Document jmXkVQq8K1x812NYZnyxJrJRR

where leadership in research leads to a better life for you PITTSBURGH ANNUAL REPORT 1962 PAINTS GLASS CHEMICALS FIBER GLASS 4''-&'' '" r''s Jm* - ' V r/. -: -L /4n experimental 'patch' of glass is fired poured, cooled. then analyzed by PPG s research scientists i> *.".'j^'--to'-'?>'y - -Vy`-*M"A't wU,;--;. -. , where leadership in research leads to a be\ Our cover picture for this report shows an asbestos-clad scientist (top of page) at PPG's Glass Research Center pouring an experimental sample of molten glass from a glowing crucible. The other photographs (above) illustrate research activities of the Chemical Division, Coatings and Resins Division, and Fiber Glass Division. New products from these PPG laborato ries have contributed to the success of Project Mercury; have made daily work more pleasant for millions because of glass-clad offices and color-bedecked fac tories; and have benefited the health and welfare of the nation in its hospitals and schools. But, in addition to these note worthy contributions, new PPG products (as our Company slogan indicates) also help create a `'better life for you." This "better life," specifically, involves the average American's interest in travel, sports, backyard fun, and other leisurely pursuits related to the highest standard of living in the world. And while investing in t PLATE GLASS COM PAY DiJb-j v ? j 'h*nhjt is r*Per[ed *n giass 'is? nn^/ntng /?4iAs j^ed for corrosion festmg syjni-i y f`$&r glass resemble a golden n&ro as are i'a//1' from th** "throat ' of fjrnace ar life for you ! sports cars, boats, vacations, swimming pools, toys, portable TVs, resort homes, and sports equipment may be fun, it cer tainly isn't financially frivolous, The $40 billion that Americans spend annually on reo^fction gives the American economy (ai^^^e economy of the Pittsburgh Plate Glass Co.) a substantial boost. A full-color section, which demonstrates the role PPG research plays in this phase of your life, follows the financial data section of this report. I I BB 000194S~TM ._J, BOARD OF DIRECTORS 1 'M FKDI(I) .J Km KS'I'II \m> Kiihinsiin K, HaKKKK 1 i 111 v .1 M i- k- ;i iufk ' Prank. K I >kn m\ ' ' .KI.A Nl ' ' I A / vii ;> I) win 11 H i i.i ' **`1 'hntrf't i 'i i<VA f./ r lAMKA K -ll N..I-. I, l.AKI'll \ \ Ei 1 ll AC I .FI ' W, Kttr< Puli., ic- N A I'll W 1,1 M V, US K V Y.UON ,) I' I . V ' ,{N 1 11-,;!1!, ,1, I) v\ . r. > OFFICERS Dav (l) * i, Hn.l., bn* Robinson i; Barker \ nr C/H- an ! F-U" : /,, , , ' RoBERT M, i i A!\SFt K 1'ff kk \'>-r /''`MrlV'li' 'c-i'-'t M -1 Mxkvin \V. Marshall \ n r /Lv - ill,\ it t,rnn`' - -' * < > 1 !) - 111 * 11;v -/ Bkkc.uokk V n- 'haklks R. Holman ri`i 'm mt'. i i 4 \f /*> n-i !) VVv l*> rst h`H! \ f I t i, Ji'i i " 'ii,> I'tMtrina' i i'< lh\is,<*n HoWAKU I M \ I'HKR /'"ivili'n i 'if'rtinU't m l ,'v7.*s, Kkux T H ughes \'trr Pn,*)`lr>)` tn i ' r*`n* r i M i ) i \J''r, 'tn/hi, , />,' A >.* Paul A Khn'HUM Prr^i irtif -f thiSan-*, V/.vv hun>it l)n JoSKCH A NfiUBAfJKK \'/r<` },rt's.deril and (}rn>Jra' \htn<i4>'rt f'hmt rn Dnis'in ! .URLS F Vtr*> l*rt'4idt`nt - Chwra1 Sii'r-* 'h*>n->n `I Kahl Horreli. Vtc*f Prp^idvnt iprratutn * ''hf/ri.. t Du Ioskbh 'r. Owens VP'VtinA 'B (irru'rn rt t KraNCIS w. ThkiS r.'.-i- Pr.^'dmt - !-r> * ` f* *>-w Khwaki) H Kai*<in ' L, SrANrr>N Williams **i * > . TRANSFER AGENTS PirrsHUKcii Nai'kinai, Hank I'f) H').V 7lo. 1 * ITT-S hi in, u in l'v iMK.sr Nai'iunvi, (tll'V Hxnk ")."j Wai.i. Streei , N ew Vokk I S, N V REGISTRARS Mellon National Bank and Tkvst Company Mellon Square. Pittsburgh UJ, Pa Mojkjan (Rmranty Trust Company of New York 140 Broadway, New York IT \ Y The foiiimi'iit rrgt sft'rrd zraHfmurk* ol (hr Pitt^bu-jh /'We <Vft^ Company arr uwrt in this issur PP<\ wwwim , CH-119. Darner yl, (Jateum . (hold Strip* . Ill -Si ', H 'dh F'dedD .Vf'-if/. Pittahn, Pittchlor. Pill<o, Pittshurnh, ^itt^hurjh Sw> Proof, firs, Sr'pctron, Solarijrav Tuindnu. bnonnrr'-re. 7Wv* Hi if', Tn-F.thtinv, Tumdoic, and WtiUhnlr FINANCIAL HIGHLIGHTS X et Sales $656,670,000 $602,722,000 Income Taxes $42,700,000 $32,200,000 Net Earnings $43,004,000 $34,627,000 Net Earnings Per Share Cash Dividends Per Share ^Stock ^WDividends Per Share $4.05 $2.20 2% $3.23' $2.20 2% Expenditures for Property and Investment $37,906,000 $31,374,000 ,p Unexpended Authorizationst - FOR Property $94,000,000 and Investment $38,000,000 Working Capital $217,245,000 $208,146,000 Number of Employees 33,400 32,000 UMBER Shareholders 26,000 "Adjusted for subsequent stock dividend 4 23,200 'O* * fHE SHASEHOLDE In 1962. Pittsburgh Plate Glass Company i: creased its sales by 9r? over the preceding ye. to establish a new high of $656,670,000. Th achievement, due in large part to the genera! high level of the American economy, also r fleets favorably the Company's determinate to improve market positions through intens tied selling efforts and new products. Earnings of $46,004,000, an improvement 24'r over the preceding year, were equivale; to $4.05 per share after the 2% stock divider paid -January 21, 1963. The earnings increa.resulted from a combination of many cost in provements and the larger sales volume. Th Company has taken full advantage of the tn effects of the 7% investment credit and th new depreciation guideline procedures with th result that cash flow was improved. Howevei the higher depreciation allowed for tax put poses was not charged against earnings; const quently. earnings in 1962 were not reducer: The benefits of the investment credit will b reflected in earnings over the life of the equq ment acquired. The management is pleased to be able t report significant improvement in earnings, bu is fully aware that profits in some prior year were higher on smaller sales volumes. In 1962 as in the several years immediately preceding prices for many of our products continued t> decline. Meanwhile, as in prior years, the cos of wages and fringe benefits per man-hour con tinued to rise. The introduction of labor-savin: equipment and improved methods partialh offset the effect of these higher wage costs Still, the cost-price squeeze which is impairin: the profitability of American industry is als< affecting PPG. The future course of this squeezt involves factors beyond the responsibility o. business. Foremost among these are the atti tudes of government and the implementatior. of such attitudes through legislation, regula tion, and other forms of control. Despite the uncertainties of the times, we continue to be optimistic about possibilities for future earnings improvement. Essential to such optimism is a willingness to spend substantia: sums for research and for capital improvements and expansion. During 1962, almost $20 million was spent for research in the laboratories of the divisions; current budgets are even higher. The total of capital expenditures and investments in affiliates in 1962 amounted to $37,906,000, Commitments at the end of the year for such future expenditures totaled $94,000,000. Glass Division volume improved significantly dude plants for producing sodium chlorate, in 1962, but was still short of earlier highs. Tri-Ethane, and an organic catalyst at Lake The Division concluded a license agreement Charles, Louisiana; and a barium chemicals under which it will become the first manufac unit at the Natrium Plant near New Martins turer to produce glass by the Float process in ville, West Virginia. The new chromium chem United States. In this new and highly icals plant at Corpus Christi, Texas, was placed ient process, glass is formed on the surface in full operation. New construction initiated of-a pool of molten metal, thus eliminating~the during the year includes a carbon bisulfide need for costly grinding and polishing. Quality plant and expanded ammonia facilities at of the glass is excellent, comparing favorably Natrium; and East and West Coast distribu with that of all types of commercially produced tion terminals. A major modernization of the flat glass. Float Glass has already achieved Company's cement plant near Zanesville, Ohio, good market acceptance in Great Britain. was also begun. Plans are well under way for a new plant at Columbia Nitrogen Corporation was formed Cumberland, Maryland, to employ this proc early in the year with Staatsmijnen in Limburg ess. Construction will begin as soon as weather ( Netherlands i to produce and market ammonia conditions permit. and related products for fertilizer applications. A new high-strength safety glass was per Construction was begun on a nitrogen fertilizer fected and successfully introduced in selected complex at Augusta, Georgia, which will have markets during 1962. A new process, developed an initial annual capacity in excess of 100,000 at the Company's Glass Research Center, pro tons of nitrogen. The basic unit will be an duces glass with greater strength per unit of ammonia plant, with process units for manu thickness and better optical properties than facturing nitrogen solutions, ammonium ni previously attainable in commercial produc trate, ammonium nitrate-limestone and nitric tion. Its ability to produce thinner safety glass acid. Bradley & Baker, nationally known and and its economic advantages are expected to well established in the marketing and distribu stimulate significantly the growth of safety tion of fertilizer and feed materials, became a glass markets. division of Columbia Nitrogen Corporation Record volume in the Paint and Brush Divi and will handle sales and distribution of its sion resulted from a substantial increase in products. New distribution terminals will be sales of industrial finishes coupled with con- constructed in the South Atlantic States prior t^^d growth in consumer product sales. to completion of the plant later in 1963. previous reports, mention has been made Encouraging progress in sales and earnings of the changing nature of the paint industry. was made by the Fiber Glass Division in 1962. Modern paint technology has consistently This progress was made in spite of continuing moved in the direction of more complex chemi price instability, and is attributable to strict cal materials and processes. This pattern is control of costs and quality, coupled with in being formally recognized by a change in the tensified sales efforts and product and process name of our Paint and Brush Division; here development. after it will be known as the Coatings and The Merchandising Division is the Com Resins Division. The new name more accu pany's principal selling and distributing arm rately reflects the broad range of the Division's for consumer sales of paint and for all glass activities. For example, construction of a new products except optical glass and that used as resin plant at Circleville, Ohio, announced last original equipment by automobile manufac year, was completed in 1962. This highly auto turers. To carry out these functions, it is or mated plant is now in full operation, producing ganized into a system of seven zones which the sophisticated resins used by the Division's comprise 39 districts, 223 branches, and 52 other plants in the manufacture of modern paint stores. In 1962, sales of glass and paint coatings based on advanced polymer tech by the Merchandising Division reached an all- nology. By the purchase of a plant at Bloom time high. field, New Jersey, the Division has extended The Division sells in many ways, ranging its activities in the growing field of industrial from factory carload sales to independent dis adhesives. tributors and other factory buyers, to sales of The favorable sales trend in the Chemical lesser quantities from branches and stores to Division noted in last year's report continued dealers, maintenance accounts, painters and through 1962 with the result that Division consumers. An important segment of its busi sal^^aagg;ain reached a new high, ^Pdui ction facilities completed in 1962 in ness derives from its activity in the installation of glass in modern (continued on next page) ' to the-skarehn/ders --continued buildings, such aside Pa Am Building in New York and the Dulles International Air Terminal near Wash ington. D.C. The Division is also aerively en gaged i.n the erection of metal and glass curtain twalls for buildings of all types and sizes. Continued international activities pave the c way for the Company's'greater participation' in growing markets Outside the United States. A site was selected and construction begun on the sheet glass plant of a subsidiary, Pennitalia, S.p.A.. at Salerno. Italy, During the year, Societa Edison. S.p.A.. an important Italian company, purchased a minority interest in this venture. Majority stock interest in Pei mures ('orona. a leading manufacturer of paint in France, was purchased early in the year. The fiber giass plant of N. V. Silenka ,\KU-Pittsburgh- Netherlands* is expected . to commence production in 1963. Continued progress on engineering and design of a chemical plant in Italy for Chimica Sarda, S.p.A.. jointly owned by PPG and Rumianea, S.p.A., was made during the year. Exploratory work on the potash,mining project in Canada continues to develop in an encouraging manner. Evalium Chemicals Limited, a joint venture . , with Armour and Company, continues to work . on this project. The Board accepted with regret the resigna tion of George D. Woods effective December Cl, 1962, The resignation of Mr, Woods was oc casioned by his election as President of the International Bank for Reconstruction and Development (World Banki. Virgil C. Sullivan of Minneapolis, Minn., was elected as Director on February 6, 1963, to replace Mr. Woods. The sales and earnings of Pittsburgh Plate Glass Company in 1963 will depend in large part on levels of activity in the industries that buy its products. Assuming that conditions of the markets in which we sell will not be appre ciably different from those experienced in 1962, the Company should register some further im provement in both sales and earnings. In making this report to you, I should like to acknowledge our dependence for success on our shareholders, employees, customers and suppliers, and to take this opportunity to ex press the appreciation of management for the vital contributions that each group has made. February 6, 1963 Submitted on behalf of the Board of Directors David G. Hill President how the 1962 dollar was spent 45.40 materials & services purchased from others x 35.30 wages, salaries & employee benefits 5M depreciation of plant & equipment 3.0C invested in the assets of the business 3.40 cash dividends paid to shareholders ten-year DIGEST INCOME (Millions of Dollars) Net Sales............................................................ Earnings Before Income Taxes J............ Income Taxes.................................................... Net Earnings...................................................... Cash Flow From Operations......................... Dividends........................................................... 1962 1961 1960 1959 1958 1957 1956 1955 1954 1953 856.7 85.7 42.7 43.0 81.0 23.0 602.7 66.8 32.2 34.6 71.0 22.7 628.0 92.0 44.4 47.6 85.6 22.3 606.9 85.8 41.7 44.1 81.0 21.8 513.6 59.7 27.6 32.1 67.6 21.8 620.8 112.8 54.8 58.0 89.0 27.2 596.6 116.2 60.8 55.4 79.6 27.1 582.0 130.9 69.5 61.4 84.7 23.8 431.0 73.9 35.3 38.6 57.5 20.7 452.0 76.2 39.3 36.9 53.3 20.4 Balance Sheet {Millions of Dollars) Current Assets.................................................. Current Liabilities............................................ Working Capital............................................... Plant and Equipment (Less Depreciation). . . Total Assets....................................................... Long-term Debt........ ........................................ Capital and Retained Earnings..................... Expenditures For Property and Investment 305.0 87.7 217.3 308.7 637.7 19.3 494.0 37.9 289.3 81.2 208.1 314.7 620.3 24.6 481.3 31.4 287.2 95.9 191.3 321.3 624.8 29.0 466.5 25.4 268.4 108.8 159.6 333.3 619.3 33.5 442.2 43.2 218.8 75.8 143.0 320.3 561.4 39.1 418.2 40.3 240.2 99.3 140.9 313.5 574.8 44.1 407.0 69.7 261.4 108.9 152.5 277.3 555.3 49.1 374.6 70.7 287.9 113.7 174.2 223.0 532.1 54.1 344.7 36,0 209.6 76.0 133.6 203.4 443.1 53.0 298.2 25.6 219.4 101.5 117.9 196.7 441.6 54.0 271.8 23.3 Per Share Net Earnings Reported Each Year Adjusted For All Stock Dividends to Date. Dividends Reported Each Year.................... Adjusted For All Stock Dividends to Date. Equity Reported Each Year.......................... Adjusted For All Stock Dividends to Date. 4.05 4.05 3.29 3.23 4.62 4.44 4.36 4.11 3.24 2.99 5.86 5.41 2.20* 2.20* 2.20* 2.20* 2.20 2.16 2.11 2.07 2.03 2.03 2.75 2.54 46.55 45.74 45.22 43.62 42.22 41.13 46.55 44.84 43.46 41.10 39.01 38.00 5.62 5.19 6.26 5.78 4.18 3.68 2.75 2.54 2.50f 2.25 2.20 1.98 38.03 35.13 32,29 35.13 32.46 28.42 4.07 3.58 2.25 1.98 30-00 26.39 Employees Number of Employees (Thousands)............... 33.4 32.0 33.5 34.5 32.4 35.3 35.0 33.2 29.7 31.0 Payroll and Benefits (Millions of Dollars) . . . 234.3 216,9 218.8 216.7 183.5 216.4 204.4 189.6 159.8 158.5 Plus 2% Stock Dividend tPlua 5% Stock Dividend j BB 000t95F7] SUMMARY OF FINANCIAL ACTIVITIES 1962 Sources op Funds: From operations*................................................................................................................................................................. From miscellaneous sources (net).................................................................................................................................... total...................................................................................................... Uses of Funds: Expenditures for property and investments.................................................................................................................. Purchase of treasury stock................................................................................................................................................ Cash dividends paid............................................................................................................................................................ Retirement of long-term debt (including current maturities) ............................................................................... Increase in working capital................................................ total...................................................................................................... $81,035,000 1,561,000 $82,596,000 $37,906,000 7,322,000 22,968,000 5,301,000 9,099,000 $82,596,000 Composed of Net Income, $43,004,000, depreciation and depletion, $35,231,000, and deferred income taxes, $2,800,000- CONSOLIDATED BALANCE SHEET December 31,19 2 and 1961 ASSETS December 31 1962 1961 Current Assets: . . .- t o ,. Cash ...................................... ,hvsv 41,037,000 United States Government and at lower of cost or market.................... ! ' i......... . (Quoted market value; 1962, $36,559,000; 1961, $28,565,000) 30,542,000 Notes and accounts receivable (less estimated losses: 1962, $4,058,000; 1961, $4,450,000).............. ............................. 86,921,000 Inventories.......................................................................................... 133,762,000 Prepayments and other current assets............................................ 6,692,000 $. 38,379,000 ........ 28,487,000 84,432,000 133,012,000 4,974,000 TOTAL CURRENT ASSETS......... .... $304,954,000 $289,284,000 Investments--At cost or less: Investments in subsidiaries not consolidated. .. Other.......... ........................................................ 6,180,000 $ 6,786,000 5,004,000 TOTAL INVESTMENTS................ ... $ 16,448,000 , $ 11,790,000 Property--At cost, less accumulated depreciation and depletion.......................................................... Deferred Charges.................................................. .... $308,715,000 .... $ 7,619,000 $314,747,000 $ 4,517,000 TOTAL .... $637,736,000 $620,338,000 ; V, LIABILITIES .. Current Liabilities: Notes payable--bank.................................................. Current maturities of long-term debt..................... Accounts payable and sundry accruals..................... Domestic and foreign taxes on income..................... total current liabilities___ Long-Term Debt: ' 3% Sinking Fund Debentures....... 3 H% Promissory Notes.................. Other........ ...................................... TOTAL LONG-TERM DEBT............. Deferred Credits: Deferred income tax Other........................ TOTAL DEFERRED CREDITS................ Accumulated.Provisions For: Maintenance and repairs................................................ Insurance and unfunded and uninsured pensions....... Foreign operations........................................................... TOTAL ACCUMULATED PROVISIONS. Capital And Retained Earnings: Common stock--authorized, 12,500,000 shares, par value $10 each; issued 1962, 10,740,494 shares; 1961, 10,529,873 shares............................................... Earnings retained for use in the business (after transfers to capital).......................................... Less common stock in treasury (1962, 129,769 shares; 1961, 9,283 shares) at cost. . I BB 0001953 | I capital and retained earnings total.............................................. Note: Reference is made to "Notes to Financial Statements" appearing on Page 10. 8 I $ 351,000 1,000,000 56.833.000 29.525.000 $ 87,709,000 $ 13,234,000 5,000,000 1,050,000 $ 19,284,000 $ 25,000,000 1,827,000 $ 26,827,000 $ 5,465,000 3,952,000 543,000 $ 9,960,000 $205,822,000 296,112,000 (7,978,000) $493,956,000 $637,736,000 $ 248,000 1,000,000 53.021.000 26.869.000 $ 81,138,000 $ 16,955,000 6,000,000 1,630,000 $ 24,585,000 $ 22,200,000 1,273,000 $ 23,473,000 $ 5,772,000 3,571,000 543,000 $ 9,886,000 $196,094,000 285,818,000 (656,000) $481,256,000 $620,338,000 SUMMARY OF CONSOLIDATED EARNINGS and earnings retained for us in tb business for the years ended December 31, 1962 and 19 1 1962 Net Sales. . . '............................... ........ Dividends And Interest From Subsidiaries Not Consolidated ... Other Earnings............................................... total.................................. $656,670,000 3.948.000 4.309.000 $664,927,000 Deduct: Cost of sales....................................................................................... Selling, general and administrative expenses............................... Depreciation and depletion.............................................................. Domestic and foreign taxes on income........................................... Other taxes......................................................................................... Interest................................................................................................ Other charges--net............................................................................ total....................................................................... $421,921,000 103,749,000 35.231.000 42.700.000 14.542.000 828,000 2,952,000 $621,923,000 Net Earnings......................................................................................... Earnings Retained For Use In The Business, January 1........ TOTAL........................................................................ $ 43,004,000 285,818,000 $328,822,000 Dividends Paid: Common stock--Cash ($2.20 per share).......................... ............. --Stock...................................................................... total........................................................................ $ 22,968,000 9,742,000 $ 32,710,000 Earnings Retained For Use In The Business, December 31. . $296,112,000 Note; Reference ia made to "Notes to Financial Statements'' appearing on Page 10. 1961 $602,722,000 2.431.000 4.246.000 $609,399,000 $399,057,000 93.057.000 35.192.000 32.200.000 13.072.000 1,020,000 1,174,000 $574,772,000 $ 34,627,000 287,193,000 $321,820,000 $ 22,693,000 13,309,000 $ 36,002,000 $285,818,000 1 BB 0001954 1 ACCOUNTANTS' OPINION Pittsburgh Plate Glass Company, Its Shareholders and Directors: We have examined the financial statements of Pittsburgh Plate Glass Company and its consoli dated subsidiaries, except certain Canadian sub sidiaries, for the year ended December 31, 1962. Our examination was made in accordance with generally accepted auditing standards, and accord ingly included such tests of the accounting records and such other auditing procedures as we consid ered necessary in the circumstances. As to the Canadian subsidiaries referred to above, we were furnished with reports of other accountants on their examination of the financial statements of those subsidiaries for the year. In our opinion, which in so far as it relates to the amounts included for certain Canadian sub sidiaries is based solely upon the reports of other accountants, the accompanying consolidated bal ance sheet, summary of consolidated earnings and earnings retained for use in the business, and sum mary of financial activities present fairly the finan cial position of Pittsburgh Plate Glass Company and consolidated subsidiaries at December 31, 1962 and the results of their operations for the year then ended, in conformity with generally accepted accounting principles applied on a basis consistent with that of the preceding year. Pittsburgh, Pennsylvania February 4, 1963 Haskins & Sells NOTES TO FINANCIAL STATEMENTS Principles of Consolidation The consolidated financial statements include all domestic subsidiary companies in which owner ship is more than 51% and all Canadian and European subsidiaries which are wholly owned. Items in foreign currencies have been converted into United States dollars generally at the current rate of exchange as to current assets and current liabilities and at the average rate of exchange as to profit and loss accounts. As to property and investments, long-term liabilities, and capital ac counts, conversions have been made on the basis of the rates of exchange at the date acquired or incurred. Investments The Company's equity in undistributed earnings of subsidiaries not consolidated since dates of ac quisition was $22,240,000 at December 31, 1962. Dividends received in 1962 exceeded the Com pany's equity in the earnings of such subsidiaries by $1,730,000. Inventories Inventories are stated generally at the lower of cost or market, with cost being determined at average or standard excluding certain fixed expenses. December 31 Description 1962 1961 Finished Products. . . $ 78,531,000 Work in Process........ 12.302.000 Raw Materials........... 20.930.000 Supplies....................... 21.999.000 $ 79,086,000 11,102,000 20.778.000 22.046.000 TOTAL INVENTORIES. . $133,762,000 $133,012,000 Property A summary of property accounts follows: December 31 1962 1961 Land............................. $ 10,467,000 $ 10,275,000 Buildings, equipment, etc........ 678,292,000 651,084,000 Less investment credit (1,158,000) -- TOTAL........................... $687,601,000 $661,359,000 Depreciation and depletion .......... 378,886,000 346,612,000 PROPERTY--NET $308,715,000 $314,747,000 The estimated investment credit on new facilities, allowed by the Revenue Act of 1962 as a reduction of taxes payable has been applied against property. The permanent tax saving, approximately 48% of the credit at current tax rates, will be included in income over the life of the facilities. Proposed Expenditures for Property and Investments Approximately $94,000,000 will be required to complete capital projects approved prior to De cember 31, 1962, and for investments in other companies. Long-Term Debt During 1962, the Company retired $5,301,000 (in cluding current maturities) of its long-term debt. As of December 31, 1962, the long-term debt con sisted of $13,234,000 of 3% Sinking Fund Deben tures due in annual installments on April 1 of each of the years 1964 through 1967, $5,000,000 of 31/%% Promissory Notes due in annual install ments on May 1 of each of the years 1964 through 1967 and an obligation for $1,050,000 payable in 1965. The latter could, provided certain conditions are satisfied, require the payment of $5,000,000. Stock Option Plans As of December 31, 1962, 362,601 shares of the Company's common stock were reserved for issu ance upon exercise of employee stock options, and at that date there were outstanding options on 256,090 shares at prices ranging from $45.06 to $70.33 per share. Options were granted during 1962 to purchase 74,925 shares at $45.06 per share (adjusted for the stock dividend declared in 1962). During 1962 options on 23 shares were exercised under these plans. Deferred Income Taxes Depreciation for income tax purposes on certain facilities currently exceeds normal depreciation as recorded in the accounts. To offset the effect of this difference, deferred income taxes of $2,800,000 have been included in the 1962 tax provision. In later years, when depreciation recorded in the accounts will exceed that deductible for tax pur poses, the amount so deferred will be credited to income. At the end of 1962, accumulated tax deferrals amounted to $25,000,000, of which $3,500,000 resulted from adoption of the new de preciation guideline procedures and $21,500,000 resulted from accelerated amortization of emer gency facilities. Dividends Cash dividends amounted to $22,968,000 on com mon stock and consisted of four quarterly pay ments of $.55 for a total of $2.20 per share then outstanding. The Company also declared a 2% stock dividend amounting to 210,598 shares pay able on January 21,1963, to shareholders of record on November 30,1962. The market value of these shares on the declaration date was transferred from retained earnings to the capital accounts. Pensions and Retirement Plans The Company has non-contributory pension plans covered by agreements with a number of labor unions, contributory retirement plans covered by group annuity contracts, and a voluntary plan under which the Company, in its sole discretion, grants pensions, retirement allowances, or relief. With the exception of the voluntary plan, the plans are insured or are being funded through a trustee. The contributory retirement plan appli cable to most salaried employees was revised and became a non-contributory plan on December 24, 1962. Total pension costs charged to income in 1962 amounted to $5,266,000. I BB 0Q019S5_| and ends with the following familiar products..  .-V/Jir'.'. mericans spend about $20 billion Aevery year for new cars--partly out of necessity, but also for pleasure. The fact that Detroit introduced more fancy sports cars in the 1963 model year than ever before is a good indication that the automobile continues to be a possession prized far beyond its basic transportation value. But whatever motivates Americans to buy, PPG benefits in several ways from almost every new car sale. The bright, du rable seats in this popular Sports Coupe (above) are made of a versatile synthetic material known as polyvinyl chloride. PPG chlorine and ethylene dichloride are sup plied to numerous manufacturers for proc essing this plastic material. The shiny trim which adorns this and other models is processed with PPG chrome chemicals. And a PPG reinforcing pigment, Hi-Sil, is used in the manufacture of automobile tires and other rubber parts to give them added life and strength. While our chemicals play a "hidden" role in automotive production, the PPG emblem is quite familiar to many motorists who see it on the safety glass windshields and win dows of many popular models. And the brilliant finish on today's biggest selling new cars (it retains its luster without wax ing) is PPG Duracryl--a revolutionary de velopment from the Coatings and Resins Division's Research Center. Steering wheels also use colorful PPG finishes. But the role PPG plays in the automotive industry doesn't end there. The new Studebaker sports car, the Avanti, has a rein forced plastic body made with PPG Fiber Glass. Fiber Glass mat is also used under the hood and elsewhere in many models as an insulating material. WHILE the nation still travels primarily on wheels, an increasing number of Americans are taking to the air. Although most of the 38 billion passenger miles flown last year represented business trips, an increasing number of pleasure-seekers are taking to the jets. And as air travel grows, so will PPG. Giant new air terminals such as O'Hare Field (lower left) in Chicago employ scores of PPG architectural mate rials in their construction. The huge win dows at O'Hare, for example, are heat absorbing, glare-reducing, Solargray Twindow polished plate glass with a matching opaque glass wall panel of PPG Spandrelite (background). Both are products from the PPG Glass Research Center. PPG also shared in the construction of the sleek Boeing 720 seen approaching the ramp in this picture. Its windshield is made of PPG Nesa glass--a special de-icing glass, developed after exhaustive research, which conducts electricity. The 720's rein forced plastic ductwork, radome, and a handy, detachable luggage pod all use PPG Fiber Glass and Selectron resin in their con struction. The aluminum in today's trans port planes is processed with PPG caustic soda and soda ash. And, in addition, the leather in the young lady's matching hand bag, gloves, and shoes was processed with PPG chrome and barium chemicals. BB Vs V'-' .4 I1" .***'" >*|#^"1?-'^. .1 N Lr-C`faC-. T51_ BB *jj?Q S9~J 14 i WHETHER they go by plane, train, or car, more Americans every year are Resort Motel (above) in Palm Springs,, Calif., currently are being built at the rate getting the urge to travel. This growinogf 1,500 per year. desire to "get away from it all" has created The new motels and motor inns represent two major new markets for PPG products a particularly broad market for the products --motels and resort homes. of PPG. Items such as Pittco and Gateway Unlike the hotels, which cater primarily sliding glass doors are especially adapt to businessmen, the motels have grown able to motel construction. And every room almost in direct proportion to the wander is a prospect for several PPG High-Fidelity lust of the American tourist. And what a mirrors and Fiber Glass drapes. To deco substantial growth it's been! Of the 60,500 rate and maintain the units in colorful motels in America, half were built in just fashion also requires thousands of gallons the last decade. New units, such as this of Pittsburgh Paints. >F THE millions of Americans who like to escape the city, not all are nomads, ny like to find a secluded spot by a lake, he seashore, or in the mountains--and tie. This desire for a home-away-fromne has created another leisure phenom- resort home. The second or nm^Jbme, once the exclusive domain he very wealthy, now belongs to over a ion Americans. And newcomers each r are spending a half-billion dollars to d their own rustic retreats, lost popular design for these new hide aways is an architectural style known as the A-frame. This Resort Home (above) at Lake Arrowhead, Calif., is typical of this design. Virtually nothing but a steep roof with glass at both ends, the A-frame is dramatic, economical, and versatile. Since many of these homes hug the shores of rivers, lakes and oceans, they represent an excellent market for PPG's newly devel oped, glare-reducing gray glasses. And the great, vaulted roof-decks require sub stantial quantities of Pittsburgh Paints, Rez Wood Tones, and varnishes. TbB 000l96l_i '^BP#HILE many Americans seek their by leisure-minded Americans, represents ww pleasure in faraway places, a great a 90 million pound annual market for poly percentage still finds ample diversion in ester resin and fiber glass. And the John family outings and sports activities close son outboard motor, as well as other nauti at hand. Camping, picnics, new-type cal accessories, employs special PPG municipal playgrounds, and the ever-popu- protective industrial finishes. The motor lar golf course provide pleasure outlets a housing is related to PPG, too. It is rein few minutes to several hours from home. forced plastic which uses PPG Selectron While it hasn't received as much pub and Fiber Glass in its construction. licity as bowling and other glamor sports, growth in golf has been as steady as a professional's swing. With an annual four per cent growth, the game attracted nearly six million golfers last year who chipped their way around 6,385 courses. And, in the constant search to improve their game, they spent $100 million on new equipment. Biggest news in golf equipment last year 'and for many years) was the new Cushman Sasoline Golfster shown at Mt. Lebanon Country Club (photo, far right) in Pitts burgh. Because of its fine styling and light, lurable, reinforced plastic body(which uses *'PG Fiber Glass and Selectron resin in its onstruction), the Cushman golf car was n instant success last year at pro shops cross the nation. And Cushman's pre- NOT even the vacant corner lot has escaped the Twentieth Century's swing to organized leisure. Municipal Playgrounds (top, left) such as this are architect-designed and professionally landscaped. The new playgrounds feature modernistic sprinklers, forts, mazes, and imaginative swings like the Donald Duck model (left, foreground). Manufactured by the Structurlite Company for American Playground Equipment Company, the Donald Duck reinforced plastic swing chair uses both PPG's Selectron resin and Fiber Glass in its construction. The Radio Flyer wagon is a popular sample from the two billion dollar toy industry which utilizes PPG's industrial finishes. ictu^ indicate the sale of the car prob- ; bl^^H double this year. ToTeep pace with the increased activity n the links, clubhouse expansion is pro- ding a growing market for PPG materials, io. The building in the immediate back- -ouna at Mt. Lebanon, for example, is a cent addition which incorporates PPG window insulating glass in its design, rthermore, maintenance of existing club- jses everywhere requires countless gal- s of Pittsburgh Sun-Proof and other ex- or paints as well as Gold Stripe brushes.I * 3 I WHAT must certainly rank as a new jcord for togetherness, 20 million Ameri families were registered vacationers, mpers, and picnickers at state and tional parks last year. This Family cnic (lower left) at a Maryland lakeside 3 is typical of such casual outings and icates the multi-billion dollar business apresents. *he Coleman stove (foreground) is both orfully decorated and protected from elements by a special PPG industrial it finish. The paper picnic plates and s were produced with the help of the >mical Division's chlorine, caustic and iu^^norate. PPG Fiber Glass insula- itWro Scotch Kooler helps keep the iic perishables cold, and PPG finishes :an interiors protect the food purity. >r the sportsman in the crowd, there's lakespeare fishing rod made of glass s. The boat, one of eight million owned | BB 0001962 |  -. , ,;: ". '- '_.C ' } i; . .'\ '.' . ';- '';-|+. . \. .y: "i: l>~ V. -_-J .--*rt/!i-..'i.T.T _^". * - ..* ^t^--il-_y" ''^^* :.O'J "l!'i1'* ."" 1 V',/ ',* '' ' Vr-:..- --I "; _ [ ...... 1 '- _ : " . /, - V,l'"v':" ,,--' r '' ;?'' '*'. -.. r. i^t$1.>!>,' jtyfr*. >-.'>.-> ,is.m .-> *'' ^-.-TJ. .`.ji!r-'T- . 2 >;'' W*;Vv%'.';, : .V; -.<-;^'li(i!*j^i,v''.i ..;_-Tj^\tf - - .:.r 1-:.-Vv.V` . ,"t, '. -- v*~v;>' ';?^^y**.*'** T"" K 'iWTM""TM" T^FT "V *,/? 5^3>M ' ^cf%ntt>race,doi- wife is cultivating her flowers winrffw? > riMMX *-''' > "j ' ' ) * ., ..i.v. ^MW.lMI^^''A.-'!l5`'Kflj3S:f'.''. 18 I V ^ ?>'` <*V'Jfrw;'v-li*, ' ^ijdS-br^Vri* ,r,,'"i.' , 3h ' *1 A^*^i^^"y'!`!fi5WVf'"^-- isl^M *M- w-.<o`,l ' >-^*< -' *t y-t** M: ss^-TS ...,. ` V \ v. -.->. -x, ,, - Ii ^.HILEmother and dad spend most - of their time on fawn care Of home ' ; elnent'pfejects,; the children ctefU prefer a television set or colorful new ^Occupy thetWwsurfrtime. In Living ....- .*. . s'CrrgHttslW^^fhfs, thereSfe cur- w -.,ffijiiii!jji|p^ :pbout' 55 .million televisioa sfts in """ 'cdttntry. An additional shrilflt^- many as replacements,.join the?, scene every year, PPG furnished the Tele- _ j S'-r ' glas for the safety face plate of this Zenith portable model. It is laminated to the front A< "1' of the picture tube with PPG Selection ' ** resin. PPG barium carbonate and hydrogen *. sulfide are among,the chemicals used In- - - 'jw ; ---> ^ jside^the picture tube. j-v ' - > j+ * Occupying the interest of the toddlers are a variety of toys produced by leading American manufacturers. The camel, a rubber toy by Remple, gets its luster from a PPG industrial coating. The polyethylene fire truck and ball are made from a plastic that was processed with a PPG chemical known as IPP. The coffee table has a plate glass top, and walls are painted with the new Wallhide Latex One Coat Flat wall paint. * m ,.,,.W'fc'^ I -, | BB 0001965 | 20 *; pr&imssirie-fyps/t:.w it it*#,inmwgtu <ww.3f ifatwmr .'"' .' i'cAAttC."" "'! '/' iVWj^?awi-C **>#<t^'i'nAafNff`.*.'T* >* . ,-~atrs cok# ftYM wH*: PPt}- unit st'-Msie'Mmtifw&e* Pks,jCS#&de^;| fe?V4i>-/-.,:~^.-;;;.-.v- - IBL ,*#;( . '' f ^w,is M j |: TK A I ; > - jW* ps'"'Si^ ' '-' '-' *"" ' 'jYW^r ''"~ ' \i M P t'7* r- f; "' - " ^ -'A 1 '- ',.- I '' *1 ~ > B ,^L . iflir K&f?' vl! '< . ?^*V -'ll Fp=^ -, i> - 5t} IjjT^'- '? St - iSlir ^ % j ` ' . fi- *' j> . S.'*Hi*u. -r3",'5v ,;,- U I 1 ^'**asiS fl '",, 'd.f . .'J'i">C-T' 1 ,'C3 -1p' |"H ? `^.IrCv .'iLi*?jfi !..._l_.h nVM*t* ! :* .*,,.-> * jjL JJ.IE^ '! It \^rT^ '&i? trij-~'.-- *77t* - : I, ' A yl-f , ... H A&s 1J. ' 4^3^4siil ' * >* wlSSfi ;y. Canadian Imperial Bank of Commerce Building was one of five major office structures completed in 1962 in downtown Montreal with PPG building materials. More than 150 rail cars of Pittsburgh products were used in the glass curtain walls as well as interior partitions, doors, and fittings of the five high-rise buildings which were glazed by PPG's wholly-owned subsidiary, Canadian Pittsburgh Industries, Limited. 4* <4 f4r* :-*W & iV % 1 I tv :f.fr c`t V S- !<lii!!: dJ*1' U I' 'I p n ll <>! "`Him JJiiiit,,, *U ^TSfcr- I Bfl 0001968 I| fT 1 'f-^r'.. v* ".'A;r,`' i'1'1'1:;- iJi r'-` f;<r; mifn-r.se mritii * '{'V ' - :'-> `':*" >H?r' 1 ,r . `'A ' "& ,*r v >.*r <*iv> \\'** 4::*'. *;*' S' :', . , -r'- '/,- <>-,' `' V ' > * ^'r`^<' ; ' ' '*' i*, '''* ^ t , S'- - - -- f - - ,. v- 1 "' s; ,; -'. * '4. . ': m^ZT 1 ui n--rn* mw* rc%a" i .,.j^assfflMsaw^#^ / "__ nnn7QfiQ~7 ____ ____Z~J. i BRAND NEW PRODUCT for the modern home . . . PPG's Wallhide Latex One Coat Flat wall paint. ,. has just been introduced nationwide in a completely new PPG label. It has been improved in several ways over earlier latex wall paints. I \