Document bankBoy6QB0X8pzarMjj3L496

ABEX CORPORATION $1.57'/2 compared with $1.42'/2 in 1965, adjusted for the stock split. The annual dividend rate was raised for the third consecutive year. Following the stock split, the rate on the new shares was increased in June to $1.60. The December payment was the 258th consecutive quarterly dividend since the company was established in 1902. The booming economies of the United States and Canada created a strong demand for our products and sales gains were achieved in each of our four present product groups. Or ders received duringtheyear exceeded $300,000,000 for the first time and the backlog of unfilled orders at year-end was $109,700,000, compared with $84,400,000 a year earlier. Total sales also increased in our in ternational operations, but government controls imposed in the United King dom and monetary restrictions in West Cermany slowed the pace of business in those countries which, in conjunc tion with other factors explained later in this report, adversely affected our operating results. The year's record sales required most of our plants to operate at near ca pacity. In anticipation of this demand, we initiated an expansion program in 1965. Capital expenditures last year amounted to $15,224,000, compared with $11,364,000 in 1965. Present plans call for capital expenditures in 1967 of about $16,000,000, compared to de preciation of $13,000,000. Stockholders voted at the Annual Meeting to change the company's name to Abex Corporation. The names of subsidiary companies in our Cana dian and International operations were changed also. We now have a world wide corporate identity that will strengthen and enhance all of our marketing and advertising programs. Changes were made during the year in the organizational and operating structure of the company. The ElectroAlloys Division, a producer of heat-re sistant castings, was combined with the Engineered Products Division. This move will integrate the capabilities of the two units and provide greater over-all efficiency for the group. Our relations with employees were generally satisfactory although there were two strikes, mentioned later in this report, which involved a small number of personnel. Shareholders have been advised of the proceedings instituted by the Fed eral Trade Commission to force dives titure of The S. K. Wellman Company acquired in 1963. The Commission's Hearing Examiner issued.a ruling ad verse to the company's position in August 1966 and the case is now await ing review by the full Commission. Some Supreme Court decisions in the past few years have contributed a great deal of uncertainty in the inter pretation of the anti-trust laws, and it is not possible to predict the outcome of this case or to estimate when it will be concluded. During the year several manage ment changes occurred. John S. Hutch ins, president since 1963, was elected vice chairman in February 1966. Mr. Hutchins retired as an officer and di rector of the company at the end of 1966 after forty-one years of loyal and effective service. William T. Kelly, Jr., first vice presi dent and a director, was elected pres ident and chief operating officer in February 1966. He has been with the company since 1928. Thomas W. Russell, Jr., vice presi dent, was elected first vice president and a director in October. Mr. Rus sell has twenty-one years of service. Kenneth A. Anderson, director of personnel services, was elected a vice president of the company in Septem ber. He joined Abex in 1944. Dr. Carl F. Floe, vice presidentResearch Administration of Massachu setts Institute of Technology, was elected a director in June. Abex Corporation continued to make excellent progress in 1966. We enjoyed the benefits of the prosperous economy which this country has been experiencing for several years, and we have utilized the opportunity to live