Document dvw2n53r6RJKBXMZvJ2Nbdk0

tr FROM: E.G. ANDERSON r^OsilVED "^rgMr .Aj. 1976 tnu|M 9) C. T. Ford - File 15170771 r DECEIVED DEC 1 6 19/o 02234131 11/1/76 cj B. A. Blessington H. A. Brown A. S. Clapperton H. C. Duecker R. T. Frohlich G. E. Hall W. R. Hanlou ?. E. Korenberg R. H. Locke W. F. McCord R. A. Merther L. Rosenblatt R. M. Vlnlng R. F. Watrous J. L. Westbrook Zono-Atlanta J. W. Wolter W. R. Wright W. S. Zorkers R. A. Wittgren 15170772 CONSTRUCTION PRODUCTS DIVISION INTER-OFFICE CORRESPONDENCE 02234132 TO: B. R. Williams and Olvlsion Management Distribution From: T. P. Feit DATE: December 10, 1976 subject: Pacific Region Monthty Report for October and November 1976 cc: J. V. McKague R. L. Asher T. F. Egan C. R. Lowe W. K. Rogers B. A. Blessington L. W. Farmer Because the markets and products and October sales and profits were reviewed in detail at the time of our November 3 and 4 meeting with you and Rod, this report combines the October and November results. As we had forecast at the end of the 3rd quarter, the last quarter is turning out to be a disaster (see monthly report of September activities, dated October 13, 1976). We still believe that we will accomplish $9*200,000 for the year; i.e., a budget underrun of approximately 8.5% and 3% ahead of 1975. Gross Sales Results: October gross sales were $736,000 -- behind October 1975 and budget by $132,000 (15.2%) - Gross sales in November amounted to $641,000 --- this is $118,000 behind November 1975 and $218,000 behind the budget. Most of this poor showing is attributable to jobs that just didn't start rather than lost jobs. Year-to-date dollar sales of $8,477,000 continue ahead of 1975 sales (by $476,000 or 5.9%) but remain behind budget (by $875,000 or 9.4%). Estimate for Next Month-- December 1976: Our $746,000 estimate for December is $18,000 ahead of budget. We need to do at least $740,000 in December to meet our year-end estimate (adjusted at the end of the 3rd quarter) of $9,217,000. The poor November showing pretty much destroys any possibility of picking up that additional $100,000 for which I had hopes. In any event this is likely to be the poorest 4th quarter since 1972. -1 PACIFIC REGION 15170773 02234133 To: From: Subj: B. R. Williams and Division Management Distribution T. P. Feit Pacific Region Monthly Report for October and November 1976 December 10, 1976 Profit and Loss: The October operating profit was $101,000 -- $28,000 (21.7%) behind budget and $47,000 (31.8%) behind October 1975. The $57,000 operating profit for November is behind budget by $80,000 (58.4%) and behind November 1975 by $34,000 (37.3%). Year-to-date profits of $1,439,000 are 11.5% ($188,000) below budget, but are 18.4% ($224,000) ahead of 1975. Percent gross margins on gross sales for the months of October and November and year-to-date (36.5%) are on or slightly over budget. Market and Product Report: 1. M0N0K0TE - The fire in the Occidental Tower in downtown Los Angeles is summarized in the attached ENR article. No structural damage was reported and the MK-3 did the job. Doyle Nigh has inspected the fire damaged areas and confirms the excellent performance of M0N0K0TE. We have been invited back after the arson investigation is completed and intend to provide Bob Merther with as much documentation as we can. Structural TTreproofing, Inc. (Bob Chaney) was cited by Cal/OSHA for excessive exposures of nuisance dust. Chaney's workmen were using nonapproved respirators at the time. It is possible, however, that 0SHA would have issued the citation even if approved respirators had 4yplu^/ been used because, in this instance, 0SHA is insisting on engineering (mechanical) controls. Chaney is contesting this matter and we are working closely with him. An outside consulting firm (employed by us) confirmed that the Cal/OSHA dust levels (in excess of 10 mg/M^) were U essentially correct. I am concerned about the potential affect this might have on other fireproofing jobs. Ken Porter and I spent most of one day on Chaney's job observing the operation and monitoring the tests. There was nothing unusual, and the dust levels, in my opinion, were typical. Cnaney was friendly, very cooperative and pleased to see Ken again. Bob was very apprecia tive of the loan (by us) of the stud welding gun; however, he experienced lots of trouble with it on the top floors and even the Nelson people were unable to help. / 15170774 To: From: Subj: B. R. Williams and Division Management Distribution T. P. Feit Pacific Region Monthly Report for October and November 1976 223^l34 December 10, 1976 Ve are looking at a $3,000 claim from Shearer & Sons, Inc. for the M0N0K0TE difficulties they experienced early this year on the PGE Building with MK-5 produced in Portland. Their claim appears to be justified. As you are aware, I have requested that we cancel the manufacture of M0N0K0TE and ,3300l in Portland and produce those products in Newark for the northwest business. 2. 13300* - Enthusiasm runs high over the news that we can actively go after the high humidity vegetable storage work. A successful fire test at FM next Monday will give us the two remaining items to com* plete the package -- (!) FM approval and (ii) lower applied cost. We have lost thermal barrier jobs both because of the lack of FM approval and because of lower cost provided by Foamcrete at their 3/8" approved thickness. It has been reported that the state of Idaho will only accept ICB0 approved thermal barriers. Although we have experienced some delays in obtaining ICB0 approval for '3300', I am confident that approval will be forthcoming. 3. CONCRETE - T'ne diaphragm assembly, has been poured and scheduled for testing on December 28. Chuck Buggy confirmed to me that he had attended the fall meeting of the Perlite Institute. Chuck had giver, me the impression after attending the spring meeting that he would not be attending others. He has done several small perlite jobs since and learned of the ZONOLITE/Bonitz of Alabama matter at the Perlite Institute meetingl Foam concrete continues to nip at us on almost every job. On many of these jobs we have had to become very competitive. We must have them concerned or they wouldn't continue to write the dumb letters that they do. 4. jNSULPERM - Bill Culver's 1977 forecasts justify producing INSULPERM in Auburn and we have so requested. Burnham's 1977 forecasts also justify producing INSULPERK in Phoenix and this will be pursued in conjunction with the Phoenix polystyrene project. 5. POLYSTYRENE - Den has sold approximately 250,000 bd. ft. to JohnsManville for their precast concrete floor/roof structural system which was first mentioned in my monthly report of January activities. Unfortunately, Western Insulfoam has picked up a subsequent order at a price we have elected not to meet. -3 15170775 To: From: Subj: B. R. WMUams and Division Management Distribution T. P. Feit Pacific Region Monthly Report for October and November 1976 0223^135 December 10, 1976 Lynn Farmer is pursuing the possibility of producing polystyrene In Phoenix. 6. THERMO-STUD - Porter is attempting to locate a local steel supplier who will make channels for us in Southern California. Culver is in contact with a similar supplier in the Northwest. Certain work that we have lost in the past (U.S. Navy, State Fire Marshal, etc.) because of high smoke test values may be recovered because of the new Ul method of reporting smoke. We are attempting to test the waters on this, but lack necessary back-up (UL salmon card, etc.). This will require close coordination between sales and manufacturing with respect to the type of beads to be used on specific jobs. Don Gill in and Ken Porter have worked out an arrangement for us to act as dealer for the Tapcon Fastening System. 7. THERMOCLAD - Ralph Burnham has the Southern Nevada Prison job for 140,000 sq. ft. of 3" THERMCLAD. We bel'eve that this will be the largest THER/IOCLAD job sold anywhere. 8. CONSUMER PRODUCTS - Ouf Southern California "Incentive Program^1 has met with less than complete success. To date only one package order has been received. Conn! Joyce has been very helpful- in resolving our difficulties with J-M and our attempts to obtain glass fiber from the Willows, California plant. Ron Hodges had sold a truckload of foil-faced glass fiber, but J-M claimed that they had no authorization (by their Denver people) to ship for our account. 9. AGRICULTURAL AND HORTICULTURAL - Rothfelder has been active in imple menting plans to improve on the 1976 results. Production of REDI-EARTH in Newark is on stream. This should ease, somewhat, the high freight costs associated with supplying REDI-EARTH to Northern California and to the Northwest from Santa Ana. Storage (or manufacture) of REDI-EARTH in the Portland plant will likewise improve our competitive position, but this will await other considera tions involving Portland. -4- 15170776 02234136 To: From: Subj: B. R. Williams and Division Management Distribution T. P. Feit Pacific Region Monthly Report for October and November 1976 December 10, 1976 Ray's calls on distributors who cover the grower market indicate we will need to provide some kind of incentive (advertising, free goods, etc.) to get them interested In taking on REDl-EARTtfa>. Most of them are already selling Mica Peat which they get along with their peat moss shipments. While some distributors are aware REDI-EARTH is a superior product for many uses, they feel a certain amount of pioneer ing work is necessary and they want help in this effort. Personnel: Ralph Burnham has begun interviewing for a replacement for Ross Wittgren. Jim Taylor has not yet filled the San Francisco sales territory opening. Work Plan Achievements and Future Objectives: Paul Korenberg will be here next week to work with Ken Porter on the introduction of ACE. We will be finalizing details for our Regional Sales Meeting -- February 2, 3, and 4. Other: Clive Boyer and his reduced staff deserve special mention. They have been putting in long hours to complete all of the usual year-end matters as well as the additional work cuased by the changeover to ZIRS. TPF :me -5- 15 170777 JV j 0X134131 Fire was confined to half of one floor. Plastic screens covering lighting melted. Spandrels 5n Los An^eSes Sower kept Siatnss from spreading An early alarm combined with aluminum spandrels that kept flames from spreading up the outside of the building were credited with keeping a Are in a Los Angeles high-rise office building from becoming a major conflagration. An arsonist apparently started the Are in the 32-story Occidental tower in the predawn hours of Nov. 19. While Si.5 million worth of damage resulted, .he flames were conAned to the 10 execu ive offices of Transamerica Financial Co. on the 20th floor, and no structural damage was evident, according to Are department officials. The other half of the 20th floor had smoke and soot damage, the 21st floor sustained heat and smoke damage, and the 18th and 19th floors were damaged by water from the Are Aghting, said officials of Occidental Life Insurance Co., owner of the S46-million complex con sisting of the tower and two intercon necting 10-story units to the east. Except for the 20th and 21st floors, all other parts of the building were occupied Monday, while firemen and engineers continued inspections. The building was completed in 1965. According to project structural engineer Brandow & Johnston & Associates, Los Angeles, the tower has a structural steel frame and combination metal deck and concrete floor slabs. Steel mrmbers are Areproofcd with sprayed-on vermiculite. The building's curtain wall consists of aluminum spandrels between heatabsorbing glass panels. Automatic sprinkler systems were in stalled only on the main floor and under ground levels as required by building codes, says the architect of the complex, William L. Pereira and Associates, Los Angeles. Two years ago, the code was revised to require sprinklers in any new building over 75 ft high. The Occidental tower is 437 ft high. Firemen said sprinklers might have conflned the blaze to an even smaller area but wculd probably have caused more extensive water damage. A spokesman for Occidental says the owner feels that the effectiveness of sprinklers remains open to question. "We felt that our highly sophisticated sensor-alarm system would identify an emergency quickly and allow an early response by Are Aghters. That is exactly what happened," said the spokes man. "Our flrst efforts were aimed at stop ping the Are from spreading to floors above." said one fireman. On the 20th and 21st floors, the intense heat broke the glass panels. Firemen credited the alumi num spandrels with retarding the upward spread of the flames. "This is the flrst time we've encoun tered the possibility of flames lapping up the sides of the [exterior] walls to the floors above," said a Arc department spokesman. The fire brought out 58 of the city's 103 Are companies and involved 325 firemen and two helicopters that provided lighting and delivered equipment to the rooftop. Computer-operated elevators were im mediately placed on manual operation for vertical transport. Most of the equipment was carried up die stairways. The eleva tors did not fail, say fire and building owner officials. 10 ENR Dminbcr 2, 1976 15170778 SUMMARY OF "RESULTS PACIFIC REGION. Per. J97& SALES RESULTS Nearest uuo) Concrete Aggregate . Hasonry Fill . . Mono-Kate . 3300 ........ Month oft Qer, Prev. Actual Budget Year U f/3/ !// S3 I tS __ i 7/ %HS 13cS $ f :/ Styrene Roof-Board . Other Polystyrene . `T^Uthir Products . . . - WM REGION _ i 7 Southern Calif. . . Sarthern Calif. . . Rorthvest ..... Arizona ...... : " Pacific Polystyrene 1 JWfrat. TrecTorr ' 3! n /?6 m V . ns \73t i hiZ 1/43 ' 12/9 r k? >223 \73t (,80 in BtS U \M W nas let \m \/9S \//S 2ef SW Year-to-Date Prer. Actual Budget Year /c39 72/ a b// ioS / ZXS SS/ 3/07 1 72 / off 97/ }\ ?f{? K m nt _/j iWO rtf 2 7 MS b</93 \ x\/t* 1j / 333 1 rtn 6t$7 ton 1 /'So/ r*si> 8'9f2 S3 / vin miriHi 2\/e9. \\7to \VH i\on /\*no 7WI 02234138 Year-End* * - Prer. Est. Budget l/Vlrt** t 72/ VS7 3 373 tf3 ISIL t.39 3'tfS i 80 S73 3W3C. IT /{* k39 /j 9o7 loll /mo / 99/ nn JJ 6 90 n7 11237 /'732 ???? X'Ut x\s89 11 ; X/SC. / 7Q6 7 V9 /! no / Ilk i J Me/ i\cn X Jtl /'*SL 9'2/7 10 690 9939 ESTIMATE FOR: .............. a/co. Fatinate 7S7 Budget M2,, Previous Year Waterage selling price: ' ; Concrete Aggregate . . Kaaonry Fill J Kon-Kote . 3300 ............................. .... . ._. Month ed (Tier*. Actual Budget Prev. Year 2.100 .2,17$ x,n9 2.260 3./J7 3.SS/ _ /0.33s 9.000 2.0Vf X.OVl 3 *3i>y %,0Srir ZL Styrene Poof-Board . . . . . Styrene Plain-Board 99./9 /0S.0O 99 0/ 77.S2 -ff TM 7J.frl Year-to-Datc Prev. Actual Budget Yeer 2,/S/ 2.//S joy* 9,800 J./3`/ 2,10*7 J.SSO S.0CO />?& /. VV'. ' 3./ct, 9.973" 9S.9V /rs.co y* - .* a 78,39 tv. to ,,2,fP * ------- --Month of: (Dfr*. rSTATEMENT OF PROFIT & lOSS: Prev. Actual Budget Year < Gross Sales ........... 73c 9C9 \sts Gross Margin ......... *** Policy Allowances ........ r?i fYi M 3 ft t* Ft,9 i 7 - Other Sales Seductions . . . . . ? Selling Expenses ....... *. 6S ?/ tfO ? OPERATING PROFIT -- M \/29 nvt Year-to-Bate Actual Budget 7i*3A 3i:.t f ft 9 V n? 8 93 3; ii 93 2 `h0 1 Prer. Year 7 2 2 ./ i f z 79 7f3 / \1*2 />/ vji -J o SUMMARY OF RESULTS PACIFIC RSCTOtr. A/oO. t97C Month of: GROSS SALES RESULTS ''r.^a'd-^eares'c U'j<J) Actual' Budget Concrete Aggregate . Masonry Fill . 3300 .a yy /SS 7 \/3l 1 v9 5el 18 Prer. Year \H 'Si \XLl l* Styrene Roof-Board , Other Polystyrene . Other Products V TfypAT' TEQI^TT - Southern Calif. . Barthern Calif. . . Bartbvest ..... Arizona * ~Pacific Polystyrene XPEflt BSSIQN AT ll /? /vs "asy 2/0 \LV/ [. las*. ZS fS9 1/4/ 7S9 i /30l \/S3 7/ 7$ So 9 \i/ Am \ni (AH Jr - /OO ! S3 no /6V '59 7S9 Year-to-Data Prer. Actual Budget Year A/o/ V70 X `toi J>$ /V3 1 fit 7 I iZ2_ 4-V77 l\3,Sl 'S99 3,Vo 8 I 86 1 1/18 /1888 m3 ;|/?s \jl7 3dSX /S 7S / S7i / S8 free/ 2 29? Vi* J\9f7 i /'as? 71236 row 1 5 0/0 Z'o/l 7 3o3 / Wf? ffi / (SO / (si 8\C3t 02234139 Year-End Ptct. Est. Budget ( 73* S/1 Q !7b t(7 27V X ooS 9'-713 ISXL '/,3V 3:688 ! 80 1 >A3/ X 0X7 I 99/ JO 0*6 Jl3S3 1173 3)V3i. n n? l\?3t /'7C1 X H?4 2 (3% I 1 i 1 . / /U > 7 9/9 / 22 0 i 21229 X74/ O1 223 /o c*o Aid Z./Si l jUP Axe/ /'tsi 8939 ESTIMATE FOR: ZW. /?74 Estlcate 7V& Budget 738 Prerloua Year 937 HAVERAGE SELLING PRICE* Concrete Aggregate Masonry Fill .... Mon-Kote ..33 i ... Styrene Boof-Board . . . Styrene Plain-Board tenth of; A//>c/. Actual Budget Prer, Year 2.IfS' 1./// 3Z3S Jo.Mt 2.178 x.xoo 3.SV9 6.CS0 2.039 2 .oZV 3.UV - /OSAi /oS.co _&27 97-99 76.19 Year-to-Date Prer. Actual Budget Year 2./S3 X//S 3483 9,8fS _ ZiXS 2.//L 3.SS0 i.CtV /.9S9 h9Si 3,// (> 99/i 9UV /6S.00 98S39 78.7r 69. eo 7S49 STATEMENT OF PROFIT & LOSS; Gross Sales t Gross Margin % # , Freight ........ Policy Allowances < Other Sales Deductions Selling Expenses < OPERATING PROFIT -- Month of: Prer. A<rtual, Budget Year LVf 63-9 17Sf $ r9% 3 78 37.0 4 Xft7 i 9 1S 1 X 8 1s S3 I7F 1 47 !/37 *9/ Year-to-Date Prer. Actual Budget Year 9 V77 _ X3S2 3i.s i 3C .3 i & 91 lb 2 fl ps 9V3 i k?? / Am f 09/ :.3 i sf V if 57/ iii/s 15170780