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INTERNAL CORRESPONDENCE
ETALS DIVISION
3 (Name)
{vision oca tion
/oor Number
Mr. R. L. Folkman Building 38th Floor
opy Or * F. J. Shortsleeve
270 PARK AVENUE, NEW YORK, NEW YORK 10017
Date October 27, 1980
Originating Dept.
Floor Number
Answer/'ng letter dote
Subject
1981 Asbestos Budget
The objective set for the Asbestos Business during the St. Louis Budget Meeting is to increase sales income so that rising plant costs are offset, and to project a 1981 percent gross margin equivalent to that now estimated for 1980 (about 30%). The attached revised sales budget will provide the income necessary to meet this objective.
The revisions include the addition of new sales; increasing the volume of some existing accounts and increasing prices by an average of 17, 9 percent. John Myers is preparing the necessary requests for authoriza tion to increase prices.
The magnitude of the increase in income required to offset the rapidly escalating costs is a graphic illustration of what is happening to energy costs in California. The actual increases in the cost of energy in California are comparable to what is being experienced everywhere in the Western World, but in California a disproportionate part is passed on to industry and the individual consumer is purchasing energy at less than cost* This has happened quickly and its full impact is not yet clear, but California energy intensive industries may already be non-competitive. Increasing prices as required in the 1981 Budget will be a test of King City asbestos products in this respect.
A significant part of the increased volume in the revised budget is floor tile filler for GAF. We have supplied some product to two GAF locations since Atlas ceased operation. One location is in the east and it is not possible for UCC to compete with Canadian short fiber at this location. Atlas did compete and perhaps this added to their eventual demise. GAF has always been a price buyer and it is likely that GAF will continue to buy from UCC only until they can work out the technical aspects of switching from Coalinga fiber to Canadian short fiber.
UCC 025375
Mr. R. L. Folkman
-2-
October 27, 1980
All things considered, the risk associated with the budget attached is high. In an attempt to quantify the risk, the price and volume changes bave been rated roughly as to the probability of attainment and the rating are summarized as follows:
Sales, M$ Cumulative, M$
Probability of Attainment
1980 Fcst IV
7,317 1,447
80 512
7, 317 8, 764 8, 844 9, 356
1. 00 .85
. 50 .25
This is probably an optimistic assessment.
RWR:ac Att.
UCC 025376
Calidria Asbestos 1981 Sales Budget (JLM Revised Oct. 27, 1980)
Product
Budget
Tons
$M
CL Prices, FOB Plant, S/T
Current Planned
% Increase
SG-103-5 (1) -7 (2) -9
SG-104 -130
(3) -200
-210 HPP HPQ
(3) RG- 100 -no
-144 -244 CSV SHUR <4) UNIVIS
Dom. Total
1500 3600 1800 10400
200 360 300
20 740 570 220 400 440 3300 1140 500
2 5490
198 487 238 1206
39 63 75
4 185 399
59 280 1408 594 205
90
5530
122 122 122 106 170 160 220 204 220 560 240 560 2500 160 160 160
132 132 132 116 194 176 250 224 250 700 270 700 3200 180 180 180
8.2 8. 2
--
9. 1 14. 1 10.0 13. 6
9.8 13. 6 25.0 12. 5 25. 0 28. 0 12. 5 12. 5
--
SG-100-EX -130-EX -210-EX
AS-200 HPP-EX HPQ-EX T-135-P-EX RG-144-EX SX-14 (5) RG-244-EX (6) SX-24
Exp. Total
3100 180 0
1100 2640
480 100 250
90 400 570
409 34 0
174 533 120
71 175
44 1212 1054
8910 3826
125 164
144 184 220 648 560 390 2300 1500
132 188
158 202 250 710 700 488 3030 1849
5. 6 14. 6
9.7 9.8 13. 6 9.6 25. 0 25. 1 31.74 23.27
Total
34400 9356
Average Price Increase
(1) Assumes 300 Tpm to GAF-lb. and/or Flintkote (2) Assumes 150 Tpm to GAF-VG (3) Assumes no commission to Harwick (4) Assumes Montello finds packager and promotes UNIVIS (5) Assumes $2800/T for TEC and $3000/T for others (6) Assumes price of $1700/T on 10/1/80 and $1900/T on 7/1/81
17.9
UCC 025377
/
frajaet
5S-133-5
-7
-f S-!Q4
4 -aw -m
* -'~
v -370 -144 _
. -2J CSV
.
SW, T0HC
CAusau asbestos i95i mss worn
i&M, Heiftsed WS/OOf ~~
. - - A ., . : - .
: '-kSeEg
Cl Prices, KB Plant. SJT
Current ,W Planned -*** llntrgastt
1500
35
1800 10400
00
360
300 * 26
740
570 m 400 440 3308 1140 586
198 V
238
1206 39 63 75
3, 4 185 399 59 280
.3&&r/"4e% ; 594 205 90
25430
f-X s.2 6.2
9A
UA
16.0
ttJi
m mm
, 9.8
m 250
73.6
560 3,;? v TOO-
' 25 U>
. 240
278-
12.5
560 186
25.8
2500 rtjfjiaim-3 3**- \*AT Af,o
160 Jk.< 180
72.5
160 4 180
: 12-5
160 180 ; ' *** : , [ 'f
$6480-EX
-m**
-213-EX *5-206
T-135-P-EX
6^744-0
SM4 Ifi-JO-EX
$&-n
t. TOTAL
m
A\jGpa&`s
itt / <v fr* *
f ^^
Assists 386-7FS to 6W-15 and/dr flfaikote/
Assays 150 TfW tsSftf-6.
. '7%.;: -. 77
Assists o coswtlssion to Ksmrfck ;:
;
.......
fests&es ftwitella finds packager and preeiotes U819JS
Assm I28GG/T for TO and 53000/T for others
fesiaaea price of $17SXS/T a 10/1/80 and $1S00/T oa 7/1/81
/ 7. 2
"UCC '025378"
METALS DIVISION
To [Name) F. J. Shorts!eeve/R. W. Rebholz Division UCC-Metals Division Location 38th Floor
270 Park Avenue New York, NY 10017
Copy to
G. R. Adams R. E. Byrne, Jr. W. B. DeAtley File
P. D. 30X 579 *4625 ROYAL AVE., NIAGARA FALLS. NEW YORK 14302
rOctober 23, 1980
Originating Dept. Calidria" Asbestos
1981 Sales Budget
Attached is a copy of our 1981 Sales Budget, which has been increased considerably over the one submitted on 9/9/80. The increases are a direct result of the recent financial performance review meeting in St. Louis.
Attached to the budget is a sheet on which I have rated the potential success of certain items, which must be considered when judging the credibility of our performance in 1981.
^pnn L. Myers
JLM:dal Attachments
UCC 025379
CALIDRIA ASBESTOS 1981 SALES BUDGET-FINAL (J LM, R ev i s ed""Tb7~23/80)
Product
SG-103-5
O) -7
(2) -9 SG-104 -130
(3) -200 -210
HPP HPO (3)RG-100
-no
-144 -244 CSV SHUR (4)UNI VIS
DOM. TOTAL
Budget Tons
1500 3600 1800 10400
200 360 300
20 740 570 220 400 440 3300 1140 500
198 487 238 1206
39 63 75
4 185 399
59 280 1311 594 205
90
25490
5433
SG-100-EX -130-EX -210-EX
AS-200 HPP-EX HPO-EX T-l35-P-EX RG-144-EX SX-14 (5)RG-244-EX (6 > S X-24
EXP. TOTAL
TOTAL
3100 180 0
1100 2640
480 100 250
90 400 570
8910
409 34 0
174 533 120
71 175
44 1144 1026
3730
34400
9163 (See attached comments)
(1) Assumes 300 TPM to GAF-LB and/or Flintkote. (2) Assumes 150 TPM to GAF-VG. (3) Assumes no commission to Harwick (4) Assumes Montello finds packager and promotes UNIVIS (5) Assumes S2800/T for TEC and $3000/T for others (6) Assumes price of $1700/T on 10/1/80 and $1900/T on 7/1/81
UCC 025380
COMMENTS ON 1981 CALIDRIA ASBESTOS SALES BUDGET
Following are my "ratings" on certain products on the attached 1981 Sales Budget dated 10/23/80, which has been increased by 2000 tons and $703,000 over that submitted on 9/9/80:
Product
SG-103-7 SG-103-9 SG-104 SG-130 SG-200 S G-- 210 HPO RG-100
It
RG-144 RG-244 UNI VIS SG-100-EX SG-130-EX HPP-EX HPO-EX RG-144-EX SX-14 RG-244-EX SX-24
Remarks
If Flintkote shuts down, GAF will pickup tonnage To GAF Vails Gate Increased price
II II
Drop Distributor Commission Increased Price
II 11
Increased Volume Increased Price
II II M II
New Volume 10/9/80 letter from Tomoe Increased Price Increased tonnage Increased Price
II 11 II ll M II
Increased Volume & Price
Ratinq
A N-C R-S R-S R-B R-S R-S R-B R-B. R-B R-S N-C B R-B R-S R-B R-B R-B R-S R-B
Possible NIFS Loss, $M
0 238
0 0 3 0 0 32 8 10 0 90 79 1 0 2 6 2 0 15
TOTAL
$486H
Rating Codes: N = New, R - Revision, S = Sure Thing, A = 50/50 +, B = 50/50, C = 50/50 (Please remember that nothing is a "sure thing")
JLM: 10/23/80
UCC 025381