Document jNgoVLMLRmDRzrREBMb6qKx7k

FILE NAME: Owens Illinois (OWILL) DATE: 1968 July DOC#: OWILL070 DOCUMENT DESCRIPTION: Moody's Industrial Manual Entry V O w v S - T cc. / a/C (S I MOODY'S. INDUSTRIAL MANUAL AMERICAN and FOREIGN FRANK J. ST. CLAIR, Ediior-mChief Editorial Board Lloyd C. Sweet Albert H. Walters Griffith de Noyelles Harold Sandstrom George H. P arsons Robert C. Riehle A lbert C. Esokait A. E. Combader William Strauss July 1968 Robert H. Messner, Publisher MOODY'S INVESTORS SERVICE, INC. 99 CHURCH STREET, NEW YORK, N . Y . 10007 PH ILAD ELPH IA BOSTON C H IC A G O LO S ANGELES W ASHINGTON SAN FRANCISCO Suburban S tation B ldg. 75 Federal S t. 135 So. L a Salle S t. 510 W . 6th S ^ C olorado B ldg. R un Bldg. LONDON: MOODY'S INVESTORS SERVICE, LTD . K ing W illiam S treet H ouse, L ondon E .C . 4 Copyright, 19'6&by Moody's Investors Service, Inc., New York--All rights reserved ! 1366 MOODY'S INDUSTRIAL MANUAL IS directly In proportion th a t film rental earn sion distribution based on m anagem ent's es Costs of film and television productions ed to date to r each, picture bear to manage tim ate of expected relative direct contribu include negative costs, prin t costs, advertising m en t's estim ate of to ta l film rental expected tion (estim ated revenues, less estim ated di and costs of synchronization, versions, etc. H to be earned. If th is revision h ad n o t been rect costs and expenses) to be m ade by Production costs of television programs find made, Aug. 31, 1965 w ould h ave been u nder- film s to each of these m arkets. Previously, residual costs fo r featu re film s released to O stated in th e am ount of $690,000. ^ costs deferred to television release w ere re television are am ortized on the basis of total K c- j Effective w ith fe a tu re film s released during corded fo r each featu re film a t 1% of nega estim ated rentals. the 1964 fiscal year, com pany revised its tive cost or $10,000, w hichever w as larger. Unused books and rights are charged to K 9 method of deferring costs applicable to tele Due to this revision, net income for fiscal Income at th e end of five years or as soon as it is determ ined th a t satisfactory screen 1; vision d istrib u tio n of these film s (television y ear ended Aug. 31, 1964 increased $950,000 continuities will not be developed. residuals). Costs of producing fe a tu re film s over w hat w ould have resulted if costs had O ther inventories are charged to production b are allocated between theatrical and televi- been deferred on basis previously used. %hor expenses as used. ft FINANCIAL A OPERATING DATA 'tv b Ct Statistical Record, Fiscal Tears /V 1967 1965 2964 1963 1962 1961 Earned per share-com m on.....ailv $2.64 - $2 83 i $6.79 $1.01 $5.02 Cash flow p e r share--com m on .. i . . -- $3.89 $3.85 d $5.78 $2.14 $6.15 ^Dividends p er share--com m on-- > 1 $1.00 $1.50 $1.75 $1.90 $1.30 QjPrlce range--com m on . . . . ______ ; 43ft-28'4 37ft-26ft 58ft-26ft N et tangible assets p e r ih .--com m on. ^ - $31.02 $29.67 $38.22 $3921 Fixed charges earned: ' ^ ' B efore income tax es ___---1--- ' A fter income taxes N et tangible assets $1,000 fund. d e b t.. N et curr. assets p er $1,000 fund. debt. Num ber of shares--com m on________ 8.89 5.14 v $6,490 $6,448 5,320,202 13.33 7.17 728 714 029 10.79 5.52 2,611,829 $10,911 $9,382 2,574,629 6.23 3.68 $11,012 $9,061 2,569.229 13,02 20.65 $8,907 $7,254 2.526.029 fflDividends disbp-sed w ith in fiscal years. OBPrice ran g e fo r calen d ar years ended 4 m onths a fte r fiscal years. ffilncL $1.30 paid befors 2-for-l sp lit J u n e 1966, illA fter 2-fo^-l split; before, 64%-42%. o: A djusted d ata fo r stock splits a n d stock dividends (to Aug. 31.1967): l i Earned p e r sh a re --com m on 1967 (2.64 966 ~ (1.93 1965 (1.49 1964 $1.35 1963 <93.24 1962 $ 0 .4 9 INI $2.39 li Cash flow p er share--com m on . . . . . > * (3.89 $ 2.12 $r.96 SI fii -d$2.75 $1.02 e? gl S S3P rice ran g e--c o m m o n .................... 64,75-32.75 37.50-20.30 23.57-15.60 20.71-S69 17.74-12.62 27.67-12.56 33.51-19.76 P N et tan g ib le assets p e r eh.--com m on ; $18.06 $16.40 $15.27 $14.77 $14.13 $18.20 $18.69 N um ber of shares--com m on . 5,320,203 5.295,001 5362,661 5,484,841 5,406,721 5,395,381 5,304,6a Riianclal A Operating Belles * o Current assets current Uab..-- -- % cash 6c securities to c u rre n t assets 1.86 6.18 2.04 6.69 2.33 7.82 231 12.06 2.03 10.54 2.75 10.76 53-20 9: C 31 % inventory to current a s s e ts ........ % n et c u rra n t assets to n e t w o rth ___ 66.31 117.44 69.61 121.30 65.94 120.84 56.91 97.77 60.74 94.66 74.38 90.51 Lg O ti tz.n % pro p erty depreciated __________ _ % annual deprec, to gross property.. 62.84 4.03 62.95 3.75 60.70 4.13 58.68 4,25 56.01 437 55.04 4.81 64.71 91.74 b b Capitalization: T-- a e? % long term debt -- 15.41 18.71 - 17.46 0.22 8.98 9.08 2 % common stk. St surplus . . . . . . . . . . Sales -r inventory...... ........... 84.59 1.39 81.29 1.28 82.54 1.43 99.78 2.07 91.02 1.53 80.92 1.31 88u.7s7 8o Sales re c e iv a b le s ....................... . . . . 6.39 7.35 6.37 5.81 5.51 7.01 9.33 sales to net property 948.08 797.18 653.59 657.09 486.61 509.25 524.46 C t sales to total assets . . . . . . net Income to total assets 74.68 4.64 73.54 4.07 74.46 3.62 9231 4.01 76.00 78.20 1.51 84.71 tfc 7.71 net Income to n et w orth 14.60 11.76 9.72 9.12 2.64 12.71 Analysis of Operations T heatrical d is tr ib u tio n _______ -- . . . % % C a 62.00 .81 73.77 73.31 78.96 Television d istrib u tio n ....................... 7.25 9.11 8.22 6.93 4.81 6.53 ili Television programs St commercials . Records & m usic income ________. . . 11.92 19.02 J2.36 16.53 11.97 13.00 14.47 9.31 11.00 10.42 9.04 11.12 416 * 816 V. T otal operatin g r e v e n u e _____. . . . . . Am ort. & oth er film c o s ts ____. . . . . . . 100.00' 28.21 100.00 32.45 100.00 36.38 100.00 37.40 100.00 65.37 100.00 41.61 100(6 3553 P Share of rentals to participants Film distrib., etc., expenses . . . . . . . . JJ.29 23.13 4.73 24.36 3.84 26.11 5.22 25.05 6.00 32.58 5.36 29.8t SN C 26.97 *. Television program s, etc. costs 6c exp. Records 6c m usic costa St expenses . . 11.16 16.58 11.91 14.00 12.11 11.10 a4.10 7.90 10.98 9.88 9.22 9.23 5.21 Ti 7.39 1: O perating p r o f it_______ ....... O ther in c o m e __________ __' 13.63 0.40 12.55 0.12 . 10.46 0.80 10.33 0.82 424.81 2.76 4.77 19.34 a 0.77 a Total incom e . . . __ 1 14.03 42.67 11.26 11.15 422.05 0.91 5.54 20.21 C Interest, etc. expenses . . . . __ . . . . . . . . .. 130 1.1$ 0.79 0.96 O ther incom e d e d u c tio n s __ . . . . . . . . . 0.18 ^ 0.33 0.38 0 27 1.16 0.12 0.71 0.33 0.46 0 s 0.23 M inority i n t e r e s t __ __ __. . . ------- -- 0.53 0.5$ 0.57 o!$2 0.64 0.61 047 * t Net inc. before Inc. taxes -- -- U.82 1038 932 9.40 423.97 3.89 1 9 . ti Fed. 6c fgn, incom e t a x e s __ -- . ---- 5.61 5.05 4.66 5.05 crlO .79 1.99 9.99 n N et incom e . . . . . . . . . ------- ' 1631 533 4.86 435 413.18 1.90 9.16 V LONG TERM DEBT Aug. 81, 1967, 5,320,202 shares; in treasury. 1960.. . 1.30 1961____ 1.601962 2.06 C h _ T erm Leans: A t Jan . 7, 1966, Co. borrow ed 269,318 shares; reserved fo r options, 9,641 1963__ 1.62ft 1964-65 1.50 1966... 1.30 $20,000,000 u n d er agreem ent With certain shares; no par. On no p ar shares after 2-for-l split: h t\ banks w hich provides fo r a 7 y ear $15,000,000 No p a r shares reclassified Mar. 22, 1959 in 1966.. . 0,25 .ID1967_____ 1.05 1968...0.30e term loan hnd a $5,000,000 cred it th a t Co. can connection w ith segregation of assets (see Also paid in stock: Ju n e 18, 1927; Feb. t use w ithin 3 years. O utstanding, Aug. $1,1967, a*ove). No p a r hares sp lit 2-for-l Ju n o 24, 6, 1967, 5%; Oct. 16. 1967, 5%. I $17,500,000. Of am ounts borrow ed, $12,500,000 is E Paid prior to stock dividend. 1 payable in quarterly installments beginning Oct. 15, 1967, and balance is payable on Ju ly Dividend Record (In $) (Calendar Years) S T o Jan. 15. t D ividends payable qu arterly Jan. IS, etc. ti 15, 1972. u n d e r th e term s of agreem ent, Co. is re JRS-- .(Old no par shares) n il 1920-- 2,00 1921__ to stock of record about Dec. 15. etc. 1.00 DIVIDEND LIMITATION--See description (4 O fc quired, among other things, to m aintain cer tain minimum amounts of working capital W22 nil CE1926-29 3.00 1923-- 1930-31 0.50 4.00 1924-25 1932.. 2.00 Term Loans, above. 3.00 VOTING RIGHTS-- H as one vote p er share. u c. and n e t w orth, as defined. A t Aug. 31, 1967, under the most restrictive of these mini 1933-- 1.00 1934__ 1.75 2935_____ 2.50 PREEMPTIVE RIGHTS--F o r a n y additional F mum, approxim ately $35,000,000 o f consoli 1936-- J939... 230 230 2937__ 1940-41 730 1938__ 3.00 1943__ 3.00 common shares issued. 330 LISTED--New York Stock Exchange; unlisted V dated earned surplus was not available for paym ent of cash dividend. 1943-44 4.00 0)1945... 030 trad in g on Pacific Coast, P ittsburgh and Mid* F OAPITAL 8TOCK . (No p a r shares a fte r 200% stock dividend w est Stock Exchanges. May 9, 1945),. : TRANSFER AGENT--B ankers T ru st Co., New li L M etro-G oldw yn-M aytr, Inc. common no 1945... 135 1946-51 130 1952... 0.97ft York. a AUTHORIZED--9,000,000 shares; outstanding^ 1953-- 1957-- 035 1 9 5 4 ...' 0.90 2955-56 1.00 REGISTRAR -- Chemical B ank New York 0.50 1958-- n il 1959___ 0.30 T ru st Co., N ew York. c ii F L OWENS-ILLINOIS, INC. CAPITAL STRUCTURE V LONG TERM DEBT . - Times Amount Charges Earned Interest Call L Price Range I; Issue > R ating O utstanding 1967 1966 Dates Price 2967 1966 s 1. Prom issory notes . . . . . . . . . . . . . . . . . . . Sh:' 2. D ebenture 3fts. due 1988 ........... . $150,999,0631 43,513,000 la& T 1103.80 E ........ 833,4- 67 -75% 3. Conv. subord. deb, 4fts, d ue 1992 . . . 4. Owens-Illinois Overseas Cap. Corp. gtd. . 50.000. 000 5.37 10.88 Im &n i 1104.50 111 - 993/4 conv. deb. 5s, due 1977 ............... . 5. F oreign subs. d e b . ------ ------. . . . -- ,,,, 20.000.000 15,811,471, JS tJ 1 lOOft-lOOft t 0 CAPITAL STOCK Par _ Amount Earned per Sh. Divs. per Sh. Call Price Range n li Issue . Value O utstanding 1967 1966 1967 1966 P rice 1967 1966 c 1. 4% cum. p referred -- 2. Common . . . . ______________-- . . . . $too 8.12 f t 511,294 shs. $88.60 $101.44 14,819,625 sh*. &51 $4.00 $4.00 OS102.75 1.35 1.35 91 - 67f t 100 - m 66 - 49 70 - 52 V 1 CBPrivately held, Subject to change--see te x t. p E 1 :) - < MOODY'S INDUSTRIAL MANUAL 1367 HISTORY -In 8962, O w ena-A dm lnlstrtacao, P a r ttd p a - b y O w ens-Illinois In tern atio n al, S. A., P a n Inco rp o rated l a O hio. D ec. IS. 1907 9 T h e coee e R epresentacoes, L td a. (nam e changed am a) Owens B o ttle M achine Corp., su ccesso r to a in 2964 to Sao R aim undo, P articlp aco es e O w ens-Illinois of C anada L td. (C anada) Hew Jersey c o rp o ra tio n of th e sam e nam e. In R epresentacoes, L tda.) w ee fo rm ed to hold O w ens-iU inols Inter-A m erica Corp. (O hio)-- corporated S ep t. 3. 1903. C h a rte r is p e r p e tu a l C om pany's in v e stm e n t in C isper. O w ens- Bells com pany p ro d u cts in W estern H em is Name chanced to T he O w ens B o ttle Co A pr. Illinois' operations in Colom bia w ere m erged p h ere outside of th e U. S. 9,1919 an d to Owens-UUnols G lass Co. A pr. 17, w ith th o se o f th e P e ld a r g ro u p (m e rg e r ef O w ens-Illinois In te rn a tio n a l S A . (S w itzer 1929. P re s e n t title a d o p te d M ay 1, 1965. fectiv e Ja n . 1, 1963) a n d O w ens-Illinois r e la n d an d P anam a) For su b se q u e n t acqu isitio n s, s e e M oody's ceived a 50% in te re s t in th e m e rg e d com pany. O w ens-Illinois O versea C apital C orp. (Del.) 1946 an d 1949 In d u s tria l M anuals. Cristalera Peldar, SA . O-I Services. Inc. (Ohio) In 1951 com p an y p u rc h a se d S am erlc, Zac., Riverdale, N. J., m a n u fa c tu re r o f therm o J u ly 1, 1963, Owena-OMnoia (V entas) S A ., a new ly formed' subsidiary of Owena-Jllinojj O-I T im ber Corp. (Wise.) O w ens-Illinois de V enezuela, C.A. (Venezuela) plastic caps and closures fo r glass an d m etal containers an d plastic articles. de Venezuela, C A ., assum ed sales responsi bility for all products m anufactured by Its O w ens-Illinois (Ventas) S A . (100% by O w ensIllinois de Venezuela, CA.) *1 On A pr. 1, 1952 com p an y to ld A m erican Coating M ills division to R o b ert G alr Co., parent and M aviplanca (after window glass p ro d u ctio n w as sta rte d in 1965), an d for Owens Inc. (Ohio) form erly Closing M achines, Inc. _ Inc., for $6,170,701 a n d 400,000 sh ares of G air a common stock. T ransaction involved p ap er im ports of domestic divisions of the Com S abine R iv er 6c N o rth ern R.R. Co. (Texas) Sao Raimundo, Particlpacoes e Representa 4 board m ills a t E lk h art, 2nd., an d M iddletow n, pany. In Nov., G erro K arton GmbH w as in co rp o rated in H ilden, G erm an y (75% ow ned coes, Lim itada (Brazil) 0., and c a rto n p la n ts a t E lk h a rt, C hicago a n d b y G erresheim an d 25%> by Co.). V aldosta S o u th e rn R.R. Co. (Fla.) Grand Rapids. Mich. On Dec. Is, 1952, fo rm e d O w ens-Illinois tin 1964, M a n u fa c tu re ra d e Vidrios Planos, Other Investments: As of Dec. 31, 1967, O w ens-Illinois Inc. ow ned 2,099.927 com m on f '.02 '.6 $ Inter-America Corp., wholly-owned. On Sept. 16, 1953, acq u ired 50% in te re s t in C A . (M aviplanca) was incorporated in Vene zuela. sh ares (about 29.3%) of O w ens-C om ing F ib er glas Corp. (see general index). A m ount in ^0? Plax C orporation (D el.), fro m E m h a rt M anu O n A p ril 26, 1965, so ld k r a f t p ap erb o ard cludes 511,294 sh a re s reserv ed for exchange facturing Co. a t a cost of $8,000,000 (sold in m ill a t Jacksonville, F la., an d five co rru g ated --see 4% p re fe rred , below. aag sh ip p in g c o n ta in e r p la n ts a t A u ro ra, Ind., A lso ow ned 20,000 sh ares of C ontainer C o m *o On J u n e 1, 1955, o rganized O w ens-Illinois D allas, Tex., Jack so n v ille, F la., Long Island of A m erica (see g en eral index), and 74,428 of P anam a, 6 A . (n am ed c h a n g e d to O wens- City, N. Y., a n d M ilw aukee, Wise, in fin al sh ares of P en n sy lv an ia G lass S and Corp* (see Illinois In te rn a tio n a l, S.A. in 1959). A cquired se ttle m e n t of a n a n ti-tru s t su it filed b y U. S. g en eral index). sei Bahamas N atcon, L td. in 1957. On. Dec. 2, D e p a rtm e n t of Ju stic e ag ain st O w ens-Illinois C om pany also has a 50% in te re st in C ris 1955, Cia d e V idrios O w ens-Illinois d e Cuba, in 1956. T he S abine R iver & N o rth e rn R.R. Co., ta le ra P eld ar, S. A. (Colombia), 50% in te re st .ja S.A was in c o rp o ra te d in H av an a, C uba (ex a sh o rtlin e railro ad , w as in co rp o rated in in N atio n al P e tro C hem icals Corp. 50% in propriated by C uban G o v ern m en t in 1960). T exas as essential to th e construction of a te re st In Sasaki-Owens Glass Co., Ltd. (Japan) *2? .es On A pr. 28, 2956, Owens-IUinoi* d e Vene- projected pulp and paper mill. D u rin g 1966, Co. p u rc h a se d a m in o rity In 50% in te re st in G iralt L aporta, S.A. (Spain), 50% in te re st each in V idrio N eutro, S.A., Am *i suela, C A . w as in c o rp o ra te d a s a wholly^ owned su b sid ia ry o f O w ens-Illinois o f P a n terest in U nited Glass Ltd., London, England polletas, S.A., A m polm ex, S.A. (Mexico) and **0 ama, S.A. (becam e a firs t tie r su b sid iary of Company in 1962 th ro u g h ex ch an g e of assets). w ith a 10 y e a r o p tio n to p u rch ase a d d itio n al shares on a graduated basis w hich eventually a 79% in te re st in C om panhia In d u stria l Sao Paulo e Rio "Cisper" (Brazil) (through B ra : i '0$ Oct 4, m erg ed w ith N atio n al C o n tain er Corp. thru issuance of 822,991 4%> pfd. sh ares $100 could re s u lt in a 28% holding; a m in o rity interest in Consolidated Glass Works Ltd., zilian subsidiary, Ltda.) and m inority Interest in Nippon E lectric Glass Co.. Ltd. (Japan), -JO par and 1,028,739 com . sh ares. E a c h $1.25 conv. pfd. share of N atio n al receiv ed 352/1000 pfd. Johannesburg, South Africa; a m ajority in terest In B under Glas GmbH, Bunde, G er Consolidated Glass Works Ltd. (South Africa) and U nited Glass Ltd. (England). and 44/100 com. s h a re o f O w ens-Illinois; a n d each com. of N atio n al receiv ed 1/5 pfd. an d m any form ed Gerro Piastik GmbH, Monchengladbach, Germany, as a subsidiary of BUSINESS AND PRODUCT8 \'i com. sh a re (7,725 pfd. an d 28,866 com. G erresheim ; and w ith S asaki G lass Co., Ltd., T h e general organization is com posed of .77 shares of N atio n al h e ld b y Co. w e re can of Tokyo form ed a jo in tly ow ned com pany, a n ad m in istrativ e division and fiv e o p eratin g .6 5 celled). O f th e 4% pfd. sh a re s issued, 92,587 k n o w n as Sasaki-O w ens G lass Co., L td., A n divisions. KZI were placed in escro w to p ro te c t Co. against g elina Plyw ood Co., K eltys, Tex., a so ft Glass Container Division: glass co n tainers, ,M8 certain contingencies; escrow ag reem en t te r w ood plyw ood m a n u fa c tu rer, w as p u rch ased co rru g ated sh ip p in g containers, for C om pany minated M ar. 17, 1961. B ah am as N ateon, L td. fro m A ngelina C ounty L u m b er Co. and iroducts, m olds, inks, dies, sand, p lastic con- & (name changed to O w ens-Illinois of th e B a S outhland P a p e r Mills, Inc. and, a t th e sam e ainers. m etal an d p lastic closures, an d plas :7 hamas Ltd. In 1957 a n d to B ah am as A gri tim e, 160.565 acres of T ex as tim b erlan d s ac tic fitm e n ts fo r glass containers. cultural In d u strie s L td. In M ar. 1968) w as q u ired fro m th e A ngeline com pany. O w ens- Forest Products Division: co n tain erb o ard 4 scquired in th is m erger. Illinois Overseas Capital Corp, w as form ed as a foreign finance subsidiary. (kraft linerboard and semi-chemical corru H* May 1, 1958, so ld su b sta n tia lly a ll assets, gating medium), corrugated and solid fiber ft except cash and receivables, of K aylo D i In 2967, Co, p u rch ased a 50 p e rc e n t in te re st sh ip p in g containers, m ultiw all p a p e r bags, vision to O w ens-C om ing F ib e rg las Corp. In G iralt Laporta, S.A. a Spanish com pany plastic shipping sacks, com posite fibre cans, ft In early 1959, p u rch ased th e glass co n tain er w hich operates a glass container plant in M adrid, S pain a n d a 50 p e rc e n t in te re st in pulpwood, plywood and products of tall oil fractionation. **|3 plant of th e d e fu n c t Vidxis. S A . o f B ogata, th re e M exican com panies o f M exico C ity-- Colombia; p la n t w as re h a b ilita te d b e g a n op Consumer and Technical Products Division: 56 '*7 erations (M ay 1960) a s & d iv isio n o f O w ens- V idrio N eutro, S.A. w hich m akes glass tu b ing and Ampolmex, S.A. and Ampolletas, K im ble-S cientific and laboratory glass and 89 Blinois In te rn a tio n a l, S.A. (P anam a) u n til 1962 when, i t b ecam e p a r t of th e P e ld a r S.A. both of w hich m ak e vials and am puls plastic products, K1MAX borosilicate glass ware, lass pipe, industrial and m ilitary M ?t group. On S ept. 1, Co. sold th e tim b e rla n d s from glass tubing fo r M exico's d rug pharm aceutical industries. Through its and Ba bulbs, glass tubing and rod and products m ade and 3 p la n ts (2 in V t. A 1 in Can.) of fro m th em --o u ch as am puls, v ials an d syrin g e $1 -25 C Owens-Illinois P lyw ood Co., Inc., w h o lly - ham ian subsidiary. Company entered the sugar industry. A plant, under construction cartridges; Libbey glass tum blers, stem w are 48 owned, to R oddis P lyw ood Corp., a n d dis solved th e su b sid iary . Nov. 2, Co. issu ed 19,- on G re a t A baco Islan d , w ill p ro d u ce 50,000 tons of raw sugar annually (can be doubled and tablew are, Industrial and and m elamine dinnerware; Electronic-glass television 23 I 1 *47 : 459 com. shs. fo r K ey sto n e Lake City, Pa.; a fte r sellin g Brass Works, certain assets to 100,000 to n s m erely by addition of the bulbs (black and w hite and color), and special property glasses fo r fibre optics, color TV 1.99 15 >.99 S i to Am erican S teel Co., tra n s fe rre d th e bu si necessary m achinery and equipm ent) from cane grow n on its 20,000-acre plantation. It bulb sealing, and other uses; C om m ercial ness and p la n t to L ib b ey P lastics, Inc., Developm ent-m aterials fo r microelectronics. > LlO wholly-owned (liq u id ated O ct. 1962). In Dec, w ill re fin e 10,000 to n s of su g a r a y e a r fo r sale in consum er packages in th e Bahamas. Plastic Products Division; blow n plastic 25 Co. issued 39,696 com . shs. t o a c q u ire a 25% interest in A ctien-G eseU schaft d e r G erres- Proposed Acquisitions I n A pr. 1968 Co. con tain ers, injection-m olded closures an d fit m ents, and bristled products; injection-mold 80 i ; { heimer G la sh u tte n w e rk e v o rm . F erd . H eye (Gerresheim) o f D usseldorf, G erm an y , (su b agreed to acquire the Fecker plant of Space Defense division of A m erican Optical Corp. ed, thermo-fozmed containers; and extruded sheet products. 30 *> sequently increasing its m in o rity in te re st to fo r an undisclosed am ount of cash. P roperties the present 76%) an d to in c re a se its m in o rity involved in d eal in clu d e m a ch in ery an d International Operations: Glass containers, t interest in Cie. In tern atio n ale d e G obeleterie equipm ent a t a leased plant in Pitts, and at leased facility in w hat was form erly a lime rolled glass, glass block, glass tubing tubing products, window glass, plastic and and t- Inebrechable, S A . (n am e ch an g ed i n 1960 to Durobor, S.A.), B elg iu m (in creasin g its i n stone m ine In W am pum , Pa., as well as m etal closures, plastic containers and fit -6? / ' terest to 99% in I960). D ec. 16, O w ens-Illinois accounts receivable and inventories connected w ith businesses th ere. Co. said it would con m ents, corrugated shipping containers, tele vision bulbs and production equipm ent Of t of Canada L td. w as in c o rp o ra te d in C anada. During th e y e a r, Co. liq u id a te d G laseo P rod tin u e F e c k e r's o p eratio n s w hich in clu d e p ro duction of missile tracking instrum ents, iner PRINCIPAL PLANT8 A PROPERTIES ucts Co. an d Toledo A u to m a tic B ru sh M a chine Co., w holly-ow nd, a n d fo rm ed B risto l tial guidance system test equipm ent, space O perating facilities are located as follows: ' %!' Paper P ro d u cts C o rp . (liq u id a te d D ec. 31, 1961) an d N o rth e a s te rn C o n ta in e r C orp., satellite test equipm ent, telescopes and large precision optics. A lton, HI. A tlanta, Ga. Jersey City, N. J. Lake City, Pa. wholly-owned, (nam e c h a n g e d i n 1961 to SUBSIDIARIES Baltim ore. Md. Lakeland. Fla. id t Forest P ro d u c ts C orp.). Berlin. Ohio Company is prim arily an operating com Big Island, Va. , Lor A ngeles. CaL Lufkin, Tex. :4 Early i n 1960, a 10% in te r e s t w as p u rc h a se d pany. Bradford, Pa. M adison. 111. n in Cia. In d u stria l S ao P a u lo e R io (C isper), O n Dec. 31, 1967, h e ld 100% v o tin g p o w er in B ridgeton. N. J . Memphis. Tenn. a Brazilian glass container m anufacturing the following subsidiaries (except as noted): B ristol. Pa. Miami. Fla. ^ ; company. In v e stm e n t w as in c re a se d to 60% N am e, p lace o f in co rp o ratio n a n d business: B ro ck p o rt, N . Y. Minneapolis. Minn. * In 1962 an d o w n e rsh ip tr a n s f e r r e d to Sao A ctien-G esellschaft d e r G erresh eim er G las C h arlo tte, Mich. Moonachie. N. J. Raimundo, P a rtic ip a c o e s e R epresen tacoes, h u tte n w e rk e v orm . F e rd . H eye (G erm any) C h arlo tte. N . C. Muncie. Ind. Lida., a n ew ly in c o rp o ra te d co m pany. In (76%) .. . k Chicago. HI. New Orleans. La. ! vestment w as again in creased to 79% in 1966. A ngelina P ly w o o d Co. (Texas) C ircleville. O. Newark. N. J. in April a new corporation, O w ens-Illinois International, s A ., was incorporated in B under G las G m bH (G erm any) (75%) X>urobor S.A. (B elgium ) (99%) Chicago H eights. XR N ew berry. S. C. C incinnati. O. N ew buryport, Mass, Switzerland (acq u ired K im b le `Ita lia n a - in F o re st P ro d u c ts Corp. (fo rm e rly N o rth east C ity of in d u stry , CaL N o rth B ergen. N. J . 1962) . D uring th e y e a r, a m in o rity in te re st e rn C o n tain er Corp.) (Pa.) Clarion. Pa. No. K ansas City, Mo. (increased in 1967) w as a c q u ire d in N ippon G erro K a rto n G m bH (G erm any) (75% G er Colum bus. O. Oakland, Cal. Electric Glass Co. L td. resheim ; 25% C om pany) Corona. CaL Okemos, Mich. In Mar. 1961, O w ens-Illinois an d N atio n al G erro P ia stik G m bH (G erm any) (100% by D allas, Tex. Orange, Tex. Distillers and C hem ical Corp. formed jo in tly G erresheim ) D etroit. Mich. Orlando. Fla. / owned N ational F e tro C hem icals C orp., to K im ble Italian a, S.p.A. (It*ly> (75%) (th ro u g h D urham . N. C. Pacific Grove. CaL manufacture high density (linear) polyethy Swiss subsidiary) Edison, N . J, P errysburg, O. lene to be used in th e m a n u fa c tu re o f plastic M an u factu rera de V idrios P lanos, C. A,. (Ven F airm o n t. W, Va. Pittston, Pa. containers an d o th e r p ro d u c ts. A n ew p lan t ezuela) (96%) _ : Flint. Mich. Ponca City. Okla. was constructed in H ouston, Tex. Also in 1961, Kim ble Ita lia n a , S.p.A . a n Ita lia n co r M arinette, Tom ahaw k & W estern R.R. Co. (Wise.)--(see M oody's T ra n sp o rtatio n M an Gas City, Ind. Glassboro. N. J, Portland. Ore. Richmond, Calif. poration was form ed w ith the Sw iss sub ual). G odfrey, 11L St. C harles. HI. sidiary acquiring a 60% in te re s t b y th e end of B aham as A g ricu ltu ral In d u strie s Ltd. (nam e H untington, W. Va. S alisbury. N . C. 1962 (now 75%). changed M arch 15, 1968) (B aham as) (100% lo n e, C a t San Jose. CaL 1368 MOODY'S INDUSTRIAL MANUAL t. Louis, Mo. Vineland, N. J. V treator, 111. Waco. Tex. Toledo, O. Warsaw, la d .. : Tomahawk, Wise. W ayne, NT J . Tracy, Cal. W inter Haven, Fla. Valdosta, Ga. W orcester, Mass. Company has. In West Virginia, an\undlvi- ded half in te re st in 168,705 owned or leased acres of gas rig h ts on w hich th e re are 787 wells supplying its Charleston and Hunting* ton plants and Charleston plant of Libbey- Owens-Ford Glass Co. Twenty-nine factories of foreign companies in w hich com pany holds a 50% o r g re a te r in terest, are lo a d e d as follows: G erm any (11) Colombia (5), Mexico (3), tw o each in Bel gium, Brazil, and Venezuela and one each in Canada, Italy, Ja p a n and Spain* MANAGEMENT Officers J. P. Levis, Chinn, of Exec. Com, R. H. M ulford, Chmn. of B oard T E. D. Dodd, P resid en t T H. C. Laughlin, Exec. V ice-President ' R. E. G raham . Exec. V ice-President , E. C. Jones, Exec. V ice-President ' A. M. Turner. Exec. Vice-President Y. M. Canter, Exec. Vice-President G. S. Babcock, Vice-President X. X. Hepp, Vice-President R. F. Miller, Vice-President J/W . Hackett, Vice-President w . J. Stewart, Vice-President M. G. Belshline, Vice-President B. L. Berry. Vice-President T. M. Cox. Jr., Vice-President S. F. Davis. Vice-President R. J. Lanigan, Vice-President W. B. Owen, V ice-President E. R. Owens. V ice-President G. W. Cook, V ice-President R. T. Wallace, Vice-President J. A. Sprunk, Vice-Pres. & Gen. Counsel C. F. Babbs, Vice-Pres., Sec. & A s s t Gen. Counsel J. A. Bohland, T reasu rer K. E. jigges, Comptroller Directors E. C. Arbuckle, Stanford, Calif. " |H. E. Collin. Toledo |G. A. Costanzo, New York E. D. Dodd, Toledo R. E. Graham, Toledo ' EDA J* H ettinger, Jr., N ew York GJJ. A Hill. H artford. Conn. C. E. Janssen. Brussels. Belgium E. C. Jones, Toledo k C. Lsughlin. Toledo 0 J . P. Levis. Toledo R. H. Levis, n . Alton, 121. H. McIntosh, Toledo Q2R. H. Mulford, Toledo K. S. Pitzer, Houston, Texas K. L. Snideman, Pebble Beach, g*uf, _ A . M. T urner, Toledo Member of Executive Committee. Director Emeritus W. W. K night. A uditors: A rth u r Young A Co. General Counsel: J. A Sprunk. Annual M eeting: Third Wednesday in Apr!) s t Toledo, O. ^ No. of Stockholders: Dec. 31, 1967: Pre ferred, 4,570, common, 23,116. No. of Employees: Dec. 31, 1967, 53,789. G eneral Office: Owens-Illinois Bldg., Madi son Ave., Toledo, Ohio 43604. OWol4 3 $ lA ddr***! P * * B X 1035, Toled0, INOOME ACCOUNT8 COMPARATIVE CONSOLIDATED INCOME ACCOUNT, YEARS ENDED DEC. 31 (Taken from reporta filed w ith Securities and Exchange Commission) Net sales & other operating re v ...-- SJffiCost of sales, royalties paid, e tc .. (ESeUlng, g eneral Si adm. expen ses. 1967 $961.709,000 807,189,000 84.435,000 1966 $907,955,210 740,467,207 79,999,344 1965 $825,754,916 665,754,182 72,966,712 1964 $693,560,200 560,464,315 64,758,587 1963 $654,083,586 532,744.843 61,778,257 Operating profit Dividends received ---- ' Interest received M iscellaneous o th e r Incom e _____ . . . 70,085,000 3.556.000 ' 2.476.000 8.714.000 87,488,659 4,112,392 3,136,036 7,635,744 87,034.022 8,733,084 2,480,769 5.938.646 68.337,298 3,944,168 1,517.540 4,725,286 59,560,486 2,671,616 916,641 2,553,250 1962 $627,766,444 511,513.887 59,778,902 56.473,655 3.770.729 1.017,820 2,505,811 01961 $596.424,616 480.474.S67 56.892.622 57,058.027 3,641,048 1.895,775 3.697.071 ProvisJoR for"bad d eb tx T H II_____-- In terest expense ____ -______ __ ____ M inority in te re st ______ ___ ___ -- Sundry expenses & losses (net) . . . . . 84.831.000 991.000 15.268.000 1,415.000 456.000 102,372,831 545j602 9,149,871 , 1,390,626 929,105 99,086.521 688,928 4,436,12 9 . 784,740 1,621,442 78,524,292 1,166,944 3,622,184 125,337 66,701,993 505.207 3,557,855 22,684 63.768,015 882,396 3,865,797 40,350 66,291.9 276.1 3.733.975 420.9 Total Income before ta x e s ...... . [^Provision for Federal income ta x -- 66.701.000 21.400.000 90,357,627 36,200,000 91,655,282 39,500,000 73,860,501 31,200,000 62,616.247 27,500,000 59.060,172 25.900.000 61.856.911 27.500.000 N et in c o m e __ ESpecial item 45,301,000 54,157,627 52,155,282 crl5,062,606 42,660,501 35,116,247 c r 4,411.456 33,160.172 34,358.911 Net income to eurptaa Retained earnings beg. of year {[Surplus c r e d i t s ................. P referred d iv id e n d s...................... -- Common dividends - ______ . . . . . . . . . . 45.301.000 336,406,000 "27068,000 19.994.000 54,157.627 304,364.834 2,156,430 19.959,876 67,217,888 249,764,138 9,836,566 2*339,235 19,914,623 42,660,501 228,005.645 2,522,855 18.379.153 39,527,703 200,996,616 3,214,243 18,304,431 33,160,172 198.387,434 3,278.184 18.272,806 34,358.911 184.517.241 1.047.088 3.291.724 18.244.088 {^Retained earnings, end of y e a r -- $359,645,000 $336.406,155 $304,364,834 $249,764,138 $228,005,645 $209,996,616 $198387,434 SUPPLEMENTARY P. & L. DATA Deprec,, depl. & am ortization_____ Molds charged to expense_______ M aintenance & re p a irs -.-________ Taxes (o th er th a n in c o m e ).......... E R e n ts ____________________ Royalties ____________________ $33,408,000 18,320,000 59,365,000 33,172,000 13,868,000 1,060,000 $27,712,388 17,825,663 51,964,716 31,254,223 13,446.215 865,728 $23,130,129 15,632.484 47,136,242 26,072,516 11,678,054 615.417 $28,159, 12.462, 785 37,931, 761 19.044, 134 9,760, 568 519, 582 $26.788.310 11,170,272 35,036,433 18.680.171 8,155.131 469.525 $25.986.949 11,173.897 33.068,088 27,484.388 4.208.112 486.226 $22.725.6 10,297.3 31.092.212 15.498,155 3.886,325 592,472 g Includes foreign subsidiaries n o t previ ously consolidated. lncludes pay ro ll tax es (1967. $17,997,000). Cost of sales and other operating expenses (Including depreciation, depletion and amor tization: 1967, 30,991,000; 1966, $25,706,750; 1965, $21,116.020; 1964,. $26,425,673; 1963, $25,123,336; 1962, $24,471,829; 1961, $21,302,449; an a research and engineering expenses: 1967, $30,903.000; 1966, $26.542,556; 1965, $22,876,930: 1964, $21,534,639; 1963, $19,170,282; 1962, $16.179,716; 1961, $13,915,270. QDIncludes re la te d portions o f Item s show n under "Supplem entary P. & L D ata" below statem ent. At Dec. 31, 1967. $234,300,704 o f retained earnings was restricted as to cash dividends on common stock. 01967: Ihcludes m achinery and equipm ent ren tals of $7,009,000. 01965-62: See u n d e r D epreciation policy b e low. 1961: Includes $1,290,000 p rio r y ears adjust? ments. ffiCompany and certain foreign subsidiaries provide no depreciation on molds but carry such assets a t fixed values and charge new and replacem ent molds to expense. O ther for eign subsidiaries charge th e cost of molds to property accounts and depreciate such costs over th e lives of the items. 051965: E quity in retained earnings and def icits a t D ecem ber 31, 1964, of com panies first consolidated in 1965, $2,966,350; cred it relatin g to prior years arising from extension of tax allocation procedures, $6,570,216; to tal, $9,536,566. 1961: R etained earnings of foreign sub sidiaries not previously consolidated. E1965: G ain on sale of six forest products plants, less applicable Federal income tax of $6,162,000. 1963: G ain on sale of stock of C ontinental Can, Inc. less applicable Federal income tax G eneral N*es T otal salaries, wages, etc.: 1967, $392,931,000: 1966, $369,075,000; 1965, $331,254.000; 1964, $289,- 220,000; 1963. $272.999,000; 1962. $260,573,000; 19, $246,101,000. Source of Disposition of Funds: Source of funds: 1967 1966 N et e a rn in g s _____ $45.301,000 $54,157,62! Depr.. a m o rt, e tc .. 33,4OS,000 27,712,367 Incr. in def. inc. tax, furance re build., e tc ........... 10,129.000 9,108.181 Property retired -- 1,715,000 1.849.1 In cr. in L t d e b t -- 72,812,000 100,532.502 Sale of com. stk. ,, Console of fgn. subs. 1,044,000 99,000 1.282.877 1,259.982 T otal _______ $164^08,000 Disposition of Funds: Capital e x p e n d .__ $136.138,000 Dividends paid . . . 22,062,000 Add. to fgn. inv, . . 9.621,000 Incr. In oth. assets 8,812,000 Pfd. Stk. p i n c h .__ 2.000,000 $195,902,72* _ $176,046.888 22.126.307 12,488.197 10,075,958 1,999,992 Total ________ $178,633,000 $222,727.342 Work. cap. incr. . . $14.125,000 $26,824.616 Record of Year ' 1948 __ 1949 __ 1950 ______ 1951--____ _ 1952 __ 1953 __ 1954___ ___ 1955 __ 1956___. ____ 1957 ______ 1958 __ 1959 ______ 1960 ______ 1961 ______ Earnings, years N et Salee 224,396,073 223.826,827 282,942,898 309,774,611 293,181,523 333,024,055 336,708,809 370.347,666 495.974.236 510.486,850 508.459,931 552.676,933 561,042319 596.424,616 ended Dee Cost and Expenses 206.294,543 196.390,482 235,189,287 261,137,647 263,211,768 294.764,461 294,867,372 317.349,286 425.070.512 444,100.911 445.162.261 474,345,309 503,532,318 539,366,589 81 (la $); O perating Profit 18,101,530 27,436,345 47,751611 48,626,964 29,909,755 38,259,594 41,841,437 . 52.998.380 70,903.724 66.385.939 63,297.670 78,331,624 57,510,001 57,058,027 Oth. Inc. St Ded.( Net) 4419,555 41,540,529 4559,610 4 186,348 3,596,066 4 3,086.208 597,528 1,123,930 1,235.494 1.101.378 4 757.075 1,699,730 $.777,104 4,600,884 - Inc, Bef. Taxes 17.681,975 25,895,816 47,194,001 48.450,616 33,565.821 35,173,386 42,438.965 54,122,310 . 72.139.218 67,487,317 62,540,595 80.031,354 61,287,105 61,858,911 Income Taxes 7,355.800 9.458.000 22.875,000 31,428.000 17.365,000 18,906,000 20.900,000 27.100,000 36.790.000 33.400,000 29.800.000 39.200,000 28,100,000 27,500,000 Net Income 10,326.175 16.437,816 24,319,001 17,022.616 16.200.821 16,267,386 21,538,965 27,022,310 35,349.218 34.087,317 32,740,595 40,831354 33,187,105 34,358,911 Common D ividends 9,156,483 9,170,622 9,934,841 12.227.496 12.227.496 12.227.496 12.227.496 12.991,714 17.581.671 17,858,217 17.866.343 17398.317 18,208,462 18,244,088 Com. Shs. Outstend. 3.056.874 3.056.874 3.056.874 3.056.874 3.056.874 3.056.874 3.056.874 6.113,748 7.143.287 7.143.287 7.148.287 7,216.692 7.287.710 7,301,110 Earn. Per Com. Sh. 33$ 538 7.9$ 537 5.30 532 7.05 4.42 4.49 4.31 4.12 5.20 4.10 4.27 PARTICIPATING DDCCCDDCh C T A r i/c rK brcK RcD STO CK S A ll participating stocks in this M anual are listed (on blue paper) with details regarding the extent to which they participate in additional dividends. Users of the M anual will find this tabulation to be a convenient source of reference. V BALA? AS: Cash o U. s. C ISMark 0N ote. >ubsicl (Raw IWork repai To* EDOthe Invest. Invest, peposi Investt Prop IBLess: Ne Debt c O ther Mfg. s To Accou Accrue Accru*. Accrue Accru-r Debt c Divide Lr onTg\ Deferr Reger*. Fgn. r SSOthe Minor: Prefer Comm glCap* 'Retair Tt Tc Net e PROP Add 050'. ;* b r < O th DEPF Ado ER* 04.0 O th E lf 901; 2 1962. surre: Stock $524.0 EliSix i : year. C (a) 1, . 'o<tah>i abov procc devei rent noro dard proc< ventc to rc Ra' upp aver; mam shop: or 9 labor 1967, 964; 203.7t $1 BldgFact ec Tran O ffic Leas CoruLanc & B3U folio 190 of r $260. shav: ' ff i- fic- : - ". 5i : 5*ti *0. b 023 Y* S? >75 >73 g* S >u 0 3k m 2? 4 *8 *9 U 55 &*a |8 87 j'sI % * '? MOODY'S INDUSTRIAL MANUAL 1369 BALANCE 8 H E E T 8 COMPARATIVE CONSOLIDATED BALANCE SHEET. AS OF DEC. Si {Taken from report filed w ith Securities and Exchange Commission) ASSETS Ctsh on hand Be dem and deposits--. . U. S. Govt. & sh ort-term securities -- Marketable securities (cost) . . . . . . . Notes A accounts receivable (n et) . Subsidiaries cons. Be oth er . . . . ___ . . . Raw m aterials i n v e n t o r y . . . . . . . . . Work in process Be fin. g o o d s . . . Prepaid e x p e n s e s ____________ - 1967 $34,186,000 3,661.000 2,262,000 124,872,000 43.980.000 80.322.000 6.316,000 1966 $29,789,916 198,956 3,505.760 98,778,714 41,634,071 91,776,006 4,991,655 1965 $19,666,539 41.055,297 4,757,911 93,715,642 32,924,949 81.356,946 4.695,543 1964 $28,177.425 22,976,343 5.248,007 72,799,046 29,712,547 69.732,652 3,911,291 1963 $29,410,795 19,493,054 12,554,594 : 67,480,753 28.460.661 66.130.662 3,432,114 1962 $24,727,717 24,101,624 20,777,414 58,916,793 28,164,562 59,466,497 2,806,403 31901 $27,281,143 29,805,360 20,774.746 56476,892 8436,409 29312,653 56,768,545 2,569,751 Total current assets_______ . . . . . Other security investm ents (c o st).. Invest, in Be adv. to fgn. subs. . . . . . . . . Invest, in o th er fgn. com panies . . . . . . Deposits Be non cur. receivables . . . . . . Invested in n a tu ra l gas p r o p e r ty ........ Property, p lah t Be e q u i p m e n t ... Less: Deprec., depL & am ortization $295,599,000 11.316.000 8.553.000 29.807.000 13.196.000 1.513.000 909.296.000 295.488.000 $270,675,078 20,901,017 7,862,109 20,238.201 12,405,278 1,756,659 784.894,436 273,549,765 $278,172,827 11,771,954 6,447,880 12,323,564 10,592,235 1,925,904 608,552,240 252,503,772 $232,557,311 3.272,572 7,689.310 29,692,662 12,316,225 2.185,364 510,499,673 241,499,282 $226,962,633 3,391,682 8,110,476 24.135,620 9,366,258 2,717.157 482,059,942 219.662,372 $218,961.010 3.458,072 7,662,113 16.766319 7,629,652 2,759,779 455,718,952 200,084,272 $225,825,699 1,775,860 13325,065 6,994,595 2,769,330 431,503,857 181.368460 Net property account Debt discouin t Be expense . Other deferred c h a r g e s _____. . . . . . J Mfg. sup. Be re p a ir p arts . . . . . . . . . . . . 613,808,000 8,493,000 25,409,000 511,344.671 5,986,859 21,450,514 356,048,468 3,367,816 18,026,430 269,000,296 1.460.646 15,607,204 262,377.570 1,569,975 ' 14,731,325 255,634,720 1,837,426 14308.162 250.135.697 f 287,708 12,934,224 15,087426 T o ta l----------------------------- --------- $1,007,694,000 $862,620,386 $698,677,078 $573.781.590 6553,362.696 $529317353 $519,635,304 LIABILITIES Accounts payable, etc. . . . . . . . . . . . . . . Accrued in t e r e s t.................... Accrued salaries and wages . -- Accrued general t a x e s ____ . . . . . . . . . . Accrued est. Fed. Be fgn. ta x e s . . . . . . Debt due . . . . . . . . . . _________ . . . . ___ Dividend d e c la r e d ___ ____ . . . . . . . __ Total c u rre n t lia b ilitie s ...___ long term d eb t ............. ............. Deferred incom e taxes Reserve for rebuilding f u r n a c e s ...... Fgn. pension plan o b lig .______. . . . . |?0ther liabilities . . . ______ .... Minority in terest ________ . . . . . . . . . . . . Preferred stock (p ar $100)___ __ Common stock (p ar $6.25) . . . . . . . . ___ ^Capital s u r p lu s ______. . . . . . . . . __ _ Retained earnings . . . . . . . . . . . . . __ . . . . Total stockholders' equity . . . . . . . $107,810,000 3.640.000 21.825.000 7.568.000 9.682.000 13.945.000 511,000 $164,981,000 280,324,000 34.379.000 17.373.000 7.687.000 2.321.000 12.961.000 51.129.000 46.311.000 30.583.000 359,645,000 $487.668.000 $72,161,289 2,665.976 20,621,558 7,014,317 19,346,845 3,588,543 533.901 $125,932,429 206,942,443 28,111,732 14.458.198 6,864,281 2,779,812 12,146.271 53.390,100 46,235.094 29 >3,871 336,406.155 $465.385.220 $52,848,507 494,274 19,356,251 6,592,583 24,747,401 2,011,819 554.727 $106,605,562 106,046,738 21,888.762 13,128,554 6,229,725 1,970,549 8.746,174 55.472,700 46.141,531 28.081,949 304,364,834 $434.061,014 $32,389,682 375,119 15,597,081 4,992.734 16,548,379 1,322,222 574.954 $71,800,171 93,322,222 15.169,008 12,530,102 1,013,850 57,495,400 46,006,563 26,680,136 249,764,138 $379,946,237 $20,162317 388,058 25369,101 5.073,065 15,915424 1320364 787,080 $68,015,509 94,499.718 11371,715 11,891318 617396 78,138,000 45329,500 14.493395 228.005.645 $366,467,040 $27,755,123 414,974 14376328 5,139,686 13,884,346 1310.132 817,021 $63397.810 96,451,982 7,473,913 10,920344 343,936 81,372400 45,689,437 13,371315 209.996.616 $350,429368 $28,738,057 414400 13.066.329 4.704.329 17,186.824 1400,000 822.921 $66,032,560 98302.402 4397421 11,1*75,257 302.203 82,292400 45.631.937 12.914.290 198,387.434 $339325,761 T o ta l_,__ TL, ,, i ,, Net current a s s e ts ... ______ . . . PROPERTY ACCT.--ANALYSIS Additions a t c o a t ________ . . . . . . . . KOther a d d itio n s __ _____ -- __ Retirements or sales . . . . . . . . . . . . . . Other reductions . . . ___________ _ DEPREC. RESERVE--ANALYSIS Additions charged to in c o m e ...... Retire, renew als charged to res. .. liOthcr a d d itio n s ___________ ____ Other reductions $1,007,694.000 $130,618,000 136,139,000 2,360,000 14,097,000 31.882.000 10.856.000 912,000 $862,620,386 $144,742,649 $176.046,891 10,940,676 9,702,580 942,791 26,769,597 7.853,409 2,129,805 $698,677,078 $171,567,265 $80,546,095 61.322.056 43,082,129 733,360 22,396,769 27,331,058 15,938,779 $573,781,590 $160.757,140 $35,947,518 6,608,974 898,908 27,328,219 5,511,309 $553362,696 $158,9474.24 $34331336 7,487356 803330 25,987.156 6399.056 _____ $529,217,253 $155,363300 $34,768,633 10,501,631 51.867 $24,820,751 6.421,988 317349 $519.635304 $159.793,139 $45,682,405 5,300,062 970,379 $21,755.502 4,085,722 91.356 3967-61: Includes, 1967, 511,294; 1966, 533,- 01; 1965, 554.727; 1964, 574,954; 1963, 781,380; 1962, 854.407; 1961, 864,067 shares Owens-Corn- ing Fiberglas Corp. com m on (see N ote below) reserved fo r exchange u n d er optional surrender clause of preferred (see Capital Stock below); balance sheet carrying value $524,000 m arket value Dec. 31, 1967, $31.700,000 1965: Includes asset and reserve values of fix forest p roducts' properties sold during year. Listed Securities Owned Dec. 31, 1967: Com. She.: Cost Mkt. Val. (a) 1,588.633 Owens-Corn. $1,805,000 $98,496,000 20,000 C ontainer . . 129,000 630,000 74,428 Pa. Gl. Sd.. 328,000 3,814,000 T otal . . . $2,262,000 $102,940,000 (a) Excludes 511,294 shares carried w ith "other security investm ents" (see no te GO above). After reserv e (1967, $3,611,712). In general, finished goods and w ork In process w ere valued a t u n it stan d ard costs developed by th e com panies on basis of cu r rent material, lab o r and overhead costs, and normal activity levels. P lan ts not using sta n dard costs valued finished goods a n d w ork in process a t average cost of production. In ventory values so determ ined w ere reduced to realizable values in ap p ro p riate instances. Raw m aterials a n d purchased operating supplies and re p a ir p a rts w ere valued a t average costs of item s on hand. R ep air p a rts manufactured in th e com panies' m achine shops were valued a t c u rre n t stan d ard costs or at actual m aterial costs plus stan d ard labor and overhead. This inventory includes 1967, $11,830,000; 1966, $11,379,444; 1965, f t ,359.- 964; 1964. $6.672,173; 1963, $6.627,067; 1962, $6,- 203,764; 1961, $6,476,214 operating supplies. it] 1967: Asset Reserve Bldgs., bldg, equip. $213,599,000 $71,983,000 Factory mchy. Be \ equip__________ 510,048.000 s 208,1701600 Transport, facil. . . 17,853,000 V 6,955,000 Office Be misc. equip. 12,136,000 ' 6,448,000 Leasehold im prov. 4,415,000 1,932,000 Construct, in prog. 67,494,000 Land, Tim berlands \ Be m ineral dep. 103,751,000 --. . . . $909,296.000 $295.488,000 [Principal "C apital S urplus" changes as follows: 1967: A fter crediting $967,589 p rice In excess of par of shares issued to optionees and $360,764 excess of p a r value o f preferred shares retired over th e purchase price. 1966: A fter crediting $1,189,314 price in ex cess of par of shares issued to optionees and $82,608 excess of p ar value ov er cost of p re ferred shares purchased and retired. 1965: A fter crediting $1,422,168 price in ex cess of p ar of shares issued to optionees, $22,708 excess of p a r value over cost of preferred shares purchased and retired and $43,063 (debit) excess of cost over par value of can cellation of 1,000 common shares held in escrow. 1964: A fter crediting $1,563,387 price in ex cess of p a r of shares issued to optionees, $5,455 excess of p ar value over cost of p referred shares purchased and retired, and $10,617,399 excess of p a r value of 174,605 p referred shares surrendered for retirem ent over cost of M onsanto Co. shares given in exchange. 1963: A fter crediting $1,118,317 price in ex cess of par of shares issued to optionees and $4,363 excess of p a r value over cost of pref. shares purchased and retired. 1962: A fter crediting $456,925 price in excess of par value of shares issued to optionees. 1961: A fter crediting $652,250 price in ex cess of p a r of shares issued to optionee and $1,979 excess of p a r value in exchange of preferred shares for Fiberglas shares. EHMainly reserve fo r foreign employees in demnities and deferred management incen tives (domestic). Includes foreign subsidiaries not previ ously consolidated. Additional foreign subsidiaries consoli dated. Depreciation P oikyi In general: v 1 Depreciation ie computed on th e basis of amortizing the undepreciated cost of each property unit over its estim ated remaining useful m e. Group m ethods and group lives are applied by the domestic companies to certain classes of assets having minor unit values, and by certain of the foreign sub sidiaries to all depreciable assets. Depre ciation of railroad properties is computed a t rates established by the Interstate Com merce Commission. The straight-line method has been applied to all depreciable assets. Depletion of tim ber properties is provided on a cost basis a t rates computed annually by dividing unrecovered cost by estimated recoverable quantities. Depletion of timber Is credited direct to th e asset accounts. It is not practicable to state the depre ciation rates in use. The cost of maintenance, repairs and re newals is charged to operating expenses. Additions and betterm ents are capitalized. Accumulated depreciation applicable to properties retired or otherwise disposed of is cleared from the accounts, and gains and losses on sales of properties are Included in income. While Revenue Act of 1962 provided fo r a credit agalsist taxes equal, in general, to 7% of cost of machinery and equipment pur chased a fte r Dec, 31, 1961, th e Revenue Act of 1964 elim inated both retroactively and prospectively, the requirement for reducing the depreciation base by amount of invest m ent credit realized, and full am ount of 1964 credit has therefore been applied as a re duction of provision for Federal income tax. In 1963, 48 percent o r $949,000 of th e 1963 in vestment credit was included in earnings, and the rem ainder was treated as deferred taxes, The $1.5 m illion residue of investm ent credits deferred In prior years was restored to earn ings in 1964 through a reduction in th e ta x provision, A provision of $1.6 m illion was m ade fo r U. S. taxes w hich m ay become payable in event accum ulated earnings of certain of the consolidated foreign subsid iaries are repatriated. The net effect of these tw o unusual item s on 1964 earnings was nominal. In 1965, domestic . companies changed methods of accounting for depreciation with result that reported earnings for the year w ere increased by $8.1 m illion before tax ($4.2 m illion a fte r provision fo r deferred taxes). In prior years, most fixed assets ac quired a fte r 1953 w ere depreciated by m eans of an accelerated method first permitted for ta x purposes b y Revenue Act of 1954. The straight-line method was applied to all depreciable assets in 1965 and w ill be used fo r fu tu re additions. N et book values of assets on books a t Dec. 31. 1964. a re being depreciated over their remaining useful lives. All depreciation of domestic and foreign subsidiaries is now reported on basis of straight-line method. General Notes The consolidated financial statem ents in clude the accounts of all active subsidiaries except two B razilian subsidiaries, which have been excluded because of currency in stability and exchange retrictions in the re cent past, and four m inor German subsidi aries. Considered in the aggregate, the ex cluded subsidiaries are not m aterial in rela tion to consolidated assets or revenues. w*r 870 ^ 1"" ""' mm**1 wuimwpw." -V / MOODY'S INDUSTRIAL MANUAL mjj > jw ,ig u fli // FINANCIAL A OPERATING DATA M ftatiiteftl Record . ^ Earned p er share--p referred --com m on ------,-- v Diva. p e r sh are--4% p re fe rred . --c o m m o n ........ Price R ange--4% p referred -- common 1967 $88.60 $2.92 $4.00 $1.35 91-671/ 66-49 Times charges earned: Before income taxes A fter Income tax es .---- ------- . Times chgs. A pfd. div. earn. . . M Net tangile assets p e r ah.--pfd. K et tang, assets p e r $1.000 Ig. tm . d eb t N et cu rr. assets p e r $1.000 lg. tm . d e b t P rice Range--Deo. 3%s. 1988______. . Deb. 4%s. 1992 ____________________ Deb. 5s, 1977 _________________ N um ber o f aharea--p re fe rre d --com m on 5.87 8.97 3.49 $953.79 $29.46 $2.740 $466 83%-67 111-99% 100%-100% 511,294 14,819,625 /-ft.1966 $101.44 -1.51 .00 .35 100-60% , 70-52% r 10.88 6.92 5.60 $871.67 V % 533,901 14.795,230 Adjusted data for stock splits and stock dividend E arned p e r share--com m on - __ __ _ $232 ' $331 P rice range--com m on . . . . . . . . . . . . . . . 66.00-49.00 70.00-5230 N et tangible assets p e r sh.--com m on. $29.46 $2735 N um ber of shares--c o m m o n ______- 14,819.625 14.795,230 Financial and Operating Ratios C urrent assets --current liabilities... cash 8c securities to c u rre n t assets inventory to c u rre n t assets____ _ n e t c u rre n t assets to n e t w o rth --. , property depr. depl., e tc ....-- ann. depr., etc. to gross prop__-- 1.79 1337 42.05 26.78 3230 3.67 2.15 1237 49.29 31.10 3435 333 1965 1.02 )S338 $4.00 ffi$2.02% 99-91% IS67V-49% 21.66 12.76 89.48 / $782.48 5.64 .093 ,618 94-*% 1964 $74.20 $5.45 $4.00 12.50 101 %-97 108%-85% 21.39 12.78 7J $660.83 $43.80 $5,071 $1.723 93%-90% 554,727 14.765,290 $338 6735-49.63 $25.64 14,765390 574.954 7,361.050 $2.73 S4.19-42.75 $21.90 14,722,100 2.61 23.54 41.08 $9.53 41.49 830 3.24 24.25 42.76 42.31 47.31 5.53 1963 ($44.94 {14.35 14.00 $2.50 105-96 $9V-72% 781.380 7,332,720 $2.18 44.63-36.06 $19.66 14,665.440 3.34 27.08 41.68 43.37 45.57 536 1962 $40.75 $4.09 $4.00 $2.50 115-99 Va 96-64 16.28 9.58 5.18 $430 65 $3680 $4.633 $1.611 94-91% 813.721 7310310 $2.05 48.00-32.00 $18.40 14,620.620 3.44 31.79 40.02 44.33 43.91 5.70 m $41.75 14.26 $4.00 ,, 12.50 laO^-I UW-82fc WIT 10.20 5.42 1412.22 13519 $4.451 11.626 94-91 822.921 7 3 0 i.n o $2.U 52.00-4UJ $17.60 14,575,420 S.42 MU 38.18 47.10 42.fi 5.27 ?C a p ita liz a tio n : % long term debt. 3630 6.66 30.78 7,04 19.63 103$ 19.72 12.15 20.50 16.95 21.58 22.47 18.21 18.81 % preferred stock % common stock 8c surplus.. 56.84 61.28 70.09 68.13 6.97 62.55 6.91 6031 M. 7.16 693 Sales + inven to ry ............... Sales -s- receivables 7.74 7.70 631 9.19 7.23 $31 9.53 939 10.66 10.fi 257.83 24939 245.57 238.42 sales to n et p ro p e rty ....... sales to to ta l assets__ ...... 156.68 05.44 177.56 10536 231.92 118.19 120.88 11830 11862 114.70 n e t inc. to total assets------ ...__ _ 430 6.28 7.46 7.43 0.20 11.64 12.02 11.23 635 9-58 637 i.a 9.46 10.13 % n e t incom e to n e t w o rth_______ 2131 25.11 2130 16.91 10.93 10.12 10.44 Preferred dividend tim es earned % % % OL % Analysis of Operations Net sales A oper. rev en u e_______ __ io 2 o o 53.93 100.00 81.56 100.00 80.62 100.00 80.81 100.00 81.45 9.44 100.00 81.48 9.52 ti? 80.SO 9.07 Cost of sales, e t c . __ ___ _____ ____ _ Selling, gen. 8c adm in, exp.___ . . . . . . 8.73 7.20 831 8.84 9.63 10.54 9.34 9.85 9.11 1.09 9.00 9.S7 1.16 1M O perating p r o f i t s ____ - _________ -- O ther in c o m e ________________ _ 133 8.82 1.64 11.27 1.46 12.00 1.47 11.32 10.20 10.16 1UI 0.55 0.62 0.03 Gross in c o m e ______________ _ Bond interest A expense 1.58 0.30 1.01 0.31 0.54 0.36 0.52 0.15 0.08 0.13 OJ] 10.65 0.57 9.41 10.37 Other d e d u c tio n s______ ______ N et Income before Inc. tax , e t c . __ _ 6.94 .9 .9 5 11.10 2.23 3.99 4.78 4.50 6.15 430 537 4.13 4.01 S38 5.70 Income taxes 4.71 5.96 6.32 Ne[t^Iinnccloumdees $135 paid p rio r to 2-for-l split. CGA fter 2-for-l split; before, 120%-103%. 0]Earned p e r share a fte r special Items: 1965, pre- erred, $121.17; common, $4.40; 1963, preferred , $5039; common $4.95. 1, Term Leans: O utstanding, Dec. 31, 1967, $150,999,000 evidenced by (1) $31,000,000 3-%% notes payable $1,000,000 annually May 1. to 1969 incl., and $2,000,000 annually th e re a fter to May 1. 1984; (2) $100,000,000 5% notes pay able $3,000,000 annually Feb. 1, 1972-1979 $5,000,000 annually Feb. 1, 1980-1990 w ith balance due Feb. 1. 1991; <3) $13,432,000 4% to 7%% notes payable, d ue annually to 1985 and (4) $6367,000 2% to 6% m ortgage notes, due 1991. Company m ay not pay cash dividends or acquire capital stock in excess of consoli dated n e t earnings a fte r Dec. 31, 1964 plus $25.000,000. P a re n t o r subsidiary cannot in cu r additional funded debt if net tangible assets w ould be less th an 225% of th e aggregate of all consolidated funded debt or less than 250% of the excess of all consolidated funded debt over subordinated debt. Terms of the note agreements were am ended Dec. 1, 1965, to em body present practice of consolidating foreign operations and also to m ake agreements consistent with current loan agreem ent provisions by removing certain restrictions to allow ad ditional borrowing. 2. Owens-Illinois G lass oo* d ab en tu ra $946 due 198$: R ating-A AUTHORIZED--$50,000,000; outstanding, Dec. 31,1967, $43313,000; in treasu ry , $1,487,000. DATED--Ju n e 1, 1958. MATURITY-- J u n 1, 1988. INTEREST--J& D 1 a t office of tru ste e and Toledo T ru st Co., Toledo, O. TRUSTEE AND REGISTRAR--C hase M anhat tan Bank, N. Y. / DENOMINATION--Coupon, $1,000; register- able as to principal; fu lly registered. $1,000 and multiples thereof. C A R interchange able. c a l l a b l e --As a w hole o r in p a rt, o n a t least 30 days* notice a t a n y tim e to each May 31 incl., as follows: 1969.. 103.80 1970.. 103.60 1971.. 103.40 1972.. 103.20 1973.. 103.00 1974.. 102.80 1975.. 102.60 1976.. 102.40 1977.. 102.20 1978.. 102.00 1979.. 101.80 1980.. 101.60 1981.. 101.40 1982.. 101.20 1983.. 101.00 1984.. 100.80 1985.. 100.60 1986.. 100.40 1987.. 100.20 1988.. 100.00 Also callable for sinking fund (which see) to May 31 incL, as follows: : 1969.. 10037 1970.. 100.35 1971.. 10034 1972.. 100.32 1973.. 10031 1974.. 100.29 1975.. 100.27 1976. 10035 1977.. 10033 1978.. 100.21 1979- 100.19 1980- 100.17 1981.. 100.15 1982.. 100.13 1983.. 100.10 1984.. 100.08 1985.. 100.05 1986.. 100.03 1987 100 00 SINKING FUND--A nnually, cash (or deben tures) to redeem debentures as follows: Dec. 1. 1966-72. n ot less th a n $1,000,000 n o r m ore than $2,000,000, Dec. 1, 1973-87, n ot less than $2,000,000 n o r m ore th a n $4,000.000. Cash de posited, If in excess of $50,000, is to b e used to redeem debentures at sinking fund redemp tion price. Unused cash a t any tim e is to be added to succeeding cash sinking fund pay m ent. M inim um paym ents w ould re tire 80% of issue by maturity. SECURITY--N ot secured. Company o r any wholly-owned domestic subsidiary may not (1) m ortgage p ro p erty w ithout securing the debentures equally and ratably w ith such in debtedness, subject to certain exceptions in cluding transactions with subsidiaries, pur chase money liens and pre-existing liens on acquired property or extensions thereof; or (2) effect outside sale and leaseback of any plants in the U. S., Its territories o r posses sions, unless (a) sales price is less th a n $5, 000,000 o r (b) n e t proceeds of such sale are at least equal to fair value of such property and w ithin 120 days such proceeds a re used to retire non-current debt. DIVIDEND RESTRICTION--In d en tu re does not lim it dividends which may be paid on common. See item on 4% p referred below and term loans above. CREATION OF ADDITIONAL DEBT--Inden ture does not limit amount of other securities w hich m ay be issued. __ IN D EN Tim E M O D IFIC A 'nO N -- Inden tu re may .be modified or altered w ith consent of th e holders of n ot less th a n 66%% in prin ci pal amount of the Debentures, provided that no such change shall affect the term s of pay m ent of principal, interest or premium on any D ebenture or reduce the percentage of De bentures required to effect such change. PURPOSE--Proceeds to redeem debenture 4%a due 1966 and debenture 4%s due 1970 of National Container Corp. (assumed by com pany on m erger); to repay $20,000,000 short term loans; balance to replenish working cap ita l used to redeem $9,734,000 N ational Con tainer debentures and for property additions since Jan . L 1957. , __ LEGAL--F or savings b an k s In Me., N. J . and N. Y. LISTED--O n N ew Y ork Stock Exchange. OFFERED--($50,000,000) a t 100% (proceeds to company, 99%) on Ju n e 5, 1958 by Lazard Freres & Co. and Goldman, Sachs & Co., New York, and associates. 3, Owens-Illinois, Ine. convertible tuborti* nated debenture 41/**, due 1992. R ating--Baa AUTH.--$50,000,000; outstg., Dec. 31, 1967, $50,000.000. DATED--Nov. 1, 1967. DUE--Nov. 1, 1992. INTEREST--M&N1 to holders registered on 15th d ay p rior to in terest d a te a t office of trustee. TRUSTEE--Chem ical B ank New York Trust Co., NYC. DENOMINATION -- Fully registered, $1,0 and authorized m ultiples thereof. Debs, an interchangeable w ithout service charge. CALLABLE--As a w hole o r in part on at least 30 days* notice to each O c t 31, indM as follows: 1968-- 104.500 1969-- 104.275 T970- 104.050 1971., 103.825 1972-- 103.600 1973.. 103.375 1974.. 103.150 1975.. 102.925 1976.. 102.7 1977.. 102.475 1978.. 102.250 1979.. 102.025 1980.. 101.800 1981.. 101.575 1982.. 101.350 1983.. 101.125 1984.. 100.900 1985.. 100.675 1986.. 100.450 1987.. 100325 1992.. 100.0 Also callable fo r sinking fu n d (which see) a t par. ___' * CONVERTIBLE--In to com. a t anytime (If called, o n o r before 15th day prior to re dem ption date) a t $59 a sh. No adjustment fo r Interest o r divs. except th a t debs, con* b erted a fter record date and prior to In te re st paym ent d ate m ust be accompanied b y an am ount equal to such interest to w hich th e registered holder is entitled to receive. Cash paid in lieu of fractional shs. Conversion privilege protected against dilu tion. SINKING FUND--A nnually, p rior to each Nov, 1, beginning 1978, to re tire debs., cash (or debs.) equal to 5% of debs, outstg. on Nov. 1. 1977; plus sim ilar optional payments. SECURITY--N ot secured; subordinated to all senior debt. DIVIDEND RESTRICTION--See Term Loan, RIGHTS ON DEFAULT -- Trustee, or 25% of debs, outstg. m ay declare principal due and payable (30 days' grace for payment of interest or sinking fund installment). INDENTURE MODIFICATION -- Same as deb. 3%s, 1988. LISTED--On New York Stock Exchange. PURPOSE--Proceeds to repay debt. OFF: C o..; A C BOCiS 4, guar 1977 OUT DUE GUA CON sh a r men' OTB nanc 5. Dec. 000 f $6,82 Fare Cr ered arre.; rate aftei due OAF 1. ferrs AUT Dec. PRE and DIV divic quai Dec. DIV cent 1956. DIV corr men of d com able nan' in a any star V07 cept pref title OA! CAJ 1. HIS In succ 1866 exli In J for In We: its and Gez L Of i tis : 6U Par Par Par Par Pai Par A Par Lat Par Par Par Par O' Par Pa? Da So< rPa: H it La Lai Pa; Ch Yp H Sc.* Pa Pa Fa BV I fat 2.13 .13 ?.6o .420 *d on ot Jat POO 'r* at 3 I. go f?5 too )25 go 075 too *> "6* At mmed to Jo lu* st oil *U%ft Of MOODY'S INDUSTRIAL MANUAL 1371 OFFERED--($50,000,000) a t 100 (proceeds to Co. 98.875) o n O c t 26 1967 th r u L azard F reres & Co. a n d Goldman Sacha 6c Co. a n d as sociates. i4* Owens-Illinois Overseas Capital Corp. uaronteed convertible debenture 5s, due 177. OUTSTANDING--Dec. 31 1967 $20,000,000. DUE--Jan . 15, 1977. GUARANTEED--By com pany. CONVERTIBLE -- In to com pany com m on shares a t $62.75 a share. S ubject to ad ju st ment u n d er certain circum stances. OTHER DETAILS--See Moody* B ank & F i nance Manual. L Guaranteed Loans: Also outstanding a t Dec. 31 1967 b y foreign subsidiaries, $8,984,000 6% to 7.5% m ortgage bonds to 1983 and $6,828,000 2.9% to 10% notes pay ab le to 1977. Parent com pany h a s g u aran teed $5433.000. Credit Agreement: In Nov. 1967 a revolving credit of u p to $50,000,000 to Dec. 31 1970 was arranged a t m inim um commercial lending rate w ith options of 4 y e a r te rm loan there after a t V<% above su ch r a te w ith pay m en t due 1971 to 1974. CAPITAL 8TOCK L Owens-Illinois Inc. 4% cumulative pre ferred; p a r $100: AUTHORIZED--574,954 shares; outstanding Dec. 31 1967, 511,294 shares; p a r $100. PREFERENCES--H as p referen ce fo r assets tnd dividends. DIVIDEND RIGHTS--E ntitled to cum ulative dividends of $4 p e r share annually payable quarterly Ja n . 1 etc. to stock of reco rd about Dec. 7, etc. DIVIDEND RECORD--In itia l dividend of 95.65 cents paid Ja n . 2 1957. fo r period from Oct. 4. 1656. R egular q u a rte rly paym ents th ereafter. DIVIDEND RESTRICTION--A rticles of in corporation and certain long term debt agree ments include covenants restrictin g paym ent of dividends. A t Dec. 31. 1967 $234.300.704 of consolidated re ta in e d earnings w as n o t avail able for p aym ent of dividends u n d e r cove nants in th e d eb t agreem ents. T he provisions is articles of incorporation, applicable while any of th e 4% p referred shares a re o u t standing, a re p resently less restrictive. VOTING RIGHTS--H as no voting pow er ex cept on defau lt of 6 q u a rte rly dividends w hen preferred, voting separately as a class. Is en titled to elect 3 directors. 0 Consent of 66 2/3% o f p referred required 318,725 shares; fo r conversion of th e subordi to increase authorized preferred ; issues equal nated. debentures 847,458 shares; an d fo r is or p rio r preferred; change term s of th e suance u n d er stock option plans, 347,145 m erger o r an y m erg er o r sale of substantially shares; p a r $3.12%. all assets w hich w ould affect adversely rights P a r changed from $100 to $25 in 1916, by of preferred. 4-for-l split; from $25 to $12.50 in April. 1937, LIQUIDATION RIGHTS--In liquidation, en by 2-for-l split; from $12.50 to $6.25 Sept. 21. titled to 3100 p e r sh are if involuntary and re 1955. by 2-for-l split; from $6.25 to $3,12 dem ption price If voluntary; plus dividends. on A pr. 21,1965 by 2-for-l split. PREEMPTIVE RIGHTS--None. DIVIDEND RESTRICTIONS--See long term CALLABLE--As a whole o r In p a rt a t any debt an d p referred above. tim e a fte r M ar. 31, 1959 (b u t p rio r to Oct. 1. 1968, n o t less th a n 40.000 shares a t an y one Dividend Record (In $) tim e) o n a t least 60 days' notice p rio r to date fixed for such redemption. Shares are re 1907.. ($100 p ar shares) 1.00 1908-- 5.50 1909 640 deem able through M ar. 31 a s follows: ($ 1910.. 1916.. 840 1911-- 1040 001912-15 12.00 3.00 per share and dividends). 1969__ 102.75 1970.-- 102.50 1971__ 102.25 1916-- (625 p a r shares) 340 1917-- 5.00 {1918__ 3.50 1972.. . 102.001973____101.75 1975-- 10145 1976____101.00 1974.-- 1977.-- 101.501 100.75 ' 001919-20 3.00 1921-- ($25 p a r 2.50 1922__ shares) 2.00 1978.. . 100.502979___ 10045 + A fter Mar. 31, 1979. + __ 100.00 2.75 1924-25 3.00 11926__ 4.00 GO1927. 5.00 001928-- 4.00 11929__ 440 Preferred may be purchased a t any time a t not exceeding redemption price provided 930. 1933.. 340 . 240 1931__ 1934__ 245 1932.. 3.25 1935.. . 2.00 . all preferred dividend# nave been paid. PURCHASE FUND--A nnually, beginning M ay 1936.. . 6.00 2937... 140 1. 1962 (not cum ulative), $2,000,000 fo r p u r 1937.. ($12.50 p a r shares) . 240 1938__ 140 1939-40 2.00 chase of p referred a t not exceeding $100 p er share: unexpended balance after one year to 1941__ 1947-49 2.50 1942-45 3.00 1950___ 2.00 1946__ 3 4 5 1961-54 340 4.00 revert to company. 1955.. . 3.00 OPTIONAL SURRENDER--P referred m ay be su rrendered fo r retirem en t, from O c t 1, 1958 1955__ ($645 p a r shares) 0.62% 1956-64 2.50 1965... 1.35 to Sept. 30, 1968 in d . (if called, to an d includ ing 5th day before redem ption d ate). In ex 1965__ ($3.12% p a r shares) 0.67% 1966-67 1.35 (1968__ 043% change for Owens-Corning Flberglas Corp. common on a share for share basis prior to Plus stock dividends of 50% Dec. 23. 1912. Oct. 1, 1968, w ith o u t adjustm ent for divi 331/3% Dec. 10, 1913; 25% Nov. 27, 1914; 2X><jt Nov. 27, 1915. dends; cash to be paid in lieu of fractional shares of Flberglas common. Privilege Is pro IPlus 5% stock Ju ly 1,1920. tected against dilution. PURPOSE--Issued on m erg er of N ational IPlus 50% stock Ju n e 1,1921. IPlus 5% stock. C ontainer Corp. one-fifth preferred sh a re and ITo Mar. 6. ivldends payable q u arterly Mar. 6, etc., to one-fourth common share for each National common sh are and 352/1000 p referred share stock of record about Feb. 15, etc. and 44/100 common share fo r each N ational 3145 preferred share. VOTING RIGHTS--One vote p e r share. PREEMPTIVE RIGHTS--None. LISTED--On New Y ork Stock Exchange. LISTED--New York, M idwest an d Pacific TRANSFER AGENTS--M arine M idland Grace Coast Stock Exchanges. Unlisted trad in g on T rust Co., New York and com pany's office, Cincinnati, Boston and Philadelphia-B alti Toledo, O. more-Washington Stock Exchanges. REGISTRAR--M anufacturer H anover T ru st TRANSFER AGENTS--Chemical B ank New Co., New Y ork and Ohio Citizens T ru st Co. York T rust Co., New York, and com pany's Toledo, O. office, Toledo. 2. Owens-Illinois, Inc. common; par $34214: REGISTRARS--M organ G uaranty T ru st Co., AUTHORIZED--24.000.000 a r e s ; outstand New York, an d Toledo T ru st Co., Toledo. ing, Dec. 31. 1967. 14,819,625 a r e s ; reserved Stock Options held b y officers and fo r conversion of th e O verseas debentures. ployeee a t Dec. 31, 1967 on 313,545 shares. CAPITAL STRUCTURE PARKE, DAVIS & COMPANY CAPITAL STOCK Issue 1. Common _________ .. Par Value No par Amount O u tstan d in g 14,893,577 sfis. Earned per Sh. 1967 1966 $1.41 $2.14 Dlvs. p er Sh. Call 1967 1966 P rice $1.40 $1.45 ____ Price Range 1967 1966 33%- 25% 43%- 22% HISTORY Incorporated in M ichigan. Ja n . 14.2875 as the mccessor of a business w hich originated in 1866. Under its p resen t c h a rte r th e term of existence is th irty years from Jan . 14, 1955. In July, 2931 acquired B ay Co. in consideration (or 113,025 shares of com m on stock. In Apr., 1965, acquired assets of YpailonWerk w ienke & Michels, KG, Troisdorf, and Its Z companion Cos., H. H olthaus & Co. and F. Schoneck & Co., b oth of R osrath, Germany. In Oct., 1966, acq u ired assets and business o Aeroplast Corp., subsidiary of H elene Cur tis Industries, Inc., fo r cash. SUBSIDIARIES AND AFFILIATE8 Parke, Davis r Co., Ltd. (Nev.) Parke Davis y Compaa de Mexico (S. A.) Parke Davis (Baham as) Ltd. Parke Davis & Cie., S.A. (Belgium) Parke Davis Societ per Azioni (Italy) Parke Davis L aboratories (P ty.) L td. (South Africa) Parke Davis & Cia. d e A rgentina, (SA..I.C.) Laboratorios P ark e Davis Lim itada (Brazil) Parke Davis International Ltd. (Bahamas) Parke, Davis & Co., Inc. (Philippines) Parke Davis (India) L td. (83.33% owned) Parke, Davis & Co., L td. (P ak istan ) (85% owned) Parke Davis K abushiki K aisha (Jap an ) Parke Davis y Cia. Del P eru, S A . (Peru) Davpar Company (Sw itzerland) Socit Financire e t Com m erciale d e Cadillac (France) Pardavco, Inc. (Del.) Hidracina y D erivados, S.A. (Spain) Laboratorios P arke Davis, S.A.E. (Spain) Laboratoires P ark e Davis (France) Qumica Sintetica, S.A. (Spain) ' S. A. Capsugel N.V. (Belgium) Parke, Davis & Sankyo, Ltd. (Japan) \ Chemsyna GmbH (Germany) Ypsilon GmbH (Germany) Holthaus GmbH (G erm any) \ Schoneck GmbH (Germ any) Parke Davis Inter-A m erican (Delaware) Parke Davis Co. Ltd. (Iran) (80% owned). Parke Davis Corp. (Taiwan) BUSINE88 A PRODUCT8 Ranks as one of the world's largest m anu facturers and distributors of pharm aceutical antibiotic, biological, and surgical dressing products, num bering over 500. Products offered by company include most of the widely used pharmaceutical products. In addition to a number of specialties, com pany is one of the few drug m anufacturers that offers a line of more im portant standard pharm aceuticals listed In th e U. 8. P h arm a copeia and other official compendia. Follow ing are the more Important specialty prod ucts: ACTH, Abdec Drops, Abdec Kapseals, Adrenalin, Adroyd, Albuspan, Alophen Pills, Ambenyl, Ambodryl, Arlef, Benadryl, Benylin Expectorant. Caladryl. Camoprim, Camoquin. Carbrital. Celontm, Chloromycetin, Combex Kapseals, Cosadein, Cosanyl, Dilan tin, Elase, Elase-Chloromycetin, Eldec K ap seals, Geriplex Kapseals. Humatln. Immu-G, Lavacol, Medicated T hroat Discs, Midice], Milontin, Myadec Capsules, Natabec Kapseals, Norlestrin, Norlutin, Norlutate, Oxycel, Paladac. Palaflor, Parcel, Pitocin, Pitressin, Pituitrin, Poliomyelitis Vaccine. Povan Propooquin Quadrigen, Siblin, Surital, Taka-Dias tase, Takazyme. Theelin Triogen, Bodryl, Clorelase, Ergodryl, Xnitia Drops, Ponstan, Portyn and Zaroniin, . PRINCIPAL PLANTS A PROPERTIES Principal manufacturing plant and distribu tion center are located a t Detroit, Mich. A 460-acre farm near D etroit is m aintained for the development of biological preparations and production of polio and other vaccines. On a 30-acre site near Holland, Mich., com pany operates a chemical m anufacturing lab oratory. Surgical dressings m anufacturing facilities in U. S. a re located a t Greenwood, S. C. Research center is situated on a 50-acre site in Ann Arbor,' Mich. Laboratories and Offleos: United States Ann Arbor A tlanta B altim ore Boston Buffalo Chicago Cincinnati Cleveland Dallas Denver 3]D etroit Greenwood (S. C.) (FHolland (Mich.) Honolulu Kansas City Los Angeles Memphis Miami M inneapolis New Orleans New York Philadelphia (Cam den, if. J.) Pittsburgh Rochester (Mich.) St. Louis San Francisco Seattle Teterboro (N. J.) Canada and Overseas Alcala de Henares, Mendoza, Argentina Spain Mexico City Bangkok, Thailand Mexico Basel, Switzerland Melbourne, Australia Barcelona. Spain Milan, Italy S B eirut, Lebanon Mittagong, Belem, Brazil Australia Belo Horizonte, Montevideo, Brazil Uruguay Bogota, Colombia Montreal; Canada Bombay, India Munich, West Bornem, Belgium Germany Brisbane. Australia Nassau, Bahamas Brockville, Can. Paris, France Buenos Aires, Perth, Australia Argentina Porto Alegre. Brazil Cairo, Egypt Recife, Brazil Caracas, Venezuela Rio de Janeiro, Colon, Panam a Brazil Cordoba, Argentina Rome, Italy Crewe, England Rosario, Argentina Curitiba, Brazil Sagamihara, Japan Dacca, Pakistan Carolina, Puerto Damascus, Syria Rico Edmonton, Canada Santiago, Chile Escobar, Argentina Sao Paulo, Brazil fortaleza, Brazil Singapore, Malaysia Geneva. Stockholm. Sweden S w itzerland Sydney, Glasgow, Scotland Australia Hong Kong Taipei, Taiwan Istanbul. Turkey Teheran, Iran Johannesburg, Tokyo, Japan South Africa Toronto. Canada Karachi, Pakistan Trolsdorf, Germany Lagos, Nigeria Vancouver, Can. La P la ta , Argentina Wellington, New Zea Lima, Peru land Lisbon, Portugal W erm elskirchen, London, England Germany Madrid, Spain Winnipeg, Canada SM anila, Philippines Zurich, Sw itzerland Research laboratories. Manufacturing plants. M anufacturing associates. Expansion Program : In 1967, a to tal of $13,700,000 was spent to acquire new property, plants and equipment. This amount includes expenditures for additional production fa cilities located in Detroit, Ann Arbor, Holland and Rochester, Mich.; Greenwood, S. C. and /