Document qakEOQ32RGd5en36b1dbzBZ05

Annual Report 1950 The Sherwin-Williams Co. 0007-SWP-000005584 N 4435 The Sherwin-Williams Co. a. w. rrcuoet. Tt Uu SiockkaUtrr. Herewith era presented the Consolidated Balance Sheet and the Consolidated Income mad Surplus Statements of The Sherwin-Williams Company foe the &meml year ended August 31, 1940. The earning* before Federal Income Tax end Special Raceme era H9.070.mA7. Tie provision for eetimated Federal Income Tex is 36,947,609.85. The amount set aeide for tbs Pension Plea is S2JOO.OOO.Oft which is approximately equivalent to the annuel normal requirement of the Plea, tofether with 10% of the original past terries liability, aa esti mated by the Company's actuaries. The final consolidated aet earnings after all dednetioas art 19,313,163.02. After allowing for Preferred Dividends, the aet earnings era squire, lent to 37.44 par share on the present outstanding 1,277,854 shares of Common Stock. The sobs voIum in dollars was 6J% freeter than last year. TVs percent of increase in (alienage told, howaesr, was more thaa this os account of the tower point prices in offset during the year. In the past several years rafaraaca has been made to the exchange restrictions that have prevailed ia trade relations with Brasil seel Argentina. A reserve food of 31,400.000.00 hat been built up ia prior yean, the purpose of which wee, among othor things. to offset the eeraings of the Braril sad Argeattaa sebeidieriee that had bvea incladed ia the Company's rationlidstad aet oaraings la view of the foct that each errhsage reetrictioas era still ia effect, particularly as they apply to transfer of earnings from them countrim to the United Statee, sad there eppaare to he little prospect of oa eeriy improvement, it has been derided to aliasmate foam the Company's statement* not only the turnings of the current year bat alto dams of all previous yean eases the date of the anginal investment The effect of this adjustment is that the assets sad Uabifida* of the Brasil sad Argentina subaidiarim are oo longer consolidated ia the Company * Balance Sheet but now appear at the original investment value on the Balance Sheet under the caption "Securities of Subeidiarica not Conaolidated." The reaerve for inreitmenta in foreifa tubaidiahee has accordingly been reduced from $1,500,000.00 to $491.9M.lt. Only dividend* received ia 0. S. dollar! have thie year been included under Income. A* to the opera tion.'.. however, of these Brazil and Argentina subsidiaries, they have been exceedingly profitable ia the currencies of their respective coun tries end, in spite of exchange restriction*, dividends amounting to $300,929.23 were paid ia U. S. dollara daring the year and, of coatee, included ia the year's income. During the year the Company introduced a new product to the market which ia called "Super Kem-Tooe." It ie a new deluxe interior fiet point kriutoe wall or woodwork which is super washable and super durable. It is pat oat ia ready-to-ost fora aad is es*y to apply. The colors on beautiful aad, with intermixtures permit a wide variety of color *election. "Soper Kem-Tous" haa had a moat aathosiaatic market reception. Several million dollars were spent ever the Coaspeny's various plants to modernise equipment aad iarrssss production facilities. Ia addition, s nrer Tin Con plant haa been built at Hubbard, Ohio, to serve the Company's Eastern Plants The Chicago unit will new primarily taka cars of tha requirements of tha Western Pleats. Tha (overamsat's rearmament propram has developed a gradually figbswiiep raw materiel situation. Them is an abundance of oils such ss linmH sad soya, but pigments, including lead, sine, titanium aad certain colors, am in shorter supply. Some of them are already on allocation. All the technical rssnarrsa of thsCompaay are bsiag pot to work to make the moet of such matscials as are available. The management sxpesssss its appreciation to tha organisation for the ioyal aad iatease efforts foot have mods thiayear's rasults possible. Prttidnt 0007-SWP-000005586 CONSOLIDATED PROFIT AND LOSS AND SURPLUS THE SHERWIN-WILLIAMS COMPANY AND CONSOLIDATED SUBSIDIARIES Year Ended Aopit 31. 1950 PROFIT AND LOSS M( ha eparetioar far Ik pear aU Aaeaat II. IPSO, before ether iacere*. preaiaiee far iltpiariitite i*4 ether JtJattieae. ea4 federal lexer ea ieeeaw. Other iecnae--Note A...................................................... ttUMJTTM i.WO.WC mjatMTJ* Preraaoe tor ptarfaae............................................... CJQ0.0a0.00 Prriririte far doproriatiea......................................... 1JW7MO0 Preririee (or fara<m lexer x*4 aantlliatnw Hew. eOLMOJS lame Tien................................................... MJtfJI NET PROFIT. CJOO.OOOJO 0MJW.lt1 OJCJOOJt 11J17JCJ4 t 0JI3.1CJB EARNED SURPLUS Relearn et SrptaaW 1. IMP......................................... A44 eet preCt far the peer.............................................. CU03J40.17 OJllltlM MUNJORIR preridad far lariat the pern A4id 11 HO par ihrrr........ $ J00.1MO0 Ce--ea-W00 par than......... UBJgN KUMAM Piaeha ea yrefanal noth oU far leOaaftiea.. BALANCE AT AUGUST SL 1*00..................... M.7WOO 0.1CJHJ0 MjJCJWJt Writ A Other itoral knitda the raaft afgg.mjt far firilafa rtotrrtd ea oriel aTh el aaeeaeeiadetad tab*iliaHer EprO ia art preAt lepertoO V--praiA-i-rehalilrirr te the Conpeay aee ipQratiaitrip SCAOOOJO mm thea WrOeR--ThepreOt tadlere laarrlr eltheneaaiHitalfarrio ailalifitrittUoo at the elate af Ikt peer. faAtiht rr4 tear* 0007-SWP-00000S587 CO a ec < 5 CO a D 09 a a H H < aW a tmt xa CO O co a y Z o zy < a < Q Z a< > az a H GU <s Qo y a sO CO z< oa ya z a a s CO a x H 0007-SWP-000005588 auditors; certificate Board of Director*. Tha SWwm-WUlitmt CoafHjr, Clamlaad, Ohio. W htv* traminad tha rooaoiidatad btlaaot iha*< at Th Shanria* WiOiiai Company aid coaaelidatad aabtidiariaa a of AifHt 31, 1950, tad tha related ttetemtats at wmanlidatad profit tad tow tad tarplat he th* par dm adtd Oar ttanimation war auda ia aoeord* tact with (catraUy accepted twditirn tteadorda, tad aecortfocty Mcii tuts of Afioowitisf ficonti ond ooch otbtf procsdaraa at wo rontidtrtii ntrttttty ia fit arcamataacn. ta oar gpiaina, tha trromptnyiat balance abort tad aomaarita at profit tad loot tad tarplat promt fairly fir caatalidtted financial potitiaa at Tha Sharwia-WiBiaau Company tad coaaoGdatad tab- tidUtiat tt Aapatt 31. 1950, tad tha rpntnlidtfrrl rttolts of thair npaiatinaa far tha poor thta tadad. ia eoofooaity with ftatrtQy MQQVltiBf pflflQptu CppCcd OB ft batta eooaiataat with that at fit procadjag Jttr- ERNST ft ERNST Ctctifiad M& Aeeoaataata Ckrtitad. Ohio Octobar 11.1950 0007-SWP-000005589 The Sherwin-Williams Co. 101 Praapact Aa_ N. W. F(u W Mtt ClaaaUad. Okio .K**.uJ*ciunrt tj PuMa. Varaiafcaa. CoIm Staiaa. Paiauh Uqan lmi Piadada. Drh Chawirak Litkapaaa. Litha>* Tianad 03. O7 Caiaaa. Caaa. laaaetaddaa. Harbindaa. Haaaara. Pofakaa. Mti* PltlUf CMud. CUeaa - Daytoa. Data** Hakhani Maaark. Pictabwak OaHaarf, Cat Baaad Bnak. N. J. Gikkabaw. .V. J. Oallaa - Laa Aaaiaa . Ca&rnUa. Kaa. a. a aaLsarar cturai m. roams G0M9 Dirtctmr* cr lAtOCK CHaUMftatt OaBatoattnoM AaV.SttUOCL aanomotr TM. S.VTU0M L W. WOLCOTT Ofktrt CM.UWIttT.rlMW UBiICKIQma. flm Trwjit Jgmif fun . unmmnrcoMiAMY NTk&T. amut jumui un CW*a4b OVAAAjrTT TtOST COMfAjnr XwMI.T. 0007-SWP-000005590 0007-SWP-000005591