Document oDV6bgx8O8534113Ro147pNnw

; > 4 MTC 001767 T-ncome and Expenses................................................................... 2 letter to Stockholders.................................................................. 3 Earnings and tale* rrl nrro reran!* & Earning and Dividends............................................................... 4 r/- Earning* $-11.6 million. Diriitemi* $16.7 million * ?* Operations...................................................................................... 0 Capital expenditure* $17.1 million 6. Color Section................................................................................. I" I*' Directors and Officers................................................................... 20 Labor Relations............................................................................. 22 Organization........................................................................... 24 Annual Meeting...................................... I960 Meeting March 17 ' 2*> Products and Plants..................................................................... 2(5 " \ ", ; * -.suv ; . ...** t i*' ^y' ;. <..*! . ' * * (*, - '*' -. t * i*' MTC 001768 + 13.S v'vT.:-; .w >:-# Jj?" i&l ^^PropariUe^'depreciatedv to * etJTr-mt. _^J'*Iv!___ __ t ''#_".a__- '___ 8150,117.(MK) 120.102.IHK) 2U13.(MM) 10,7X3,000 27,N47,(KX) `VK $135,704,000-;^^ + IU.S x ^.114,381,000 v + 10.0 ^ 21,249,000 + 11.9 781,000 + .3 f 22.207,000 - + 25.1 ; 8345,922,(XX) in^addition 'our 'stock of manufaoii,?^^ ^vtuEedf-goodaiincrMued^: decnatedt%i-fi^i^0''' 11 $309,322,000 953,000 + ll.S |^>r,Sb'-thaamount:,ofk.expense pertaining-tojS? jK^irthdryear `^sraaJ^r^.Vi_'i'_9_'';__:?r-<; Viter *#: VEarxditgat^^-f^r-^ S315,<M0,IMM) ?;: ,rJ; j; $303^69,000; S:.'-''7.',. ?!:-. v-'i't. < euwosoeuwiowt' **v* wiuMgs> n'"wia<'<v'7 Dividendsfto^stdckholders were ji&Ti ------- #'** :*.* . .; ti;...:v>!iJ5>..*.. 'r store.*. ';V-r.*. ;V. 1 - ..fr:^V.-;: S 31.010,000 83.74 x in.riS5,(xx) 82.00 :^:^.$. 23,374,000^-: '. 'lie-1'' *, '.' ;.!. v~`. ;. ' V.^f:; ri'it$' 14,345,000. k\ '-,7,:; >" . . > + 35.3 + 32.2 + 16.3 ` ;_v*VaVs.-*r-A,..*> ." r *-3v*;-a,- ; * '''* ' * ' * ' **' ^ : : $ 9,029,000 :,'. \ + (15.1 !**.!.!' I-.s-S,H.-'*.!: .;...*,.f*.. ' . .,v i miewr \ vA* : '.VMvfcSi- Fur employer benefit* nee page 5. 1959 figure* inrluile the 1959 earning* of F. K. Sehn miter l- /'., I nr.. art/Miml September 55. 1959. MTC 001769 LETTER TO STOCKHOLDERS '' 1 February 11, l%() To the Stockholders ok Joiins-Manville Corporation: Both earnings and sales set new high records in 19.19. Net earnings were $3I.f>1G,(XX) or $3.74 per share, compared with $23,374,(XX) or $2.83 per share in 195S. Sales were $377,5(12,01 X) in 1050 compared with $,'131,743,000 last year. These records were achieved despite the adverse efftsets of striki*s at two of our plants and the general slowing down of the national economy caused by the prolonged strike in the stii-l industry. Markets for some of our materials were also affected by the. tight money situation. Our tiller glass business which we acquired at the cud of I9.5N grew rapidly during 1050 and contributed substantially to earnings and sales. We continued our program or diversification ami expansion with the addition of a perlite business. Clinton B. Burnett was elected President, and several other new executive appointments were made. On behalf of the Board of Directors I would like to express our sincere appreciation to employees, customers, stockholders and management for their loyal eoo|>emtion during IH59 ^ A. It Fisher Chairman L. AND DIVIDENDS J3 rilin'?'; Net earnings in 1939 were $31,610,000, amounting to $3.7-1 per slinre nf common stock, of which an average of 8,431.4(52 shares were outstanding. In 1938 net earnings were $23,374,000 or -32.83 per share on an average of 8.2')*), 117 shares. Before taxes of all kinds, earnings in 1939 were -$(52,734,000, which was $14,684,000 more than in I93S. Dividends The following table shows dividends which were paid on the common stock during 1939: Completed in 1958, J-M's Trnnsite* pij>e plant at Denison, Texas, was the first continuous- iroerss asbcxlos-cement pipe plant in the tTnilnl ales, ()iterated by electronic push-lwtton controls, shown here, the plant is an almost completely automatic factory. Record Dote Oale Paid Amount per Share Total Arnoont March 2.......... March 10 ............. . 10.50 .............. 5 4,146,000 June 1 ........... Jane 10 ............... .. 0.50 ........ 4.150.000 September 1. September 10........ .. 0.50............... 4.154.000 December 1 . .. December 10.......... .. 0.50 ............... . 4.235.000 Total ............... . 52.00 .............. SI6.68S.000 Under Federal tax regulations. Johns-Mamille is required to reiwrt to the Internal Revenue Service on dividends paid to stock- MTC 001771 holders. The table of 1950 dividends may be helpful in the pre paration of income tax returns. .1 failure of the Annual Meeting of stockholders held in March inis this ill'sping of the Company's ! iinn lines of fiber glass j pmdnets. J-M oJTiccrs shorn i ore, left to rigid, ! .1. It. I'ishcr, Chairman; ('. H. liurncll, President, and John /*. Syme, Vice /'resident and Assistant to Chairman. T:ixps Taxes amounted to S31 .KtS.tXXt or $3.tiK per share of common stock, including S21.RdO.tXXt levied on United States and t'anadian income. In I95R taxes were S2-l.090.000 or S2.99 per share, including S1(.S50.(XI0 levied on income. The amounts stated are exclusive of certain sales or excise taxes paid to vendors of materials and sendees instead of dircolly (o taxing authorities. 1 hmplnyrr tnnrfits, mrlmtimj isniminis for rnntlinns itml hulitlnijf, rilinmi ill, social rKrili/ litres unit ulhrr hcnrjils, nmninilril In $lli.lRI .innt in I!>$!>. ram- pared irilk !2,tHUi in 1958. I tI MTC 001772 Perlite Business On September 22, 1`J.V.). Johns-Mativillo entered llio perlite business throin'll the actpiisition of all the capital stock of P. E. Sohumller & Co., Inc., in exchange for 14S.000 shares of JolinsManvillo authorized but unissued common slock. At the time of acquisition the Sohumller company was doing an annual business of approximately ^<,CXX),000 in sales. One part of the business, the manufacture and sale of an incom bustible roof insulation, has !x>en taken over by the Huilding Products Division. All other operations are the responsibility of the Celite Division. In its natural stale jicrlitc (a non-mctallie mineral/ is a grayish volcanic rock. When subjected to heat it expands greatly, turns white in color and becomes frothy and light. It has high insulating pro|x*r!ics and is also an inert tiller and extender and can l>c made into tiller aids. f nriii^trio 1 Tivsiilsition*; The additiou'of a filler glass business at the end of l'.l'iS, ami a reorganization or the Kales Department of the Industrial Insulations Division to handle the new business, were helpful in enabling J-M to increase its share of the industrial insulations markets in spite of a general reduction in plant and utility construction during the year. Two new Kales Departments. Distributor Insulation Products and Equipment Insulation Products, were established to provide the organization needed to s|>ccializo and concentrate on the sale of .l-M's wide line of industrial insulations and the new tiher glass product lines. This sales organization hel|icd achieve an increase of nearly fifty percent over 19fS in the salo of liber glass products. Many new products were introduces! during the past year. These include Min-KIad luterlok. a structural insulation for MTC 001773 rockets and missiles: Alti'-lli. an aslicslos reinforced plastic material for use on missile skins and on rocket engine liners: Micrnhar." a llamcproof skin anil eon? liber glass duet- liner with \apor pnx>f facing: Thertuoform. molded perlite housing for small elect rie appliances: ('orafell, comliustiou eliaml)er liner, a material orig inally designed to insulate airplanes from the intense heal of jet y engines but found to be equally ellieient for home oil burners. Other new products are Sigma-K, a combination neutron shielding material and thermal insulation for nuclear reactors: a new castable refractory for use on Navy vessels; a new aslx'stos Oriijiioith/ ilrsii/onl ax mi lward mounting for electric toaster elements: a semi-refractory felt mutilation far jrl airplmirx, l for industrial npplieatious; MieroTuf. a liber glass appliance Crrafrll* lorn hern famol la * lie equally rjlicinil ax a insulation for water heaters, stoves and refrigerators; and t'olorlith4 minbuxliaii ehamlx-r liner in three colors for school classroom chalkboards and furniture far home all harurrx. Til'a table lops. xtrpx in inxliillntiaii are ' j xhairn; llrfli inxrrliiut a Huilriin;? T'rcvf 11H stninlrxx xlerl xleerr nila the The demand for buihling materials continued very strong for rhamher mol iusertiioi' Crrafell la Jil uixiilr the i! 1 I the first three quarters of the year. There was more than the usual xleeir. .1 eaui/ili le jali rail 5 seasonal decline in the fourth quarter. It is felt that the tight money lx lima in .111 niiautex. '` 'i C i- NlTC 00 situation hud more to do with this than the* stool strike. It is the Company's opinion that there will l>c at least a ton i>crecnt decline in housing starts in KMK) liceausc of a scarcity of mortgage money. The remodeling and repair market continues strong. Industrial construction appears to lie increasing and, barring unforeseen conditions, 1960 may be a record year in this type of building. This is due to the lack of industrial construction during the past year and a half to two years, plus the fact that most indus trial companies are feeling suiliciently confident in the outlook for the future to look forward to further expansion. A new plastic surface asbestos-cement sidewall shingle, RockShake*. was introduced during the year and met with immediate acceptance which overtaxed initial production capacity. Hero modem plastics are successfully combined with asbestos and cement to provide solid colors and a deep striated texture. Another product added to the line was Fesco* board. an incom bustible roof insulation made from |K*rli(e. It is manufactured at a .4 workman installs J-M's Sanacoustif? 11CS System of 'heating, ctmling und sound control. Perforated metal units form a finished ceiling. .4 bore them are installed healing and cooling coils and aborc the coils are mineral wool or fiber glass blankets. M MTC 001775 J-.U's new insulating board plant at Klamath Falls, Ore., was officially opened o Jane 30, 1959. Inspecting an exhibit a/ products I manufactured at the plant, j erected for the opening, are, left to right, Mark 0. UnIJirld, Oarernor of Oregon: H\ If. Orahum, manaijrr of the new plant, and .1. R. Fisher, J-M ' j Chairman. ! 4 former Schundlcr plant at Rockdale. III., now operated by the Building Products Division. A new sent ion was established at J-M's Hesoarch (Voter to concentrate the Company's development work on J-M products such as panels and movable walls winch utilize more than ono material. Unit construction with products such as these is increasing very rapidly. 'I'he new research section works lwth on the tochnifpios tif combining the component parts and on methods for builders to use them to ltcst advantage. id ' ;i i! \ S Il _ In June construction lwiran on a new plant at Chillicothe, Ohio, for the manufacture of vinyl aslvstos and asphalt lloor tiles. When completed in mid-Itliit) it will expand the Company's floor tile productive capacity by more than thirty-three percent. Tho plant will employ altout 12o persons. Pipe ;ttpe sales rose in ltDO. duo in part to a rclwund in the markets in which TransileT pi)s> is used. Increases were e.v|terienced in each ' major market served. Li l s r The major portion of the Transitc pipe hnsiness is in water mains and imitation lines, sewers, industrial piping, electrical and telephone duets, house connection and vent pipes, and air ducts for slab construction. n hflTO 001776 A program, now known in tho water industry as "Priceless Water", has been inaugurated to approach the growing problem of community water shortages on a local basis. The program employs a l>ook supplied by J-M which permits local officials to evaluate their water sendee and use the evaluation to help get needed projects under construction. Most water problems can lie solved locally; the total of such solutions can go a long way towards solving the national water problem. ITnderdrain pipe (perforated pi|ie to drain sul>-surfaee water) was introduced in 19*i9 to meet the demands of the growing highway program, as well as for const met ion of airports, industrial sites, farm drainage systems and other similar types of earth preparation o|K*Ritinns. Facilities were installed, principally at the Manville. N. J.. Waukegan. III., ami Watson, Calif.. plants, to provide product improvements and more efficient methods of manufacture. Tlie year M)">9 marked the Mill anniversary of the first asliestosccnient. pipe made on this continent, tho first order for Transit pipe having been shipp'd from the Waukegan plant in 1929. Pipe now is producer] at. seven J-M plants, including one in Canada, and is an important business of the Company. Increasing competition is lieing felt from imiMirted Riin>|x>nti asliestos-ccment pij>e. Since the principal markets for (elite filter aids, fillers and other. pnxlucts do not include the steel industry, demand was unaficcted by the prolonged steel strike. Operations continued to show a normal expected growth. There was an increase in sales of cement additive products, which improve tho workability ami lower the cost of concrete. J-M's Celite product lines were supplemented in I9*>9 by the acquisition of the jierlitc business. The Celite Division now operates a large deposit and mill for this liasie raw material at No Agua. New Mcx.. and a processing plant for perlite and other non-nietallie minerals at Joliet, III. A line of filter aids using perlite is under MTC 001777 i 'x development.' Other major markets for perlite include building plaster aggregates, eonerete aggregates, drilling muds, oil well concrete, loose fill insulation and refractory hrick. New uses are lioing developed for the synthetic silicate products manufactured at the l.om|>oo, Calif., plant. Normal improvement in sales of all ('elite products appears to be iti pnis|iect and profits from the operations are expected to lie commensurate. Studies are under way to enable the Company to maintain production capacity for long-range anticipated sales. Dutch 13rantl I'rwln*:*-; Dutch Brand* product development has l>een accelerated and technical service to customers has l>oen improved by expansion - of the technical department at the plant. A nnmlier of new ami improved produefs added to the Dnteb Brand line during ltl.*)t) inelnde a ivinforml strapping tape for IKM'knirinsr and bundling: glass elotli. cotton doth and acetate doth thermo-sottine electrieal tapes for winding armatures and mils: a polyester thermo-sol lint: electrical tape for use when* a thinner layer of insulation is required, and a contact adhesive for many uses. Mrs. Aincrirn of I!)~>!)-fiO, M rs. L.' ("ItiHr Frirhe of liest .1/nines, id featured in the 7 Star Protection I'loii to promote the sole of J-M produrts. Herr, at llir siriiiiliiinq pool of a J-M 7 Shir home til Foil l.omtrrdolr. Flo., she shows lour insilt/ pool tenter eon hr kept rfenii irith < "elite" ii.'fi ns n Jitter aid. MTC 001778 A unique combining machine installed in 195$ produces new lines of products, especially in the fields of pressure-sensilive tapes and electrical insulations, by laminating parallel strands of organic or synthetic materials on flexible sheets. These programs were made possible by a major addition in 195S to facilities at the Dutch Brand plant at Chicago, III. A number of other new products are anticipated in lOfiO. Packings and Friction Materials Sales of friction materials improved substantially in lioth equip ment and resale lines for automobiles, tracks and heavy duty industrial applications. COBRA, a composition brake shoe for railroad equipment developed in cooperation with Westinghouse Air Brake Company, is receiving rapidly increasing acceptance for use on locomotives, passenger cars and ore and other freight cars. Other new friction materials include automatic transmission Itjind linings, ultra-high-spin clutch facings and new tyi>cs of passen ger automobile brake linings for use where the utmost in performance and safety is required. Sales of packings have reflected the general improvement in business conditions over I95X. particularly in molded rubber packing produrIs. A new product in packings is a line of metal reinforced oil seals. i Fiber Glass Rapid expansion of facilities for the production of filler glass products, already under way when the business was acquired by J-M at the end of 195S, was accelerated in 1959. When the current program is completed by mid-1900, production capacity will have Iteen increased by fifty jx*reont since the acquisition. Kxpnnsion is under way at three plants at Deliaiiee. Ohio, and plants at Corona. Calif.. Parkersburg. W. Va.. and Walorville. Ohio. Insulating materials and textile yam and roving are among the produets to lie produced by the added facilities. Pointing up the need for expansion, the demand for all products 12 MTC 001779 Fiber glass is among (he J-M materials used in the construction of the neir Hoeing 707 jet planes. The young woman is shown installing formed fiber glass sidewall panels orcr fuselage frame and around windows. The material provides both thermal and acoustical insulation. increased steadily in 1959, particularly in fiber glass for reinforced plastics and in thermal and acoustical insulation for industrial, commercial and residential use. A special study is under way to determine the advisability of -building new facilities for the expansion of the filter glass textile business, one of the largest and fastest growing fiber glass markets. Fiber glass textiles are used for plastic reinforcement. pa(x>r rein forcement and many industrial purposes as well as in decorative fabrics. Cfinndinn Products n.nd Asbestos Fibre Tiusincss . -Manufacturing facilities of (lanadiau Johns-Manvillo are Iteing expand*^ with the installation of equipment at the Toronto. Ontario, plant for the manufacture of Thermolx'stos*. When this industrial insulation goes into commercial production Canadian Johns-Manville will produce ninety-live percent of all J-M products sold in Canada. Sales of insulating board, manufactured in a new plant i opened in 1957 at North Hay, Ontario, are growing steadily. j , t:i MTC 001780 ('nmpelition in the sale of asbestos fibre during H).">t) continued to bo very keen. A substantial tonnage from new producers was supplied during the year to markets and customers previously supplhsl by the established producers. In overseas markets there was a small increase in demand for asliestos over the previous year. Russian competition continues in Kurope and to a lesser extent in South America and Japan. I .one-range forecasts show a rising world market for asbestos Hint* liecau.se of an increasing demand Tor the many products using asliestos. Several ini|x>rtant new uses are under development. Olio llint seems to have considerable promise' is the use of asliestos by itself or in combination with lilicr glass for reinforcing plastics. A program of quality improvement was cotitinui'd at the mill at the Jeffrey mine at Asliestos, Quebec. 'Phis is a continuing program in oiilcr to keep J-M's fibre quality competitive ami to offer the lx*st service to our plants and customers. Technological improvements in recent years have greatly ex tended the depth to which it is vcouomirnl to mine by o|M-ti-pit methods at the Jeffrey mine. The program to expand and extend the life of open-pit mining, liegun in lffoS, continued with the stripping of overburden from a new area to lie mined. A!tout two mi nr years will lie required Incomplete this program. At that lime underground mining will lio discontinued and substantial savings will Im effected in obtaining orei Kxploratiou and test mining and core drilling are continuing at the Advocate asbestos ore Imdy in northern Newfoundland. This deposit is under examination by a group of investors headed by Canadian Jolms-Manville. A small pilot plant has liecn eonslriicted to mill lira .ore required for tost and evaluation. The results so far have liven encouraging but the limit evaluation work will not lie completed until some time in P.MiO. Since P.M'i. .STd.IMKI.OOII has Ixtm s|ietit on expanding and modern izing Canadian Jolms-.Mauville's fai-iliti*s. This program has ben financed by the earnings from exjxirts of asliestos lihro and the sale of Canadian Johns-.Manville manufactured products. As a result of this expansion then; has lu*eii a substantial increase in Ijqies and 1* MTC 001781 volume or products manufactured in Canada and in exports of asbestos fibre. Intermit5r*n*: Another new sales record for Johns-Manvillo's manufactured products and ('elite was set in overseas countries. Two manufacturing operations were initiated in 1939. They are an industrial packings plant near Mexico City, Mexico, com pleted in Septemlier, 1930, and a perlite filter aids plant at Hull, Kngland, scheduled for completion in March, 1990. J-M does business in every area of the world except the Iron Curtain countries. A big segment of Johns-Manville foreign trade activity involves supplying asbestos fibre and diatomitc to manufacturers who use these raw materials in fabricating their own products. This J-M business is spread over 73 nations. In addition the Company has some -ft) agreements to supply technical knowledge for the production in IS separate conntries of some 18 groups of J-M products including mineral wool, floor tile, friction materials, refractories, asbestos-cement, textiles and packings, fiber glass and thermal insulations. Rcscnrch am! tt,.,,Some time ago the departmental organization at the Research Center near Manvillc, NT. was changed to make it parallel more closely the divisional organization of the Company. Each operating division has a research department assigned to its problems and developments. This now organizational plan is increasing the accomplishments of J-M's research program, since there is closer cooperation between the research experts and divisional personnel. Research in fiber glass is carried on at the Fiber Class Research and Technical (.'enter at Waterville, Ohio. Kxperiunec acquired by J-M mem since the ('om|Ktny pioneered mineral wool fiberizing some thirty years ago has now l>ee com bined with the skills of fiber glass experts who joined the ('ompany when it entered the filler glass business at the end of 193N. The Engineering Center, adjacent to the Research Center near MTC 001782 Manville, is headquarters for specialists and statf members working oil design of Johns-Manvillc plants and processes and related engineering services. Here also is loeat<*d a shop in which specially designed equipment for Company use is made. Reducing the Cost of Doing Business Under a continuing program to reduce the cost of doing business all Divisions of the Company set up 1959 cost reduction objectives which in many cases were exceeded. For the entire year the program achieved savings of $9,700,(XX). These savings are made in such ways as greater productivity through improved mechanical methods and materials handling, more efficient layout of equipment and utilization of ll<x>r space, improved maintenance to reduce the time equipment is shut down and more elTeetive processes and formulations. An office work cost reduction program has lieuti extended into plant offices and plants to increase the effectiveness of handling paperwork and prevent duplication of effort. Capital Expenditures Expenditures for additions to and improvements and replace ments of Johns-Manville projicrturs amounted to $17,(Kf,(X)0 in 1959, compared with $12,514,(NX) in 195S. It is anticipated that capital expenditures in 1900 will amount to approximately S35,000,000. Incentive Plans During 1959 incentive payments totaling $4.475,(XX) were paid to 55 percont of the factory employees. Incentive compensation amounting to $5,55S,(XX) was also accrued and partly paid to I ,(XU> salesmen and to 140 district and unit managers. Distribution of $2.4<)5,tXX) has Ix-en or will lie made lo JINN administrative employes within the limits of the Profit Sharing Plan adopted by the stock holders. .A continuation of tlic discussion of Cianjuwn affairs in I!><>!> follows the Color Section starting on the facing /nigc. in MTC 001783 Asbestos ore in loaded in the open pit for conveyance to the Jeffrey mine at Asbestos, Quebec. Open-pit mining here is being expanded and extended sinre it is more economical than underground mining. In about tiro years underground mining will be discontinued, with substantial savings effected in obtaining ore. tyr. nr COIiOIk S EX)TLON :l A- - p.v*^ ; . -V-/-/ ^- . / '* MJ New usesfor ashestos-ermenl products are explored in an experimental house recently errrted through the cmificration of thr magazine "Living for Young Homemakers." tlw Asbestos-Cement Prod ucts Association and manufacturers. Featured in the foyer (Mote) are a floor of two-foot squares of J-M Cnlnrlilli' and a wall (background) of J-M ('olorchip. Hath are integrally colored and patterned asbrslos-rrmenl sheet pnslurts. Johns-Mannlle Tcrraflex* vinyl asbestos floor tile t(above) is a famritc in thr "do it yourself' market. The tile comes in .'tf> colors of various patterns and Iis easy to rut and Jit. .1 pplication is simplified by a newly dnrloprd clear adhesive which con Iw brushed on. MTC 001784  > .V ;#*/-- ** ^ i***'*'***. Derr.lopnient mirk on lining nf J-M's prodnet liurs in carried au irilh Ibis pilot plant equipment at the liencareli Center near Manrillc. .V. ./. The building housing thin equipment is designed so that the research xcirnlinl and the prartieal technician can mirk an a team in clnncsl ron/wra/ion, and mi that, under anr roof, projects can hr carried through the Idboratnrg stage la exfie.rinirntal production. \ y^-yyytv.y TyyTTyyTy \TYYrrVvV1 yS.yVyvySS^i y>^yySyyyyyVyvyyyi .y\yyv\w YYTTV------------ y,'yYYYy> yvvvvVvv* \ysyyyvyi Tv\>\\yV` 1 7 hcrinolustos'', o pifw ninl block industrial insulation fur tcmfurraturrs up In I !>mF. in made frinn lira of JnhnxMnnrdlc's luisir row nuilirinlx. asbestos fibre and iliiilmnitr. nnnbineii with lime. Mintern innlc.ritilx-hnndling equipment is seen in use in a storage gard for Transited pijie. This ashrxIas-iTincnt prmluel was first manufactured on this continent hg Jnhnx-Mnnrille tliirlg gears ago and has grown to be an important business for the. Company. MTC 001785 I ^ This piitin is roofed irilh shatterproof J-M t'oriiilnx", a fiber glasx reinforced translurrnt building panel. Carrnlux Jin/ls mu in/ uses in both interiors unit exteriors of homes ami rommrreial anti I! intluslrial struetiires. fl is one of mang fiber glass pratlnclx aihlril to the JnhnxManville lines with the acquisition of a fihrr glass business al the end nf WdS. The srrtind starg sidewall of this house is Itorl.-Shakes, new J-M asbestos re.incut shingles with a plastic surface, and der.p ' striatnl texture. The house is one of mang Itnill under Juhnx-\[anrille's 7 Star Protection plan which- helps builders sell t outstanding rallies in homes built with J-M prmlurls. t)thri J-M priulnrts risible in the photo are Scal-O-.Ifnlir* shingles on the roof and Ftexbnard*' in I baard-and-hatten eonstruction far the walls of the garage. The trolls of Ibis tSaJHH) Lilnientt anil of the Lang Island Lighting Vompang. shown under ronstrurlion, are bring nnrred with J-M earrugated Transite. The unit is one of four in llir Port Jejferson, Xew York, area, all of which are entered with earrugated Transite. 'i !' i i I t MTC 001786 Hkkry ('. Ai.UXANOEH . . - Joiin \V. Hanks II. Ki\yaiui M vnvii.i.k. .Ik. Lksi.ik M. Cassiiiv Cmpfoiih K. Rasswkii.kh Wii.i.iam Sthi,k KlICAIt (i. IllHTON Joseph A. < Jiiazikk ('UNTON H. HntNKTT Roc Kit IIaknev . John l>. Riookhs .......... Cbiiirmmi. Jnlins-Mmirilh- Cm luirnUmi Ihtcrlttr, Mt tifhi r ni tin Kj'Yutu? CuiHinitUe iiinl Fiiimirr Cnmmilhr. I'mini Slnlis StirI I 'nriHirulinn ('hnirmmi, Mimimi (iiinrmitit Trust Cmn/imiii n( Sue Yrk Ihri-rliir, (lint .Muthiismi f lu mii'nl I nr/h>r>ilhut Tiushi, Hirmit hhlminl Mmnilh y,mmlulimi I 'llltSItllltlll l (Vi' I'risnh ui, iliiliHS-Miiunlli I'nr[iiiriitinit Crrsitlnil. .1 mi rnnii < 'mi Ctim/nmy Chitirmmt nml 1'rrsiilinl. Sim iisniis. Limihil iTmunto) 1`risiih`iit. Amrrirmi Unilinlur it- Simulant Snuilurii IW/cniC'ifl I'rrxiilinl, Jnlins-Mmirillr I 'ur/mrutiiiil 1`iVr 1`risiiliiil, Jiihitx-Munrillr < "r/irir.i/iofi ('hnirmmi. Lihlu-i/Ahrrns-Foril (Huns Cmn/imu/ MTC 001787 AltUAIN R. FlSIlER........................................ ..Chairman Clinton H. Burnett.................... President CLIFFORD F. RaSSIVEILER ... Vice President for Research and Derclopnicnt .101IN' P. Sy.ME............................. Vice President and AssistanTlo Ckairmnn William R. Wilkinson........................................................... Vice President Kenneth W. HuffINE................................. V'iVc President for Production John A. O'Brien..................................................... Vice President for Sales CHARLES W. Hite........................... Vice President for Industrial Relations Roger Hackney..................................................Viee President for Finance Reed S. Hammond.................................................................... Viet President Roiiert F. Ortii.................. Vice President Don L. HlNMON..........................................................................l'i President . Heriiert M. BallSecretary and General Attorney James M. Shackelford..................................Treasurer IRVING J. Pedly............................... Assistant Secretary Mils. Consuelo C. Bean.............. Assistant Secretary Alvin V. Mitchell........................ Assistant Treasurer ASBESTOS FIBRE Karl V. Lindell. . Viee President, Canadian Johns-Manrille Company, Ltd. BUILDING PRODUCTS Reed S. Hammond.................. Viee President, Johns-Manrille Corporation CANADIAN PRODUCTS - Alfred G. Sinclair. Viee President, Canatlian Johns-Manrille Company, Lhl. CELITE ' ' Carlton J. O'NEIL..7. Viee President, Johns-Manrille Products Corporation DUTCH BRAND Earl F. Boyle.................Vice President, Johns-Manrille Sales Corporation INTERNATIONAL Dudley T. Colton. Vice President, Johns-Manrille International Corporation PACKINGS AND FRICTION MATERIALS Clarence C. Simoni........ Vice President, Johns-Manrille Sales Corporation PIPE . Robert F. Ortii...................... Vice President, Johns-Manrille Corporation INDUSTRIAL DIVISIONS INDUSTRIAL INSULATIONS Don L. Hinmon*........................ Vice President, Johns-Manrille Corporation FIBER GLASS Francis H. May, Jr. .. . Viet President, Johns-Manrillt Fiber Glass Inc. *As Viee President for Industrial Dirisions Mr. Hinmon administers the operations of both the Industrial Insulations and the Fiber Glass Divisions. MTC 001788 Labor agreements are negotiated locally at ail J-M's United States and Canadian plants and mines. There are now I") of tli*se agreements at 34 locations, signed by the Company and the various unions including locals of the AKL-CK), United Mine Workers and lai federation Rationale des Employes de l'lndustrie Miniere. The Company experienced two work stoppages -- a 103-dav strike at the Dutch Brand, Chicago, III., plant affecting some *252 employees, and a strike which l>ogan July 2nd and was settled on a satisfactory basis January 17,1900, at the Marrero. La., plant alTeet- MTC 001789 Ixith affiliated with tlie same international union, at termination of the then existing agreements. The issues in bt>th strikes were demands for wages and economic benefits in excess of those being granted in industry generally. In addition, the Marrero union demanded restrictions on the right of the Company to assign work, establish the content of jobs, schedule operations, subcontract work, and establish rules of conduct for employees. Man days lost in 1950 as a result of these two strikes were slightly less than .`{ percent of the total man days worked hy the Company. Agreements were readied at all locations on a one. two or three year basis. All agreements contain no-strike provisions. Wage increases in these plants and mines during 1959 averaged ti.S cents per hour or 3.8 percent. ! VI] UONS OF DOLLARS 28*ll 5257.7 ; $30.41 | 8.4742H 8.4% 13.3% 483,000 22,000 30,100 I zap 237.8 28.77" ! 8,283,192 7.0 20tti 202.5 2828 : * 7,163,006 5.7 10.3 495,000 21,800 23,800 9.0 568,000 : 21,700 20,000 ?JSU 198.5 L 27-77 ' 7,146,723 8.0 2.12^4 15S.6 24.77 6,404,126 6.3 15.8 576,000 21,300 19,200 16.0 592,000 20,500 15,100 "T 146.9 v; - 23.09 6,363,060 6.6 11.6 500,000 20,000 14,200 143.1 22.55 6,344,168 7.8 14.4 505,000 20,000 14,100 11W 136.5 21.56 0,333,088 92 17.8 534,000 21,000 13,900 2.>4j 1272 ' 20.10 6,328,994 10.3 212 567,000 21,000 13,700 115.7 18.33 6,316,566 112 22.4 452,000 20,000 13,300 11 F * 1 !> 51 1 !> r> i or. i i t *r. i i p r t * ri j *Adjust'd for 1056 stock split tOn average shares outstanding mtc 00179 m Clinton B. Burnett was elected President and Chief Operating Officer by the Board of Directors elTective January 1, l!)(i(). In this position he succeeds Admin H. Fisher, who remains Chairman and Chief Executive Officer. Mr. Burnett, who continues as a Director, had been Executive Vice President. Three appointments to Vice President of Johns-Manville Corpo ration were made, effective January 1, HMiO. They are Reed S. Hammond, Robert F. Orth and Don L. Ilinmon. Mr. Hammond was appointed general manager of the Building Products Division, succeeding William R. Wilkinson, who remains a Vice 1`resident of Johns-Manville Corporation until his retirement on April 1, I960. Mr. Hammond had been general sales manager of the Industrial Building Products Sales Department of the Division. Mr. Orth continues as general manager of the Pipe Division, a I>osition he has held since creation of the Division in I95G. Mr. Ilinmon was appointed Vice President for Industrial Divisions. In this capacity he continues as general manager of the Industrial Insulations Division and also administers the operations of the Fiber Gl^ss Division through the general manager of that Division, Francis H. May, Jr. R. H. Barnard, who had been President of Johns-Manville Fiber Glass Inc., resigned this position and was appointed adviser and consultant to the Vice President for Industrial Divisions. James M. Shackelford was appointed Treasurer, succeeding Joseph I* Wood, who retired December I, 1959, after serving tin Company for thirty-two years. Mr. Shackelford, with twenty years of J-M experience, had been Assistant Treasurer. *** With deepest sorrow we record the death on August 15 of Walter II. Aldridge. Mr. Aldridge served on the Board of Directors from 19*28 until 195G and had been Director Emeritus since then. : t MTC 001791 The Annual Meeting in 19'>9 was held in New York on March 12. A report on this meeting was sent to all stockholders. The 1900 Annual Meeting will be held in New York on March 17. All stockholders are cordially urged to attend. Proxies for this meeting are being mailed and all stockholders who cannot attend in person are reminded that it is important to send in their proxies. At the close of I9o9 there were about :j(),KX1 stoekholders. compared with 23.S()0 at the end of 10.Vv The increase was due primarily to the addition of former l.*0*F Class Fibers Company stockholders. i i I | i i i ! *r MTC 001792 PRODUCTS AND PLANTS Product:; .4 full quarter-mile inland of mare than 800 iis af Transitc (ashrstosi cement) pipe leaves the j . ('nmpann's plant at I Stockton, Calif. Major \arkets for Transite pijie |/rc far iratcr mains and irrigation lines, sewers, I industrial piping, electrical and telephone I ducts, house connection i and rent pipes, and air rtf for slnh construction. Aooustiral IVoducts Aslwstos Hoards Asltcslns Felts Aslwstos Fibre Asl>estos l*apor Asl)estns Shinelos and Sidings Asl>esfns Textiles Asphalt Roofings ami Other Asphalt Products Automotive and Industrial Itrake Linings and Other Friction Materials (.'elite*' (Diatomitc) Insulations, Filter Aids, Fillers and Synthetic Silicates Corrulux* Fiber Glass Reinforced Plastic Panels Electrical Insulations i Filler Glass Textiles Moor Tile -- Vinyl Aslicstns and Asphalt Home Insulations Industrial Fiber Glass and Mineral Wool Insulations Industrial Insulations --High and Ijv Temperature Insulating Hoard Insulating,Fire Rrick Insulating and Refractory. Cements Movable Asliestos Walls Packings and Gaskets Perlite Insulations, Fillers and Filter Aids Rubl>cr Products Tapes -- Cloth. Plastic and Paper Transite*1 (AsbestosCement' Pipe MTC 001793 Plants t Alexandria, Indiana Asbestos, Quebec Marrero, Ixjuisiana Mexico City, Mexico Billerica, Massachusetts Mol, Belgium Chicago, Illinois Chillieothe, Ohio Nashua, New Hampshire Natchez, Mississippi Corona, California New Brunswick, New Jersey Defiance, Ohio -- Perry Street- North Bay, Ontario Defiance, Ohio -- Carpenter Hoad Defiance. Ohio - Columbus Avenue Denison, Texas Fort Worth. Texas Parkersburg. West Virginia Pittsburg. < alifornia Richmond, Indiana Itix'kdah*, Illinois Houston. Texas Hull, Kngiand Jarratt. Virginia Joliet. Illinois Klamath Falls. Oregon Savannah, (Scorgia Stockton, California Tilton, Now I (ampshire Toronto. Ontario Watorville, Ohio Ixnnpoc, California Ixis Angeles. California Watson. California Waukegan. Illinois Manville, New Jersey Zelicnople, 1Vnhsylva nin Aslxislos, Quelxx* Dinipoc, California Munn>. Ontario No Agua, New Mexico Research and Engineering Confers Near Manville. New Jersey Fiber Glass Research and Technical Cantor Waterville, Ohio *Majority Ovned. Xcirhj acquired jierlilc mill al Xo Aijiia, A'etr Mer. The hill ilirrrlhj behind the mill in the pari of the deposit of /xrlilc irhich is being mined. The deposit contains a number of hills and corcrs 2,000 acres. I MTC 001794 i ' -- ^'fie if' . >,500,770 t--133,378,598 .r.,325,sr,5 ^ 52,097,438 ^V98,174,905 { -: 81,281,160 Common stock (Note 8) *. .. . Earnings reinvested .', ;y .yiv* '} .. ` ' 4 f J ?' '_V~ 1 15.1,500,732 2,750,000 n9,4t3o2o.7"0o1i $257,730,504 117.510.701 I40.1S9.743 $257,736,504 s*w$ 187^80,445g 1*1,2--12,9--85 -^?:A: ^.250,084^00.^* ^>- V * fe'3,000,000 &'% SK ' -?#5r t- "* a9,3o0a5k,8o5c2o ? y-jf.:-v>.'.# r $237,778,738 'r~ ^115,464,864^; ' 122,313,874 ' ^*237,778,738 ***_V"*-:r.,. iTkr noln on p> I i njsolidatctf Subsidiary Companies .Vi fo integral part of these statements.) $377,501,000 . -- -yj 11 *-4v.w.t ;>? :-.$331,742,72Bi:%^'^> V^j <';.> 'V;- .......... -... ^ 283,672,388 i- _____________________ '/v. 62.764.412 ^'-^7^338 .- '*>,^ ^0 Ji ' ' .;' :r[ <<]!? ;>'. :h,13x.i*j:> s& :24,696,497 ::****.* *. J <] ^$ r.**.** " iv> Vtf.v*''A-**-. *i)' :{|.(U6,`)s) **28>WU$^ V'.'" 'Vi'l 10,084,080 14,931,303 V ... fljr- .if/..-,11;. -; sgt-'-i ' ' ' ` 125,258,440 Gr 113,286,138 .* -iv J: i.' > ifB\< ' " ............. MTC 001796 Notes to Financial Statements 1. As of September 22, I!*>'.) in a combination treated as a pooling of interest, Johns-Mnnvillc Corporation aeuuired in exchange for 14S.000 shares of its common stock nil of the outstanding common stock of F. E. Sehundlcr & Co., Inc. Tho accompnnj'ing statement of earnings for 19o9 includes operations of F. E. Scbundler it Co., Inc., for tho full year. '.1. Inventories are valued at tho lower of cost (principally last-in, first-out) or market. Current liabilities aro as follows: Dreetuber .>'/ 1959 1958 United States and Canadian income taxes....................... Other taxes............................ Wages and com|>cnsntinn pay able and accrued vacation Accounts payable and other accrued liabilities.............. S 2:1.2 i(.7:a> .*.iav_'07 l I.*.:i7l |."),."i(S..m7 s *ii.:K."tsiwi S22.7tW.2tS2 l.l IS.:W9 io.Mo.iwo 1 U1HI.S4I7 S.V2.097, i:vs t. Cnipcrlics ami plants an; staled at cost less Ihn following atm am Is of estimated depreciation and deplotion: December ill 1959 1958 SMo.292.lW0 Si:30,su,:uo \ : i _ /' MTC 01797 t j 5. Other assets aro as follows: ) -----------December 31 1959 1958 Investments in and advances to unconsolidated subsidi aries (at cost or less)....... Prepaid and deferred chaiges Accounts receivable from em ployees for stock purchases (Note 8)............................. Iiseellaneous investments (at cost or less).............. . $ l.oi3.95 1 3.490.910 I.:i!l7,107 4,329.000 S 1S2.50S 2.7-10, Hit* 1,009,445 3,074.500 SI3.237.02S SI 1,212,985 fi. Lons term obligations comprise notes bearing interest at 2.7 percent with principal payable S250.1XX) annually to July 15, 1900. balance payable July 15. 1907. The amount of the payment due on the following July 15 is included in current liabilities each year. 7. Kcservcs for contingencies, ole., include: i -----------December 31 1959 1958 Reserve for workmen's jromjKmsation self-insurance... Reserve for retired employees' group life self-insurance... Reserve for product guar antees.......................... Reserve for contingencies... S 425.1XK) 900,780 43!),(105 7,001,91(1 $ 125,000 727,2!X> 491,052 7,001,910 S 9,132,701 S 9,305,8.52 :tl 4 I MTC 001798 I'ar value of common stcK'k is $5 |H>'r share. (-4 25,000,000 shares authorized, S.474,214 shares were issued and outstanding at December 31. 15)55). 200,309 shares arc reserved in connection with the employees' stock purchase i)Ian. 'I'his plan, approved in 15)58, permits eligible employees to purchase a limited number of shares of the Company's common stock at market price prevailing at time of purchase, to l>e paid for within ten years. Shares arc issued and held by a trustee as security for unpaid amounts. At December 31. 1951) the trustee held 110,711 shares issued under this plan and a prior plan. 18S.255 shares are reserved in connection with the incentive stock option plan. This plan, approved by stockholders in 15)54, permits key employees, including oflicers and directors who are full-time employees of the Company or its subsidi aries, to purchase shares at the fair market value thereof on the date the option is granted. Options may lie exercised only after two years of continuous employment by the Company or its subsidiaries after the date of the grant or the option. At January I, 15)55) options on 72.25)0 shares at prices Ringing from $27.82 to $41 .N71 4 |>er share wen* tincxcrcised. During 15)55) options on 21,123 Shari's were exercised at prints Ringing from $27.82 to S11 .S7.* ^ |>er share and options on IS shares at $30.32 were cancelled. In 15)30 additional options were granted on 54,100 shares at .$33.00 per share. At the end'of 1935) options on 102.247 shares were uncxorcised and 80,008 shares wero available for further option. Manufacturing costs, selling and administrative expenses include provisions for depreciation and depletion as follows: [ 1959 1958 Depreciation........................... Depletion................................ f5lti.302.4tW 420.15)1 SI 5,2751.023 301.331 StO.7N2.OS4 $15,780,1)71 MTC 001799 Depreciation on U. S. proi>crtics lias been provided by the straight line method plus an amount equal to the tax savings realized by using accelerated methods permitted for tax purposes. Depreciation on Canadian proper! ies has boon provided by the diminishing balance mol hod. IQ. 'Faxes: United States and Canadian Other taxes............................ 1959 1958 $2i,s:io.ooo 9.3HS.423 Stti.SoU.tKId 7,.d(U07 S)U3S,42) ?24.!i(jn.ll)7 11. Dividends include payments in lieu of dividends on shares of stock pledged under the employees* stock purchase plan. i MTC 001800 To TUB StoCKMOI.UKKS AM) lioAltl) OK DlllKITOIlS OK Joiins-Manvillb ColirollATION. Nkw York, X. Y. We have examined the statement of investment of Johns- Manville Corporation and its Consolidated Subsidiary Companies as of December 31, 1959 and 195S and tho related statement of earnings for the years then ended. Wo were furnished with financial statements of the Canadian subsidiaries for 1959 and 195S and of a domestic subsidiary for 1958, together with the respective reports thereon of Canadian chartered accountants and other public accountants. Our examination was made in accordance with generally accepted auditing standards, and accordingly included such tests of tho accounting records.and such other auditing procedures as we considered necessary in the circumstances. In our opinion, based upon our examination and u|h>u the reports of other accountants, the accompanying statement of investment and related statement of earnings present fairly the financial position of Jobns-Manville ('orporation and its consolidated subsidiary companies at December 31, 1959 and I95S and tho results of their operations for the years then ended, in conformity with generally accepted accounting principles applied on a con sistent basis. Lyiirand, Ross Rnos. & Montoomkiiv, Certified Public Accountants. Abac )orl:, .loniuirii .`It, HIMI. Printel n ttS A. MTC 001801 Johns-Manville Corporation T : ? i I ; Morgan Guaranty Trust Company of New York National Trust Company -- Montreal and Toronto The Chase Manhattan Bank -- New York Montreal Trust Company -- Montreal and Toronto r;> I ( ' n n - I Davis I'iiIU Ward well Sunderland & Kiendl New York I.ybraml, Boss Bros. & Montgomery -- New York Sharp, Milne & Co.-- Montreal MTC 001802 I MTC 001803