Document p2vK5V9dDwkNN2RjM7gjX5ded

Q fti <3 o W >-* hJ <3 3b <3 Ph Sz; 3i oO HH H CJ CQ <1 O S u Q O r-a 8 W O w fci >H <o S Q NI M O UrH) N13827 0000-NLI-000018269 To the Stockholders of National Lead Company: The following is a Consolidated Balance Sheet of National Lead Company as of June 80, 1942 and a Statement of Consolidated Income and Surplus for the first six months of 1942. The consolidation includes only domestic subsidiaries in which National Lead Company owns all of the outstanding capital stock. Dividends received from foreign corporations owned in part or in whole, domestic corporations not whouy owned, as well as interest on bonds and miscellaneous {terns not directly connected with current operations, are included in the item of "Other Income." The item of "Other Charges" appearing on the Consolidated Earnings Statement represents a foreign exchange loss resulting from the liquidation of cash remittances from foreign subsidiary companies. During the period the company received foreign dividends amounting to $265,478.89. This amount was added to the existing Reserve for Foreign Investments. In view of uncertain conditions, an amount of $625,000.00 was set aside out of earnings for the period and added to the Contingency Reserve. Dividends on National Lead Company Preferred and Common Stocks owned by the Company itself axe not included in this statement, either as disbursements or as income. Fl e t c h e r W. Ro c k w e l l , President. ASSETS Current Assets: Cash ......................................................................................................................................................... $ 8,997,355.34 U. S. Government Securities (Market Value $ 778,289.85)........................................ 743,677.51 Other Marketable Securities, Domestic (Market Value $ 919,007.60)............ $ 680,678.53 Other Marketable Securities, Foreign (Market Value $2,732,260.90)............ 741,546.96 1,322,225.49 Accounts and Notes Receivable................................................................................. $12,313,374.89 Less Bad Debt Reserve.......................................................................................... 977.720.1411^35,654.75 Notes Receivable from Employees...................................................................................................... 249,114.93 Inventories (at Normal Prices, Excess at Cost or Market)........................................................... 26,989,304.64 Total Current Assets...................................................................................................................................... $ 49,637,332.66 Investments and Advances: Affiliated Companies (at book value, in no case exceeding cost): Domestic .................................................................................................................. $ 6,163,876.02 Foreign...................................................................................................................... 2.950,841.97 $ 9,114,717.99 National Lead Company Capital Stock (19,883 shares Preferred A; 25,815 shares Preferred B; 7,646 shares Common) (Market Value $6,645,479.38).......................... Miscellaneous Investments (not listed on any exchange): Domestic ............................................................................................................. $ 340,411.58 Foreign...................................................................................................................... 77.840.00 5,407,371.91 418,251.58 Total Investments and Advances............................................................................................................... 14,940,341.48 Fix6(i Assets * Plant Properties and Equipment--Gross Property........................................................................... $94,923,683.56 Less: Depreciation and Depletion. Reserves.................... ............................................................ . 35,766,085.82 59,167,598.24 Patents and Licenses ........................................................................................................................................................... Deferred Charges ................................................................................................................................................................. 239,936.42 833.768.08 $124,808.976.88 LIABILITIES Current Liabilities: Accounts Payable, audited but not due....................................... , Tax Reserve .................................................................................... Dividend Payable August 1, 1942 on Class B Preferred Stock. $ 4,536,327.46 12,793,534.69 116,193.00 Total Current liabilities............................................. . $ 17,446,055.15 Reserves: Fire Insurance Reserve........................................................... .... Employers Liability Reserve......................................................... Pension Reserve............................................................................... Reserve for Contingencies............................................................. Foreign Exchange and Miscellaneous......................................... . $ 4,797,284.02 426,664.30 2,238,610.22 3,425,000.00 166.542.67 11,054,101.21 Capital Stock and Surplus: Capital Stock: Authorized Issued Preferred Class A--Par Value $100...................................................................$ 25,000,000.00 $24,367,600.00 Preferred Class B--Par Value $100......................................... ........................ 25,000,000.00 10.327.700.00 Common --Par Value $ 10................................................................... 50,000,000.00 30.983.100.00 $100,000,000.00 $65,678,400.00 Earned Surplus.......... ................................ ....................... `.......................... ....................................... 30,509,701.32 Capital Surplus ...................................................................................................................................... 120,719.20 96.308.820.52 $124.808.976.88 DETAILS OF PLANT INVESTMENT Gross Property ............................................ Less Depreciation and Depletion Reserves Net Property ........................ June 30,1942 Dec. 31,1941 $94,923,688.56 $89,545,627.04 35,766,085.32 34,348,003.88 $59,157.598.24 $55.197,623.16 Increase $5,378,056.52 1.418.081.44 $3.959.975.08 * The present normal stocks of the Company are as follows: Lead ..................................................................................................................................... Tin ....................................................................................................................................... Antimony ..................................................................................................................... Stocks in excess of normals at cost or market, whichever is lower. 49,687% short tons valued at $0.08 per pound 1,124%short tons valued at .21 per pound 269short tonsvaluedat .06 per pound 0000-NLI-000018270 CONSOLIDATED EARNINGS STATEMENT Six Months Ended June 30th-- 1942 Sales .................................................................................................................................. $66,892,971.07 Cost of Goods Sold, Taxes (except Federal Income and Excess Profits taxes), 1941 $61,690,089.50 Depreciation and Depletion and Other Expenses................................................. 68.623.786.42 65.218,842.95 $ 8,269,184.66 Other Income........ ........................................................................................................ 446.254.22 $ 6,471,246.55 371.707.87 $ 8,715,438.87 Other Charges ................................................................................................................ 228.587.62 $ 6,842,953.92 $ 8,486,851.25 Federal Income and Excess Profits Taxes................................................................. 5.618,549.78 $ 6,842,953.92 2.925.778.81 Additions to Reserves: Reserve for Foreign Investments....................................... Reserve for Contingencies................................................... Total Net Income............................................... Dividends on Preferred Stock Outstanding: Class A ................................................................................... Class B.............................. ................................................ . Amount Earned on Common Stock.............................. $ 2,868,301.47 $265,473.89 625.000.00 890.473.89 $ 1,977,827.68 $783,275.50 232,386.00 1.015.661.50 $ 962.166.08 $628,175.15 $748,275.60 232.386.00 $ 8,917,175.11 628.175.15 $ 3,288,999.96 980.661.50 $ 2.308.338.46 Amount Earned per share of Common Stock Outstanding $.311 $.747 ANALYSIS OF CONSOLIDATED SURPLUS 1942 Earned Surplus--At beginning of year....................................................................... $80,820,201.24 Add: Net Income for Six Months................................................................................ 1,977,827.58 Deduct: Dividends Paid During Period-- Preferred Stock Outstanding: Class A ............................................................................................ Class B.............................................................................................. $32,298,026.82 $783,275.50 232.S86.00 $ 1,015,661.50 Common Stock Outstanding.................................................................................... 772.666.00 Total Dividends Paid............................................................................... $ 1.788.327.50 Earned Surplus--June 30th......................................................................................... $80,509,701.32 CapitalSurplus--June 30th......................... 120,719.20 Total Surplus--June 30th....................................................................... $30,630.420.52 1941 $28,657,970.12 3,288,999.96 $31,946,970.08 $748,275.50 232.386.00 $ 980,661.50 772.668.00 $ 1.753.829.50 $80,193,640.58 120.719.20 $30,314.359.78 0000-NLI-000018271