Document g2aVERey22YBbEm4njBV56Rg9

National Lead Comp any Seventy-Sixth Annual Report 1 il!~. Cu 2 Letter to Shareholders 2 Financial Highlights 4 Officers and Directors 5 Management Changes 6 Financial Information 9 Consolidated Operations 15 Partially Owned Affiliated Companies 18 Public Affairs 18 Employee Relations 20 Financial Statements 25 Auditors' Report i 26 Ten Year Review of Operations 28 Divisions, Subsidiaries and Affiliates 0000-NLI-000018790 To the Shareholders: limbliu-it:- 1967 Net Sales............................ . . $752,627,965 Net Earnings .................... . . $ 54,309,422 Net Earnings Per Share . . . . . $ 4.53 Cash Dividends................ . . $ 38,785,956 Dividends Per Share.......... . . $ 3.25 Taxes: Income Taxes.................... . . $ 40,585,929 Other Taxes...................... . . $ 15,880.717 Retained Earnings............ .. $ 15,523,466 1966 (Restated) $797,353,445 $ 61,633,767 $ 5.11 $ 38,295.581 $ 3.25 $ 49,154,111 $ 16,392.237 $ 23,338,186 The year 1967 was one of sign:'leant chanty for National Lead Company. Important ste;^. were taken, particularly in the areas of oii, ganization. planning", and police. to lav- thn_i> groundwork for growth in the future. ir. Changes were made in the Board of Direcfu- tors, w:hich heretofore had been entirely a;t inside Board. Edward J, Hanley. Chairma^,; of the Board of Allegheny Ludlum Steel Cor poration. and Morris H. Wright. Generafo. Partner of Kuhn. Loeb & Co., were elected tip;, fill two vacancies. [ A comprehensive review of the structure of the Company's organization, undertakeiduring 1967. has now been completed. Thi objective of the study is to improve the effe;0t tiveness of the Company's staff and operatir.br personnel in order to exploit tv the fullesjp degree present products of the Company an<V'new business opportunities as they develop)' Some organization changes have alreadSl taken place and others are contemplated, a Sales and earnings of National Lead de1 clined from the high levels of 1966. Sales ir 1967 were $752,627,965 compared witlPsales of $797,353,445 in 1966. as restated?^ Net earnings amounted to S54.309.422, o'1 $4.53 per share, in 1967. compared wit! earnings of $61,633,767, or S5.11 pershareC( in 1966, as restated. ir Certain economic factors and seasonal con ditions, such as the continued sluggishness ii\ r, homebuilding, inventory adjustments by cus tomers, reduced automotive prroduction, anco: the unseasonable spring and summer weather^ all combined to depress sales and earnings ii^ some of the Company's major product groupsIn addition, many segments of our business continued to operate under the pressure o: higher costs for raw' materials and labor. j In the latter half of 1967 and early 1968^ the Company completed several acquisition^ and initiated a number of feasibility studies, all with a view to a planned program of diver^ sification into related and nonrelated produce lines. i The Amos-Thompson Corporation and it`f subsidiaries were acquired through an ei; 2 0000-NLI-000018791 i * it chans^^e of stock. Thus. National Lead became ant stepjfn -ant manufacturer of molded plastics ls ot 0,^id pla-tie products for the appliance, auto' ^a- ^jnotiw. toy. radio, and television industries. ^nd of hardwood lumber and veneers for the of Direcfurniuire and other industries, tirely a;t Cochrane Foundry. Inc., a producer of high 'hairma^ualitv nonferrous sand castings, was also teel Cor^quired through an exchange of stock. The Genera|acilitiC' of Cochrane Foundry. Inc. will exIccted tej'and the range of casting capabilities of the Comp.on . structure1 Pointing toward further diversification, a dertake^ usibiatv study was completed contemplating ted. Th<h-' extraction of magnesium chloride and he cffecftlier s.dts by a chemical process from the tperatin^rines of the Great Salt Lake in Utah. These le fuller's would be converted subsequently into tany am*pid products, including magnesium and chlodevelopanw This study is currently being evaluated. alreadtphouid the project proceed, it is estimated that lated. k capita! expenditure of approximately S60 ead de-F'Tn be required. Sales ir The Company was also granted, by the ed wiffPmermlient of Thailand, a concession to ex- restatedt''orc l`K development of a major zinc deposit j-n Of" Mac Sod. about 350 miles northwest of red vvitlPan;:KOb Feasibility studies, scheduled to be er sharefl1rnP'otec^ during the second quarter of 1968. pre now being conducted to determine the , vononiics of developing the ore bodv and of mal con- . ,r , .' . ih, ness i. rt\rcctinc a rehnerv for the production ot zinc , metai. * by cus- . J , National Lead's research and technical lab- wea'ther,pratories throushout the w,, orld cont,inued to . Pork on me development of new product lines mines ir ,. . , *nu more sophisticated processes to ntanufac- t groups; ,busi.nessh'lre pre(se, it, produ. c,ts more. efficientlvt and at v" cost.; ibstanttal sums of monev. time, and ssure ot ,, non uere also invested in research programs pesianed to meet the chancine requirements of iy i968tnJu strv in this era of rapid technological in- uisition^ovalion and gj^gg studies: we |00]^ ahead in 1968, the year seems ofdiver-ju]] of paracjoxes Leading economists, both product^ ancj Qut g0vernrnent prec)jct the follow ing factors: a resurgence in homebuilding; l and it-^cord volume of investment for new plant an ex-and equipment; automotive production sec ond only to the 1965 record year; and a con tinued rise in steel production. Yet. the effects of the possible 10 per cent tax surcharge, the devaluation of the British pound and the sub sequent pressure on the dollar, and the con tinuing conflict in Vietnam could modify some, if not all. of these predictions. These conflicting factors render more diffi cult an accurate forecast of business for the Company in 1968. However, the plant invest ment programs of the past few years, the expansion of our traditional product lines, the introduction of new products, and the move ment into new markets through recent acqui sitions place National Lead in an encouraging position for the year ahead. At the forthcoming annual meeting, a pro posal will be submitted to authorize five mil lion shares of a new preferred stock and to increase the authorized common stock to thirty million shares. It is believed that mod-' ern business financing requires greater flexi bility in the Company's capital structure in order to take advantage of acquisition oppor tunities as they may occur, and to provide funding for future corporate growth and development. A summary of 1967 would not be complete without a sincere tribute to the men and women of National Lead. The effort, coopera tion. and initiative of National Lead people are the root strength of the Company. It is with a deep sense of loss that we re corded on June 6. 1967. the death of Alfred H. Drewcs. who had been our close associate for 32 years. Mr. Drevves had been president of National Lead since 1965. His constructive efforts on behalf of the Company will have a lasting effect. Respectfully submitted. 0000-NLI-000018792 3 \ Lenci C o::*p V Executive Offices: 111 Broadway. New York, N.Y. 10006 Board of Directors Alfred F. Bauer Vice President, National Lead Company George B. Coale Vice President, Sationa! Lead Company Edward J. Hanley Chairman of the Board, Allegheny Ludlum Steel Corporation John B. Henrich Executive Vice Piesident, Sationa! Lead Company J. Murray Johnston Vice President. Sationa! Lead Company James MacGutTie Vice President. Sationa! Lead Company Joseph A. Martino Chairman of the Board, Sationa! Lead Company Claude M. Merrell Vice President, Sationa! Lead Company David A. Merson Former Vice President, Sationa! Lead Company Edward R. Rowley President, Sationa! Lead Company William J. Welch Former Vice President, National Lead Company Morris H. Wright Genera! Partner, Kuhn, Loeb & Company Executive Committee Joseph A. Martino Chairman John B. Henrich J. Murray Johnston James MacGuffie Claude M. Merrell Edward R. Rowley Counsel Alexander & Green 120 Broadway, New York, N.Y. 10005 Executive Officers Joseph A. Martino Chairman of the Board Edward R. Rowley President John B. Henrich Executive Vice President: Genera! Counsel Alfred F. Bauer Vice President: Genera! Manager, Doehler-Jarvis Division George B. Coale Vice President: General Manager, Baroid Division J. Murray Johnston Vice President: Manager, Titanium Alloy Manufacturing Division James MacGuffie l'ice President; Manager, Titanium Di\ ision Claude M. Merrell Vice President--International Operations Warren T. Trask Vice President; Manager, Meta! Division Henry J. Whitson Vice President: Manager, Pigments & Chemicals Di\ ision Thomas P. Mesick Secretary Archer D. Sargent Treasurer George A. Dewey Controller John J. Lawlor Assistant Secretary Make Ericson Assistant Controller G. Warren Waite Assistant Controller Common Stock Transfer Agents: The Chase Manhattan Bank, One Chase Manhattan Plaza. New York. N.Y. 10015 Old Colony Trust Company, 45 Milk Street, Boston, Massachusetts 02106 National Trust Company Limited, 21 King Street East, Toronto 1, Canada Crocker-Citizens National Bank, 79 New Montgomery Street, San Francisco, Calif. 94105 Registrars: Bankers Trust Company, 16 Wall Street, New York, N.Y. 10015 The First National Bank of Boston. 45 Milk Street. Boston. Massachusetts 02106 The Royal Trust Company, 66 King Street West, Toronto 1, Canada United California Bank, 405 Montgomery Street, San Francisco, California 94104 43/s% Subordinated Debentures Trustee and Interest Paying Agent: The Chase Manhattan Bank, One Chase Manhattan Plaza, New York, N.Y. 10015 4 0000-NLI-000018793 During 1967, the Company's top management group was expanded and broadened in order to carry out the corporate growth and devel opment programs in progress, as well as those in the planning stage. New Executive Officers The election of Edward R. Rowley as presi dent of the Company to succeed Alfred H. Drewes. was announced on June 27. 1967. Mr. Rowley was employed by National Lead in 1933 as an engineer. He was named pro duction manager in 1948. In 1953. he was elected president of Titanium Metals Corpo ration of America, which position he held until he was elected executive vice president of National Lead in May 1967. Mr. Rowley was elected a director of National Lead Com pany in 1963 and a member of the executive committee the follow ing year. In July of 1967. John B. Henrich was elected executive vice president and general counsel. Mr. Henrich began his Company career in 1935 as a member of the patent de partment. He was named assistant secretary in 1943 and secretary in 1948. In I960, he was elected a member of the Board of Direc tors and of the executive committee. Henry J. Whitson, manager of the Pigments & Chemicals Division, was elected a v ice pres ident in September of 1967. Mr. Whitson was first employed by National Lead in 1932 as a member of the research laboratories. Thomas P. Mesick was appointed secretary to succeed Mr. Henrich in July of 1967. Formerly assistant secretary. Mr. Mesick came to National Lead as a member of the law department in 1953. In February of 1968, Archer D. Sargent was appointed as treasurer to succeed Thomas F. Owens who resigned. Mr. Sargent, formerly assistant treasurer and assistant controller, joined the Company in 1934. 0000-NLI-000018794 5 jp ji ri n j-> n ^ ' I t 'j f H '** n f' p Changes in Reporting In 1967. National Lead Company adopted a new method for reporting consolidated re sults. The new reporting procedure now in cludes the Company's equity in the current earnings of its majority owned domestic sub sidiaries. Formerly, such earnings were re ported only when received as dividends. Also included are the financial statements of the Amos-Thompson Corporation acquired dur ing 1967. Comparative statements for 1966 have been restated to conform with 1967. Dividends Dividend payments by the Company to share holders during 1967 remained at the 1966 level of S3.25 per share. Total dividend pay ments during 1967, including those paid by Amos-Thompson prior to acquisition, totaled $38,785,956, representing 71 per cent of total net earnings. National Lead Company has paid cash divi dends on its common stock every year since 1906. Taxes United States and foreign income tax provi sions amounted to $40,585,929 during 1967. In addition. $ 1 5.880.717 was prov ided bv the Company for state income. franchise. and other direct taxes. The total for all tvpes of taxes was $56,466,646. or $4.7! per share. As a result of the suspension of the Invest ment Tax Credit program by Congress, which ended March 9, 1967. and the completion of a number of major expansion projects, the Company's investment credit declined in 1967. Capital Investment To improve the potential of present opera tions. the Company invested S32.lS9.ii40 in new plant and equipment during 1 96T This is part of National Lead's coordinated program to raise the level of productivity and profit ability of existing facilities and to increase capacity to meet anticipated market demands. In order to assist the United States Gov ern ment's voluntary program for improving its balance of payments position. National Lead Overseas Capital Corporation was formed in 1967. Deutsche Mark Bearer Bonds amount ing to $15 million were issued in Germany through Deutsche Bank AG. Proceeds of the bonds, which are traded on the Frankfurt am Main and Diisseldorf stock exchanges, are to be used for expansion programs ov erseas. kxwv.v < Extraordinary Item During 1967, the Company reported ex traordinary after tax income of S3.048.639. This resulted from the sale to Titanium Metals Corporation of America of properties at Henderson, Nevada, and all shares owned by National Lead in Basic Management Inc., which furnishes certain services and utilities to these properties. Section of completely modern exposure center at Engstenberg, West Germany. for accelerated resting of Kronas titanium pigments. 6 0000-NLI-000018795 i t > i r ) } vi- i 67. the nd of v .re. t st- J* ich | jof the i 67. > ra- ; 1 in s is am fitase ds. rnits i tad ; in nttny [ the | am : to t ex- . 39. urn * ties ted |! tc.. ties Financial Condition The Company maintained its strong financial position during 1967. As of December 31. 1967. National Lead's capitalization con sisted of $52,043,702 of long-term debt and $399,639,174 of common equity. Total assets amounted to $576,418,153, an increase of 6 per cent over the amount of $544,324,194 at December 31, 1966. as restated. Working cap ital was $206,045,721 compared with the 1966 level of $ 194.168,946. The ratio of cur rent assets to current liabilities was 3.1 to 1. Both inventories and receivables showed an increase over the 1966 levels. Shareholders As of December 31, 1967. there were 11.981,052 shares outstanding, compared with 11.684.600 shares outstanding as shown in last year's report. The number of sharehold ers increased by 1,123 during 1967 to a total of 52.121. On October 31, 1967, the common stock of National Lead Company was listed for trading on the Pacific Coast Stock Exchange. The step was taken for two reasons. Los Angeles and San Francisco, the major finan cial centers of the Pacific Coast, are steadily increasing their share of the nation's institu tional and individual trading, and approxi mately 15 per cent of National Lead's share holders now live in the western United States. Statement ol Source and Application of Funds Source of Funds Net Income................................................................... Depreciation, Depletion and Amortization.................. Increase in Long Term Debt....................................... Total Application of Funds Dividends Paid............................................................. Additions to Plant. Property and Equipment (Net) . . . Increase in Investments and Advances......................... Increase in Treasury Stock........................................... Deferred Income Taxes............................................... Other-Principally Deferred Charges ............................ Total Working Capita) Increased Year 1967 (In Thon.nnnh l S54.309 19.719 15.006 $89,034 S38.786 28.993 3.508 4.416 700 754 S77.157 $11.877 j i 0000-NLI-000018796 7 1 I Jut i IS Ciisnnc lo. Ohio used new panels tor a c manufacturer. Die Castings Die casting and die casting metals accounted for approximately 21 per cent of consolidated sales in 1967. Reduced automobile production, intensi fied by automotive work stoppages, restrained the rate of growth of the Doehler-Jarvis Divi sion's sales to the automotive industry. This, in part, was offset by a higher volume of orders placed by other industries. During 1967, Doehler-Jarvis continued its aggressive program of pioneering new die casting applications and marketed a number of significant new products. The Division helped to develop frameless windows for auto mobiles in which the glass is adhesively bound directly to a zinc die casting. Large assembly orders for this new type of window have been obtained. Die cast parts were also supplied for the advanced warning radar system which is part of the nation's missile defense. The Doehler-Jarvis Research and Engi neering Department has developed a program for testing die steels under controlled condi tions which will be of significant benefit to the die casting and steel industries. Expanded en gineering and development programs have increased the division's ability to provide complete prototype service. Completion of multimillion-dollar expan sion programs at plants of Doehler-Jarvis closed a decade of expansion for this division. At Grand Rapids, Michigan. 131,000 square feet of additional plant manufacturing space was put into operation including new platers and conveyors. At Toledo, Ohio, casting capacity was in creased by 20 per cent with the addition of four 2,000-ton aluminum and two 1.400-ton zinc casting machines. At Pottstown, Pennsylvania, six new alumi num bays went into operation and markedly increased production and productivity. At Batavia, New York, renovation of part of the manufacturing facilities and the con struction of a new warehouse addition were completed. To supply the growing needs of Canadian industry for zinc and aluminum die castings, the Company's subsidiary. Lakeshore Die Casting, Limited, moved its operations from Oakville to Guelph. Canada, into a new plant built at a cost of SI,250.000. The facility will provide increased capacity, including large zinc and aluminum die casting machines. Metal Products Metal products in pigs, alloys, and fabricated forms accounted for about 24 per cent of con solidated sales in 1967. Although dollar volume in the Company's traditional metal product lines was lower, due primarily to the decreased market price of metal, earnings showed an upward trend. The sale of screws and metal fasteners pro duced by the Southern Screw Division was down from the high levels of 1966. reflecting the general trend of the economy. The Company put into operation a refinery at Beech Grove, Indiana, to produce antimonial lead and lead alloys. This plant, which replaced a former facility in Indianapolis, is the most modern secondary smelting installa tion in existence. It has greater capacity than the former facility and has been designed, engineered, and constructed to conform to the highest environmental health standards. Pigments In 1967, pigment sales contributed about 24 per cent to the consolidated sales of National Lead. In the United States, sales of TITANOX titanium dioxide pigment declined slightly. However, in foreign markets, sales of TITANOX and KRONOS titanium pigments 0000-NLI-000018798 9 t I r continued to move ahead. Higher costs for labor and materials in an increasingly com petitive market have resulted in reduced earn ings over the past few years. Production of titanium dioxide was success fully initiated at the Company's chloride pro cess plant in Sayreville. New Jersey. Multimillion-dollar expansion programs were started in Canada and West Germany for the con struction of chloride process plants to produce titanium dioxide. The facility in West Ger many will be on stream during the first half of 1968, while the plant in Canada should be completed late in 1968. The Company also began construction of a new sulfate process titanium dioxide plant near Nordenham in West Germany on the North Sea. The plant, which is scheduled to be completed in mid-1969, will utilize ilmenite ore from the Company's mine in Norway. An important contribution to sales in 1967 was made by TITANOX CL-NC, an out standing nonchalking, chloride process tita nium pigment introduced early in 1967. This pigment retains gloss, resists fading, and has a higher hiding power and tinting strength than any other nonchalking titanium dioxide pigment on the market today. It is easy-dis persing, fast-grinding, and is perfectly suited for industrial product finishes. During the year, substantial progress was also made in upgrading the Company's traditional titanium pigment product lines. The need for a paint system for metal struc tures that results in minimal maintenance con tinues to be the significant factor in the rise in sales of ONCOR M50, one of the Com pany's Basic Lead Silico Chromate pigments. M50's ability to resist rust and corrosion and its color retentive characteristics have made it the standard pigment specified by many bridge and highway departments as well as by numerous municipalities and toll road authorities. The remainder of the ONCOR group of pigments, which includes Basic Sili cate White Lead and Antimony Silico Oxide, continued to show progress during 1967. Cur- 0000-NLI-000018800 u New plant unit at Sayreville, 'fir Jersey for the production of titanium piyments by the chloride process. -- rently under development is a group of new ONCOR pigments that is expected to have widespread use in industrial and traffic mark ing applications. Bearings The sale of bearings accounted for about 5 per cent of National Lead's 1967 consolidated sales. The Magnus Metal Division maintained its share of the replacement market for solid journal bearings used by the railroad industry in 1967. Due to technological changes, solid journal bearings are gradually being replaced by roller bearings. A modern prototype plant has been completed for the manufacture of roller bearings for the railroad industry at Cincinnati, Ohio. Equipment and machinery are now being installed to increase the produc tion of this facility. Full-scale testing of the new Magnus roller bearings has been success fully completed under the supervision of the American Association of Railroads. It is ex pected that quantity deliveries will begin dur ing the first half of this year. The American Bearing Division, manufacturer of precision bearings, maintained its rate of growth in both sales and earnings. Chemicals and Plastics These areas accounted for approximately 8 per cent of consolidated sales. Lead, titanium, and zirconium compounds, manufactured by the Pigments & Chemicals Division and the TAM Division, found in creasing use in the plastics, electronics, and chemical industries. The growing use of rigid vinyl materials in building materials is also providing a new market for the Company's lead chemicals. 0000-NLI-000018801 Opacifiers manufactured by the TAM Divi sion maintained their level of sales in the im portant ceramic market. Dielectric product sales declined due to inventory adjustments in the consumer electronics industry. With the Amos-Thompson acquisition, Na tional Lead's marketing position in radio, tele vision, appliance, and automotive industries has been strengthened. The Company now has the capacity to supply molded plastic parts to these and other industries, and is well placed in an industry with good growth potential. Oil Well Materials and Services Sales by the Baroid Division of oil well mate rials and services made up about 8 per cent of consolidated sales. The division recorded a moderate decline in sales for 1967, due primarily to the con tinuing decrease in the number of oil wells drilled in the United States. At the same time, Baroid was accelerating its rate of expansion in overseas markets. Two factors provide a bright, long-term outlook for this segment of National Lead's business. They are the types and locations of oil wells being drilled, and the enlargement of the product line and services offered. Research efforts by the Baroid Division are leading to new products that are expected to more than offset the reduction in the number of wells drilled. Introduction of these prod ucts comes at a time when the trend to deeper drilling, both inland and offshore, is becoming more pronounced. Deeper drilling requires not only larger quantities of the materials pro duced by Baroid but also greater quantities of the division's more sophisticated materials and services. In 1967, a capital investment program was completed to increase both the capacity and productivity of the division's plant at New berry, California. The facility processes clays Research is conducted at sixteen Company laboratories throughout the country. 0000-NLI-000018802 13 An Amos-Thompson inspector at the Edinburg, Indiana plant examines molded plastic ?>ame for a 21-inch portable tele\ ision. Paints Sales of National Lead's DUTCH BOY line of quality paints amounted to approximately 5 per cent of consolidated Company sales. This line, which reflects the fluctuations in the civilian economy, recorded somewhat lower sales in 1967. The trend toward greater use of latex wall paint has created a demand for a latex enamel for interior trim. Asserting its leadership, the Paint Division introduced DUTCH BOY Latex Satin Gloss Enamel, an acrylic latex for interior woodwork, cabinets, and kitchen and bathroom walls. This new product re ceived quick acceptance by dealers and users and is expected to have a good effect upon sales in 1968. This strengthens the division's marketing position in the rapidly expanding latex field. With DUTCH BOY NALPLEX, one of the first 100 per cent acrylic latex interior wall paints, and DUTCH BOY Latex Satin Gloss Enamel, the division now has a complete acrylic interior system to augment its DUTCH BOY Latex House Paint. Miscellaneous The miscellaneous category, which includes such divisions and subsidiaries as The Chas. Taylor's Sons Company, Nuclear Division. 0000-NLI-000018803 e 4' r l i /. * Mineral Deposits Ltd. plant at Crescent Head, Australia, for the separation of rutile and zircon ores. and the Tool and Engineering Division, ac counted for approximately 5 per cent of the Company's consolidated sales. The specialized refractories based upon zircon and mullite, manufactured by Chas. Taylor's Sons Company, continued to make progress against the more conventional mate rials used in the high temperature furnaces of the steel and glass industries. These new prod ucts offer improved performance, hence sig nificant cost savings. A $6-million capital investment program to expand the refractory manufacturing facili ties of the Chas. Taylor's Sons Company at South Shore, Kentucky, was begun in 1967. The project includes a 34.000-square-foot building to house a 480-foot continuous tun nel kiln and auxiliary dryer, and a 39.000 square-foot press building. Completion is scheduled for mid-1968. The Company's Nuclear Division has assimilated into its Albany, New York, opera tions the equipment and expertise acquired from the Sylcor Division of Sylvania Electric Products in 1966. This provides the Albany plant with the additional capability of supply ing nuclear fuel and other components for test and research reactors. This acquisition, to gether with the purchase of a plant in Wil mington, Delaware, from Knapp Mills, aug mented and broadened the division's initial nuclear manufacturing capability of fabricat ing radiation shielding material and mecha nisms from depleted uranium. The division's activities in the nuclear energy field include an expanding activity in the shipment and handling of irradiated nuclear fuel and in the production of feed materials for the United States Atomic Energy Commission. Since 1951. the Company has been the contract operator for the AEC's Feed Materials Production Center at Fernald, Ohio. Research and development activities in the nuclear energy field were expanded during 1967. National Lead initiated an intensive engineering study for the reprocessing of spent fuels from nuclear reactors, used by the elec tric utility industry. The Company's Tool and Engineering Di vision, which provides dies for prototype parts for future models of automobiles, experienced another good year despite conditions prevail ing in the automobile industry. Titanium Metals Corporation of America, jointly owned by National Lead Company and Allegheny Ludlum Steel Corporation, con tinued as the leading producer of titanium metal in 1967. Income was lower as total in dustry shipments decreased from the 1966 level to 27.2 million pounds. This was due primarily to inventory liquidation by users, who had accumulated a considerable reserve of titanium in 1966, when shipments in creased by 45 per cent over those for the pre vious year. This factor tended to mask the actual growth in utilization of titanium metal during 1967. For 1967, TIMET reported earnings of $3,274,436 after taxes. A cash dividend of $750,000, the same as in 1966, was paid both to National Lead Company and to Allegheny Ludlum Steel Corporation. The shipment to and usage by the military and consumer mar kets followed the patterns of 1966. 0000-NLI-000018805 [ . Dutch Boi paints l , ieamred in national ' - 'Y< and on prime-time )i l-'n t'r 90 pt'r ail I'.S. households. t f ( I? | * <r l l The $50-million capital expansion program initiated in 1966 is continuing. Part of this investment is directed toward the development of more sophisticated products to meet the future demands of users. The long-range outlook for the titanium metal market is excellent, demanding an aggressive program by TIMET both in the market place and in capital investment to maintain its position of leadership. The Baker Castor Oil Company, in which National Lead owns a 70 per cent interest, experienced another fine year. The continuing emphasis on research in the rapidly expanding field of urethane technology resulted in the introduction of a plastic which is both fire and high-voltage resistant and can be used for plugging and splicing telephone communica tion cables. New products for use in paints were devel oped and are finding commercial use as weather-resistant vehicles and factory-coated finishes. These are also used to impart better paint application properties. With regard to Baker's progress in removing the toxicity from the residue remaining after the pressing of castor beans, the United States Food and Drug Administration is now considering Baker's re quest for a regulation to permit the utilization of detoxified castor seed meal in cattle feeds. Morris P. Kirk & Son, Inc., continued to show progress during 1967. This Los Angelesbased affiliate of National Lead produces fab ricated lead products and lead oxides for the industrial west. Pioneer Aluminum Inc., a subsidiary of Kirk, is a nationwide supplier of aluminum extrusions and sheet to the aircraft industry. The Company's Canadian affiliate, Canada Metal Company, Ltd., a producer of lead oxides and fabricated lead products, recorded lower sales and earnings, reflecting the uncer Manipulator positions 15,000-pound titanium ingot for forging by TIMET's 2,500-ton press at Toronto, Ohio. tainties in the Canadian economy. Affiliates producing oil well drilling materials in South America, the Caribbean area, and North Africa recorded increased sales in 1967. The Company's wholly owned subsidiary, Titanium Alloy Manufacturing Co. Ptv. Lim ited, reduced its equity in Mineral Deposits Limited to 85 per cent through a public offer ing of common shares. The offering was made to satisfy the desire of Australian nationals to participate in this Australian operation. 0000-NLI-000018806 17 Baroid double deck shaker, at rig site, removes shale and other fine solids before drilling mud is recirculated. The year of 1967 marked the fourth year of the Company's Plans for Progress policy in cooperation with the President's Committee on Equal Employment Opportunity. During the year, National Lead reaffirmed its Plans for Progress pledge on equal opportunity em ployment. The interrelated program to assign members of minority groups to positions of greater responsibility for which they are quali fied, and to expand general employment op portunities, continued to show progress. The Company's awareness of and progres sive attitude toward air and water emissions were expressed with the formation of a corpo rate Environmental Health Department. The new department is staffed by engineers and scientists directly responsible for the control of air and water emissions at all National Lead Company plants. The Company, including its divisions, and wholly and majority owned United States and foreign subsidiaries, employed approximately 26,000 persons at year end 1967. This was a slight increase over the 1966 level. Labor re lations with the unions representing National Lead employees remained satisfactory in 1967. During the year. 18 new agreements with labor unions were negotiated with mini mal interruption of operations. Nuclear Division technician at Albany, New York conducts fluoroscopic inspection of the internal structure of a nuclear fuel plate. 18 0000-NLI-000018807 I ,1 National Lead Company Financial Statements for 1967 i% / Contents 20 Balance Sheets * 22 Statements of Income and Earned Surplus 23 Notes to Financial Statements 25 Auditors' Report 26 Ten Year Review of Operations 28 Divisions, Subsidiaries and Affiliates 0000-NLI-000018808 19 National Lead Company and its Consolidated Subsidiaries Balance Sheets December 31,1967 and 1966 Assets Current assets: Cash, including time deposits ........................................ 1967 1966 (Restated)* S 43.564,514 $ 26,614,105 Government, state and municipal obligations, at cost (approximates market)................................. 6,022.493 14.214,690 Other marketable securities, at cost (at market quotations: 1967, $9,570,000; 1966, $5,770,000) 7,112,902 3,824,344 Accounts and notes receivable, less reserves: 1967, $2,089,377; 1966, $2,120,271 .................... 99.463.475 98.489,307 Inventories (Note 2)......................................................... Total current assets.................................................. Notes receivable under Stock Option Incentive Plan (Note 7)................................................................................ Investments in and advances to unconsolidated subsidiaries, less reserves: 1967, $3,052,675; 1966, $3,193,775 (Note3)............................................. Miscellaneous investments and advances, at cost or below, less reserves: 1967, $948,372; 1966, $1,034,897 (Note 4) .......................................... 148.837.680 305,001,064 266.906 29.661,822 15,801.260 143.324,437 286,466,883 368,526 29,888,674 12,065,822 Plant, property and equipment (including intangibles of $20,692,311 not being amortized) at cost, less reserves for depreciation, depletion and amortization: 1967, $250,826,958; 1966, $234,583,557............... 218,487,512 209,212,927 Prepaid expenses and deferred charges.............................. See Note 1. 7,199,589 $576,418,153 6,321,362 $544,324,194 The accompanying 0000-NLI-000018809 Liabilities. t Current liabilities: Notes payable to banks............................................... Accounts payable and accrued liabilities............... Provisions for taxes....................................................... Total current liabilities........................................ Long term debt (Note 5)................................................ Deferred United States income tax (Note 6)............... Inventory reserve (Note 2)............................................. 1967 1966 (Restated)* S 11.673,750 54,303.080 32.978.513 $ 98.955,343 $ 52,043.702 $ 14,100.000 $ 11.679,934 $ 52,714,874 39,583,063 $ 92,297,937 $ 37,037,319 $ 14,800.000 $ 11.602,629 Capital. i Common stock, par value $5; shares authorized 20,000,000, issued 12,086,309 (Note 7) . .. S 60.431,545 $ 60,431,545 Capital surplus (Note 1) 36.1 14,730 36,169,257 Earned surplus........................................................................... Less, reacquired common stock, at cost: 1967, 105,257 shares; 1966, 35,957 shares........... 309,872.992 406,419,267 294,349,526 390,950,328 6,780,093 $399,639,174 $576,418,153 2,364,019 $388,586,309 $544,324,194 notes I frd parr of the financial statements. 0000-NLI-000018810 21 National Lead Company and its Consolidated Subsidiaries Statements of Income and Earned Surplus For the years ended December 31, 1967 and 1966 1967 1966 (Restated)- Net sales..................................................................................... Cost of sales................................................................................ Depreciation, depletion and amortization......................... Selling, administrative and general expenses.................. Taxes, including state income taxes................................. Equity in net earnings of unconsolidated domestic subsidiaries (Note 1)...................................... Other income, net.................................................................... Interest on bonds...................................................................... Income before United States and foreign income taxes........................................... Provision for United States and foreign income taxes . . Income before extraordinary item...................................... Extraordinary item, net of applicable income tax (Note 9)......................................................................... Net income................................................................. Per share of common stock : Income before extraordinary item...................... Extraordinary item, net of tax.............................. Net income................................................................. $752,627,965 $529,502,180 19,718,639 104,327,670 15,880.717 $669,429,206 S 83.198.759 2,274,340 7,082.1 12 92,555,211 1,791,688 90,763,523 39,502,740 51,260,783 3,048,639 $ 54,309,422 $4,28 ,25 $4.53 $797,353,445 $556,776,051 17.826,669 102,178,728 16.392,237 $693,173,685 $104,179,760 2.226,395 5,639,224 112,045,379 1.257,501 110,787,878 49,154,111 61,633,767 $ 61,633,767 $5.11 $5.11 Earned surplus at beginning of year as previously reported................................. Adjustment of investment in unconsolidated domestic subsidiaries from cost to equity basis (Note 1)................................................ Adjustment relating to acquisition of Amos-Thompson Corporation (Note 1) Restated balance at beginning of year............... Net income................................................................................ Less, Cash dividends paid by: National Lead Company--$3.25 per common share................................................ Amos-Thompson Corporation prior to acquisition............................................................... Earned surplus at end of year................................. $294,349,526 54,309,422 $348,658,948 $ 38,409,741 376,215 $ 38,785,956 $309,872,992 $249,355,152 12,518,575 9,137,613 $271,011,340 61,633,767 $332,645,107 $ 37,981,849 313,732 $ 38,295,581 $294,349,526 See Note 1. The accompanying notes are an integral part of the financial statements. 22 0000-NLI-000018811 National Lead Company and its Consolidated Subsidiaries Notes to Financial Statements 1. The consolidated financial statements include the accounts of the Company, all wholly-owned domestic subsidiaries and major wholly-owned foreign subsidiaries translated at appropriate rates of exchange. To conform with recent developments in accounting principles, commencing in 1967 the Com pany adopted the practice of reporting its investments in unconsolidated domestic subsidiaries at its equity in their underlying net assets, and including in income its equity in the net income of such subsidiaries, both as shown by the latters' financial statements. Previously, such investments had been carried at cost, and income thereon was reflected only to the extent received as dividends. In August, 1967 all the outstanding stock of Amos-Thompson Corporation was acquired in exchange for shares of the Company's capital stock. For accounting purposes, the acquisition has been treated as a pooling of interests and accordingly the accounts of Amos-Thompson have been included in the financial statements for both years. Capital surplus previously reported was reduced by $1,352,547 representing the excess of the par value of the shares issued over the stated value of the Amos-Thompson stock outstanding, and. in 1967. was charged with the cost of issuing the Com pany's stock. The financial statements for 1966 included herein have been restated to conform with the fore going change in accounting practice and to include the accounts of Amos-Thompson. The financial statements include the following with respect to consolidated foreign subsidiaries: Net assets.................................................. Net current assets...................................... Net income............................................... 1967 $76,064,000 36,474,000 10,408,000 1966 $67,843,000 35,243,000 9,003,000 2. Inventories are priced at the lower of cost (on various "average," "first-in, first-out" or "last-in, first-out" bases) or market. The inventory reserve has been maintained on the basis of the following quantities and prices of normal stocks: Lead ................................................................. Tin .................................................................... Antimony ......................................................... Normal Quantities (Short Tons) 49,687'/2 1,124'/1,400 Fixed Inventory Price per Pound $.03 .21 .05 3. Unconsolidated subsidiaries comprise subsidiaries more than 50 per cent but less than 100 per cent owned and certain minor wholly-owned foreign subsidiaries. The principal portion of the total investments and advances represents investments in domestic subsidiaries, which are carried at the Company's equity in the related underlying net assets (see Note 1). Investments in foreign subsidi aries are carried at cost less reserves which, in the aggregate, is somewhat less than the Company's equity in related underlying net assets. 0000-NLI-000018812 23 4. The Company's equity in the underlying net assets of its 50 per cent owned companies, as shown by the latters' financial statements, exceeded the cost of its investments and advances (included in miscellaneous investments) by approximately $20,900,000 at December 31, 1967 and $19,930,000 at December 31, 1966. 5. Long term debt comprises: 4Ye % subordinated debentures, due April 1, 1988 .................................. 6'/2 % Deutsche Mark bearer bonds, due 1972 through 1979 ........................ Miscellaneous notes and other items........ 1967 $26,150,600 15,000,000 10,893,102 $52,043,702 1966 $28,272,400 8,764,919 $37,037,319 The indenture governing the subordinated debentures provides for payment of $850,000 into a purchase fund annually through 1973 for purchase and retirement of debentures at or below their principal amount, and $1,297,000 into a sinking fund annually thereafter for redemption of deben tures at their principal amount. The Company may apply debentures purchased by it against all or any part of these payments. The debentures outstanding at December 31, 1967 and 1966 are net of $2,862,900 and $1,591,100 face amount of debentures held by the Company. 6. Deferred taxes relate to the excess of depreciation claimed for federal income tax purposes over amounts provided in the financial statements. 7. Under the Stock Option Incentive Plan adopted in 1958 options have been granted to certain officers and other key employees to purchase shares of the common stock of the Company at 95 per cent of the fair market value of the stock on the dates of granting such options. The options are exercisable over a period of seven years from date of grant. The period during which options could be granted expired in 1963. Changes during 1967 under the Plan are summarized as follows: Under option, January 1, 1967 . . Less, Options expired ............ Under option, December 31, 1967 Range of Option Prices per Share $67,568 to $92,150 67.568 to 92.150 67.568 to 89.775 Shares 71,240 5,250 65,990 At December 31, 1967, the unpaid balances of the purchase prices of 6,850 shares are evidenced by promissory notes bearing interest at 3 per cent and payable within 10 years from the dates thereof. These shares are pledged as collateral with the Company. 8. The Company and its subsidiaries have various pension plans covering the majority of their employees. Total pension costs approximated $7,800,000 in 1967 and $7,100,000 in 1966. Current service costs under the plans are charged to income as they accrue and are funded as to the major plans. The major portion of prior service costs is being charged to income and funded over a period of thirty years. Unfunded vested benefits at December 31, 1967 amounted to approxi mately $13,000,000. 9. The Company sold certain fixed property and related assets, on which it realized a profit of $3,048,639 after applicable federal income taxes of $1,083,189. 0000-NU-000018813 Lybrand, Ross Bros. & Montgomery Certified Public Accountants 2 Broadway. New York. N Y. To the Stockholders of National Lead Company, New York, N Y. We have examined the consolidated balance sheet of NATIONAL LEAD COMPANY and its Consolidated Subsidiaries as of Decem ber 31, 1967 and the related consolidated statements of income and earned surplus for the year then ended. Our examination was made in accordance with generally accepted auditing standards, and ac cordingly included such tests of the accounting records and such other auditing procedures as we considered necessary in the circum stances. We were furnished reports of other public accountants upon their examinations of the financial statements of certain consolidated and major unconsolidated subsidiaries and fifty per cent owned companies. Our opinion expressed herein, insofar as it relates to the amounts included for such subsidiaries and companies, is based solely upon such reports. We made a similar examination of the financial statements of the Company and its Consolidated Subsidi aries for the year 1966, which have been restated, with our approval, as indicated in Note 1 to the financial statements. In our opinion, the afore-mentioned financial statements present fairly the consolidated financial position of National Lead Company and its consolidated subsidiaries at December 31, 1967 and 1966 and the consolidated results of their operations for the years then ended, in conformity with generally accepted accounting principles applied on a consistent basis. LYBRAND, ROSS BROS. & MONTGOMERY New York, February 23, 1968 0000-NLI-000018814 25 National Lead Company and its Consolidated Subsidiaries Ten Year Review of Operations Net Sales Income before Taxes................................... Taxes on Income........................................... Net Income ..................................................... Preferred Dividends...................................... Common Dividends...................................... Total Cash Dividends................................... Retained Earnings........................................ Earnings Per Common Share.................... Cash Dividends Per Common Share................................. Total Current Assets...................................... Total Current Liabilities............................... Working Capital................................................ Gross Property Account................................. Reserves for Depreciation, Depletion, and Amortization.................. Net Property Account .................................... Total Assets........................................................ 1967 S752.627.965 1966 Restated"' $797,353,445 94.895.351 40,585.929 54,309,422*** *** 110,787,878 49,154,111 61,633,767 1965 $758,321,939 108,477,446 49,788,166 58,689,280 19643 $683,6 105,71a 49,5111 56,19* 38.785.956 38.785.956 15,523,466 4.53* 38,295,581 38,295,581 23,338,186 5.11 38,072,217 38,072,217 20,617,063 5.01 38,03S| 38,039 18,169 3.25 305.001.064 98,955,343 206,045.721 469,314,470 250.826,958 218,487.512 576,418.153 3.25 286,466,883 92,297,937 194,168,946 443,796,484 234,583,557 209,212,927 544,324,194 3.25 273,407,737 90,597,957 182,809,780 409,116,090 218,840,019 190,276,071 494,790,749 279,054 93,223a 185,821 378,353 208,9741 169,3811 473,105$ * Includes extraordinary income erf 13,048,639 (after income taxes of $1,083,189) or $.25 per share. ** 1966 restated to conform to new 1967 method for reporting consolidated results which now include the Company's equity in the earnings of its majority-owned domestic subsidiaries. Also included are the financial statements erf Amos-Thompson Corporation acquired during 1967. *** 1960 restated to conform to new 1961 basis of consolidation. Prior to I960, certain wholly owned foreign subsidiaries are not consolidated. 0000-NLI-000018815 i *^ 318,580.159 ;,712! 94,680.405 *,51 45,087,815 ',196i 49,592,590 374,488 ,035,! ; 38,048,890 ,035,! 38,423,378 ,160,- 11,169,212 4 i 4.20 1962 $570,721,363 93,780,009 44,740,176 49,039,833 2,105,562 38,033,964 40,139,526 8,900,307 4.01 1961 $555,672,358 98,436,769 46,695,016 51,741,753 2,181,161 38,016,564 40,197,725 11,544,028 4.24 RRee1ss9tt6aa0tteedd****** $562,021,983 100,569,991 48,163,860 52,406,131 2,181,161 38,011,864 40,193,025 12,213,106 4.29 1959 $530,550,817 101,174,233 48,712,722 52,461,511 2,181,161 37,947,176 40,128,337 12,333,174 4.30 1958 $457,592,886 84,395,289 39,673,891 44,721,398 2,181,161 37,865,038 40,046,199 4,675,199 3.65 3 3.25 051,4 253,105,206 223,; 83,706,098 828,! 169,399,108 $55,{362,643,201 974^ '198,150,041 381,t 164,493,160 105,*42.480,074 3.25 248,997,917 74,195,681 174,802,236 358,753,647 192,898,078 165,855,569 438,593,911 3.25 242,107,203 75,193,976 166,913,227 347,040,211 181,569,212 165,470,999 431,161,102 3.25 227,558,122 69,229,892 158,328,230 335,069,506 172,980,588 162,088,918 413,535,074 3.25 205,350,494 66,689,074 138,661,420 292,122,311 145,220,190 146,902,121 380,511,351 3.25 184,392,427 64,240,475 120,151,952 287,800,726 135,107,065 152,693,661 361,213,437 0000-NLI-000018816 Divisions, Subsidiaries, and Affiliates Divisions Ame r ic an b e a r in g d iv is io n . Indianapolis, Ind. Precision bearings /Sold through Amer ican Bearing Corporation) b a r o id d iv is io n . Houston, Tex. Oil well drill ing materials, well logging services and test ing equipment: chemicals for the petroleum industry and gellants for grease d e l o r e d iv is io n . St. Louis, Mo, Barium and calcium pigments d o e h l e r -j a r v is d iv is io n . Toledo, O. Alumi num, brass, magnesium, and zinc die castings e v a n s l e ad d iv is io n . Charleston. W. Va. Lead oxides g o l d s mit h d iv is io n . Chicago. 111. Precious metals l a n d o v e r ma n u f a c t u r in g d iv is io n . Landover, Md. Cast acrylic sheeting Ma g n u s me t a l d iv is io n . New York, N. Y. Brass and bronze bearings and castings, alu minum castings (Sold through Magnus Metal Corporation) me t al d iv is io n . New York. N.Y. Antimony, cadmium, lead, and zinc metals; fabricated lead products and alloys n u c l e a r d iv is io n . Albany. N.Y. Uranium ore concentrates and nuclear feed materials, fuel elements, fabricated uranium products, nu clear research, development, and transporta tion services PAINT DIVISION. New York. N.Y Dutch Boy Paints p ig me n t s & c h e mic a l s d iv is io n . New York. N.Y. A ntimony oxide; lead pivments and chemicals: battery oxides and separators; gel lants: stabilizers SOUTHERN s c r e w d iv is io n . Statesville. N.C. Screws and metal fasteners `Sold through Southern Screw Company i s t e e l p a c k a g e d iv is io n . St. Louis. Mo. Small steel containers TEXAS MINING AND SMELTING DIMn ION. Laredo, Tex. Antimony and antimony oxide TITANIUM ALLOY MANUFACTURING DIVISION. New York, N.Y. Zirconium oxidi.. silicates' and chemicals: electronic tita/iatc'- zirconales, and stannates; ferrous and nonferrous alloys t it a n iu m d iv is io n . New York. N.Y. Tita nium pigments and chemicals, ilmenite and magnetite iron ore <Sold througn Titanium Pigment Corporation> TOOL AND ENGINEERING DIVISION. Chicago, 111. Tools for sheet metal forming, complete models, prototypes, assembly operations and engineering services Wholly Owned Domestic Subsidiaries ALUMINUM MATCH PLATE CORPORATION. Kenmore. N.Y. Aluminum castings a mo s -t h o mp s o n c o r p o r a t io n . Edinburg, In diana. Molded plastics; wood veneer and lumber f l o a t in g f l o o r s , in c . New York, N.Y. Ele vated floors and site environmental systems ma s t e r me t al s , in c . Cleveland, O. Lead and lead alloys n a t io n a l l e a d c o mp a n y o f omo. New York. N.Y. Contract-operator, A town Energy Commission n at io n al l ead o v er s eas c apit al c o r po r a t io n . New York. N.Y. European subsidiary financing t h e c h a s . t a y l o r 's s o n s c o mp a n y . Cincin nati, O. High temperature refracU'rics f- 'VT" 0000-NLI-000018817 28 { Wholly Owned Foreign Subsidiaries j s y r ber d ib c a s t in g co. l imit e d . Hamilton. 4 Canada. Aluminum, brass, magnesium, and 4 .-:(!( die < a'line* s c r o id o f Ca n a d a , l t d . Calgary. Canada. Oil well dnliine materials, well logging serv- and testing equipment bar o id in t e r n a t io n a l . S.p.A. Rome. Italy. ork. Oil well drilling materials and h ar o id o f Nig e r ia, l t d . Lagos. Nigeria. Oil gel- h ell drilling materials N'.C, nign mall bar o id il k .) l t d . London, England. Oil well drilling materials Ca n a d ia n t it a n iu m p ig me n t s l imit e d . Mon treal. Canada. Titanium pigments: gellants: h ad pigments: stabilizers: zirconium and tita nium compounds c h .a s . t a y l o r s o n s s .a . Brussels. Belgium. High temperature refractories HOYT METAL COMPANY OF GREAT BRITAIN. LTD. London. England. Antifriction metals in d u s t r ia s d e r ip l o m s.A. Buenos Aires. Ar gentina. Lead oxides k r o n o s t it aa n N.v. Rotterdam. The Nether lands. Titanium pigments: gellants: lead pigments k r o n o s t it a n iu m p ig me n t s l imit e d . Lon don. England. Titanium pigments l a k e s h o r e d ie c a s t in g l imit e d . Guelph. Can ada. Aluminum and zinc die castings p ig me n t o s min e r a is in d u s t r ia l e c o me r c ia l p ig min a s .a . Salvador, Brazil. Oil well drilling materials s o c ie t e b e l g e d u t it a n e s .a . Brussels. Bel gium. Titanium pigments: gellants: lead pigments THE TITANIUM ALLOY MANUFACTURING CO. p t y . l imit e d . Tweed Heads. Australia. Ru tile and zircon ores t it an co. a s . Fredrikstad. Norway. Tita nium pigments: gellants: lead pigments: stabilizers TIT.a n g e s e l l s c h a f t m.b.H. Leverkusen. West Germany. Titanium pigments: gellants: lead pigments TITANIA a s . Hauge i Dalane, Norway, li me nite La- ION. ales COI1- rous T inl and u urn ' Partially Owned Domestic Affiliated Companies mo r r is p. k ir k & s o n . in c . Los Angeles, } Calif Aluminum, lead, and zinc alloys: fab- runted lead products: lead oxides <76%) p io m.ir a l u min u m in c . Los Angeles, Calif. Aluminum aircraft extrusions and aluminum nuding plate <71%) r -n c o r p o r a t io n . New York, N.Y. Direct reduction and beneficiation of iron ores (509c) t h e b a k e r c a s t o r o il c o mp a n y . Bayonne, N.J. Castor oil, chemicals derived from cas tor oil and other oils and fats, chemical specialties 170% I f-------------------------------------------------------------------------------------------------- TITANIUM METALS CORPORATION OF AMERICA. New York. N.Y. Titanium metal sponge, ingot and mill products (50% / n 111. nicte and Partially Owned Foreign Affiliated Companies abbey c h e mic a l s l imit e d . London, England. Gellants: stabilizers for vinyl plastics (529c) me t a l c a s t in g s d o e h l e r l imit e d . Worcester. England. Die castings (99%) bar o id o f t b y a , l t d ., Benghazi, Libya. Oil well drillin materials (49%) 'ork. ergy ORAliary bar o id d e Ve n e z u e l a, s .a . Caracas. Vene zuela. Oil well drilling materials (87%) b a r y t e s 4 min e r a l s l imit e d . Trinidad. Brit ish West Indies. OH well drilling materials '50% i m d er iv es d u t it a n e s .a . Langerbrugge, Bel gium. Titanium pigments (82%) ncin- INDUSTRIaS DOEHLER d o BRASIL, S.A. S0 Paulo. Brazil. Die castings (809c) min e r a l d e p o s it s l imit e d . Sydney, Aus tralia. Rutile and zircon ores (85%) n a t io n a l l e ad c o mp a n y (Ph il ip p in e s ). Ma nila, Philippines. Paints, varnishes, enamels, and lacquers (519c) n a t io n a l l e ad c o mp a n y s .a . Buenos Aires. Argentina. Lead and lead products (100%) NATIONAL LEAD COMPANY (THAILAND) LIM ITED. Bangkok, Thailand. Paints, varnishes, enamels, and lacquers (51%) QUEENSLAND TITANIUM MINES PTY. LTD. Tin Can Bay, Queensland. Australia. Rutile and zircon ores (75 9c) SCHRAUBENFABRIK NEUST.ADT GOETZ & CIE G.m.b.H. Neustadt. West Germany. Screw-s and metal fasteners (999c t SOCIETE 1NDUSTRIELLE DU TITANE. Paris. France. Titanium pigments (919c) t h e Ca n a d a me t a l c o mp a n y l imit e d . To ronto. Canada. Lead oxides: fabricated lead products: lead and zinc alloys: brass and bronze products (509c) THE CARTER w h it e LEAD COMPANY OF CAN ADA, LTD. Montreal, Canada. Lead pigments, oxides: stabilizers for vinyl plastics (50%) Ftgu res in parentheses represent percentage of voting securities owned. 0000-NLI-000018818 I