Document nm0Mkw6v9G2XnXrxBvvXy6kk8

PLAINTIFF'S EXHIBIT \ ASBESTOS INDUSTRY QUARTERLY REPORT - 40 1979 (J. L. Myers, 2/15/80) Asbestos sales for 1979 are compared to Budget and Forecast IV in the following table: Domestic Export TOTAL Actual Tons 5fT 19577 9093 3553 2804 28,670 6357 % Budqet Tons S. 88 85 101 117 92 97 % Forecast IV Tons S 102 98 95 94 100 96 Sales of RG-244 and drilling mud products were, respectively, only 72% and 54% of budgeted tons. This was'the main reason for below budget performance and erosion of sales in these areas is expected to continue due to health/regulatory effects unless "dust-free" products are developed and marketed. The Fisher-Body Division of GMC has issued an edict that no new formulations will be evaluated if they contain asbestos. Floor tile sales were above budget due to Kentile purchases which exceeded loss of sales to GAF. We anticipate no further sales to GAF unless we make a competitive price offer or their current supplier falters. Although domestic sales were only slightly below budget, the disparity between regions was significant due to unexpected circumstances. The following table illustrates this: Reoion Actual Sales Tons $M % Budget Tons S East Midwest South West 3995 6855 6711 2060 1034 1021 1033 465 177 122 172 119 66 73 35 44 TOTAL 19,621 3553 . 88 85 Export sales in the 4th Quarter were artificially low because of shipments which v/ere made but not invoiced before the closing date. These will be picked up in January. Sales of RG-244-EX and SX-24 were below expectations because of plant problems in making specification product. This situation has now been corrected and normal shipments resumed although we have a lot of "catching up" to do. For the year, export sales were a record $2804M, 8% higher than 1978. Following is a summary by country: Country Australia Brazil Canada Actual Tons $M 571 147 105 166 144 102 % Budget Tons i 51 85 181 227 49 79 2- - Cont'd Country Europe-Grace Non-Europe-Grace Europe-Mercomed Hong Kong Japan . S. Africa Taiwan TOTAL Actual TonsSM 579 38 59 3 7569 10 18 678 45 13 6 1584 22 41 9096 2804 % Budget Tons $ 118 126 141 180 128 163 113 121 200 220 106 121 101 117 As expected, the CAL-OSHA Standards Board ignored our testimony and established an action level of 0.1 f/cc to trigger monitoring and medical examinations. A copy of Dr. Rhodes 4th Quarter Activity Summary is enclosed. Significant quantities of CSV are now being sold through Montello to Dresser's compounder for production of silane-treated asbestos for use in oil base muds. Considerations are being given to bulk shipments. Montello has had good response from "UNIVIS", an oil-wetted pellet, and an engineering study was begun to assist in determining whether or not we should make this product at King City. The development of a "liquid thixotrope" is continuing with a customer/compounder and distributor. Optimism for a successful market program is beginning to prevail. A summaryof technical/customer service activities is enclosed. John L. Myers JLM:dal Enclosures