Document qd25X2mrbv8jEapkO6dZBVrxR

r--i p^ p^ i Q=j p^ p^ r=^ p^ p=i NET WORTH 1953--SEVENTY-FOUR MILLION PEjj P^ P^ P^ p=y p=^ p ^ r=> p ^ 4 annual l'C|MM'l FISCAL YEAR ENOEO OCTOBER 31S T, 1953 -^dj f~^dj p^ij| p^f 1946-THIRTY-NINE MILLION p^ p^ r^ r=-r= 1936-TWENTY.EiOHT MILLION P^ P:^ P^ P^l 1926--FIFTEEN MILLION p^ p^ p= pg^i 1917--THREE MILLION T/ie Glidden Company Paints, Varnishes, Lacquers, Durkee Famous Foods, Soybean Products, Livestock and Poultry Feeds, Vegetable Oils, Chemicals, Pigments, Metals, Minerals, Naval Stores Annual Report of The BOARD OF DIRECTORS ADRIAN I). JOYCE ALEXANDER D. DUNCAN DWIGHT P. JOYCE B. W. MAXEY PAUI E. SPRAGUE JOHN H. WEEKS JOHN A. PETERS R. D. HORNER JOHN P. RUTH W. G. PHILLIPS WILLARD C. LIGHTER OFF ICERS ADRIAN D. JOYCE, Chairman, Board of Directors DWIGHT P. JOYCE, President PAUL E. SPRAGUE, Vice-President JOHN P. RUTH, Vice-President ALEXANDER D. DUNCAN, Vice-President B. W. MAXEY, Vice-President, Finance and Accounting WILLARD C. LIGHTER, Vice-President HARVEY L. SLAUGHTER, Vice-President NEWELL BEATTY, Vice-President R. D. HORNER, Secretary W. G. PHILLIPS, Treasurer G. S. WARNER, Controller W. P. STETZELBERGER, Assistant Secretary Transfer Agents THE NEW YORK TRUST COMPANY 1ST w York City THE CLEVELAND TRUST COMPANY Clnrliad, Ohio R9itrors THE CHASE NATIONAL BANK New York City CENTRAL NATIONAL BANK OF CLEVELAND Cleveland* Ohio GLD002726 i Glidden Company 1 I !i i TO THE STOCKHOLDERS January 11, 1954 SUBSTANTIAL achievements in the growth and development of this diversified and decentralized organization continue to characterize its operations. The chart on the cover portrays 36 years of growth of your company. In fiscal 1953, net profit after taxes and all charges was $7,109,272 compared to $6,948,805 in 1952. This was equal to $3.10 per share on the 2,290,794 shares outstanding at the close of the year October 31, 1953, and compares favorably with 1952, when earnings were equal to $3.04 per shate on 2,284,739 shares outstanding. Regular cash dividends totaling $2.00 per share were paid during 1953. Dividends have been paid continuously since 1933. Taxes continue to be extremely burdensome, with Federal and State income taxes amounting to $3.37 per share on the shares outstanding at the fiscal year end. Physical volume of sales was 4 per cent above 1952 and reached a new high. Dollar volume of sales amounted to $211,758,522, an increase of $6,645,218 from last year. GLD002727 Working tapital at the end of the year totaled $46,004,697Current assers were $67,429,973, and current liabilities were $21,425,276. a ratio of 3.15 to 1. Our inventories are exceptionally well balanced and low in relation to sales volume. Year-end inventories, after deduction of LIFO Reserve of $2,235,334, amounted to $33,307,058, a reduction of $10,150,096. This reduction was partially due to market changes from a year ago. Satisfactory hedging operations against our major commodity inven tories have been carried out, and this, together with our LIFO plan, assures adequate protection against unusual market variations. Our other current notes and accounts receivable, advances and investments were up this year due to margins on trading accounts, certain receivables, com modity transfers and advances on purchase commitments. Short term loans of $4,000,000 were created in October, 1953, for the purpose of carrying seasonal inventories accumulated during the crop harvesting season. These notes will be paid early in 1954 as inventories are processed. The first installment of $1,500,000 on our long term loan was paid during 1953. Net worth of the company increased in 1953 by $2,680,428 and rose to $74,324,321. As the chart on the cover indicates, this continues the steady growth in net worth, which was $28,000,000 ;n 1936 and $39,000,000 in 1946. Our federal income tax returns have been approved by the government through 1951 and we are not anticipating any difficulty with the years still open. Government review of renegotiable business has been completed through the fiscal year 1952 and no adjustments are contemplated. GLD00272B Retirement funds for employees deposited with bank trustees now total $6,136,098, Gross plane additions during 1953 amounted to $4,149,573 and maintenance txpenditures were $2,311,790. PAINT DIVISION; Sales and Profits in this division were the highest in the history of the company and the percentage of sales gain exceeded that of the paint industry as a whole. This sales record was achieved largely because of the great popularity of Spred Satin and the increased use of Nubelon by the industrial trade. One of the important additions during the year was the estab lishment of act efficient manufacturing plant in Atlanta, Georgia. This was done thiough the purchase of the Eagle-Picher paint plant there, and the adding of the necessary buildings and equip ment to increase its capacity to the point where it will now be able to service out many dealers, industrial customers and our own stores and warehouses in the great Southeast We have also added 108,000 square feet of storage and pro duction area to our Nubian Industrial Paint Division in Chicago. The Canadian Paint Division established a splendid record and plans have been worked out to add a new research laboratory at Toronto and to build a new paint manufacturing; plant in Montreal. The Montreal plant will serve Quebec and the Maritime Provinces and permit us to grow with this rapidly developing territory. At the Cleveland plant we are adding to our paint manufactur ing facilities essential equipment that will increase greatly our production of synthetic resins and polyesters. GLD002721) With the additional facilities for 1954, and with the introduction of new prod ucts from our paint laboratories, we believe that we will develop additional sales and profits in 1954. DURKEE FAMOUS FOODS DIVISION: This division had a successful year and several new items are now being placed on the market which we believe will add materially to our volume. Additional facilities have been added to the Durkee plants at Louiswlle, Kentucky, Elmhurst, Long Island, and Chicago. Tank storage capacity has been markedly increased and efficient hand ling devices installed. VEGETABLE OIL DIVISION: The Vege:able Oil Division had a difficult marketing situation because of inadequate conversion margins on meal and oil from soybeans and flaxseed. Fortunately, our policy of developing manufaaured products from meal and oil has helped carry the load and promises to be of great importance in the ensuing year. Our Protein products, Soya Flour and Lecithin are continually gaining in acceptance. CHEMICALS, PIGMENTS AND METALS DIVISION: This division has experienced a fine gain in both sales and profits. Our Titanium pigment manufacture is proving profitable and Cadmir.m pigments continue to lead in this field. 1 | NAVAL STORES DIVISION: t j This division, with plants at Jacksonville, Florida, and Valdosta, Georgia, has continued its intensive research on rosin based specialties and terpene products and the results are beginning CLDOo ?730 to be felt in tbe Naval Stores profit picture. We are looking for a steady improvement in profits in this division. RESEARCH: We are continuing research and development in each of our 28 laboratories, and our big Central Laboratory in Chicago, with its capable personnel, is working to the benefit of all the smaller laboratories and is devoting its attention especially to creating greater utilization o: the products of the soybean and expanding our edible oil research for the Durkee Famous Foods Division. We look forward to the future with confidence and believe the coming year will be one of further growth. Our manufacturing facilities are in top shape to produce quality products economically, and our rapidly expanding sales organization is prepared to do hard and enthusiastic selling. The management is constantly on the alert for new products, processes or methods which might be acquired by purchase and developed to the advantage of the company. Finally, but of utmost importance, many of the young men brought into the company since 1946 are now stepping .into areas of great responsibility where they will have opportunities to apply their aggressiveness. The loyal help ard cooperation of all our people is deeply appreciated. Adrian D. Joyce Chairman of the Board Dwight P. Joyce President GUD00273l RAW MATERIALS fit-000273i Consolidated Balance ASSETS CURRENT ASSETS Cash................................................................... Trade accounts receivable, less allowances of $459,010 for doubtful accounts..................... Inventories--raw materials, in process, and finished goods Principal raw materials are stated at cost (last-in, first-out method) which did not exceed replacement market; other items are stated at the lower of cost (accumu lated average) or replacement market . . Other curren: notes and accounts receivable, advances and investments................................ TOTAL CURRENT ASSETS.............. OTHER ASSETS Cash surrender value of life insurance.............. $ Prepaid insurance and expenses......................... Miscellaneous notes and accounts receivable, advances and investments................................ $ 8,230,545 17,511,525 33,307,058 8,380,845 $ 67,429,973 840,678 840,270 404,433 2,085,381 PROPERTY, PLANT, AND EQUIPMENT Land --at cos:.....................................................$ 3,207,499 Buildings, machinery, and equipment--at cost . 52,320,074 $55,527,573 Less accumulated depreciation, depletion, and amortization..................................................... 22,293,330 33,234,243 $102,749,597 GLD0Q273 4 \ Sheet THE GLIDDEN COMPANY AND SUBSIDIARIES OCTOBER 31, 1953 LIABILITIES, CAPITAL STOCK, AND SU PLUS CURRENT LIABILITIES Notes payable to banks: Short-term loans..............................................$ 4,000,000 Serial notes maturing July 1, 1954 .............. 1,500,000 $ 5,500,000 Accounts payable...................................................................... Accrued taxes, insurance, royalties, and interest..................... Federal, state, and dominion taxes on income -- estimated............................................................................. 6,358,282 1,692,162 7,874,832 TOTAL CURRENT LIABILITIES............................ $ 21,425,276 LONG-TERM DEBT Serial notes payable, maturing $1,500,000 annu ally in 1955 and 1956, and $4,000,000 in 1957, interest 3%.................................................................. 7,000,000 CAPITAL STOCK AND SURPLUS Capital stock: Common without par value: Authorized 3,000,000 shares (100,000 shares reserved for sale to key employees) Issued including treasury shares, 2,291,330 shares Stated capital............................................. $ 5,728,325 Capital surplus..................................................... 26,875,642 Earned surplus (includes $4,056,570 of surplus of Canadian subsidiary) .... $41,733,083 Less 536 treasury shares --at cost 12,729 $32,603,967 41,720,354 74,324,321 $102,749,597 SSSSaBSSBSSSSSSSBS GLD002735 THE GLIDDEN COMPANY AND SUBSIDIARIES Year ended October 31, 1953 Consolidated Income and Surplus INCOME Net sales............................................................... Cost of goods sold, selling, administrative and general expenses, including provision of $2,185,184 for depreciation and amortization. $211,758,522 197,231,463 $ 14,527,059 Other income Interest expense............................................................ INCOME BEFORE TAXES ON INCOME 664,985 $ 15,192,044 357,772 I 14,834,272 Taxes on income-- estimated: Federal normal tax and surtax.........................$ 7,150,000 Dominion and state tares................................... 575,000 7,725,000 CONSOLIDATED NET INCOME............................ $ 7,109,272 SURPLUS CAPITAL SURPLUS Balance at November 1, 1952, and October 31, 1953 . . . . $ 26,875,642 EARNED SURPLUS Balance at November 1, 1952 ................................................. Add net income for the year..................................................... $ 39,202,349 7,109,272 $ 46,311,621 Deduct dividends paid --$2 per share..................... ................. 4,578,538 Balance at October 31, 1953 ................................... ... . . . $ 41,733,083 GLD002736 Glidden Divisions The GUdden Company Central Region Cleveland, Ohio The Glidden Company Mississippi Region The Campbell Paint c Varnish Company, St. Louis, Missouri The Glidden Company, Ltd. Toronto. Ontario, Canada The Glidden Company, Ltd. Montreal, Quebec. Canada Durkee Famous Foods Elston Avenue, Chicago, 111. Durkee Famous Foods Louisville, Kentucky PAINT The (Hidden Company Eisern Region Tbt A. Vilhelm Company Reading, Pennsylvania The (Hidden Company Northwest Region Minneapolis, Minnesota The (Hidden Company Pacific Region San Fraocisco, California FOOD Durk>*e Famous Foods Fin hurst, Loog Island, N. Y. Durk.je Famous Foods Iron Street, Chicago, Illinois Durkee Famous Foods Maron, Georgia The GliddcQ Company Southern and Texas Region The American PaiotWorks New Orleans, Louisiana The GUdden Company Nubian Industrial Division Chicago, Illinois The GUdden Company Midwest Trade Sales Region Chicago, Illinois The GUdden Company Southeastern Region Atlanta, Georgia Durkee Famous Foods Norwalk, Ohio Durkee Famous,Foods Berkeley, California CHEMICALS, PIGMENTS AND METALS The Glidden Company Chemical Pigment Metals Division St. Helena (Baltimore), Marylmd The (Hidden Company Chemical - Pigment - Metals Division Collinsville, Illinois The GUdden Company Chemical Pigment Metals Division Oakland, California The Glidden Company Chemical * Pigmen t Meul< Division Hammond, Indiana The GUdden Company Euston Lead Division Scranton, Pennsylvania SOYA PRODUCTS AND VEGETABLE OILS The Glidden Company Chicago, Illinois The Glidden Company Indianapolis, Indiana The GUdden Company, Buena Park, California The Glidden Company Jacksonville, Florida NAVAL STORES The Glidden Company Vadosta, Georgia R V. Colledge, General Sales Agent, Inc. Jacksonville, Florida FEED MILL The Glidden Company, Indianapolis, Indiana Glidden Consolidated Copper and Zinc Mines Shasta County, Cali forma MINES The GUdden Company Barytes Mines Battle Mountain, Nevada Tonopah, Nevada Retail Stores and Warehouses in the Principal Of/01 AFFILIATED CORPORATIONS Growth Products Company Pascagoula, Mississippi Jacksonville Processing Corporation Jacksonville, Florida GLD002737 Accountants' Report ERNST 8t ERNST CLEVELAND Board of Directors, The Glklden Company, Cleveland, Ohio. We have examined the consolidated balance sheet of The Glidden Company and subsidiaries as of October 31, 1953, and the related state ments of consolidated income and surplus for the year then ended. Our examination was made in accordance with generally accepted auditing standards, and accordingly included such tests of the accounting records and such other auditing procedures as we considered necessary in the circumstances. In out opinion, the accompanying balance sheet and statements of income and surplus present fairly the consolidated financial position of The Glidden Company and subsidiaries at October 31, 1953, and the consolidated tesults of their operations for the year then ended, in con formity with generally accepted accounting principles applied on a basis consistent with that of the preceding year. Cleveland, Ohio December 15, 1953 ERNST & ERNST Certified Public Accountants GLD002738 DIVERSIFIED PRODUCTS BY GLIDDEN FOODS Durkee's Margarine Durkee's Stayfresh Coconut Durkee's Dixie Cut Coconut Durkee's Mayonnaise Durkee's Whipped Salad Dressing Durkee's Sandwich Spread Durkee's French Dressing Durkee's Famous Dressing Durkee's Shortening Durkee's Salad Oils Durkee's Deep Fat Frying Oil Durkee's Spices and Extracts Durkee's Worcestershire Sauce Durkee's Bakers Margarine Special Ingredients for Bakers and Confectioners SOYBEAN PRODUCTS Alpha* Protein Beta* Protein Prosein* Soya Meal--Flour-- Flakes Lecithin Fine Chemicals--Steroids Edible Emulsifiers LIVE STOCK AND POULTRY FEED!; Glidden Cattle and Hog Feeds Glidden Poultry Feeds Glidden Feed Concentrates PAINTS, VARNISHES AND LACQUERS SPKED SATIN SPRED GLOSS Endurance* House Paint Endurance* Imperial House Paint JapaUc* Ripolin* Enamel Spray-Day-Lite Brush-Day-Lite Speed-Wall* Gliddenspar Varnish Florenamel PlT-'narnel............. Giid-Tone Stains Graphic Arts Finishes Glidair Aviation Finishes Nubelite* Nubelac* Nubelon* Nubelyn* Nubeloid* Nu-Pon* Spatterloid* Spattertone* Hammerloid* Metalescent* Vinyl-Cote* Bombay Black* Glidvar* Wire Coatings Nuflex* Paper Coatings Spedene* A. D. Synthetics Stains, Fillers, Sealers, Varnishes and Lacquers for Wood Furniture VEGETABLE OILS Soybean Oils Cottonseed Oils Coconut Oils Peanut Oils Corn Oils Palm Oils Linseed Oils CHEMICALS AND PIGMENTS Zopaque* Titanium Dioxide Sunolith* Lithopone Cadmolith* Cadmium Colors Euston* White Lead Bleached Barytes Oil Well Barytes Zinc Sulphate Crystals Coal Tar Products METALS AND MINERALS Powdered Copper and Lead Cuprous Oxide Cupric Oxide Cubond* Brazing Compound Barite Ilmenite NAVAL STORES Nelio* GN and NXD Gum Rosin Nelio* Gum Turpentine Sunny South* D.D. Turpentine Pigmentar* (Pine Tar) Alpha and Beta Pinene Guai-a-phene* and Glidcol* Anti-Skin Agents______ Terpene Chemicals Nopol, Campheoe, Myrccne Rosin Oils Gloss Oils--`Lobcite* Hard Rosin Terpex* Synthetic and D.D. Pine Oil Ester Gum, Rosin Based Resins Merez Metal Rcsinatcs Pine Wood Charcoal Rubber Compounding Agents *Tradt Mark Registers^ Much of The Glidden Company's business comes from the processing and production of raw materials for sale to other industries. Glidden GL0002739 36 YEARS OF GROWTH AND PROGRESS Founded by Adrian D. Joyce in 1917 as a producer of paints and varnishes. The Giidden Company today is among the foremost of America's industrial concerns. Its broad, yet integrated diversi fication, its continued intensive emphasis on research and develop ment, promise even greater growth and progress in the years ahead. GLD002740