Document g2YzZe4nva317rGY789EYY2bV

- t'H *v\ - > * ,V*S' cm Cleveland S, Chio SVUtOt CQBSOLIDAXED CPXRA.HXO Mtwttwi unit or mn Febrmry IV, 1955 * Att gttivm Prior to 195V our reports singly showed total operations tat sacbjlant. these were hot self-analytical as to major product groqps. Ve could oalylook at as picte divisions sad could not readily ascertain haw *a owsr-all product group, such as margarine, refinery products, ate*/ was doing. During 195V the Pood and Serai Btores Ihggil mental Operating Statements ware instituted. With the regular Consolidated statements reporting the total for each division the Supplemental then permit# showing operations by jroduet group, both for each Indlrtdunl division sod la total for that product grpsg. Witfc 1955 reports certain Usages have been nsde in Chart nals am permit better analyta&lom by product group* " Whioh In Cbemurgy the reports now are broken down hetman (l) Processing ~`i Boya Products (Flour, Protein, lecithin/) sad Jins Chemicals; (3) Crain Merchandising. In addition 4o Showing.opsaefldChs hr,Jlsnti. on* are alao shown in mono form by the ttarss mint cpeTmtlfhal gHMptsgai.:'. Studies ar u s m being, made as to the practicalness of breaking d#n the jreeteidng gpumtlona into their imajor opponent parts Which would allow clegrsr mnslytsAioR of jprotit- ahieness as to basic product operations* ' - in fbeadcals-Pigmsats >Metals each plant reflects all eadea of products tvu-td at that plant, regardless of whara sold., the liOS-UP ia: Bfc. Belens - Zopague, Oedmlua Odor* Collinsville . Litfcupone, Tltaaolttfc, Black dsh Hammond - Pcwdared Metals Scranton - tbits lead Regular sales are not intermixed; thus, 8t. Helena's regular asles reflect all sales of Zopaque and Cadmium Colors awsda outside the Oopgaay. fhia change Also eliminates lntcrdivlsion soles between Chemical Divisions sc as la 1955 iwtsrdlvision profits represent profits by products on sales to* Paint Mvlaioa*. It should be noted that St. Helena salesmen eolicit orders for lithopoua (but sales are credited to Oollinanrille,) while Collinsville "saleswan solicit orders for Zopaque sad Cadmium Colors (but sales are credited to #t. Helena.) Sines tbfc manufacturing division reflects these sales, Mr. Both has authorised a eomeissioD transfer between divisions. Ibis oooalsslom transfar is reflected la a separate column in order to permit ellmination of what would amount to a duplica tion and inflation of operating expanses os consolidation of total Chemicals. N13462 GLD023782 OGKSOLXDAfiED OFCRA.TDK} XXPnSSS -2 February^. 1$?5 For example, at January 31 Collinsville ibovt total pc --ileeloa transferred tram 8t. Belena of 4 66,b6o (representing compensation for their efforts is sailing Sopaque and Cadadiai Colors idxieh aalaa are inflected by St. Selena.) St. Beleaa baa reflected til* same anruaifr aa a selling cqpena*. On consolidation of total Chemicals it is necessary to net this ->ack against consolidated operating expense !Ehls nev line-19 for Chemicals gives a such dearer picture of regular operation for each product group, as well as aUotrlsu; lsterdlvlsioc profit to appear as a pure Paint Division figure. You vill also note on Ssnral Stores the same duplication of eoaaissioc sxpenes exists, with Division So. 71 paying a cc--isslon to Oolledge. Zn oomsolidstlxg it Is again necessary to eliminate this duplication so as not to erroneously in flate consolidated smiling expenses. With the present set-19 in the Consolidated Operating Statement, pins Use Supple mental Bepart for Poods end Barrel Stares, it la felt that Directors, as wall as operating beads of each major group, can better evaluate operations of the Com pany in terms ef our basic product groups. G*K:Jts GLD023783