Document pe2kYEjoaxy9rVe6jq6x8Kqq6

r ------------- --------- -- ,_4*,lf.^,. .. . AT" * .. , ~t+ CrJLi&dBt .UvSSsiSliS ;1A^,V ' ...; cv; ..?,, " ** " fc. T'* <*" 4 *, *jt-UiL& r ,. > V ................___________ _____________________ lb *'' * ^ s.xlf 4* O ^^ vv ,i>v ' - '......................................v.-.t-. ./ - v" ^ . .rt;:.-;!.v.;is;-Kp.-7ss.v-;, * ^ ;:^:W;a^^SjfSafc'- .......................... . .......... Wm^ -.iOf**\lfa**-5V-:r&^yl>:$*&:^*'*. ;' V-:-.' .:.. TTgT'-' MonsantoChemical iSlfill^^pi. xT. '^&?k-ysi Sales and Profit At New High in '35 ` " ' ' ' ; v S. ' -..-`V-. ' .-.- ?-r ......:v-`.;-''-1.:'-..?;. . -- .; '; :"r- ; :. - .^v: - - - ? 'v'. :-/-&\'&&$;?":$? ;\v. ;-*>:- - .-.::-S-;^T V.;.:. Record Results Achieved De- --' ' '.:`' ' ' :(* ->-."<, . v- '*.<? ." '* -r- ..`:-r - * - .. - ,. . , spite Lowest Average Price Level in Company's History Program for 1936 Outlined Monsanto Chemical Company reported last year the largest sales and the largest net profit m Its history, although average price of its products, as shown m a chart printed in the re port, is the lowest on record. This is in line with the policy on which the success of the chemical Industry has been built; successive improvement of product, lowering of costs and prices and ex panding volume. A comprehensive program fa planned for 1936, involving the acquisition of phosphate mines and reserves to secure and lower the cost of this important raw material. A plant to pro duce several- new products that have passed through the development stage will be built and Improved facilities for other operations will be constructed; ; : . - Increased phosphate reserves pre for the purpose of extending-the business of the Swann Corp. of Birmingham, Ala., a subsidiary - that was completely absorbed last March. Its opera tions center around the electro-thermal produc tion of phosphoric acid and its derivatives, which are used by steel, food, dentifrice, deter gent and silk industries. \ . Sales last year totaled $24,705,574, an in crease of 8% over the previous record year. This increase was achieved in spite of lower prices on several products and the permanent loss of some large-volume but relatively low-profit busi ness. It reflected higher rates of industrial ac tivity, greatly increased use of some new prod ucts and a better demand for heavy chemicals. Net profit last year was $3,939,761, equal to $3.84 a share on 999,123 shares of common stock, against $2,771,629, or $3.20, a share on 864,000 shares in 1034. : 'f ' n 1 (i 1 mm: ,f WALL STREET JOURNAL V- . Kerch 15, 1956 i- -' r-iu' . *"" At,. ** -i * +7 C ~ s,^.'-sT '; :>< : WMImm *A HHH U >V aft : ' Sales 69% of dross Assets : . . : President Edgar Monsanto Queeny states Jag: his letter to stockholders: "Typical of an inte-! grated chemical industry, our net sales were but-69% of our gross assets. This Is indicative of. the.. relatively complicated character of our business and the large amount oi specialized and expensive apparatus that is necessary.'' | He further points out that the company last : year carried on the heaviest construction pro : gram m its history. During the year, $3,739,129 | was expended on plants. Of this, $1,280,552 came ! from depredation charged during the year and the balance from surplus earnings. Another Acquisition : :; v ; the Atlantic Chemical Co. of Billerica; Mass.,- makmg heavy chemicals, was also acquired dur ing the year. r, Taking the 1926 level as 100, index of vol ume last year was 190, dollar sales about 145, while Monsanto pnces were about 77 and index of all commodity prices, 80 on the same scale. Products Held Not Used in War v The management emphatically calls atten tion to the fact that the chemical industry is not the beneficiary of war. Mr. Queeny states that with the exception of phenol (the base of high explosive picric acid) and nitric acid, Monsanto does not make any war Materials. He says: "To the heat of our knowledge, Monsanto prod ucts are not being used in any current conflict.'' More than a year ago it was believed that the Increased demand for phenol might be due to Japanese buying, but It soon became clear that the real cause was the sharp Increase in de mand from the growing phenol-formaldehyde plastics and from the new resin paints. i Monsanto is spending more on research than ever before, $687,978 last year, against $456,356 in 1934. During the year the remaining $954, 500 in bonds were retired, mainly by conversion into stock, leaving the common stock the sole | capital of the company, with the exception ofl $1,940,J0W00W|WpUrWejMfIeWr1 red of the En' ~glish su' tbsidiary /'' m P-.) i / &: '.A&`wSfc'- ->1 DSW 331299 STLCOPCB4077943