196,279 326,639,823 9,556,456 Oth. Inc. & Ded. (Net) 1.315,574 743,565 335,265 603,084 1,548,005 & 1,354,441 503,166 Inc. Bef. Taxes 18,026.838 16.654,102 9.062.152 15.447.664 19.770.963 17,335-502 10,059,623 Income Taxes 8.154,016 7,950,840 3.254,247 .417,458 8.871.892 8.657.230 4,584,030 Net Income 9,872.822 8.703,262 5,807,906 9,030,206 10.899.070 8.678.272 5.475.543 Common Dividends 5.310.662 5,310,661 4.720,588 4,736.088 4,744,413 4,745.248 2,609,886 Com. Shs. Earn. Per Oufstand. Com. Sh 2,360.294 0)3.96 2.360.294 0)3.47 2,360.294 2.25 2.371,454 2,372,624 4.1 .2,372.624 3.46 2.372,624 2.12 l<?r& MOODY'S INDUSTRIAL MANUAL 1333 Recant 0* Earnings, years ended Dee. Cost and SI (to S) tcont'd); Operating Oth. Inc. & year 1959-............. 1960............... 1961............... 1963............... 1963-............. 1964............... 1965............... 1966.ffiOn basis Net Sales 310,172,639 285,618,712 319,556,202 333,766,863 337,365,571 357,823,354 . 370,084,039 405.906,737 Expenses 296,013,961 279,329.541 309,729,127 Profit 14,158,678 6,289,171 9,827,075 Ded. {Net) d 573,517 927,079 705,823 326,026,910 324,865,403 346,059,605 353,920,739 383,468,771 of 7,739,953 d 813,861 12,500,168 d 1,796,534 11,763,749 d 1.734,762 16.163,300 d 2,327,187 ES22t,o43d7T,96u6bsid"dia2T,y1"53e.1a0r1ned Inc. Bef. Taxes 13,585,161 7,216,250 9,121,253 6,926,092 10,703,634 10,028,987 13,836,113 20,284,865 per share Income Taxes 7,067,415 2,391,787 3,445,483 3.732,060 5,256,256 4,499,158 5,844,762 9,033,780 woild be: Net Income 6.517,746 4,824,463 5,675,770 3,194,032 5,447,378 5,529,829 7.991,351 11,251,085 1*2, 34.24; 1953, Com. Shs. Earn. Per Outstand. Com. Sh. 1,5X5,840 4.03 1,487,430 2.97 1,382,570 3.83 1,285,270 2.21 1,192,420 4.30 1,149,720 4.54 2,081,200 3.70 2,482,152 4.45 balance sheet COMPARATIVE CONSOLIDATED BALANCE SHEET, AS OF DEC. 31 (Taken from reports filedwith Securities and Exchang^Commission^ Marketable* securities (cost) ------- Accounts & notes receivable-- ^Inventories----------,------------------------Other current I 1972 $14,092,131 17,037,527 119,020,539 136,248,13 1,985,292 1971 $20,071,799 28,046,259 102,154,214 134,152,001 5,049,498 1970 $18,138,288 23,601,805 111,379,699 136.814,816 5,119,990 $17,885,804 39,061,024 96,110,081 131,325,837 3,613,851 $13,959,603 4,767,815 63,691,441 78,375,406 1,033,785 Total current i Investments (at cost) ------------ 8Property, plant & equipment.-- Depreciation reserve------ $288,383,622 28,069,927 586061,937 324.497.087 $5SM73J7I 40,104,899 570,845,910 311,223,067 $295,054,398 65,271,206 530,235,961 293,354,362 $287,976,597 72,598,570 503,347,617 286,513,152 $161,828,050 65,975,957 195,869,488 128,358.391 1967 $18,435,599 9,954,383 57,595,402 71,550,106 1,504,729 $159,040,219 21,819,575 191,799,708 125,987,012 1966 $117,851,073 6,855,160 57,559,113 172,074.581 929,785 $155,269,792 7,098,823 180,067,898 118,013268 Property account, net------ 261064050 259,622,834 236,881,599 216,834,465' 67,511,097 65,812,696 62,054,630 Total -------------- liabilities Current bank loan maturity ---- Loans payable by foreign subs. Accounts payable-------------------------Accrued payrolls -------------------------Accrued general taxes-----------------Accrued interest A misc.------- -- Accrued income taxes ---------- -- Total current liabilities-----------------Long-term debt-----------------------------------Debt of foreign subside:----------------------SiOper, & other res. -------------------------Minority interest --------------------------------Res. for foreign coating. .....-----------Deferred credit from acquisition ---pref, stic. of Gl'enfield & Kennedy 3Bi% cum. pfd. stock ($100 par)--------mcommon stock----------------------------------gjCapital surplus................................. ........ $578,018,399 $6,578,100 17,727,384 48,295,640 16,875.412 7,299,591 24.298.852 2.814,697 $123,889,676 227,916,68$ 16,786,914 13.658,168 20,046,230 9,129,99? 2,350,000 2,883.700 63,455,063 6.571,800 91,330,197 $589,201,504 $12,624,464 9,882,251 45,711,684 16,380,625 6,705,510 22,623,781 2,136,543 $116,064,868 240,605,812 21,311,060 19,196,353 23,526,802 9,849,889 2,600,000 2,912,900 64,543,875 6,345,588 82,244,357 $597,207,203 $5,379,011 16,539,800 47,134,781 12,650,598 7,070,240 23,776,799 2,150,796 $114,702,025 252,573,174 21,467,969 19,957,457 . 23,910,559 11,270,361 2,400,000 2,983,400 64,446,700 5,768,864 77,726,694 $577,409,632 $2,736,985 7,891,193 42,408,221 13,509,608 5,207,646 15,819,255 6,082,611 $93,655,5X9 249,465,737 21,945,505 H,835,132 26,627,972 13,958,955 2,400,000 3,102,600 63,575,375 5,651,089 75,191,748 $295,315,104 $3,595,223 18,543i707 4,547,866 1,852,161 6,335,236 4,851,025 $39,725,218 84,176,499 22,281,985 1,676,243 1,764,777 763,072 2,400,000 3,689,600 63,300,300 4,632,917 70,904,493 $246,672,490 $3,501,261 16,323.852 4,529,740 3,770,464 7,799,647 4,276,397 $40,201,381 41,831,562 20,204,313 1,676,243 3,170,152 491,690 2,400,000 4,542,600 62,054,150 3,102,390 66,998,029 $224,423,165 $8,882,609 15,881,436 4,441,840 5,070,919 6,653,633 7,295,042 $48,225,489 119,250,000 19,054,557 1,676,243 a,132,959 1,482,152 796,882 2,800,000 4,908,600 62,053,800 3,102,390 59,940,093 EEarned surplus .................................. -- STotal stockholders' equity--------Total -- ------------------------- ------ 166,590,760 S578,018,399 $164,493,964 158,646,720 $589,201,504 $173,408,903 753325,658 $597,207,203 $180,352,373 149,920,812 $577,409,632 $194,321,078 144,927,731 $295,315,104' $122,102,832 139,097,169 $246,672,490 $118,838,858 132304,883 $224,423,165 $107,044,223 NPRetOcPuErRreTnYt A*C*C}T--.---yAnN-Ar;L-YTMSTMIS-------Additions at coat-------------------------------Retirements or sales------------------ ------- S38.372.018 23,135,991 $50,788,861 17,218,329 7,039,417 $52,395,004 30,023,231 4,516,571 $38,326,059 9,590,533 278,742,603 $13,834,907 11,444,663 1,679,536 $11,656,089 4,874,216 4,949,937 $9,218,332 12,272,474 14,011,023 Other additions--------------------------------- DHPBEC. RESERVE-ANALYSIS Addition* charged to income. Retire, renewals, 1charged to reserve $28,276,882 15,002,871 $26,837,153 11,601,251 2,632,812 $22,458,887 20,134,248 4,516,571 $12,158,731 7,610,769 153,606,799 $9,145,942 7,271,630 497,067 $8,632,062 3,596,485 2,938,167 $8424,427 8,737,325 7.917,712 Other additions ar value: 1972. S12.50; 1971 and prior $25, 1972: After crediting_ $__2_2_6_,_2_1_2 excess of subord. debs, converted over'par value of 14,013 com. shs: issued. , 1971: After crediting $565,739 excess of market value over par value of com. shs issued as 2% stock dividends and $10,985 excess of subord, debs, converted over par value of 338 com. shs. issued. 1970: After crediting $117,775 excess of market value over par value of com. sns. issued as 2% stock dividend. 1966: Capital surplus arising from XX stock ( ____________ _S___o___T__f_tfmobruStinccmoomneteinuteadx dividend. to01pAadr jbuasstmis eonftcoofnvfoerresiiognn aanssdet^sjuasntd.m_ree__sn_e_tr_vo_e_^,|, *bpyur_rpS._.o_._s._e^_s_c_.ia__-Tt_lho__ins change increased net income _Jg prr_o__v_i_d_e__d at rates which assets and reserve to tax oasis metnou oi re i are in*t+end,**e**d< to amoorrttiiTzfe* coost of depreciable PS19n, and prior years restated. See foot note 33 under Income Account. iS After reserve (1972, $1,732,685). assets over their estimated service lives. Be cause rates vary widely, in consideration of use and character of assets, it is impractic able to state in detail rates applicable to @11972: Inventories reflect a reduction of each class of property. $34,257,314 to state principal inventories in Cost of property, plant and equipment sold ^'l^^Comprises^Raw materials, $20.681,070; or otherwise disposed of and related accumu lated depreciation are removed from ac 1969: Includes 5920,522 excess of market work in process, $43,527,500; finished goods, counts and resulting gains and losses are value over par value of 50,084 common, shares issued as stock dividend and $97,650 escess of principal amount of subordinated debentures over par value of 3,050 common shares issued on conversion. ^ _1972: Land BuUdings-imp. Mach. Sc equip. Values Reserves $16,434,996 134,812,187 434,814,754 $8,269,910 724)82,583 244,144,594 included in income. Maintenance, repairs and minor renewals are charged to operating expenses. Renew als of a significant amount and betterments of existing facilities are capitalized. 1968: Includes $1,526,527 excess of market value over par value of 49,627 common shares General Notes: (a) Consolidated financial Total _________ $586,061,937 $324,497,087 statements include Company and all subsldi- issued as stock dividend and $4,000 excess of principal amount of subordinated debentures over par value of 160 common shares issued on conversion. Depreciation Policy:. In 1969, Company, mid ar(b!' Sea general note (b) under income ac its Canadian subsidiaries adopted straight line method of computing depreciation for count. FINANCIAL & OPERATING DATA Statistical Reeerg _ ^ Earned per ahare--preferred------------(S common ----------com. (aft, spec, item) ------------------- Dividends paid per share. . --384% preferred --common______ Price range--3% % preferred------------- --common ..-------------------- Net tangible assets per share--pfd.. Fixed charges earned: Before income taxes ---------------- ---- After income taxes ----------------- ------- Times charges & pfd. div earned.... Net tang, assets per $1,000 Ig. tm. debt Net curr. assets per $1,000 lg. tm. debt price range--deb. 6%s, 1992---------------- --deb. 7s, 1993------------------ * --deb. 5s, 1993 ---------------------deb. 7s, 1994 ....................... . --deb. 5s, 1994 ------------ ------ Preferred dlv., times earned...------------Number of shares--preferred 1972 $431.84 $2.43 $2.83 $3.75 QD$1.03 42-42 {g]24%-16 $5,776.98 $31.78 1.89 1.64 1.63 $1,731 $722 89x,6-83 89%-82 109x/e**83 85-81 93(6-70 114.25 28.837 5,076,405 1971 $353.22 $3.94 $4.28 S3.75 CDS1.60 42-42 50-33% $5,503.90 $59.96 1.66 1.50 1.49 $1,666 $721 86-7596 84-75 100-75 Va 82(6-74 85-69 92.69 29,129 2.581,755 1970 $276.69 $3.16 $3,16 $3.75 23$1.6Q 50-40 41%-27 $5,195.48 $58.04 1.14 1.40 1.39 $1,566 $658 80-72(6 82-69 88(6-65 79-63 75-57 71.78 29.834 2,577,868 1969 $305.98 $3.68 $4.51 $3.75 59%-39 Va $4,886.04 $57.45 1.78 1.70 1.68 $1,559 $716 93-75 9434-73 123-78 79-70(6 85-777ll! 31,026 2.543.015 1968 8230.22 $3.29 W.28 33.75 am .60 82:4-75 613,i-44Va 33,973.42 355.49 3.85 2.82 2.72 $2,377 SI,146 IOIV4-88TS 100-85 122-100 51.44 36.896 2,532,012 1967 $225.16 $4.05 $4.05 $3.75 $1.60 81-79 58-33% 3,098.96 $53.92 8.48 5,42 5.03 $3,269 $1,916 102%-98 1966 $229.21 $4.45 $4.45 $3.73 CD$i.eo 91-80 58(2-30% $2439.70 sim 8.94 6.40 5.02 r#7914 57.28 45,426 2,482,166 56.89 49,096 2,482.153