Document rxDp597J6dN5Mdp9MaQ48Q52a

FILE NAME: Abex (ABX) DATE: 1948 DOC#: ABX142 DOCUMENT DESCRIPTION: American Brakeblok Division -1948 Annual Report SPNY 003759 ANNUAL REPORTS American Brakeblok Division .AMERICAN BRAKEBLOK DIVISION 1948 ANNUAL REPORT SPNY 003760 SPNY 003761 AMERICAN BRAKEBLOK DIVISION ANNUAL REPORT 1948 CONTENTS Preface Sales Original Equipment Replacement . A-B-K Operating Winchester Plant Detroit Plant Personnel Inventories Medical and Health Engineering Research Foreign Canada France England Denmark Export Annointments and Promotions Statements and Statistics Page No. 1 Page No. 4 Page No. 9 Page No. IS Page No. 15 Page No. 17 Page No. 18 Page No. 21 SPNY 003762 PREFACE SPNY 003763 In 1948 the American Brakeblok Division had the largest dollar sales volume in its history. Net sales were more than $8,700,000; however, the profit realized, while an improvement over 1947, was not as large as it should have been, particularly when compared with pre-war years. Net Sales 1948 $8,704,500 1947 1946 1940 1959 $7,959,500 $8,226,900 $2,924,300 $2,458,500 Net Profit Before Taxes 539,800 175,800 1,322,600 564,300 455,300 Percent of Net Sales 6.2% 2.2% 16.2$ 19.556 18.556 This condition was attributable to brake lining selling prices not having been increased in proportion to the increases in costs and also to a reduction in the relative sales volume in the profitable replacement field as compared to the original equipment volume. Original equipment selling prices were increased 10% in 1946, 3% in 1947 and 13.5/6 in 1948. Replacement selling prices for brake lining were increased 6% in 1946, 6% in 1947 and 10% in 1948. At year-end, original equipment prices were up 28.6% and replacement prices 23.5% over O.P.A. prices. Replacement sales improved considerably over 1947, but the relative replacement volume is still not large enough to compensate for the lowprofit original equipment volume. Brake lining sales break down as follows for 1948: Percent of Total Brake Lining Sales Percent Profit Before Taxes (Includes LIFO) essed Materials Original Equipment 1156 Replacement 17% 15.5% 7.4% Total 28% 10.5% 1. SPNY 003764 Rolled Materials Original Equipment Replacement Total Total Brake Lining Percent of Total Brake Lining Sales Percent Profit Before Taxes (Includes LIFO) 46$ 26$ 72% 100$ 3.7$ loss 19.1$ 4.6$ 6.2$ Current production costs for our rolled materials have increased roughly 60$ above a 1958-40 average. Costs for pressed materials have increased about 25$ above the same 1938-40 average. One reason for the 60$ increase for rolled materials is that a very large part of our roiled original equipment is now hand-rolled instead of automaticrolled material. This means higher material waste and higher labor costs. These hand-rolled materials are of dimensions that exceed the limits of our automatic rolling equipment and represented a small part of our production back in 1938-40. However, demand for material of these larger dimensions has increased so that now it is a large part of our Droduction and has a great effect upon our costs. Our engineer ing department has been studying this problem and has made considerable progress in improving the hand rolling equipment and in increasing the limits of our automatic rolling equipment. Costs for pressed materials will be somewhat reduced by the installation of new type preforming presses. Production costs will be further reduced by utilizing the full capacity of the Winchester plant where labor rates are 40 an hour lower than Detroit and compounding operations are more efficient. Some material which will be produced at Winchester has previously been pro duced at Detroit on 5$ and 10$ premium second and third shifts. It is our intention to operate Winchester at full capacity and thereby reduce costs. In addition to reducing costs to improve profits, there are two other courses of action. One is to increase prices for the original equipment rolled materials which comprised 46$ of our sales volume and showed a 3.7$ net loss. During 1948, however, severe competition and strong customer resistance to price increases were encountered in both the original equipment and replacement fields. The second course of action is to increase sales volume, particu larly where the profit condition is better. Specifically, this is the replacement rolled materials which comprised 26$ of our sales volume and showed a 19.1$ net profit. The profit on sales of A-B-K laminated fabric bearings and caster wheels is very satisfactory. In 1948, the net profit before taxes was $103,244 on net sales of $420,812, or 25$. 2. SPNY 003765 In October, 1948, a settlement of the action taken by the Depart ment of Justice against the Brake Lining Manufacturers' Association and member companies was accomplished. The American Brakeblok Division along with the rest of the industry plead "nolo contendere" and paid fines aggregating $20,000. The Brake Lining Manufacturers' Association was dissolved and the American Brakeblok Division has declined to join the new association. 5. SPNY 003766 SPNY 003767 Total net sales in 1948 were approximately *8,704.500 as compared to 7,959,500 in 1947, an increase of *745,000, or 9?>. A breakdown follows: Original EauiDment 1948 4,115,873 1947 4,092,550 Increase or Decrease / $24,328 Percent / .6* ;eclncement NAPA v."/,552,953 J1 $2,743,764 / 789,192 / 29. % Direct Accounts 296,425 244.878 / 51,545 / 21. % Export Div. 244,409 316,195 - 71,786 - 23. 1 To Canada 93.018 $4,166,806 131.004 $3,435,841 - 37.986 / 730,965 - 29. % / 21. % A-B-K Bearings and Wheels $ 420,812 $ 430.519 - 9,707 - 2. % ORIGINAL EQUIPMENT Our position in the original equipment field shifted to some ex tent during the year in that the Chrysler Corooration split their business between American Brakeblok and Johns-Manville. This split resulted in a substantial reduction in the volume of business obtained from the Chrysler Corooration. At year-end, the lack of fc satisfactory material for the new brake designs further jeopardized Chrysler business. Our engineers are working with Chrysler engineers to overcome this problem. Other accounts showed reasonable increases. Major projects that we have on hand include the development of brake linings for the Ford, Mercury, Chevrolet and Studebaker passenger cars. The development of linings for these applications has been under study by our laboratory, and we hope to be able to supply materials to these cus tomers that will meet with their approval. We also have been working with the Oldsmobile and Pontiac Divisions of General Motors. Our oosition in the truck field is good. We are original equipment on Ford, Chevrolet, Diamond T, GMC Truck & Coach, Mack, International Harvester and Studebaker trucks, and we supply Wagner, Bendix, Timken Axle, Shuler Axle, Kay-Brunner, Clark Equipment and Eaton Manufacturing, who are the leaders in the brake and axle manufacturing fields. During the past year, we have been asked by our truck customers to improve some 4. SPNY 003768 of the characteristics of our current production formulae. Certain funda mentals of this problem have been assigned to our Mahwah Laboratory and we hope that during 1949 we will be able to achieve the improvements. Our position is improving in the heavy-duty truck and bus field, wherein thick blocks are used as a friction material. Such accounts as General Motors Truck & Coach, Mack Manufacturing, Timken-Detroit Axle, Eaton Manufacturing, Clark Equipment and Shuler Axle are progressively giving us a bigger percentage of their business. We had hoped during the year to substitute a cheaper dry-mix formula for the wet-mix formula in all thick block production. However, we found this formula not heat resistant enough when introduced to the field and we had to backtrack on this plan. Currently, both formulae are in production because some cus tomers prefer the dry-mix formula. It might be noted that our position in the aircraft industry is improving. Our materials are used as original equipment on the Bendix disc-type brake, manufactured by the Bendix Aviation Corporation. The Bendix aircraft brakes are used on B-36 bombers and Constellation type airliners, as well as other types of commercial aircraft. In this con nection, the engineering department of Bendix has requested an improvement in the heat resistance of our material. During the year we raised prices to original equipment manufacturers 13.5/6. We experienced considerable resistance from our customers in raising these prices. REPLACEMENT SALES 1948 1947 Increase Per or Decrease cent Brake Lining $2,576,662 $1,728,074 $848,588 / 49)6 Purchased Clutch Facings 38,995 80,027 - 41,032 - 51$ Purchased Woven Lining 63,268 Purchased Belts & Hose 796,217 Misc. (Bolts, Rivets, etc.) 57.814 Total $3,532,956 J 69,522 - 6,254 826,752 - 30,535 39.389 $2,743,764 / 18.425 / $789,192 - 9$ - 4$ / 47$ / 29$ Sales of brake lining of our manufacture to N.A.P.A. in 1948 quite closely paralleled the demand for our products placed upon them by the jobber and the dealer. To a slight degree in the early part of 1948, we still labored under some of the same conditions which prevailed in 1947, wherein excess and out-of-balance inventories prevailed on certain items and with certain customers. It is felt that this situation completely corrected itself during 1948. The large new-car production in 1948 af fected the replacement sales demand to a certain extent as new cars made available to the driving public did not need relining during the year. 5. SPNY 003769 Brake lining prices were increased 10% throughout our line on March 15, 1948 Our selling prices for purchased rubber items were increased from 7% to 12% on October 15, 1948, with the weighted increase being approximately 9%. Listed below are the changes in the number of wholesale outlets through N.A.P.A. for the years 1941, 1946, 1947' and 1948: No. of Warehouses No. of Warehouse Branches No. of Contract Jobbers 1948 39 88 1,557 1947 39 87 1,504: 1946 39 69 1,305 1941 37 47 900 While we had some cancellations of contract jobbers, the number of new contract jobbers signed exceeded by 55 the number of cancellations. The N.A.P.A. program for acquiring new jobber outlets was disappointing. On December 31, 1948, we discontinued our Division's participation in the volume rebate paid to jobbers. The cost of this rebate was shared equally by the National Automotive Parts Association and us. The cost of our participation for 1948 has not as yet been determined, but will approxi mate $65,000 to $70,000 It is our understanding now that practically all N.A.P.A. Warehouses propose to continue to pay a volume rebate to our contract jobbers com parable to that paid by competitive manufacturers. Consistent with our policy to sell those large fleet accounts direct which could not be sold by the N.A.P.A. warehouses, we added the Trans continental Bus System, whose potential annual requirements we estimate at $75,000, and the Philadelphia Transportation Company, estimated at $50,000 per year A great deal of credit is due the Brake Shoe and Castings Division Sales Department in obtaining the latter account. On the other hand, we lost - temporarily, we hope - the Greyhound Motors and Supply business due to our price increase in November of ap proximately 9%. This account has amounted to over $150,000 annually in recent years. Even with this price increase, this account receives the lowest price of any replacement customer. DIRECT ACCOUNTS 1948 Greyhound Motors & Supply $153,104 Capitol Transit 34,409 Transcontinental Bus System 27,681 1947 $161,442 28,999 6. SPNY 003770 Direct Accounts, continued.. St. Louis Public Service Surface Transportation, N.. Chicago Transit Authority Chicago Motor Coach Baltimore Transit Great Lakes Supply Motor Coach of New York Philadelphia Transportation Co. City of New York Public Service of New Jersey County Transportation Co. Other Total Net Sales Increase 1948 $26,575 16,253 11,253 9,972 7,342 3,518 2,484 1,338 1,301 800 17 376 $296,423 21% 1947 $14,518 1,757 -- 10,160 7,939 2,034 1,080 -- 14,854 894 866 335 $244,878 A-B-K SALES A-B-K sales -were as follows: 1948 Steel Mill Bearings $314,793 Marine Bearings 27,798 A-B-K Caster Wheels 49,151 Misc. (Impregnated paper for Briggs Mfg. & Chrysler Corp,, flat stock, bushings, discs, rings, gibs, safety tile, etc.) 29,070 Total Net Sales $420.812 1947 Increase or Decrease $345,284 - $30,491 14,788 / 13,010 34,674 / 14,477 55,775 $450,519 6,705 - $ 9,707 Percent - 9% / 88% / 42% - 19% - 2% SPNY 003771 The type of bearing that we sell to the steel mills is very profit able. Our 1948 sales of these bearings decreased approximately $30,000 from 1947. An analysis of the Carnegie-Illinois account discloses that 1948 bearing sales at the Gary, South Chicago and Irvin mills decreased from 1947 sales approximately $52,000 which more than accounts for the total decrease in 1948 steel mill bearing sales. The reason seems to be that the Pittsburgh office of Carnegie-Illinois has put pressure on the mills to split the replacement bearing business among five suppliers. We are currently receiving our full 20% of the business, but we ob viously need help with this account and plan to ask for it. Our Marine sales increased $13,000 during the year due to a replace ment order from the Navy. As stated last year, the profit derived from sales of marine type bearings is not satisfactory, and we are very care ful about quoting on this type of business so as to insure a satisfactory profit. Our sales of A-B-K caster wheels increased $14,000 in 1948 due in part to the addition of a new outlet, the Service Caster and Truck Manufact uring Company. Heretofore, we have had an exclusive distribution agree ment with the Rapids-Standard Company which we cancelled in September so as to add the Service Caster and Truck Manufacturing Company to our distribution. Prices for A-B-K bearings were raised 10% in 1946, 22% in 1947 and were not raised in 1948. Prices for A-B-K caster wheels were raised on an average of 25% in 1948 for the first time since the war. SPNY 003772 8. OPERATING SPNY 003773 WINCHESTER Production was commenced at Winchester on February 3rd, 1948. Net shipments from Winchester amounted to $2,164,119 for the year. Being a new plant, the biggest problem was to train and organize a working force. A large majority of the people were inexperienced and unfamiliar with our type of manufacturing. Much was accomplished along these lines, but there is still considerable work to be done to develop a smooth working organization. In April a gross profit on shipments was realized, and this continued for the year. The new compounding methods at Winchester developed by the Division Engineering Department, Construction and Maintenance Department, and Scott Fraula have proven very successful and efficient. Material handling in the Rolling and Finishing Departments has been greatly improved through the use of conveyors and hoppers. In the Press Depart ment, the A-B-K Safety Tile presses have been converted for pressing brake blocks as well as tile. In the Shipping Department a new system of conveyors has proven efficient, but the lack of storage space in Shipping is a great problem. Operation at Winchester during the last three quarters was about 50% of one shift capacity. A photograph of the Winchester Plant is included in this report. DETROIT With the bulk of our replacement lining business being produced at Winchester, the Detroit plant has been able to concentrate on improved methods for original equipment production. Conveyors have been in stalled in the Finishing Department for sawing operations. All shipments between the Detroit Plant and the Wayne Warehouse have been converted to the use of pallets, and all shipments to the larger manufacturers in the Detroit area have been palletized. In some cases shipping cartons have been eliminated, and the material is strapped to pallets and handled by power fork trucks. Modern semi-automatic carton sealing and imprinting equipment was installed in 1948 for packaging brake lining in replacement car sets sold to automobile manufacturers. As far as can be learned, our pack aging methods are the most modern in the brake lining industry. Similar equipment will be installed at Winchester for packaging replacement car sets sold to the N.A.P.A. Estimated annual labor and material savings approximate $10,000. The installation of Do-All saws in the Finishing Department was com pleted in 1948 at a total cost of approximately $60,000. Saw-cut ends rather than sheared ends were made necessary by tolerance requirements and the development of cementing lining to shoes. Product improvement and cost reduction have been realized through improved rolling pro cesses, premixing solvents and resins, and the extended use of carbide drilling tools. Cost estimating has been further refined by the 9. SPNY 003774 Standards Department, and this Department has developed process cards for all part numbers. These cards provide a ready reference for se quence of operations, tooling, shop costs, and a faster method for computing cost estimates. The Standards Department is developing a Job Evaluation plan to cover all shop jobs. The plan will be completed in 1949. ' The Accounting and Payroll Departments for the Detroit Plant were moved nearer the plant operating offices to provide better organization and to eliminate duplication of records. PERSONNEL The peak shop employment occurred in April with 686 hourly rated people at Detroit and 97 at Winchester. Substantial layoffs were made in December at both plants,as well as a small layoff in May at Detroit. At year-end there were 529 hourly rated employees at Detroit and 74 at Winchester. The average monthly labor turnover was 3% for Detroit and 1.756 for Winchester. The percentages are somewhat distorted by the layoffs. Excluding the layoffs, the turnover was 1.6% for Detroit and 1.3% for Winchester. The average employment for the year for the Division was 712 hourly rate people and 200 salaried people, making a total of 912 employees. At year-end, 80% of the eligible employees were participating in the Comprehensive Insurance Plan; 70% carried Group Life Insurance; and 85% belonged to the Retirement System. The added capacity gained by the Winchester plant permitted the elimination of the expensive night shift operations at Detroit except for the necessary plant protection, around-the-clock processes and temporary bottle-necks. Large increases in production schedules can now be absorbed by the two plants without necessitating night shift operations. Combined operation of the two plants, based on employment figures, was about 3% higher than in 1947. A wage increase of 11 was given at Detroit in May, and an increase of 7 was given at Winchester in July. No strike or labor disturbance occurred at either plant during the year. The N.L.R.B. conducted an election at Winchester in September at which 65% of the employees voted for union representation by U.A.W.(C.I.O). Contract negotiations during November and December resulted in a tentative labor agreement satisfactory to the Company and the Union in all respects except wage rates and pay for bargaining time. Current hourly wage rates at Winchester are about 40 below the Detroit scale, but they are above the going rates in the area. The Company has refused to pay Union representatives for bargaining time, and, except under cer tain circumstances, for the time spent in grievance meetings. Conse quently, no contract has been signed to date. 10. SPNY 003775 Supervisory personnel at Detroit averaged 34 people for the year, and 9 at Winchester. Several of our foremen attended the Information Center at the Otis Cutler Club during the year. The reports and en thusiasm resulting from these meetings indicate the Information Center to be highly successful in achieving its purpose. During 1948 regular meetings were held for general foremen to inaugurate scrap reduction programs, C.I.P. solicitation, reports from the Information Center meetings, introduction and education on handling appraisal forms, ar.d such other information necessary to operate the plant and develop a good management team. Management dinners were held for social and in formative meetings during the year. Payment for overtime has been eliminated except for employees under the Wage and Hour regulations. Free coffee is available in the lunch room for all employees during the regular lunch hours. INVENTORIES Raw Materials LIFO Res. Net 12/31/48 12/31/47 Increase or Decrease Increase Due to Prices or Cost Physical Increase or Decrease $ 854,346 $ 857,133 $- 2,787 $/60,126 158.222 129.919 / 28.303 696,124 727,214 - 31,090 $- 62,913 Mir'd. Stock Pressed Mat. 335,254 Rolled Mat. 714,790 Purchased Stock 308,283 Work in process ,) Caster Wheels, ) 149,987 Salvage, etc. ) Total 1,508,314 LIFO Res. 242.660 Net 1.265.654 222,130 589,080 474,686 140,433 1,426,329 200.047 1,226,282 /113,124 L25,710 -166,403 / 9,554 / 81,985 / 42.613 / 39,372 Total Inventory LIFO Reserve Net Total Inventory 2,362,660 2,283,462 / 79,198 400.882 329.966 / 70.916 Si.961.778 Si.955.496 $ 8,282 /24,157 /12,851 /12,994 / 88j967 /112,859 -179,397 Our inventories in 1948 continued to be too high, but they will be reduced to a 30-day supply except for certain critical items such as asbestos. By May 1, 1949, it is estimated that the raw materials and manu factured stock inventories will be reduced by 30%, which will be a total reduction of about $700,000 bringing the $2,362,660 total of December 31, 1948 down to $1,662,660 before the LIFO adjustment. It is also estimated that the LIFO reserve will be reduced about $68,000 by May 1st, which will be an addition to earnings. 11. SPNY 003776 Our pressed material inventory increased in 1948 largely due to a demand on the part of some customers for our dry-mix thick block formula to supplement our standard wet-mix formula. This resulted in our having to carry a double inventory on some part numbers to make both formulae available. By May 1st, the pressed material inventory will be reduced by $75,000. Our rolled material inventory is too high, and by May 1st we hope to reduce it by $245,000. Contained in the purchased stock inventory is $50,000 worth of clutch facings which are obsolete. These will be removed from the inventory during 1949, and a monthly reserve has been set up to take care of this loss. This will further reduce our inventory by $50,000 at the end of 1949. A table showing our inventories since 1958, excluding the war years, is included in the Statements and Statistics section of the report. 12. SPNY 003777 SPNY 003778 WINCHESTER VA., PLANT MEDICAL AND HEALTH SPNY 003779 The joint safety committee met regularly three times each month. Labor and Management members were most cooperative and sincere and have made many worth-while contributions to promote safety. A Mary land Casualty representative attended one meeting each month. He usually showed a film on a safety topic. The Detroit plant gave each employee a specially designed bronze token (with key chain) as an award for the "no lost time" record compiled in 1946-47. Ten projects, designed to improve ventilation systems to reduce exposure to dust and fumes, were completed. The program to convert all plant lighting in work areas to fluorescent type is virtually completed. An extensive repainting program is well under way which will further improve lighting and sanitation conditions. Major im provements have been made in the method and facilities for handling and storing asbestos and in the heating of the area to avoid unnec essary exposure. Modernization and increase of toilet and shower facilities are almost complete. , Six lost-time accidents were recorded, one at Winchester and five at Detroit. A total of 44 days of actual time was lost, and 300 days was assessed for specific loss of a finger. In the Brake Shoe Company wide safety competition (year ending August 1) the Division had the lowest "accident factor", a figure that takes into account both fre quency and severity of accidents resulting from 1,459,307 man hours worked. In their groups: Detroit ranked firstj Winchester ranked 3rd; Lindsay ranked 9th. Nurses at Detroit and Winchester cared for approximately 2400 plant injuries of all kinds. The cases averaged 1.5 calls for care of each case. Only 36 cases required professional medical care. Nurses made 150 calls at hospitals or employees' homes with some very helpful and interesting results, such as the case of an employee whose attendance became progressively worse until he was not working at all. The nurse saw him several times and discussed his symptoms with the plant physician. They concluded that his illness was probably due to extreme mental depression and induced him to see a phychiatrist, which he did. Failing to respond to other treatment, shock therapy was ad vised, but the patient balked. After much persuasion by our nurse, he consented to undergo the treatment, and his recovery was prompt and remarkable. He returned to work, and his attendance and attitude have been excellent. Occupational dermatitis has been controlled by prompt first-aid and hygiene measures. Only one case developed to a degree requiring medical care. Many employees have minor discomfort, but few cases persist or become chronic. All are carefully followed. Strict control of venereal disease cases has been maintained. Our eye protection program (safety glasses) has continued unchanged with good results and at a nominal cost. ~ 13. SPNY 003780 One case of active tuberculosis was discovered and the employee hospitalized as a result of our survey examinations and health follow up. Two of the four previously hospitalized were discharged and returned to work during the year. The other two are making satisfactory progress. The matter of lead exposure has been carefully watched during the year. Dust counts taken by Brake Shoe Medical Department show our ex posure to be negligible. Analysis of 75 urine samples taken at inter vals during the year confirmed the conclusions made from dust counts. No employee showed significant lead excretion. SPNY^OSTSI ENGINEERING SPNY 003782 In March, Plant and Tool Engineering were combined into one General Engineering Department, and with the completion of the new quarters in July the two groups were combined in fact. This consolidation resulted in some increased efficiency, permitting the force to be reduced from 14 to 12. Several engineering developments resulted in improved product, reduced cost, or a saving in labor. 1. A new type stripper press was developed to increase production and to reduce labor and operating costs. We are planning to install these presses at all block-preform-press stations, which will increase our total preforming output from 264 to 400 per hour. 2. We have been successful in replacing the old style, self-con tained, high speed, hydraulic preform press with an inexpensive platen press. This was accomplished by installing special controls and by drawing power from the existing hydraulic system used on the block and A-B-K curing presses. Units have been installed at Detroit and Win chester with a third press on the way to Lindsay. An estimated saving of $4,000 per unit resulted. 3. coolers cooling minutes A refrigerated-air cooling system was engineered into in the Compounding Department, replacing the old water churns. This reduced the cooling time from 16 minutes per batch. the jacket to 4 4. An improved method of controlling the length of material on the automatic rolling machines permits 15 foot rolls to be cut accuracies of a fraction of an inch. This reduces the scrap when roll is subsequently cut into pieces. rolled to the 5. A return conveyor system developed late in 1948 is now being installed on an automatic chamfer grinding machine. The successful use of this conveyor will reduce the number of men per machine from 2 to 1 or a total of 4 men for the 4 machines at Detroit. Winchester will like wise benefit, having one such machine. 6. A successful automatic cycle control was developed for the block curing presses at Winchester eliminating the need for press attendants for the 3-1/2 to 4-1/2 hours curing and cooling cycles after the press is loaded. The Winchester installation has set the pattern for similar equipment for all Detroit presses with the added feature that blow-down, steam and water will also be automatically controlled. The installation at Detroit will eliminate 2 men per shift or a total of 6 men with pre sent operating schedules in the Pressing Department. _ 7. To date we have been unable to procure satisfactory hydraulic pressure regulating valves for our curing presses. In spite of their high cost, their performance is poor. Recent experiments utilizing some of the special control devices on the new preform press (item 2) appear to have the matter solved, eliminating the hydraulic regulating valve completely. SPNY 003783 15. 8. The installation cf a roller conveyor system at Winchester is complete - tne first system installed to handle all regular runs of blocks and production material. It should set the pattern for Detroit. Such a system will reduce handling, trucking, and space requirements, and will force the completion of a job once started. 9. A small but important addition to our double-end automatic DO-ALL saws in the form of a hydraulic operated disappearing saw "back up" block has greatly reduced scrap from broken corners on rolled strip material. 10. Considerable has been done on Cycleweld cement application to brake lining. An experimental machine has been operating for some time, and preliminary drawings are completed on a fully automatic system of application and oven drying. Further work is being withheld pending future developments. 11. A great deal was developed in thermalizing equipment. Draw ings are nearly complete on two fully automatic machines with pre heating equipment, press, and cooling tunnel. These designs have also been held up pending future developments. 1949 will see the completion of the following work begun in 1948: 1. Drawings are 50% complete on converting the present "labor- costly" hand rolling machines into a semi-automatic machine for strip rolling. 2. Parallelling this development, experiments have begun on the regular automatic rolling machines. To date we have been able to in crease the useful range of these machines by taking over some sizes heretofore handled on the hand rolling machines, which also will help to improve the product. Further experimental work on the basic design and principles of these machines will continue throughout 1949. 3. Engineering work has begun on new methods of cut-off control which we hope will make all automatic rolling machines successful at strip production as well as roll production. This will reduce material now rolled on the hand rolling machines to a minimum. 4. A new Compounding Department layout for Detroit incorporating new principles of handling, batching, and processing is being developed by the Division Engineering and Construction and Maintenance Departments. SPNY 003784 RESEARCH SPNY 003785 Continuous study has been given to improvements in manufacturing processes. Keeping in mind the high cost of materials and competitive times ahead, changes of wide scope in tooling and formulation have been under study. These were necessitated by extensive revival of research in brake improvement by our customers, which got under way this past year at a greater pace than at any time since the beginning of the war. The widespread interest in cementing lining to metal shoes rather than riveting has necessitated studies in our laboratory leading to the development of improved physical properties by the use of new materials. Improvements in brake lining testing technique throughout the automotive industry and a tightening up of performance requirements have neces sitated development of better compounding and processing, in which pro gress can be reported with retention of the essential steps of our current processing and with a minimum addition of new steps. There has been improvement in the processing and evaluation of products of Mahwah chemical research. A considerable portion of dynamometer operation time has been consumed successfully in testing technique research in an effort to attain better correlation between road testing and laboratory testing. A new project has been started this past year in the development of the railroad tie--pad. While work to date has been largely explora tory in an effort to crystallize the many varying ideas among the rail road maintenance-of-way men on the preservation of ties, we feel that considerable should be accomplished in the use of a suitable tie-pad in conjunction with proper hold-down spikes, such as the Ramapo spike. This has developed into a cooperative project with Ramapo and Brake Shoe and Castings. The development staff will continue its effort to improve pressed products from both the functioning and cost standpoint as well as to develop new ones. We will continue to gauge our research on the basis of superior quality as it is believed that as normal competitive con ditions return to this industry, quality will remain the main factor in maintaining and improving our relative position. Production facilities for safety tile have been available at Winchester since the first part of 1948. However, large scale field test installations have been withheld due to lack of a satisfactory adhesive. The solution of this problem should be reached in the near future. Recent progress in our V--Belt research has caused us to delay a decision regarding the advisability of our continuing or withdrawing from this field. SPNY 003786 17. FOREIGN SPNY 003787 CANADA The report for the American Brakeblok Division of Lindsay, Ontario will be contained in the annual report of the Dominion Brake Shoe Company, Limited. However, some brief remarks concerning our Canadian activities may be of interest in this report. The plant operated with reduced forces during the year because our production schedules for Canada were insufficient to utilize plant capacity. In addition to our Canadian replacement business, orders were received for original equipment and service materials for Ford Motor and Studebaker of Canada. Prices were increased approximately 10% on brake lining with the exception of thick blocks, for which prices were increased and then reduced to the former level. The Canadian operation due to lack of sales volume has continued to show a loss throughout the year. The expenditure for the instal lation of equipment at Lindsay for the manufacture of Heat and Pressure materials was approved by the Board of Directors, and the equipment has been ordered. Hourly rated employees were granted two wage increases of 5 cents an hour each and six paid holidays. The average hourly rate is now 81.4^. Plant and office working hours were reduced from 44 to 40 hours per week. FRANCE FADIL had the largest sales in 1948 of its history. Sales in France and French Colonies through Ducellier increased 74% over 1947 in French Francs. The contract with Ducellier has until 1950 to run. FADIL*S export sales increased 93% over 1947 in French Francs. The facilities of FADIL were used by the Export Division to reach those countries that were impossible to reach from either the 0. S. or Canada. In 1948 this amounted to 31,850,642 Frs. ($134,500), or 39% of total net sales in Francs. FADIL'S net sales increased from 45,534,407 Frs. in 1947 to 82,363,086 Frs. in 1948, which is 80.9%. The rate of exchange for French Francs has gone from 120 Frs./Dollar in 1947 to 263.5 Frs./ Dollar at the end of 1948 with the result that net sales expressed in U. S. Dollars actually show a decrease. The cubic inch shipments for brake linings increased 8.9%, and the weight of clutch facings shipped increased 118.4%. The 80.9% net sales increase in Francs was largely due to inflationary price increases. The gross profit on sales of brake lining and clutch facings for the year was 32,731,077 Frs. ($125,000), or 40% of total net sales. Net profit after taxes, roy alties, and administration expenses for the year was 10,858,196 Frs. ($41,500), or 13% of net sales. Royalties payable to the American Brake Shoe Company amounted to 7,345,941 Frs. ($28,000) for the year. At December 31st total assets amounted to 87,699,530.95 Frs. ($333,000). 18. SPNY 003788 In the early part of 1948 Mr. Andre' Belin was made President of FADIL, and Mr. Given became Honorary President. Mr. Marcel Poulain continued as General Manager. One of Mr. Poulain1s sons, Mr. Jacques Poulain, spent eight months in Detroit with our brake engineers and technicians, and upon his return to France was hired by Ducellier as a brake engineer in their American Brakeblok department. FADIL operated during 1948 with a staff of 17 people in the Paris office. The manufacturing company, FABRIQUE de GIF, employed 45 people in the plant at Gif-sur-Yvette. ENGLAND In 1948 an agreement was made with Small and Parkes, Limited, of Manchester, England by which we would give them our formulae, machine designs, and manufacturing methods for producing rolled and pressed brake lining, A-B-K bearings, and A-B-K Safety Tile in return for 5% of their total net sales of these products with no deductions allowed for taxes. This agreement will continue for 15 years. Small and Parkes' Chief Chemist and Chief Engineer spent a month visiting our Detroit, Winchester, and Lindsay Plants. Their Sales Manager for laminated fabric bearings spent a month in Detroit, New York and Pittsburgh with our A-B-K Salesmen.. The General Purchasing Department is acting as their agent in the U. S. for purchasing equipment. A standard duty rolling machine of our design will be shipped to them in March, 1949. It is estimated that ^ they will be able to commence production of our products by 1950. Mini mum quarterly royalty payments of $ 625 commence in September, 1950; however, payments will be due on any sales made prior to this date. DENMARK-' An agreement similar to the Small and Parkes agreement was made with Roulunds Fabriker, Limited, of Odense, Denmark. This agreement pertained only to wire back, air cured brake lining. Our royalty is 5% of total net sales before taxes with minimum quarterly payments of^ $2500 (U.S.) commencing in February 1950. The agreement will continue for 15 years. The General Purchasing Department is also acting as their agent for purchasing equipment and materials in the U. S. Approximately $50,000 worth of machinery and materials was shipped to them during 1948. They also should be in production by 1950. EXPORT Our export sales to countries other than Canada and France de creased from $316,195 in 1947 to $244,409 in 1948, which is a decrease of 23%. 19. SPNY 003789 One reason for this decrease is that we diverted part of our exoort business to our French and Canadian Plants. Another reason is the shortage of American dollars in various markets. However, a fuller explanation of our export business will be contained in the report from the Export Division, who have continued to handle our exports other than to Canada and France. Sales to Canada decreased from $131,004 in 1947 to $93,018 in 1948, which is a decrease of 29%. The reason for this decrease is that our Canadian Plant is taking over this business. $76,134 of the 1948 total represents sales to Dominion Brake Shoe Com pany, Limited, for items which our Canadian Plant cannot produce. The installation of equipment for manufacturing Heat and Pressure material in our Canadian Plant will practically eliminate these items. 20. SPNY 003790 APPOINTMENTS AND PROMOTIONS SPNY 003791 During 1948 the following appointments and promotions took place: EXECUTIVE; W. T. Kelly, Jr. appointed Executive Vice-President SALES: M. B. Terry promoted to General Sales Manager from Manager Equipment Sales, and at the end of the year was appointed Vice-President, Sales. U. B. Grannis, Jr. was hired as Manager - Equipment Sales. He was formerly a Representative, Brake Shoe and Castings Division. G. A. Weller promoted to Assistant Manager - Replacement Sales from Representative. F. A. Colosimo promoted to Chief Service Engineer from Assistant to Vice-President, Research Department. R. G. Robison promoted to Head of Belt Sales from Special Repre sentative, Belts. RESEARCH AND TEST; B. W. Wortelboer was hired as Assistant Technical Director. He formerly was with Marshall-Eclipse Division of Bendix Products. J. H. Troester promoted to Assistant to Vice-President from Research Engineer. R. R. Swanberg promoted to Chief Road Test Engineer from Test Engineer. ENGINEERING: F. Eo Tayler promoted to Chief Engineer from Plant Engineer. ACCOUNTING; W. B. Jordan promoted to Accounting Assistant to Vice-President from Apprentice, Accounting. APPRENTICES: G. E. Kenworthy hired as Apprentice, Research. R I. Keyes hired as Apprentice, Sales. William Fraula hired as Apprentice, Production. 21. SPNY 003792 K. S. Lyle transferred from Apprentice, Chemical Department (Mahwah) to Apprentice, Production (Detroit). J. W. Green transferred from Apprentice, Production to Apprentice, Quality Control. J. Emery continued as Acting Head of Dynamometer Room. K. Colombo continued as Apprentice, Accounting. 22. SPNY 003793 STATEMENTS AND STATISTICS SPNY 003794 AMERICAN BRAKEBLOK DIVISION STATEMENT OF PROFIT AND LOSS Net Sales Other Income Total Income Year 1948 % of Sales Year 1947 % of Sales $8,704,497.67 9.405.65* $8.695.092.02 100.00 % .1 99.9 % $7,863,749.66** 100.00 % 2.805.50 .04 $7.866,555.16 100.04 % Variable Costs Direct Material Plant Wages Power Plant Ind. Mat. and Exp. Total Va'ble Costs 3,359,733.47 2,034,845.88 108,714.06 570.103.71 $6.053.397.12 38.3 % 23.4 1.2 6.6 69.5% 3,265,802.73 1,850,484.75 78,774.70 440.225.36 $5.635.287.54 41.5 % 23.5 1.0 5.6 71.7 % Margin for Fixed Costs and Profit $2.641.694.90 30.4 % 2.231.267.62 28.4 % Fixed Costs Salaries $1,004,203.46 Commissions Depreciation 191,440.97 Local Taxes, Rent, Fire Ins. etc. 237,014.72 Authority Expense 61,409.11 Adm., Gen'l. Opt'g., Gen'l. Engr'ng., except Salaries 273,996.77 Advertising 179,888.15 Research, except Sal . 48,327.21 N.Y. Alloc'n Expense 105,600.00 Other Misc. Costs Total Fixed Costs $2.101.880.39 11.6 % _ 2.2 2.7 .7 $ 954,709.38 27,661.75 126,163.89 175,658.16 50,582.04 3.1 2.1 .6 1.2 24.2 % 343,304.92 227,268.90 44,546.18 105,600.00 $2,055,495.22 12.1 % .4 % 1.6 2.2 .6 4.4 2.9 .6 1.3 26.1 % Net Profit before Federal Taxes, etc. Federal Taxes, etc. Net Profit after Taxes ^$ 539,814.51 221.000.00 318.814.51 Gross Profit on Sales $1,597,721.31 General Overhead 863,626.32 Unfilled Orders End Yr. 1,089,067.21 Inventories End Yr. 1,961,777.98 LIFO Adj. for Year 70,915.29 Capital Exp'rs.for Yr. 451,811.36 Average No. Employees 912 Total Payroll for Yr. 3,039,049.34 6.2 % 2.5 % 3.7 % 18.4 % 9.9 % 12.5 % 22.5 % .8 % 5.2 % 35.0 % 175,772.40 72,000.00 $ 103.772.40 $1,239,884.40 900,584.13 1,309,790.77 1,953,495.75 198,653.46 1,733,103.51 880 2,805,194.13 2.2 % .9 % 1.3 % 15.8 % 11.5 % 16.6 % 24.8 % 2.5 % 22.0 % 35.7 % * - Indicates Red Figure; ** - Discount allowed deducted from sales as done in 1948. SPNY 003795 AMERICAN BRAKEBLOK DIVISION Brake Lining Sales to Principal Equipment Customers Customer 1948 Net Sales $ of Total 1947 Net Sales $ of Total 1 Chrysler Corp. $ 2 Wagner Elec Corp. 3 Chevrolet Gear & Axle 4 Ford Motor Co 5 Timken Axle Brake Divo 6 Bendix Products Div. 7 Warner Electric Brake Mfg. 8 Fawick-Airflex Co,Inc 9 Bucyrus-Erie Co. 10 Gen. MtrSo Truck & Coach 11 Mack Manufacturing Co. 12 Utility Trailer Mfg. Co. 13 Clark Equipment Co. 14 Amer. Chain & Cable Co. 15 Eaton Mfg. Co. 16 Fruehauf Trailer Co. 17 Kay-Brunner Steel Prod. 18 Shuler Axle Co. 19 Elec. Controller & Mfg. 20 Northwest Engineering Co. 21 Thew Shovel Co. 22 International Harvester 23 Federal Motor Truck Co. 24 Page & Page Co. 25 Autocar Company Others 922,883.38 916,665.89 653,983.30 449,347.59 296,228.79 156,780.32 75,780.36 62,320.25 61,256.31 58,860.21 56,642.79 55,466.36 48,186.34 40,455.57 39,638.16 30,606.88 18,541.70 18,129.92 17,510.18 17,507.37 15,662.56 15,557.10 13,839.46 13,301.23 10,558.51 51.167.94 22.42$ 22.27 15.89 10.91 7.20 3.81 1.84 1.51 1.49 1.43 1.38 1.35 1.17 .98 .96 .74 .45 .44 .43 .43 .38 .38 .34 .32 .25 1.23 $1,565,915.87 670,288.16 524,542.42 546,853.82 141,750.09 89,158.09 17,488.68 25,166.47 37,251.27 48,884.17 26,204.69 6,778.44 70,065.55 45,553.79 47,688.21 21,616.17 29,630.80 15,514.25 23,224.78 12,831.45 8,942.48 19,163.27 15,161.50 18,490.66 6,246.10 58.139.31 38.26$ 16.38 12.82 13.36 3.46 2.18 .43 .61 .91 1.19 .64 .17 1.71 1.11 1.17 .53 .73 .38 .57 .31 .22 .47 .37 .45 .15 1.42 TA o o o o H Total $4.116.878.47 100.00$ $4.092.550.49 SPNY 003796 AMERICAN BRAKKBLOK DIVISION A-B-K Sales to Principal Customers Customer 1948 Net Sales % of Total 1947 Net Sales % of Total 1 Republic Steel Corp. $ 73,079.07 2 Carnegie-Illinois 49,679.46 S Rapids-Standard Co. 47,422.79 4 Bethlehem Steel Co. 27,259.55 5 0. S. Navy 26,614.00 6 Superior Sheet Steel 21,778.29 7 Briggs Mfg. Co. 18,140.14 8 National Tube Co. 16,355.64 9 Youngstown Sheet-Tube 10,787.31 10 Amer. Steel & Wire 9,006.55 11 Sharon Steel Co. 8,914.88 12 Int'l. Harvester - 7,681.74 15 Granite City Steel Co. 7,648.00 14 Acme Steel Corp. 7,259.83 15 Niles Rolling Mill Co. 6,546.55 16 Copperweld Steel Co. 6,271.00 17 Weirton Steel Co. 5,396.60 18 Chrysler Corp. 5,388.36 19 Jones & Laughlin Steel 5,369.76 20 Tennessee Coal,Iron, RR 5,270.56 21 Mahoning Valley Steel 4,937.50 22 Great Lakes Steel 4,090.26 23 Buffalo Steel 3,904.56 24 Fruehauf Trailer-Calif. 3,854.48 25 Laclede Steel Co. 3,161.22 Other 34.994.87 17.37% 11.81 11.27 6.48 6.32 5.18 4.31 3.89 2.56 2.14 2.12 1.83 1.82 1.73 1.56 1.49 1.28 1.28 1.28 1.25 1.17 .97 .93 .91 .74 8.31 $ 72,557.61 89,864.50 35,620.21 20,330.90 19,231.05 6,223.40 13,959.02 16,241.27 10,094.27 8,439.22 3,717.17 9,080.67 3,084.54 7,445.34 5,949.62 8,074.26 4,030.72 2,098.95 9,033.08 1,496.28 3,790.06 7,628.04 2,466.91 15,291.00 3,564.52 51.206.47 16.85% 20.88 8.27 4.72 4.47 1.45 3.24 3.77 2.34 1.96 .86 2.11 .72 1.73 1.38 1.88 .94 .49 2.10 .35 .88 1.77 .57 3.55 .83 11.89 Total $ 420.812.97 100.00% $ 430,519.08 100.00% SPNY 003797 AMERICAN BRAKEBLOK DIVISION Net Sales by Industries Classification 1948 1 Automotive $7,422,073.28 2 Amer. Brake Shoe Co.* 320,890.02 3 Steel 303,622.41 4 Bus Transportation 296,423.86 5 Crane,Hoist, & Shovel Mfg. 129,923.80 G Machinery Mfg. 104,447.8c 7 Industrial Truck Mfg. 50,274.44 8 Aircraft Mfg. 31,398.90 9 U. S. Government 29,370.66 10 Railroad 10,687.36 11 Marine 1,800.18 12 Petroleum 1,462.00 13 Paoer Mills 745.45 14 Cement 516.65 15 Elevator Mfg. 371.19 16 Electric Power 270.92 17 Chemical 218.70 18 Mining -- Total $8.704.497.67 1947 $6,712,139.13 430,330.51 328,800.67 244,878.96 88,969.lo 5o,419.03 36,046.15 26,807.43 21,679.47 5,611.66 4,981.29 2,093.62 1,079.42 307.16 18.07 303.00 $7.959.464.72 1946 $7,615,774.38 793.38 164,354.92 218,053.69 12,534.18 93,9o8.76 35,513.04 -- 35,065.66 526.68 2,907.82 2,088.49 313.89 313.44 406.85 500.00 -- 43.751.61 $8.226.856.79 * - includes sales to Export Division, Dominion Brake Shoe, and Canadian Ramapo. SPNY 003798 FADIL, FRANCE NET SALES - BRAKE LINING Cubic Inches 1948 1947 French Francs 1948 1947 U. S. Dollars * 1948 1947 France CzechoSlovakia Belgium Norway Yugoslovia Morocco Switzerland Austria Finland Greece Holland 4,697,478 1,224,047 98,199 345,328 -- 184,418 -- 77,268 13,407 128,863 48.612 4,183,679 1,548,173 86,743 115,233 272,467 53,896 2,019 -- -- -- 50,512,444 14,977,477 1,037,009 3,890,603 -- 1,901,729 -- 823,026 150,065 1,419,048 494.923 29,048,300 10,791,355 551,665 718,188 1,752,840 353,838 12,582 -- -- -- -- $226,485.82 61,281.52 4,760.59 16,403.50 -- 8,634.02 -- 3,845.92 701.24 6,263.22 2.317.72 $242,069.17 89,927.96 4,597.21 5,984.90 14,607.00 2,948.65 104.85 -- -- -- -- Totals 6.817.620 6.262.210 75.206.324 43.228.768 $330,693.55 $360,239.74 $ Increase or Decrease 8.9$ 74.0$ -8.2$ Czecho slovakia Yugoslovia Austria Finland Totals NET SALES - CLUTCH FACINGS (Weight- Lbs.) 18,138 7,906 6,476,177 2,007,558 $ 27,132.31 $ 16,729.66 1,178 766 27 1,302 316,710 349,830 14.045 298,080 1,480.00 1,634.72 65.63 2,484.00 20.109 9.208 7.156.762 2.305.638 $ 30.312.66 $ 19.213.66 $ Increase or Decrease 118.4$ Total Net Sales 210.4$ / 57.8$ 82.363.086 45.534.406 $361,006.21 $379,453.40 $ Increase or Decrease 80.9$ - 4.9$ * - 1947 Francs exchanged at 120 Frs./dollar 1948 Francs exchanged at 214 Frs./Dollar from Jan. 1 - Sept. 30. 1948 Francs exchanged at 263.50 Frs,/Dollar from Oct. 1 -- Dec. 31. SPNY 003799 AMERICAN BRAKEBLOK DIVISION Comparison of Gross Profit by Product Year 1939 1940 1946 1947 1948 1939 1940 1946 1947 1948 1939 1940 1946 1947 1948 1939 1940 1946 1947 1948 Cubic Inches Shipped Net Sales Average Net Sales Price Per M.Cu.In. Original Equipment -- Rolled Brake Lining 41,690,435 55,630,237 90,347,777 126,730,239 110,135,822 $ 979,725.15 1,299,711.22 2,362,197.87 3,571,395.15 3,358,438.27 $ 23.50 23.36 26.15 28.18 30.49 Replacement - Rolled Brake Lining 17,654,152 18,329,841 64,983,637 26,030,634 34,282,202 $ 842,075.04 875,592.51 3,328,872.63 1,361,732.16 1,919,952.14 $ 47.70 47.77 51.23 52.31 56.00 Original Eauipment - Pressed Brake Lining 1,850,524 2,914,741 6,047,785 10,276,303 14,408,370 $ 75,762.27 114,452.66 268,898.88 521,155.34 758,440.20 $ 40.94 39.27 44.46 50.71 52.64 Replacement - Pressed Brake Lining 3,265,630 3,774,590 17,286,447 17,399,207 21,140,009 $ 157,401.39 179,217.81 881,032.12 978,128.42 1,242,416.90 $ 48.20 47.48 50.97 56.22 58.77 % Gross Profit of Net Sales 27.88 % 26.05 11.10 4.35 * 4.91 * 61.36 % 60.40 46.96 32.45 * 34.87 * 27.12 % 25.70 20.86 24.43 * 24.24 * 34.87 % 34.13 26.83 21.95 * 23.24 * * - includes LIFO adjustment SPNY 003800 COMPARISON OF PROFIT BY PRODUCT (continued) Year 1939 1940 1946 1947 1948 1939 1940 1946 1947 1948 1939 1940 1946 1947 1948 1939 1940 1946 1947 1948 Net Sales % Gross Profit Replacement Woven Lining and Clutch Facings $ 135,859.03 137,600.28 340,387.81 229,841.42 150,408.27 15.94 15.27 23.09 25.74 30.45 Replacement Fan Belts and Radiator Hose $ 259,121.83 301,208.76 788,608.75 826,750.49 796,216.50 15.86 % 17.92 16.11 14.34 9.99 Replacement Miscellaneous (Bolts. Rivets. Plugs, Castings, etc.) % 8,339.47 34,827.77 29,899.69 39,388.75 57,812.42 14.41 % 34.77 27.59 31.89 30.07 A-B-K Products 75,608.57 96,781.58 258,411.68 430,519.08 420,812.97 36.42 % 44.34 30.11 38.50 35.19 SPNY 003801 AMERICAN BRAKEBLOK DIVISION ORDERS RECEIVED AND SHIPMENTS Year Net Orders Received Net Shioments Back log at Year End 1938 $1,724,313.41 $1,712,631.17 -- 1939 2,580,387.10 2,458,284.24 -- 1940 1946 1947 1948 3,121,705.17 9,381,900.78 7,569,249.18 8,590,962.40 2,924,347.56 8,226,856.79 7,959,464.72 8,704,497.67 $ 307,751.15 2,554,036.75 1,309,790.77 1,089,067.21 Back log figures were not recorded prior to 1940. The apparent discrepancy between back log and orders received compared to shipments is due to the method of not reporting original equipment orders as received until shipped ******* COST OF PRODUCTION Year 1938 1939 1940 1946 1947 1948 Average cost per thousand cubic inches Rolled Material Cubic Inches Cost/M. 36,586,663 $ 17.90 68,433,896 75,593,795 16.64 17.43 150,626,009 22.60 158,298,158 25.98 150,208,597 28.02 Pressed Material Cubic Inches Cost/to. 4,261,336 $ 38.03 5,673,893 28.08 7,707,188 30.28 22,981,163 33.13 29,553,242 36.22 38,667,641 37.91 SPNY 003802 AMERICAN BRAKEBLOK DIVISION CAPITAL ADDITIONS Detroit Land & Garage Bldg.Jennerstown Secondary Power Switchboard Office Additions to Bldg. #5 Three Do-All Special Twin Saws Two Compound Cooling Units One Hand Rolling Machine Three Automobiles for Testing One Special Hydraulic Press One Aldrich 2500# Press.Pump One Burroughs Acct'g. Machine Office Furniture Office Equipment Other Machinery & Equipment Total Winchester Bldgs., Machinery & Equipm't. Total Additions, 1948 Cost ft 7,700.00 12,052.29 17,294.73 34,378.39 7,738.91 5,292.35 6,655.97 8,160.86 3,375.13 2,742.65 2,025.76 2,672.59 16.002.65 ft 126,092.26 525.719.10 ft 451.811.56 DEPRECIATION 1948 Detroit Winchester Total Depreciation, 1948 ft 80,517.48 82.457.49 162.974.97 SPNY 003803 AMERICAN BRAKBBLOK DIVISION INVENTORIES Raw Materials LIFO Reserve Net *Mfg* do Stock 116^)61 VC Net Total iilru rteserve Net Dec 31 1 Q4.fi $ 854,345.58 1XOc,U0 9f*91 .74-A. 696,123.84 1,508,313.66 9 4 ? . fi59.52 1,265,654.14 2,362,659.24 4(10.881.26 $1,961,777.98 Net Sales $8,704,497.67 Total Net Invent1ry As % of Net Sales 22.5% Dec. 31 1947 857,133.17 129.919.27 727,213.90 1,426,328.55 200.046.70 1,226,281.85 2,283,461.72 329.965.97 1,953,495.75 7,959,464.72 24.5% Dec. 31 1946 560,766.54 83.399.26 477,367.28 933,101.56 47.913.25 885,188.31 1,493,868.10 131.312.51 1,362,555.59 8,226,856.79 16.5% Dec. 31 1940 207,664.04 207,664.04 372,900.45 372,900.45 580,564.49 580,564.49 2,924,347.56 19.9% Dec. 31 1939 217,391.00 217,391.00 393,810.20 393,810.20 611,201.20 611,201.20 2,458,284.24 24.8% Dec. 31 1938 104,183.01 104,183.01 276,237.50 276,237.50 380,420.51 380,420.51 1,712,631.17 22.2% * - Non-controllable costs eliminated from Manufactured Stock inventory commencing in 1946 SPNY 003804 SPNY 003805 ASSETS Balano* 1-1-4,8 Caah $ 332,654.92 No tea apd Accounts Receivable Customer Accounts Inter-Division Inter-Coapiujy Inventories Raw Materials Lifo Manufactured Stock LI fo 342,438.34 1 -- 542,436,34 857,133.17 __2x212^2* 727.21^.90 1,426,328.55 2 0 0 .IU 6 .7 Q ~ j.2 2 .281.85 Total Inventories Debits Loans A Advances to Eaployees Loans and Advances Travel Advances Group Life - Traveler's Deferred Assets Eire & lilac. Insurance Comp, & Liability Insurance Total Unexplred Insurance Group Life - Equitable Group Life - C*I,P. Reserve Salee Promotion Miscellaneous Total Other Deferred Assets Total Deferred Assets 1,223.00 10, 57%O0 42.04 11.840.04 23,665.45 7,TO5.00 117."8 27,293.81 U . 1 3 0 . U 13.162.97 934.25* 7,927.47 184,497.37 -g.177.94 45,493.20 fixed Assets (Regular) Land Bldgs. t Uachy. 4 Equip. Reserve for Depreciation Depn. Value, Land, Bldgs,, Uachy, and Equip. 58,033.35 J.^g7.S2U?g 3,686,025.27 876.329.96 1,000.00 454,603.28 31,994.70 2.809,695.31 Special fixed Assets Land, Bldgs., Machy., Reserve Net etc. 1,056,228.43 .... 508,534.75* - 547,693.68 Total Placed Assets 3.357.388.99 4,212,224.70 Credits 12,101,08 7, 08087 4,90^.72 180,000.00 38,777.02 2,250,00 4.7,255.54 163,711.23 28,866,.00 M ^^JW jUU Kh!*Li>K DtVLHON BALANCE SHEET ' Decomber - 1948 Balance mnu-rnre 4,_42_ 4cruintsX.61* Bai ance -i-.k W, 69 "',908.28 19,333.11 16.649.39__ 729.890.78 854,345. 58 JJZLH-. 1,508,113.66 JAP .659.52 Vouoh.ru Payable Inter-Dlvlslon I 344,353.93 Inter-Company E.O.A.h. Employees' Current Tear llnemp. Tna. Employee' " Rithholding Tajt Employee' Eundfl- Bar Bonds 1,285.75 R.S.Contributions- Employees R..9.Contributions- Company Unclaimed Rapes 197.19 Employees' Funds- Pref.Ctoclc 1,177.80 Total Acoounts Payable 347.014.65 Accrued Payrolls 4 Bonuses 10,787.37 10,999.13 ____ 4.P4 Accrued Payrolls Reserve Shop Profit rartlolp'n, Renerve fob Vaoatlonfl Reserve for Christmas Bonus 16,466.45 - 2 4 ,8 5 1 .ap - 30,311.56 T o .311. 56 4,497.37 8,894.12 -i3x321x42_ 4,3.703.05 Total Aec. Payrolls 4 Bonuses 41.317.95 Acorued Local Taxes Rsserve Plant Taxes, Current Ir. Reserve Exolse Taxas * " P.O.A.B. Company * Unamp Insurance " Emderal Income Taxes,Etc." " Virginia Tax on Income _ Total Accrued Local Taxas ~ 5, 393.70 Debits 25,942.18 165.57 242,136.73 62,156,25 57,784.43 71,116.85 196.30 2,359.20 14,700.00 101,900.49 4,400.00 82,371.94 131,309.07 25,942.18 33,724.88 221,000.00 3,090.00 56,783.35 4 .035.339.66 4,092,123.01 1, 3,084.076.52 537.4fK).75 j y . v ,--:7I68_. 1.602.9C...20 6,,593.978.98 Sundry Accrued Currmnt Liabilities Rebate on Jobber Sales Comp. 4 Liability Insuranco Group Life - Equitable " " C.I.P. Reserves Authority Expense General Adjustments 62.275.00 U , 130.84 934.25 Total Reserves f',ttmlng3 - Year to Date Division Control _ix256x2.g2i.40_ 6 , 212, 224.70 62,275.00 21,562.78 14,464.51 21,390.47 69,000.00 I ' o n f t T i 'ted F i n i r " " Credi ta Balance 25,942.18 165.57 242,136.73 63,290.00 57,784.43 71,116.85 .91 5,238.60 i 211,930.14 16,812.60 2,419.50 1.78 4,057.20 -235.221.22 14,700.00 109,789.99 4,400.00 82,371.34 131,636.34 25,942.18 33,724.88 221,000.00 3,090.0o 26.7U.79 32,741.00 59.485.79 5,720.97 5.720.97 78.U0.06 17,443.55 14,724.26 22,030.60 69,000.00 -23x440,06 6,011.61 1,194.00 -, 640.13 86,285.80 6.207.265.20 $ 6 , 5<`3 ,978.98