Document g2gyvn6kbB7en7NMYp1pqE44G

/' /1969 Annual Report z PLAINTIFF'S EXHIBIT __ PEA-7.5- XOPPEBS COM, im LAW DEPARTMENT SC-BE-05785 KOPPERS Five Years at a Glance* Contents Letter to Stockholders................................. 2 Net Sales by Division................................... 4 Source and Disposition of Funds............. ~ Koppers New Design for Marketing........... 8 The Competences of Koppers.............. center Operating Highlights.................................... 10 Koppers Sales by Consuming Industry... 11 3oard of Directors........................................... I4 Officers of Koppers Company, Inc.............. 14 Financial Statements Report of Certified Public Accountants. 15 Consolidated Statement of Income and Earnings Retained in the Business. .16 Consolidated Balance Sheet.............. 17-18 Notes to Financial Statements...............19 Ten-Year Financial Highlights.............. 20-21 Location for Annual Meeting: The next annual meeting of the stockholders of the Company will be held at 11 a.m. on Marctr-25, 1963, in the Chatham Ballroom, on the second floor of the Chatham Center office building, Pittsburgh, Pa. ij 1967 | S446.146.QOO .1 1966 S44Z6i8.oaa Total Sales S3az804,oca 1964 S343.a64.GC0 1963 : S239.736.Qt3a . ' j ' * , 1 1968 S319.423.G0a Manufacturing Sales 196S S2a2.73a.aQa 1964 ! S267.I83.aCa -5 - ... J93 s24s.sea.cca Million* 0 50 too ISO 200 250 300 350 1967 j S13.972.000 1 Net Income 1966 j si2.a46.aaa j 1965 $12 731.G00 . 1964 S10 798.000 1963 S 7.657 COO I Million* 0 2 4 S 8 10 12 KOPPERS t: ! 1967 $2.70 i { 1966 S2 24- ; Bamings 1965 S2 53 1 Psr Share j | 1964 S2.T6 ! J j 1963 SV-*9 i* ! . Dollars 0 0.50 1.00 1.50 2.00 2.50 3.00 i I t S j ! Dividends Paid j to Common j Stockholders \ ' 1967 $1.40 1966 51.40 1965 SI.20 1964 ST.20 ' ' 1963 ST 00 j Dollars 0 par Jhara 0.50 1.00 ` 1.50 `Results prior to 1967 have been restated here and throughout this Report to reflect the merger of Buffalo Slag Co., Inc. into Koppers in 1967 on a pooling of interests basis. A New Look In the Markets We Serve The continuing growth that Koppers is experiencing today is the result of strategic planning that was initiated in the early 1960's. Since then, the Company has re directed its marketing efforts to the end that the great majority of its sales volume is achieved in the more significant growth markets of the economy. In 1967, sales of products which we did not sell in 1960 accounted for about $127 million or 28 per cent of total Company sales. New facilities have been built and existing capacity modernized to sup port growing product lines. Improved, more integrated mar keting strategy among all units of the Company is making itself felt in all key markets. An essential part of this marketing strategy is to speak with a single clear voice wherever Koppers is represented. The new design of the Company signature, used on the cover and throughout this Report, and the new corporate brochure, "The Competences of Koppers," that is included, illustrate the nature of this new strategy. HOPPERS 1 S6~ annual aSPCAT January 29, 1S68 To Our Stockholders: Koppers made substantial progress in 1967 Net income was up 16 per cent Total sales were a record $448 million Sales of manufacturing operations were up 7 per cent, to $341.7 million New manufacturing capacity substantially expands capability for continued growth Koppers sales and earnings for 1967 exceeded those for 1966 despite the effects of major strikes in some key markets, softening of prices in cer tain product areas, and heavy start up and relocation costs associated with new plant investment. ' Net income for the year was $13,972,000, up from $12,046,000 in 1966. After payment of preferred dividends, earnings were equivalent to $2.70 per share of common stock _ outstanding, compared with S2.34 in 1966. These income figures for 1967 include $727,000, or 15 cents per share, resulting from a year-end re duction in Federal income taxes realized from a net operating loss accumulated over several years by Universal Moulded Fiber Glass Corp. This tax benefit partially offsets de velopment costs incurred in the fiber glass reinforced plastics segment of our business in 1967. Total-Company sales in 1967 were a record $448 million, compared with $443 million in the previous year. Manufacturing sales continued a healthy growth trend and more than offset a $16 million decrease in en gineering and construction sales from a record level in 1966. Our con struction business was again profit able in 1967 following its first loss year in 1966. Record Expansion Program In 1967, Koppers invested $30.1 mil lion in plant construction, expansion and modernization and in new do mestic and overseas investments. During the period 1965-1967, S108.7 million--over twice the average an nual investment level in the five years 2 prior to 1965--has been invested in a new manufacturing facilities to en able Koppers to take full advantage of its leadership potential in rapidly growing markets. In the plastics operations, the an nual capacity of Sinclair-Koppers plants has been considerably more than doubled--from 870 million pounds to about 2 billion pounds currently--and a strong raw mate rial supply position has been estab lished. Substantial new chemical and tar processing capacity has been added and existing facilities have been modernized. Capacity increases of from 30 to 50 per cent have been effected in power transmission couplings, cor rugating and box-making machinery, and industrial piston rings. The Company's capacity to treat wood by newer processes and to produce laminated wood structural products has also been substantially increased. F. L Byrom Succeeds F. C. Foy As Chief Executive Officer Fletcher L. Byrom, president of Koppers since 1960, was elected to the additional position of chief executive officer of the Company as of January 1, 1968. He succeeds Fred C. Foy who has served as chief executive officer since 1955. Douglas Grymes, executive vice president since December of 1966, was elected to the additional posi tion of chief administrative officer of the Company, to succeed Mr. Byrom. The action was taken by the Board of Directors on the recommendation of Mr. Foy in order to provide for an orderly transfer of chief executive responsibilities. Mr. Foy reaches Koppers mandatory retirement age of 65 in January of 1970. Mr. Byrom is 49 and Mr. Grymes is 53. Mr. Foy will continue as board chairman, a position he has held since 1958. KOPPERS ?Sr ANNLAi. ' ' -x- ' ,r'S-L'-r--. .... . / . T- - - -S3*-'1-'"*' ' ' :va; &:'-?# Koppers Sales Reached a New Record in 1967 - (Sales in Thousands of Dollars) i _ C.">'*V',-V;- . - - 4 'gjH8 ;[ Forest Products . Meta! Products Plastics Operations}: Associated Operations ' TOTAL MANUFACTURING Engineer- c & Construction GtherSalos TOTAL ;--*Salw_ have ^tional Operations are Included In-the,apjirofK^r'"" 'to Include two whoi(y-owned foreign substi""''' Chfl'mfcat Division; Includes sales of f." ^';-l .: ` ' " ' ' Ifshare of Slndalr-Koppers "Iv/."' r r1 ' . -..Vi -:r.: ax. :V~0 ,;,~VV;vXvL--v. - ' n ... * ,, . - ' ... r;: ?!- ' "L:X ....... ' . .. . . . .. *..I;?'-.-:.'-. .. 1961 ' - - . I960 - 1959 im?-: $100,863 '.. .$105,587 ' ' $ 97,204 ikSS 42;082 34,348 51,617 47,166 ' 31,092 52,652 45,860 41,610-V *_ " . . - - ....... 28,470 . 25,207- '.V'vvs : 50,537 43,248 i- ::iH ' -- 1. . .. -- To sustain the momentum generated by this record expansion program, future capital expenditures are likely to continue at this higher plateau, financed principally with funds from Koppers increasing annual levels of depreciation and retained earnings. In 1968, capital expenditures and investments will be in the area of $30 million. Most of this investment will be in new or expanded facilities for such products as polyester res ins, low-density polyethylene, phthalic anhydride and styrene. The expan sion of Koppers newer wood treating processes will also continue in 1968. $228,910 $236,497 $222,071 $205,276 49,865 . . 72,105 ^61,659^. 965 764 fe-i-598^ $279,740 $309,366 $250,084 $267,533 ,*.'*.* - ^v Current Stockholders: 16,959 ..... - - . Employees.-13,178'. ' ' - ' Plants:- ITS'-. %, ...-'S=.\\. - : -- ` - ' T /SjJCjK .* '. * , , -.V. Investment Credit Koppers investment credit in 1967 amounted to 57 cents per share, re flecting the completion of a number of major plant units during the year. It was 28 cents per share in 1966. Financing Long term financing was arranged during 1967 to provide the flexibility needed to help insure continued growth. On August 1, the Company entered into an agreement with a group of institutional investors to JH EARNINGS TO COMMON STOCK B depreciation a depletion B OEFERREO INCOME TAXES take $50 million in Kopoers Company notes. These notes will bear interest at the rate of 6 per cent per annum and are due in 1992 with repayment to start in 1977. As of year-end 1S67, $26 million of these funds were drawn down. An additional $12 million was received in January of 1968, and the balance will be received on or before April 1, 1968. The funds have been and will be used to repay bank loans which had been drawn down on the Company's former $65 million re volving credit agreement This latter agreement was concur rently revised so that Koppers can borrow up to $40 million on a revolv- ing basis until September 1,1969. At that time, the amount borrowed be comes a term loan to be repaid in semiannual installments over the next five years. Other Financial Matters Total Koppers common stock out standing at the end of 1967 amounted to 4,956,628 shares. In December of 1967 the Company issued 265,671 previously authorized but unissued common shares for use in the acqui sition of the Buffalo Slag Co., Inc. (see discussion on page 10). Common stockholders received total dividend payments of $6.8 mil lion ($1.40 per share) during 1967, The "Palace of Poles." as featured in LIFE [Feb. 2), dramatizes the versatility of wood treatedby tfieCELLON process. This unique, five-level Greenwich. Connecticut home has an intricate structural system of ISO beige-coated CELLON utilitypoles. Thisproprietary Koppersprocess protects the poles from decay, yet leaves the surface of the wood dean, dry and unchanged in appearance. The centra! Jiving room (below) illustrates the natural warmth and interesting interior design created by the 40foot Umbers. . : 1 j j i i J ccmcared with $6.7 million ($1.40 per snare) m 1966. Dividends total ing $600,000 were paid to preferred stockholders. Cash flow from operations during the year--consisting of earnings ap plicable to common stock, deprecia tion, depletion and deferred income taxes--totaled $30.8 million, equal to $6.22 per common share. This compares with cash flow of $25.8 million, or $5.27 per share in 1966. Inventories on December 31,1967, amounted to $66.2 million, compared with $61.9 million at the end of the prior year. Receivables at year-end 1967 totaled $87.7 million, as against S94 million on December 31,1966. ' Personnel We continue to accelerate efforts to obtain the qualified people needed for our growing company. Internal management development activities are increasing and intensified re cruiting efforts on college campuses and in other areas are showing good results. During 1967, labor negotiations were successfully carried on at 29 plants, resulting in mutually agree able work contracts. In 28of-these settlements we were able to estab lish agreements of two or more years duration. There were just four work stoppages during the year which, while unfortunate, had no major ef fect on operations. Company Backlog The Company's backlog on Decem ber 31, 1967, was $223 million, com pared with $246 million at the end of 1966. The manufacturing backlog was relatively unchanged. The con struction backlog was reduced dur ing 1967. but remains at a substantia/ level and is in excess of a full year's construction sales at the 1967 rate. Source and Disposition of Funds (In Thousands of Dollars) Source 1967 Net Income........................................ .... Depreciation and Depletion.......... .... Increase in Long-term Debt.......... .... Decrease in Other Assets............. .... $13,972 17,368 4,519 6,241 $42,100 1366 $12,046 14,065 33,669 9.786 $69,566 Disposition 1967 Dividends Paid.......................................... $ 7,365 Capital Expenditures and Investments.. 30,118 Increase in Working Capital................. < 4,617 $42,100 1966 $ 7,275 48,742 13,549 $69,566 Outlook The effects of Koppers record 1965 1967 capital investment program will begin to be reflected more signifi cantly in our 1968 sales and earn ings. The heavy sfart-up costs which we experienced in 1967 are behind us. This will serve to offset other factors that will affect our 1968 per formance such as higher deprecia tion charges, a substantially lower investment credit, and the possibility of a tax increase. With all factors considered, we expect the Com pany's sales and earnings in 1968 to show continued improvement. Fred C. Foy Chairman ol the Board HOPPERS !967 ANNUAu =H=CRT A New Design for Marketing It is no longer true that people will beat a path to the door of the mar, who makes a better mousetrap. And it is equally valid that the "new" Koppers described in the brochure, opposite, will not achieve optimum results, unless the Company makes every reasonable effort to communi cate its "newness." This must be done with present and potential cus tomers, current and prospective employees, financial institutions and the investing public and, in short, with anyone whose business or other interests in any way influence the future of Koppers. Consequently, the Company embarked on a program two years ago to redefine its capabilities in more meaningful and useful terms. This analy sis resulted in the identification of six broad areas of competence which now form the basis for Koppers current marketing strategy. These are: Architectural and Construction Materials Engineering and Construction Chemicals and Coatings Engineered Products Plastics - Environmental Systems The new distinctive design of the Compands signature, as illustrated in this Report and the booklet on the opposite page, is the unifying symbol of these diverse areas of competence. - s Copyright 1967, Koppers Company, An essential characteristic that distinguishes a company from all others is the nature of the particular skills and capabilities that have evolved during the course of its development. This booklet is designed to reflect the particular areas of competence that best describe Koppers today, and to suggest how you may employ these skills in your own activities. The competences of KOPPERS Architectural and Construction Materials Plastics Chemicals and Coatings Engineered Products Environmental Systems Engineering and Construction KOPPERS *36? A.NNLAw =c3C*T Some peode know Koppers as a chemical company. Others classify it as a building materials manufac turer. An important part of American industry thinks of the Company as a maker of precision-machined metal products. You perhaps think of Koppers as an organization of engi neering and construction experts. Koppers is all of these, but it is also a great deal more. Some people who once knew all about Koppers hardly recognize the Company today. Koppers has grown and changed. Koppers today is highly diversi fied, with more than 125 major prod ucts supplying 34 of the nation's 85 major industrial and consumer market classifications. This diversification provides a springboard for continuing expan sion into related fields. It gives a degree of insulation against the effects of sudden technological change or deterioration in any one market. The Company's operations are closely related to the essential re quirements of our customers and have evolved logically from Koppers earliest capabilities. Each new prod uct has been developed to supple ment a competence area in which the Company is already a leader, or one where it is well on its way to achieving a position of leadership. Before examining Kocpers caoabilities. here are a few facts and fig ures about the Company: Headquartered in Pittsburgh, Pa. Annual sales now approaching a half-billion dollars One of the 200 largest U. S. indus trial corporations About 17,000 stockholders and more than 13,000 employees More than 70 sales offices in most major cities Over 100 plants, located in 32 states, Canada, western Europe, Australia, and Central and South America Marketing operations in 67 foreign countries One of the most modern and bestequipped industrial research centers in the world The Company was organized more than 50 years ago as a con struction organization. As recently as 1960, it was often thought of as primarily an engineering and con struction firm. This area of the busi ness, however, today represents just one part of a large, growing company. KOPPERS 'S6? ANNLi*_ 3==C3~ Keepers has experienced a signifi cant transformation over the years. Most of the Company's quarter ciil-cr. collars of assets and invested capital ;s now appiiea to manufactjmg. Sales of Koppers manufac tured crccucts have increased at an average rate of 10 per cent per year thus far in this decade. During this same period 88 new products have been introduced mat new account for an important part of annual sales. During 1965, '66 and '67, over 51 CO million has been invested by Koppers in an expansion and modernization program to provide additional capacity and higher effi ciency in many of its existing or newer product lines. About 70 per cent of product sales are concentrated in markets that are expected to grow over the next ten years at a faster average rate than that of the national economy. Thus, the strong emergence of manufacturing is a major factor lead ing to the present diversified struc ture of Koppers. The following pages describe each of six major areas which are the base for Koopers strength . . . arc its continued growth. The six areas are:.. . Architectural and Construction Materials r'astics Chemicals and Coatings Engineered Products Environmental Control Systems Engineering and Construction i , j '. . : . ! I The measure of worth of any company is determined best by the caliber of ns employees. In every successful company there is a vital two-fold need: to fina ana use the best capabilities of its people, and to attract other talented men and women. Only a growing company, offering oppor tunities and challenges, can keep its top flight people or attract caoable. new indi viduals to its ranks. The competence of Koppers peepie is the reason for the Company's growth, and for its appeal to people who want an ooportunity for added responsibility--and challenge. HOPPERS Architectural and Construction Materials Koppers know-how in the field of architecture and construction is evi dent in products that are either per manent in themselves or that give permanence to other materials of construction. These products pro vide advantages over competitive materials and enable customers to realize economies in three ways: Savings in construction costs Savings made possible by latitude in design Savings through reduced main tenance costs over the life of a structure About 40 per cent of Koppers manufacturing sales are accounted for by architectural and construction products. A significant part of Koppers com petence in this area comes from the Company's ability to upgrade and protect wood to make it an even more versatile and durable construc tion product. Koppers is a pioneer in this field. Wood is impregnated with Koppers chemical formulations to make it resistant to fire, insects, moisture, mildew, fungus, and vari ous soil conditions. Wood is also non-com wood--an important safety factor in race trackstables and livestock structures KOPPERS !967 ANNUAL 3E3CBT Architectural and Construction Materials laminated by Koppers to give it flexi bility in shape and to enable wood's beauty and strength to be used in a growing number of applications. Architects have long considered laminated wood beams, arches, trusses, columns, and roof decking as attractive and highly functional structural elements. They have used them with dramatic effect in churches, schools, and institutional and commercial buildings. Now in dustrial builders have found that these components are economical as well as functional in many types . of buildings, especially where wide, clear spans with unobstructed inte rior spaces are desired, and where the threat of corrosion is a problem. Koppers has pioneered in the technology of laminated timber con struction, and has led in bringing forth new and imaginative structural designs. Laminated structural prod ucts are easily erected, are highly fire-resistant, will not corrode and have a great strength-to-weight ratio. \ copers laminated wood products provide .vice, c.ear scans for industrial structures With 28 plants in 25 states. Koppers is also the world's largest supplier of chemical-impregnated wood. During this decade, our total forest products business, on the basis of new processes and invest ment. has been growing at about twice the rate of the lumber prod ucts industry. One of the most recent of these new processes is the CELLON treat ment, which provides the deepest preservative penetration yet achieved to give wood long-lasting protection against insects and decay. Unlike most other treating processes, the CELLON treatment leaves the wood with a clean, natural appearance. The use of CELLON treated utility poles is growing. Lighting standards available in many attractive colors are produced using laminated CELLON treated wood. So are our pre-wired, colored street light poles, designed for use with underground residential wiring systems. New sta diums in Atlanta, Washington, and New York have seats made of CELLON treated wood. It is being used in roof decks, electric utility transmission lines, marinas, sign posts, outdoor furniture and in many other ways. NON-COM fire retardant lumber and plywood provides built-in pro tection against the spread of fire. The four nationally-recognized, model building codes, as well as the codes in most major cities, recognize NON-COM lumber as a full alternate to non-combustible materials in high-rise apartments and office buildings. It is also being used to protect wood structural and roof ing systems in fertilizer and chemical storage facilities and has aided in reducing fire insurance costs on structures of this type. A new fire-retardant process has been developed by Koppers which has opened the way for a greater use of Western red cedar shingles and shakes on the roofs of apart ments. motels, churches, schools, restaurants, resort structures and other light construction without the high insurance schedules required for untreated materials. wolmanized lumber--wood that has been pressure-impregnated with WOLMAN preservative salts--has a broad range of applications in indus trial. residential and farm structures. Millions of board feet are now used as sub-flooring and roof decking, and in greenhouses, stadium seats, boardwalks, floor sills--wherever lumber is exposed to insects, mold growth, and rot. The oldest and most conventional treatment is impregnating wood under pressure with creosote. This type of treatment is saving the coun try many millions of dollars each year by providing wood products with many years of protection against termites and decay. Koppers has been the nation's foremost supplier of creosote-treated railroad cross-ties, utility poles, fence posts, foundation and marine piling, and construction lumber for over 30 years. Top left--Laminated wood arenas gr.e a warm, dramatic effect to enuren interior Top right--clockwise Fire-retardant shakes anc snmg'es pro vide attractive shadow lines on rocf of resort structure NON-COM studs used in walls of ngn-nse motel Washington Hilton protected by Kcocers built-up roof CELLON treatedseats in new Atlanta stadium KOPPERS 36' ANNUAL agPCR' Architectural and Construction Materials Other Koppers construction prod ucts are used to make structures impervious to water. Flat and low slope roofs are con structed from Koppers coal tar roof ing materials to keep rain and other elements out. The alternate layers of tar and tar-saturated membrane in a Koppers roof provide the type of long range protection that can be bonded against leakage for up to 20 years. Applied to foundations, Koppers waterproofing materials protect against attack by moisture from below. The alternate layers of coldapplied tar and fabric supplied by Koppers provide a moisture barrier that insures the structural integrity of the foundation and keeps areas such as underground parking garages free from seepage. Asphalt pavements are given long-lasting protection from damage caused by water, oil drippings, and gasoline spillage, by Koppers pave ment sealer. This coal tar coating is used to protect and beautify residen tial driveways, parking lots, gasoline stations and airport runways. Koppers supplies the growing highway construction market with a broad line of road materials in cluding road tar and asphalt, asphalt emulsions, and aggregates. A new type of flooring material produced by Koppers looks like terrazzo, but surpasses all of terrazzo's advantages: attractive appearance, wear resistance, ease of mainte nance. The difference is that the colorful marble chips are held in a polyester resin rather than cement. This high-luster material is pro duced in 12' x 12' tiles or is poured and finished in such areas as build ing lobbies, stores, hospitals, or any high-traffic area where impact- and stain-resistance is needed. A number of Koppers reinforced plastic (RP) products are basically construction materials. RP pipe is used in the construction of industrial processing plants and effluent sys tems. RP structural shapes are spe cialized building products, of great value where extreme corrosion is a constant problem, where a high strength-to-weight ratio is impor tant, where a material is needed that will not conduct electricity nor inter fere with electronic signals, or where .an unusual shape or design is de sired that is not possible with more conventional materials. Koppers experience with so many basic materials of constructionwood, plastic, steel, reinforced plas tic, and chemicals--and with its competence in the technology of architectural products and construc tion, gives the Company a unique position from which to sen/e this vast field. Top left--Koppers pavement sealerprotects asphalt parking areas Lower left--Foundations and underground facilities at Cape Kennedy kept moisturefree by Koppers waterproofing materials Below--Koppers high-luster polyester flooring material--for high-traffic areas KOPPERS Plastics Koppers knowledge in plastics is pri marily concentrated in thermoplastic resins and glass-reinforced plastic products and thermosetting resins. Thermoplastics are a family of plastics that become soft when ex posed to sufficient heat and then harden to a desired shape when cooled. Our participation in this field is through a partnership--the Sin clair-Koppers Company. Sinclair-Koppers is a totally inte grated plastics producer with a pro duction capacity that has been doubled during the past three years. This has enabled the Company to continue as one of the prime com petitive forces in the growing U. S. thermoplastics industry. Sinciair-Koppers plastics are sold to the molders and extruders of thousands of plastic products that are so commonplace in so many ways, in so many places--in kitchens and toy chests, in drug stores and supermarkets, in hospitals and in dustrial plants. dyute foam plastic is perhaps the most widely recog nized of these materials. This is a truly exciting material. It is produced as small, white beads. These expand and fuse together under steam and pressure to form a cellular foam plastic that can be molded to almost any shape. DYUTE weighs as little as 13 ounces per cubic foot, yet it is strong and shockabsorbent. It sheds water. It insu lates well. It imparts no taste. DYUTE has achieved outstanding success in the throwaway hot and cold drink cup market. Billions of these cups are used each year. In the form of sheet. DYUTE is used in trays to package meat and produce sold in many food stores. It is also ^o .0 being widely used to mold packag ing for such delicate articles as glass ware. cameras, stereo sets, and elec tronic components. DYUTE is being used in ice buckets and picnic coolers; in small boats and flotation items and as a core material for insu lated building panels. Sinciair-Koppers is the nation's major producer of this expandable polystyrene foam plastic. The Com pany's capacity to produce this amazing material, along with other styrene-based products, is more than 300 million pounds per year. ABS plastic is a high quality, high performance material which SinciairKoppers has trademarked dylel. It has excellent impact resistence and is easy to chrome plate which is important for such applications as telephone cases, auto grills, appli ance housings and many others. Regular polystyrene, called DYLENE by Sinciair-Koppers, is the rigid plastic used in radio and TV cabinets and housings for many other appliances. It is also used in containers, packaging, toys, house wares, lighting fixtures and a broad range of products. DYLEX latex, the fourth member of the styrene-based group of mate rials, is most familiar as the main ingredient in latex water-based paints. It is also used in coatings for fine papers and in tufted carpeting to bond the tufts to the rug backing. KOPPERS :367 ANNLA. Plastics Sinclair-Kopcers also has facilities to crcducs over 2C0 million pounds annually of the high- and lowdensity oolyethylenes--a plastic famiiy that one leading trade publi cation has called "a fantastic success story for the chemical industry." Dylan is a family of low- and medium-density polyethylenes--the familiar "squeeze bottle" type of soft, flexible plastic. These are used in various industrial parts, sheeting, toys, housewares, and bottles. cv,_AiN also is used by SinclairKcopers to produce DURE7HSNE polyethylene film, widely used in packaging soft goods, produce and many other items. The film also finds broad' use in construction and agri cultural operations. Sinclair -Koppers produces another type of plastic now gaining increased acceptance by U. S. housewives: SUPER DYLAN highdensity polyethylene, being used to make non-returnable plastic milk bottles. The volume of polyethylene for these new milk containers could dwarf the' amount going into such otner fast-growing applications as bleach and detergent bottles, bever age cases, bottle closures, film and sneeting, and automotive parts. With a n_evy_eJant capable of turn ing out 500 million pounds of eth ylene each year, and with other new facilities providing styrene monomer and ethylbenzene, Sinclair-Koppers will be able to supply its own raw material requirements for the fore seeable future. eh--dyl!T~ ret and cclc ertnx cue 7zz ' greeter convenience--non- ret^rracie das:ic mnk series r gr:--7ne av.de wer'd of 2'U~z--many cses hr a ~.gri/ versawe material ra-r:c::~z c-as; : ccc :i c : -;-i -err 3 .\-c-e ~r.-. :3~..c e-c-- .-ee-cc rare-as rcss ne, s-c r-as r'cc.-.d :ts wav r;c -.-c-ecs or c'.rc- lc:s ~.eT;c.-:ec r as: a -as 3 .-.r- ST.-rGCtr-iC-Ar.C-; 'j-C. ~3S 3.'.- cerm-a! r~'ss:a~:a :z ccrrs--. rr.ciSCufs 3r.c r-r.3c: s ar a\:a!- .'en; eiecrca: rs- =:rr. Voicrc 3-c racrcaccn is easv. 7.-e vane:-. c? -F zrcc-jc:s cere z'zczzac tv \ccce*3 s r-v.-r-r '3C.c!v .-.c:-_3r3 C 3r TCr :~r Cii =nc ere.--ic3; crocessrc nccsries cresscre-esee.'s 3_c 3 re c: esc arp s:ri.,cri..'3i s-aces .ve -as..' eA- :rar. 7-ese 3-ares mace srac- t`_rai cars, -cea~s a-c:es cra-- -eis. vjct.c s-ee'.s e'ecrca csr- a:crs a-c -aaav. =: :z' 3:rc:.' :a! cc-cci-s - rer :r c:-er R? zrzczc'.s -a.e see- scenallv ce- s c-er rv .<rrre'3 :rr _se - e-eer- ca. cstccLfc.- s-.s:e--s .-. a- -area, re Cc~ca-.- cr races a^re r.'C't aecra-s :c* :r_c\ ccces r v.ncn tee -.rrc a~c ;e-r='s are -- need -- c~e sec: :- Keepers erers - r e -- e,r are rcasec cr re -e.-.e- areas r; :ecr- .".Oiccy f-'are-: -c -r r- :aeJar s-ares a-c 3~ces a-c a r-a- seerc -g carac : : - sc'av.r a-c --a::-ec--e:a.-r e-~: r -: c: . ar r-s :e~s C-.-ccs::- -- s e-r'r -: - e.c s r re- r-e-rre'-c c carers ces : cacar : *: r:c-:e c: ere' 'es--s --e C'-:ra re--r- se-: -r r-ascr *e -r :-r * re- rasa ~-e--:se:'-r c -s: :s :a-e re--a-e*. s_arr -:' e~-r c'ess. e a*e -a : -a r; 'e ' -e: s r:e- --r - .; r rer KOPPER5 Chemicals and Coatings keepers is me nation's largest pro mcustria! arc "arire apcl-ca:c~s ducer cf ccai-oas.ec crem-cais. We Water gas. a^c cetrcieum coel-es are also in rre corrosion ore', enrcn =r.c storage :an<s. p'otected o-. mese business The Ccmoanv markets a ' coatings have been dmg up :c' - oroac ::ne cf protective coatings and ' scection after 30. dO arc ever 5.' coating resins usee in a multitude of ' years of service--ar.c a s-rge applications --from underground . defect has been found pipelines to tne interior cf tne Statue Where an especially * -nve ap cf Liberty. pearance is also impc-r- ccce.-s Most cf Koopers chemicals are broad line of ccicrer -vea-- recovered from tne distillation cf based coatings can : I! : : .-cif-ca- coal tar, a bv-product of me coking tion. They are available in over 33 process. They are used in our own color shades. Thev can be prccoceo coeraticns and bv otn.er cr.emical using such bases as eeexv. s -.v c o'ccessors to produce ant;-oxidants, vinyls, acrylics, chlorinated rupee' resins for coatings, solvents, gaso- cr zme-rien formulations rc orev ce ; "e and lube oil additives, ana in me protection against a wide ra-ge c; production of esmts. herbicides, corrosive elements. " cner.ciic resins, cismfecrar.ts. anc iVE.SdOL coatings from Kocoe's countless otn.er crccucts. are well-known m me wa:er a~o .Vitnin its cnemical operations. : sewage treatment field. Thev a.sc Keepers ;s i wiceiy used m the steel cetro-eu~ . one cf tne major U. S. pre- cnemical, and oulp anc cacer ir.cus- cucers o: p.ntr.aiic annydride--an j tries. They protect and beau: fv s:c'- "'oertan; industrial cnemicsi usee ace and process tanks, c-ice' nes r oiasticcers. aikvd resins for oair.t. buildings and walls, structma sree oevester resms dyes, msect reoel- i masonry anc concrete surfaces a-o eo:s end onarmaceuticais; many other types of installations . , a significant producer of re- This extensive corrcsion ore-. e~- scrc-nci. a specialty cnemical usee j tio.n know-how has also oee~ aGresives fer tne lamination of | marketed m the recrest'cn :,e c .vcod and in oor.cir.g the rubber j wnere Keepers swimming ccC treec to the :;re core in nearly every ; pain:, ra.viuc enamel. has become mocer ore made: recocniced as me leader in me he p . a ms;cr spooler c? creosote. , use-o .n cur own forest products ; operations and sole to ctn.er wood i ;-ea:e'S to pressure-impregnate ; v.ccc :c protect n frem termites , cecav and -`.m.g-s m-r nanp" s larges: producer j e'etfore cmcer c.tcn -.one pound ' c; ; s ,seo n me orccucpon of i se.e~ ccm-ps of a.ummumi ' -.zzz-i'i we'~ ca. ccerat.ons -.a*, e , p-p. oeo a - `png case for its co.-- pre.e':d" pacacii ties. = ; era :a- op = :-ng ; -j.e 'a'-etec for over 50 .e-'S m: .ve ::oeoec as me sranc- . r: tc-t'-us .oerground pme- ' ....... - ......... " -as a-:. c'cte-moo ago-ms: manv i se.ae treason crotems m ether i u--r'c: ,:~ry . " rM* li 'AV. *" Etcine^red Froducts Koccers was originally built cn a knowledge of design and engineer ing. This fcas;. :apabili:y is evident in many areas of the Company's manufacturing output tccav. Keepers engineering ccmoetence is particularly strong in the metal working field. The Ccrr.cany has earned a position of leaoershio in several areas where we ccmmue to develop proprietary Drotiucts. Koccers, for example. is one cf the worid'.s largest producers of in dustrial piston and sealing rings. These include piston rings for high speed ciese! engines, medium- and large-bore diesel anc dual fuel enemas sealing rings for jat aircraft engines. riffcsTCf'hydraulic cylinders a^o born lubricated arc nen-iubncated compressors. :z--' z~ z--e'-: izz ....... ... Voce--7-oatfc r-znz z'zz.zsz z. :zz-r~. :z-`-~s;r ~i-~. zzzi'zczzz` zzr'r : '<cccers tiex.c.e rc c..s - recce'3 res 2 strong position in : ness is tie larges: r tre tre -leid cr mineral processing | (Ccuchngs are --`sec tc rens~ : rs.-cucn tre Karcinge heavy ma- l power f:c~ one -ctar-g = -j?: :: cn.rery manufacturing operations. i anctner. eno :c compensate ;;r m s- Harcmge's specialized line of ecuio- j alignment.! These ze.oi.n.gs ra~ge men; includes grinding and pulver in Size from tne larges: mem dr:', es , izing mills, classifiers, thickeners, fcr steel roiling mil's tJ Sira-: s.n.gie , feeders, dryers, and coolers. motor cr-'.es sue.", as cl~cs. T'^ere I Keepers industrial fans, from 35 are Kcecsrs coup- -gs ?:* " ch- inches to 3c feet in diameter, are soeed. hign.-oer:;----anse h.g-- used in cooling towers and raciator- misalignm.en: arc *cr a.: ces cr type coolers throughout industry. spec:ai industrial recureme~:s. The Company has long had a Kcccers ' r.a z: czr.:s:-g arc prominent position in the design and container m.acnir.er.- converts ! production cf specialty equipment '<rgfT pacer -nto co-rucateo bca.-c ; for the steel industry. Charging con arc me corrugate: c:e-c mtc trols. skip hoists, stock line recorders, printed acres. s tre ats'Ci'c ~a- hot biast stove burners, beil hoists. cn.nerv c:' tre cac.-.sg.'g "oustr. , stock vaives. automatic stove chang- in.g equipment and much ocher spe cial ecuicmem is designed and built i i bv Xcpcers to conform to customer : requirements. Koppers has engineered huge laminated wood arches to be fitted into a church structure like a piece I into a jigsaw puzzle. The same type cf competence in reinforced plastics has enabled .Koppers to develop spe cial. problem-solving utility pole hardware and large, one-piece units fcr trailer trucks that form the heed end fenders Environmental ' Systems The reed to contrci environmental ccnciticns has beer, imccrtant ;c science ar.c industry for many years Mow the quality of cur ever-ca-/ environment--air. water, and la- ana the quality of life in c. suburbs and rural areas--nas come a high-priority matter . national concern. Kcppers has been involved in vari ous aspects of environment centre! for some time. Electrostatic precipitators, de signed, built and installed bv KoDpers. remove sciid and licuic particles from process gases cr in dustrial waste gases in the steeh cement, pulp and pacer, utility chemical and other industries Koppers also has ccmceter.ce in --a design and construction of c- types of industrial air. gas and lie treating facilities. Koppers designs and builds "dean ! ! rooms." These are enclosures where research, processing, cr fabrication and assembly must Gccur in tne near i total absence of dust or other air ; i borne impurities--and where tem i perature and humidity often must ce i rigidly controlled. ! In another area of environmental control, Koppers has soecial knowl edge and ability in reducing leveis of noise ranging from the noise c; flushed water to the roar of powerful gas turbines. The Comcar.v's croon'- etsry sound control eauicmeoc is used to quiet building air condition ing systems and to aimest siier-ca stationary jet engines. Kocoe-s sound-proof paneis are used to pro vide quiet office space witnm a ncisv ir.dustrial environment. Lift--r / dsr sr.d z'r.ez in : r.tnsu:; frsm cc-ve- s rjc<s : <zzan mc:.-zz:=: : zn. z :& Engineering and Construction Kcooers is me v/onc's leading : Norm America, with the-r coal a-c contractor in tre design sne con , eexe paneling a.nc cnemicai recover struction of basic oxygen steeimak- ! facilities, have peer, buiit cv Kcooers ir.c plants, -bcut c~e-mvd of eii j Ovens cf our !a;est cesign are 50 tne basic oxygen furnace capacity [ feet long and 20 feet hign--largest in the United States was designed ; in the Western Hemisphere. These cv Koopers. ; new ovens will operate at faster ccx- i We have built mere than 120 blast ir.g rates and produce 30 per esm furnaces throughout the woric. ; more coke in a given time than am/ These have a total annual capacity ! others in this hemisphere. of almost 40 million tons--about Other types cf installations de one-eighth of werid capacity. Blast signed and buiit by Koopers induce furnace equipment supplied by open hearth furnace olants. sintering Koppers is installed in 99 per cent plants, materials handling systems, of all U. S. blast furnaces. fuel injection systems, hot blast Koopers personnel have been cucolas. automated coke wharves. associated with continuous casting anc cnemicai orccsssing facilities,. since tne initial deveiccment work : Koppers engineering anc cen- was begun well over 15 years ago. i struction sales oyer the years exceec The Company designed and buiit S2 billion, attesting to tre comce- tne first commerciai-scaie continu ` tence deveicceo in this area cf our ous casting machine in North ! diversified Comcanv. America. We now have more man ! ' 70 continuous casting strands either } '-d:--i <:cce'3-:L`: css: O.--fce in full-time commercial production ; = :r:: or under construction. -7 -emmes -1 r More than 21.4-00 coke ovens in i rv Keepers has "net only been in the forefront of the latest developments of modern staelmaking processes, but also is one of the few firms in the world having the competence to build an integrated steel plant cn a "turnkey" basis. 'P'-e Comoany's capabilities ex tend f'cm the oerfcrmance of feasi ble/ studies and the develcoment cf = fir.arc'.ai plan ... to engineering design, crccurement of equioment. construction, and startup cf the comcieted piant. ..''.IN 'r7 5TO" ! -isri 'occe's e-.cer*s :3'i ::ir:st ~e:a c-cdccts :z Ti;: me me ome- mete-a s evca-c -c reecs tm e-.e'seas mar-eta 7-a Cornea"-/ ~as deed m- c.-easec emohasis c"- me estaoLsnmenf o` ove-seas marufactj'mc am'iates m recent veers. \\nave ' c; rase affiliates .\ncr irciuce clast.cs ccera;-c"s m Sca n A-g=-. : na. Sracii and .Ve.vco me orcceot en c: ciston rings in !:aiv forest products facilities .n. Central America S"d me Cariboean area. cement crc- d'jcnon. m C'tiie arc cns"\cai and tar orocess.ng ,n Aost'aiia. In estaci-sn "g n.ev. overseas "anufacfjrm.c ccerafcns Kcc-cers oc.icv is to ;on `Ann local mv-esters. Our ae^e-ai accrcac- -s tc e`<:e~c cocucticn cacac -'it es .nt; ~ar<ets where our ccmcetence and experience mesn w:m the needs of a particular count"/ or region. The Com.car.'. s cacao;: tv tc cesign arc construct new steel ciarts arc maior stee1 dan: units also ex- ter.es into me rtemattem-ai f.e'c. Kccce'S enjoys a strong ocs.ttc" n. me overseas crmst'cct or '"arke: Recant overseas contracts .ncLce the cesicn. construct on. arc stan ce activtv of stee n-eVmg :ac ht.es m Torkev. me ' cc ~es See ~ Chile. Itasv ofenem ta crccess ~g plants n ora:;! Arger,:=na Vare- zeeia a.nc of a military irstailaticr. ir. Australia. 'J'Vilfll y/rwn ^ J rriwF \30Ce'3 13 3 Ccmpanv onaCCUS:c~ec to looking oac.t expect as t :c-.: cs a guice to :~e future \e-.er;-e!ess. : ,~av be .interesting to rev:'/* tr.e crowtr. arc developr-ertcf tr.e Company, and tc observe "cv. knowledge and ability acquired , - one field led naturally irto ccmcete-ce m a related field. Research has been basic to Keepers development and diversi' hcaticn. it has led to valuable contr.buPcns to the Company's varied caoaciiities. Indicative of Kopcers esrlv interest in research was the creation of the Company's research ceoartment in 1 SI 5. Today ourlabcrstcrv 'S one of tr.e finest industrial researen facilities in the country. <c;c;'s t.-.u : :r.i :/ .-a- av r't e:.u j'.vsvs ~ c-;gr;ss Mss: c-c ;c;s ?-? i-, ;/ :*;.... ... <:r;e-s .'ri'i.*-j-j-ivi-j-.* ; ~e=: ."3.- : *. :: jrc CSCSi:u-i;:-;s Ssr-; ; i/?. cf course. .cr'Q''3t'g? r A perVor c` <:cc$r: 'iS-tj". '' rhrr: -j :re s.-caa '-eios r - =s: j- : ;rsriiC3.'j C:.~.;r ,\ork s ~ s~c~ ;';;s is .cod ;;:--.o;cc? .33.' sirs;-ss::a-. `sicea stsst.c suucvjres. c-c - :gu s gaseous ;":u;r: :/rmi.*: or-' sr.-er ? s;;rcr. s 'ous::. Jrre'-rer m cJcrjg - s:;e-rra< -r. one sirg r-z:;-;is. j-,: j.-cn sri-er:.or . erv usurer scir.irr si cc-; ;r _s.--j .'3 3rtcs,` fi ~;.v (rc-.vssg; :s r.e.c kcccsis arc ;; s-jstsrmrs sic see; ~c; sacs ; srscucxs J^c to ; ~ci; ~j~jfsc:urirs seen: ;'' 7~e store cf Koeee'S smee mese `9A'3--Ccmjdetec cc"s: ,,crc- c` ' earlv davs has been one of con styrene-butaciene piar.t cuiit and : tmued expansion and diversification. operated for Federai Government a: Xoppers stil! maintains a prominent Kobuta. Pa. position in the construction of facil 1944--Company reorganized from ities for steel producers. However. ; 100 subsidiaries to a single corpo tne present Companv is ermariy a rate unit; stock soid publicly for first diversified manufacturing firm. Tne time manufacturing operations nave i evolved logically from Xopoers onci- 1 1946--Purchased Kobuta plant m nal capability in the cpnstruction of j order to enter the plastics industry coke ovens. For example: ] 1347--Began work on the design A growing need for heavy incus- ! and construction of the Company's trial equipment in its construction ' first integrated steel plant project-- operations led Koppers into the fab- j at Concepcion. Chile rication of metal products: 1949--Extended construction capa Extensive know-how in the proc- I bilities through acquisition cf lead essinc of coal tar recovered from the ing designers and builcers of blast coking cycle was the basis fer the furnaces, open nearths and auxiliary Company's chemical operations; . equipment Xoppers basic interest in creosote. Koocers Company owes its name ! the major product recovered from ;nc origin to a young German engi coal tar. motivated the Company's neer named Heinrich Koocers. : entrance into the wood treating field; Around 1900. Or. Koppers devel The growing markets for plastics ' j j 1954--Introduced DYLiTc expanda ble polystyrene plastic in U.S.; began producing polyethylene elastic oped a new type of coke oven that . offered opportunities for Koppers to . 1955 -- Established International :cu!d econorricaHy recover the take advantage of its basic position I Division cnemicais Drocucec as waste by- _ in the production of manv of the raw ! 1958--Formed a separate Plastics c'cducts of tne coking process. materials used in these versatile j Division merested American steei producers prcught Dr. Xoooers to tne United States to burid his advance-cesign evens. The first battery cf ovens-was completed at Jehet. Illinois m 1907. Dr. Koppers incorporated the "H. ; : . i ; products. . The road to the development of the present-day Koocers Company has many significant milestones along its path. Here are just a few of them. 1315--Koppers research aeoartment ! ; ! ' 1951--Dedicated modern new re search center near Pittsburch -- 1962--Expanded wood activities by entering the field of glue-laminated structural wocc products; establishec Forest Products Division <ocoers Comoany" in March, 1912, i established ' 1953--Established operations in the .on crices m Chicago 1920--Acquired facilities to begin in IS1 A American investors pur- . coai chemical processing operations new anc growing field of reinforced plastic products teased me majority interest in tne trmpanv from Dr. Xoooers and s~cr;!v thereafter established its ere cries sr.c neacouarters m the : : : 1 327--Added metal fabrication capability with the purchase o; two plants of the Bartlett-Wayward Com oany. Saltimore ] : ' 1954--Completed construction of 500.000 ten-per-year integrated steel piant in Turkey on schedule-- after 42 months of work s:ee!cao.:aicf the ,vc'!d--"irtscurgh. 1930--Wood treating coe-arcns were started through tne combina 1365--domed me Plastics'Division nto an ecuai partnership- w tn Sinclair Petrccherr.icais. Inc. to form tion cf several small firms the Sinclair-,Keepers Company -i"-- `<;ooi's nseirci a-!re' '- to--Chemical and tar processmg ocerations were integrated ntc ; ar i and Chemical Division ; 19AC--Formed Wood Presewmg 1 955-57 --Carrsc cut the largest capital exoansicn program in the Company's history . ?. ?! Division HEADQUARTERS: KOFPERS COMPANY. INC. KOPFERS EUiLDING PiTTSSURGH. PENNSYLVANIA 15219 For additional cooies ot "Tha Ccmcater.cas at Kcccers" cr cf a compan ion tooK'.st listing all Company products, slants ar.d saias orficss. pleass .vn;e to Xcpcs's Company, inc., 1 -25 Keep arc Side.. Pittsburgh, Pa. 15219. i *V}?-Vr' 5fc ; Operating Highlights All of Keepers major manufactur| ir.g units shared in the 7 cer cent increase in manufacturing saies . achieved during 1967. i j Organic Materials j The Organic Materials Division (for i merly the Tar and Chemical Divij sion) is expanding on its traditional j product lines and markets based on I coal tar, to include materials derived from other sources. An example of this diversification is our recent move into the production of aggrej gate materials in those areas where _ we serve the road building market, j The Company, late in 1967, comj pleted a transaction to merge Buffalo i Slag Co., Inc. of Buffalo. N. Y., into j these operations. Buffalo Slag has been active for almost 40 years in the processing of blast furnace slag and the production of crushed stone, sand, and gravel. Buffalo Slag will be operated as a wholly-owned sub sidiary under its present name and by its present management. Sinclair-Koppers The Sinclair-Koppers partnership ! continued to expand its position in | severai of the fast-growing markets i for plastics arc to increase its em ; phasis on the production cf end j products during 1967. i In particular, Sinclair-Koppers has | maintained its strong position in the ! Ve-.v *5c:i>r:es at S<rc:s:r-<zzca'z. j Pi zisr:--cv_.- -itzsrese a z-;-.s:-mi~-i is ~ -me sra: <-cc . --an --v"".'- fcr--.iC r:z n-jj; ys,s suC5fr^3r<eis Q'^~S snee: $ 'ar egg car.zrs. :ru:r ana 3rc m many otter packaging ecc> cjtiers Per Car.; or Keepers Manufacturing Sales Moving into Growing Markets Distribution of 1967 Manufacturing i Sales to Consuming Industries i -n T'-'cusar.. NCN-BUILDING CONSTRUCTION 3 56.011 .Poacs. Sewen. etc.j ! ARCHITECTURAL CONSTRUCTION JStructures. Houses. 3!ants. etc.) 3 33.713 PLASTICS S 33.532 CHEMICAL a HUE3ER S 25.532 TRANSPCHTATICN S 34.341 . UTILiTiES: Electric 3. Telephone 3 25.CC5 PAPER 5 23.717 IRCiM a STEEL S 21.275 MACHINERY S 12.333 GOVERNMENT (Defense) S 10.323 NON-FERROUS METALS 3 9 -62 LUMBER S 5.39** NGN-METALLIC MINERALS (Mining) U < iL!Ticd! Gas 5 5 4.39 3 5.t 30 AGRICULTURE 3 a A22 TEXTILES 3 2.902 UTILITIES: Sewer & V/atar S 1 034 MISCELLANEOUS 3 7.251 ~2~~L MA`iLFACTU- \g sales 3241.433 ZGZ3 M--a c--.-. -c a: a r3:e taste' ire- r.er=ce S'***- "'r economy over next ten years (4.4 \!Gr<6*5 3rev/ 2: 3 rets slower trar. svs'acs s <2=cigd *cr rat-ora' scone*17 over next tsn years. , 'V - - - :'I? J { c>PPJfl-5 } Board c/ Directors /arcs Brand n:5'',3:.orai investment Co. Stanley N. Brown =ormer v*ce President Keepers Ccmcany. Jnc. Fletcher L. Byrcm P-esident Keepers Company, inc. Fred C. Fey Chairman 0/ the 3oard Keepers Comoany, inc. Ccuglas Grymes Executive Vice President Koeoers Company. Inc. Curtis E. Jones /.ca 3'"Sicent Mellon National Sank and Trust Company Thomas C. Keeling. Jr. C>a>r~ar and -'esident Keepers ^nte'taticnal. C.A. Andrew W. Mathieson Vice 2*es.dent and Governor T Mei.cn and Scn3 Fccert H. McClintic z! the Scars 3a'dcn --dfcat.ng Company Psbsr. S. Caiman C"a .'"a" a* :re Heard____ __ Na: ana. Casn Peg:ster Company Nathan W Pearson / :? arc Governor " Me .s* 2/d 5 ;rs C' 2jy*zrz Slsver Zv-i'; e-Ve m -- -e'e *. C s "'*cmas -'s i "C 1 ' C Dd'PP'2: cr Cfiicsrs -'9d C. Foy C"a.'*nan o( the Scard r sicker L. Syrcm S'esident Ccugias Grymes Ececut.ve Vice President Company Vica Prasidents A. William Capone T'sasurer Thomas C. Cochran. Jr. General Counsel and Sec'st3ry harry B. Cummings General Manager Me;3. 3'cd,-d:s Dms;cn Wiiiiam 8. Jackson oe^e^ai Manager C'gan.c Mater.ais Civision Thomas C, Keeling. Jr. C-'2c:cr n Charge fnts--at.coal operations S. Cttc Wheeiey Manager Market.r.g Department Fcceh G VVtiscn Ge'*e*3' Mirage' H-g nee'irg ms CS'*struct C'.isron Divisional and Deparlmantal Vica Presidents Wiiiiam A. Andersen =~-,reersn; and Consir--ct.cn C .`S<cn T. Hayward Bartholomew C'game Mater.-ais Division Eurnett G. Bartley, Jr. =orest 3roducts Civision Arthur W. Cowles Executive Deoartmgpt Donald L. DeVries Metal Products Division Robert T. Eakin Engineering and Construction Division David L. cynon. Jr. Corporate Growth Planning John A. Hagan Engineering and Construction Division James F. Haley Manager T'ar.socration and Traffic Services Max C. Hanisch Porest Prcducn Division Alfred H. Jones .Manager P'ocuramani. Ceoanment Jor.n D. Jones Manager industrial delations Department z-z'zs Kav v-*3 ---ts Z .-s co 'rsu .VIacArthur r5- -gts* C-*ca C VcCcr-gug.-ev - j-2-e; r* c it-*' ;p- - ^ctte.oger : -j;-;- =es?3-;- D Pice : --ie- Sr-s:.-.;: Z . s-i- ~ Te-ce-scx - -a: r-2 rra*2: :-s ;-a-< 5 Varga a 2"! r: -z. .'/=y~sn -: =:;.:-s : .s;- E e-se J- : I;. 2- ; . 5.;- -viv Exscutive Changes ;o ma;cr executive p-arges .vere mace curing 1S67. A. VVU.U'i'.t C~?CNE A. William Caocr.e was eiectec vice cresicent. one: `ma-cia- cthcer arc treasure1- c1 the Co.-r.car>. ns succeecec Jcr.n E. Scears. crus- `Inarciai price.- c: :.~e Ccrrtcary s:rce '962. wrc -ettrsc c^'irg :r.s .ear M-, Cacc.-e "as Peer. :cvc vsC .n vaucus erases c: voccers oomesuc arc i-:e'-3::or,s: srciai cpe-aticns s.rce '9^5. ? c :c his present position. Mr. Caccre was maracar of finance for tne Company s inter national Operations. naccrt of Certified Public Accountants a =Ti-:_-= YCL.'iG A CO'. C ==-.- Ed ?'. = ,,c iCCCJt.'i.'.TS SO Saver;- i.e-.e Pitas-..-;.-. si -tr; Tr.e Eca.-c of directors and Stockholders Keepers Company. Inc. We nave examined the accompanying ccnso.-.oated balance sheet of Koppers Company, i.nc. arc ocrsoiidateo sucsiaiaries a: December 31. 1957 arte tr.e' re'ated ccnsovdated statement of income and earn ings -etainec -n the business for the year then e-ced Cur examination -was mace in acco.-ca.nce with gen erally accented auditing standards, srd acccrci.-.giv nc.uced such tests of the accounting recc.-cs and suc.n other auditing procedures as we csrs.cered necessary ir. -,,ne circumstances. In cur opinion, tne statements mentic.-ec aceve present fair-y tne ccnsolicated financial pcs.tic- z* ``copers Company, inc. ana copscticatec sucsicia.-es at Dacsmcer 31. 1937 a.-.c the cpnscicatec -esutts cl t.neir operations for the year then e-ceo. cph`prrr..ty wit.- generally accected accourt.-.c on c;p es acc.ieo on a basis consistent .v.r! ms; ;; crecec.r.g year. Fittsourgn. Pennsylvania January 22. 1S63 A Lr^r~r set. j <a~: So! J Kate, manage' ci the western -eg.cn ana -leacc.ane-ec - _cs Ar- ce es was aoccintsc vice president. =-cr :c nis -scent a;pc;-:me--: Mr <z:z -ao see- -se re sa.es -a-scer o' tre Orca-'ig vate-a s 2 -.'S s-te ?;' ne .T.c-.ec to fe .vest Eras: - 19.13 arter .cr.g ser,.ce - --e Z:~ca-,. p-en.oat arc tar sa es a:: . ' es " t-e Cnicagc area. Transfer Agents MiHar. Maccr.31 5an< and Trjsi Com cany e s* io-a-e 5 nss-.-p. .-3. tSZSC Sanaa's "r-s; Corriar.v. *5//ail 5:ree: Ne* *0'* *. r ^arna Trust ar.c Savings 3an< ' * ' A Moires Stree:. Ch.cogc it SC6SO Sar c? Amanca 'Ut.cnai Trst and Savings Assoo.ai.cn C'*- Sr/an '.r53 San anc.sec Zo. Ij:n;j ;~'Zl Stcck Registrars 3 ::ss-f;fl '.at-ra =<'\ = Z Bei""-c 3*ttsc*-'g-. = i *S:CC Wc.'jan S-ar3nly r-,sf Company :: /. 3:-?ei n v *:o'5 Con;i<*en:ai iiimcis National 2jn< and T;aa: Comcarv 'A C" Z3* Soutt .sSji'tf St.*as: Z-"-caco. "5 oCSSC .*/ >. a = Ean^ a-a Zi *o.#~ a Sa-" -'arciscc Ca.ifc/-'3 3-*3Z Dividend Disbursing Agent Njt.onai 3m< aro T/uat Company V- ,0" S =:::sc-fgr. ?a. I5CCC Consolidated Statement of Income and Earnings Retained in the Business Yea." er-cec Decemcer 3", 1567 arc 1556 :See accompanying notes; Ne! sales ........................................................................................ Operating expenses (Ncte 2): Cost of sales......................................................................... Depreciation and depletion................................................ Taxes, other than income taxes........................................ Selling, research, general and acmmistrative expenses Operating profit.............................................................................. Other income: Divioends (Note 1), interest, etc......................................... Profit on sales of capital assets.. ......................... Other exoense: Interest .............................................................................. Minority shareholders interest in sucsidianes' income Prevision for income taxes: Federal fNote 3)....................... State and foreign .... . , .............. ................................... .......................................... Income be'ore extrscrcinary item.................................................................................... Income tax benefits of cceratinc losses ct a merged sucsidiary................................ Ne: income for the year.................................................................................................. Earnings retained :n me business at the beginning of period...................................... Earn Tigs retained in me business at January 1. 1S66 of: Buffalo Slag Co., Inc. fNcte 1).................................................................................... Cmer companies accuired m 1366 ............................................................... Cas" dividends paid: On preferred stock. S4.00 per share....................................................................... On common s:cck. S'-.-O oer share ..................................................................... 5/ Buffalo Slag Co.. Inc. prior tc merger (Note 1).................................................. Soecial charge, net of apoiicable income taxes............................................................. Earrings retained .n the business at tn.e eric of cerod, ...................................... Assuage rn.rr.ssr of shares'jl corv-on stock 2'*:s:s~cng j'jrnj /ear Per srare of corr.ncr. stock; Eamines oefere extraordinary /fen Ext?2zr~ rary iop^ ,sjet esf^.mcs 1567 Seas. 143.111 355.051.665 17,367.329 7.361,85-t a6.105.S: 7 a26.337.2S5 21.760.315 1.a05.3C6 251,512 1.656.913 23.417.73a 4.5SS.314 63.413 4.563,232 13,754.502 4.2S5.4S1 1.213.SC6 5.50S.3S7 13.245.135 727.237 13.972.372 9-.515,373 --. -- 103.437.750 600,000 3.576.774 138.542 7.365.415 -- 7.355.415 ^ i 1 CO -.956.323 S2 55 .7 5 S2.J2 1955 $442,5'7.794 3=- s-7 14.065.254 3.CSC,155 43.253.047 423.365.615 19,252.179 1.466.472 1.074.409 2.540.331 21.793.C6C 3 3^5,56149.333 3.495.947 13.237,1'-3 5.553.C51 C2<I 1 6.251.572 12.045.541 -- 12.045.54i 85.130.527 5.293.425 1.163.394 1C3.533.3S7 6G0.0C0 5,430.353 193.90S 7,274.795 1.343.212 9.123.CCS S 9^.5*5.373 -.320 5ft 22,3-* -- 52.3- '595 V i 1. V. C . 1 . >> v - 'EM ENTS -- Kopcer Consolidated Balance Sheet Current assets: Cash.............................................................................................................................. Marketable securities a; ccst which aocrcximates market................................ Accounts receivable less allowance of S-3C.S31 forccubtfui accounts m 1367 nr:'"' Inventories, at Icwer of cost or market: Product inventories inciucinc work in crccess Raw materials and supplies............................... rreoaid insurance anc taxes...................................... Total current assets Investments at cost less reserve: Investments in non-consolidated subsidiaries and 50o owned companies (Note 1).............................................................................................. Other investments (Current value at December 31, 1367--S14.149.QCC)......... Notes and accounts receivable due after one year.................................................... 51,313.723 14.375.246 1.165,631 70.530.552 S.923.112 3,439.472 2.572.303 21.340.393 "9.C5U.367 12.-122.133 1.C3S.363 170.031.622 9,400.269 10,837.503 5,255.801 25,493.578 Fixed assets, at cost: Euildings and equipment....................................................... ........ Less accumulated depreciation............................................ Decletable crocerties. less accumulated ceoieticn........ Land.......................................................................................... Intangible assets, less amortization................................... Deferred charges............................................................................. .. -. 300.063.703 17Q gcc Q32 120.653.771 ... 2.236.909 1.996.580 133.050.772 275.423.731 165.243.432 111,130.293 3.047.309 7.603.793 2.263.315 124,100.716 561.695 532S.519.775 S320.187.S21 HOPPERS cs~v, ire. sr.d Consolidated Subsidiaries Consolidated Balance Sheet Cecemcer 3i. 957 a.-- -955 Current Slacii;*:es: Federal n.ccme tax ................................................................................................... Other accrued taxes......................................................................... Accounts payable ar.d accruals other than taxes................................................ Advance payments received on contracts............................................................. Term debt due within one year................................................................................ Total current liabilities.......................................................................... Term cect cue after one year (Note 4); S'o notes cue S3.CC0.0GC annually commercing Aucust 1. 1377.............. Notes payaoie to banks....................................................................... .. ... 5.3o promissory notes oue S670.CC0 annually commencing August 15.1972. Ctb'sr . .. .< ...................................... ............................ .. .... Teamed compensation (Note 3;.................................................................................. Ceterrec income taxes (Mote 2)...................................................................................... U.ncnty sbarehcicers' Interest in suosidiaries............................................................. Total liabilities .................................................................................. 1967 S 1.149.0G6 3.GS3.S14 25.022.355 10.470.619 2.16-.792 54.301.235 . 25.CCC.C00 30.CC0.CG0 io.oco.oco 5 -34.564 72.484.So-1 1.526.373 7.451.203 634.736 137.243.753 5_TCKHGLT=FS' EQUITY Cumulative preferrec stock. S100 par value: A.umcrizec 3C0.0C0 shares: issued 150.000 shares. t3o series m steex. authorized 6.000.000 shares of S5 par vaiue. SS'. a -.373.523 shares in 1367 ana 4.940.233 shares in 1366 i.Nc :es 1 ar.c Cac-tai ;n excess c? oar value (Notes 1 and 5) Eer-'-'cs reta re-z m me business iMote 4i... 5.0C0.CC0 Z-. 367.6-0 43.332.536 1366 S 2.590.-37 3.031.472 45.753.372 5.339.370 _ 2.047.722 53.967.373 55.000.000 10.CCG.0C0 _2.S66.411 57.966.ai 1 1,-54.155 7,132.045 __ 1.372.520 137.4Z2.504 15.0C0.00C 2Z.701.415 43.523,324 9z.5i5.273 _ess 15 9CC shares of common, stock in treasury, a: cost......................... Crimen, stzcxoo zers" ecuity :................................................................. T^?2j preferrec er.c corneror. srccxrcicers ecj:tv . S22CC19.775 S320.137.521 1 965 3365.838 321.562 SM23 37.308 312.731 $2,53 S'! .20 31-.351 32/2 4 735 15.5-5 So. 531 S23.SCS 333.273 S3-.235 v * 36 692 $239,023 325 9C3 322 29 196- 1963 S3-5.-1- 3302.313 S20.352 SI.356 S3,sea S15.982 SI, 241 S7.C34 S10.793 S2.15 31.20 315.239 S7.657 SI.-19 SI.00 313.173 S3,23 S2.73 -.715 . 4.733 13.183 15.313 S-.S53 S2.3S3 315.720 $13,334 332.565 $91,317 S23.C62 322.738 332.235 ; --S35.853 3213 2~' SI 80.391 S3-. ^36 S74.133 333 27 332.23 1962 S312.713 $15.-50 31.252 S6.116 S3.082 .00 SI.00 311.913 32.-8 -.S12 16.307 S2.742 313.744 S32.037 S29.711 S35.207 3193.251 330.157 S31.53 1951 3230.939 Si 4.644 SI. 301' $3,346 $6,997 SI.32 SI.00 S11.997 32.48 4.6-6 16.-331.505 S22.625 S25.553 331.077 S35.77S S'31.317 375.3_3 332 3- 1960 S310.315 SI 6.352 S959 S7.529 S7.364 31.50 30.95 S'3.316 S2.75 -.339 16.363 3127 320.113 S37.533 323,497 S53.3S9 3137.317 S75.043 $30.75 1353 $251.SCO S 13.300 ' S747 S3,646 S3,107 S253.522 $14,773 SI,167 S6.114 S7.492 31.20 SO.30 S11.252 S2.32 $1 -2 S'.03 Si 0.522 S2.17 -.3516,941 $964 -.552 16,611 S2.056 S12.64S 310,043 393.212 $35,039 320,959 S27.555 S73.605 $146,101 331,339 S156.631 $79,105 S83.502 S29.95 S29.55 Noiss to Consolidated Financial Statements December 31. isez rr-nciptes c: consolidation ~~s cc-'sc'icated statements include tne accounts of tne Ccr-.oany. ail of .:s domestic sucsiciaries a.-d whc-iy-cwr.ed foreign subsidiaries and the Company s 5Cao snare of the assets and 'iaouities and income and expenses of S.ncfairKocoers Ccmcany. a partnership owned by the Company and Siroair =e:recr.em;cats. fnc . a suos.d.a'y of Sinc'a-r Cil Corocration, Sased upon the latest avaiiaD'e financia- statements, in some instances as yet unaudited. the Ccmoany s ecuity in the ~e: assets of "cn-conscidated subsid-ar.es ar.c 5C3s owned oomoar.ies a; Cecemcer 31. 1957 exceeds the carry mg value of me Company's investment therein by St 375.COC Toe Com pany's ecuity ;n t.oe operating profit of tnesa companies in '.967 amounted to S677.CC0. Tints was more than onset by -"'ea.ided 'c.-eign exchange esses estimated a: 377" CCC. Divioencs O' 536 395 were received from tnese oompar-.es .r, 1967 a-o taien into aonsc-catec .neeme. During 1367. Sut'aic Slag Co. tnc was merged "to the Company in exchange xr 563.571 Company common snares. ~re transaction was accounted for as a pooling of interests. ~-e *'nar,c;a: statemenis for 1967 include the ccerattcns of the me'gec company `or tr.e enure year anc me `ina-ota- state--e^ts for 1956 were restated to mc.uce the opa'anc-s of the merged company for mat year. Capita! ir. excess of par va'ue was reduced S90.56! in 1967 'eb'eseoting tre cos: cl treasury snares tssuec as additional cons.deration for a company acquired in 1965 and accounted for as a pcciing of interests. 2. Pension olar.s 7-.e Ccmoany arc its consolidated subsid-anes nave several t'usteec pension plans covering substantially ail their em ? cyess The total pension expense for 1967 was 33.1C7.0CC on induces Sotl.CGC for interest on ard amortization ci p-' cr service cost ever a 38 year period. A.I pension provisions are paid into me trust funds. The unfunded pner se'vce cost _n.:er a-1 p ars at -December 31. 196T approximated 33.320 COO .men irc-uaes 3t.ICC COO -esuiting from me'eased cenefits certain pians tor ncury employees c-anted in 1967 3. Income taxes ~--i b'O.-sicrs `cr n.ccme taxes :~ave zee'- reduced by iCS-it CCC and 31 373 CCO in 1967 and 1966 respective-'/ for t-e .''..es:me,'t credit. Tne Company provides deterred income taxes for t-.e excess c--ce-re depreciation c aimed for tax o-rocses o.er occx cecrectaticn est.mated taxes oayaoie -bo" eve"fua' transfer or earnings o; consolidated foreign suosid.aoes to me pare'". ccmcary anc oe`e."=d cc~censa::c-. .- me ca a-ce s-ee: me previsens `or me `irst t.vc -teris a'e n.c uced - ce'e"ec taxes and the provision for me latte' item, is '-s::eC against the related liability account. i. Term debt doe after one year Tne note agreements contain various restrictions as :c d.vidend payments and incurrence cl acoittonai terni oec: Under the most restrictive provisions, at December 31. 1957 317 J06.CC0 cl consoiidatec earnings retained in the cosiness was avahaole for cash dividends anc the Company cculc ir.c^r additional term debt of Sa3.S25.CC0. The notes payable to banks bear interest a: the P'l.me rate fo% at December 31. 1967) and are represented by 9C cay notes wmen ars automatically rane-.vaoie until September 1 1969. at whicn time they can be converted into term notes wnicn will be payable in ten ecua! semiannual -rsta.'-e-ts commencing March 1. 1970 and oear interest a: me p'--e rate plus 3o. 5. Stock option plan During 1957 under the Company's stock cotton pan !C' officers and key employees, options on S CCO snares we-e granted. 35.3-15 snares were issued on. exercise of cotters a: prices ranging from Si7.00 to S2C.3C per share, and cotic-s covering SCO shares were terminated. At December 31. '95' options covering 76.295 shares were outstancirc anc 32.3-iC snares were available for future grants. Options gi-anted prior tc January 1. 196-1 were at 953 o' market value at dates of grant anc are exercisaoie eve' a seven year period. Options granted after January 1. 12m- were at !0Co of market vaiue at dates of grant and arj exs'tfsac-e over a five year period The S-125 225 re: excess of proceeds over the cost of treasury snares anc par value of previous y unissued common snares resulting from exe'Cise of opt.o-s during the year was credited tc capital in excess of par s ,,e 6. Commitments and contingencies Tne 1963 rentals or, properties cce-ated by tr.e C-omoa- es under long-term leases will amount to 52.250.CCO. In aoc.l.ome Comoanies are required to pay taxes, msur3r.ee. reoa-rs and maintenance and alterations under certain of tne leases The unexpended balance of open fixed asset expend.t-.'e autnor-aaticns at Decemcer 31. 1967 amounted tc 5'3 660 006 Tne Dornpar.. has guaranteed S9 CCC COC mceotedness o' 5Cj owned companies anc other corporations. 7~e Company is oefencant in a oivi. action m wrier, me p-air>ti!`s aitege breacn of a management ass'sta-ce comra0: and are seexirg -damages tn a substantia! ameurt T.ne Com pany and its :egat aevisers cei.sve tne su.t tc oe without me' TURN' PAGE *C. 10-VEAP m.GHl-td.-'S >. Keppers Ccmcany, Inc. and Consolidated Subsidiaries Ten-Year Financial Highlightst 'All figures in thousands, except per share information and number of stockholders) Revenue from sales and other income................................................................. Income before income taxes and interest charges and after minority interest Interest charges ....................................................................................................... Income taxes............................................................................................................. Net income................................................................................................................. 'Earnings per share of common stock................................................................. Dividends declared and paid, per share of common stock............................... Total of all taxes................................................ 'Taxes per share of common stock....................................................................... 'Number of snares of common stock outstanding............................................ Number of stockholders at year-end..................................................................... Earnings retained in the business......................................................................... Gross additions to fixed assets and investments................................................ Net book value of land, buildings, equipment and depletableproperties... . Term debt due after one year................................................................................. Wages, salaries and pension expense................................................................... Materials, supplies and services........................................................................... Working capital at year-end................................................................................... Book value per share of common, stock outstanding at year-end..................... 1=37 $449,305 323,354 S4.600 S4.782 S13.972 32.70 31.40 $12,644 S2.55 4.S57 16.959 So.607 $30,118 SI31,054 S72.485 $117,100 S284.058 S115,680 S35.16 1953 $445,159 $21.644 S3.347 36.251 312.046 $2.34 Si.40 $14,332 32.23 4,391 16,890 $4,771 $48,742 $121,837 S67.966 S118,990 S232.036 $111,064 $34.40 Tfiesults prior to 1967 have seen restated to reflect the merger of Buffalo Slag Co.. Inc. into Koppers in 1S67 on a pooling of interests basis. 'Based on average number of shares ol common stock outstanding during year.