Document vB7aVwraEgnmkVg6B9XZQvRKR

sE-i Q < W sfti i-3 Z <1 Z f-Hi O 1--1 o H &a <! 25 >H z w 8 U CQ o&&4 H O S N13826 0000-NLX-000018287 To the Stockholders of National Lead Company: The following is a Consolidated Balance Sheet of National Lead Company as of Jane SO, 1944 and a Statement of Consolidated Income and Surplus for the first six months of 1944. 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 wholly owned, as well as interest on bonds and miscellaneous items not directly connected with current operations, are included in the item of "Other Income". During the period the com pany received foreign dividends amounting to $227,108.38, which amount was added to the existing Reserve for Foreign investments. Additions out of earnings were made in the amount of $122,928.00 and $300,000.00 respectively to the existing Pension Reserve and Reserve for Contingencies. Dividends on National Lead Company Preferred and Common Stocks owned by the Company itself are not included in this statement, either as disbursements or as Income. Included in this consolidation for the first time are the accounts of the American Bearing Corporation of Indian apolis, Indiana, manufacturers of precision bearings, of which the outstanding capital stock is now wholly owned by National Lead Company as the result of the acquisition of the holdings of minority interests early this year. Fl e t c h e b W. Ro c k w e l l , President. ASSETS Current Assets: Cash .................................................................................................................................................................................... $ 10,140,633.97 United States Government Securities at cost (at market quotations $23,719,730.01)........ -............................ 23,682,489.30 Other Marketable Securities (at market quotations $4,064,720.43)....................................................................... 519,433.48 Accounts and Notes Receivable......................................................................................................... $16,121,135.67 Less, Reserve for losses................................................................................................................... 1,151,527.26 14,969,608.41 Notes Receivable from Employees................................................................................................................................. Inventories ................................................................................. .................... ....................................... ................ . 37,036.06 21417,698.86 Total Current Assets. $ 70,466,901.58 Investments in and Advances to Affiliated Companies less Reserves........................................................................ Miscellaneous Divestments less Reserves................................................................................................................... Plant Property and Equipment (including intangibles).................................................................... $96,377,209.27 Less, Reserves for Depreciation and Depletion.......................................................................... 48,818,677.40 8,808,626.89 1,242,754.34 52,663,631.87 Patents and licenses, less amortization.......................................................................................................................... Prepaid expenses, deferred charges, ete......................................................................................................................... Poet-war Refund at Excess Profits Taxes...................................................................................................................... 68,824.53 1,157,067.48 996,000.00 $130,298,706.64 < c J LIABILITIES Current Liabilities: Accounts Payable and Accrued Liabilities............................................................................................................... Payable to Affiliated Companies.................................................................................................................................... Provisions for Taxes, including Federal Income and Excess Profits Taxes........................................................ Dividend Payable August 1, 1944 on Class B Preferred Stock................................................................................ $ 5,928,470.31 276,359.65 18,032,227.72 116,193.00 Total Current liabilities........................................................................................'..................................... $ 24,353,250.68 Reserves: Fire Insurance .....................................................*............................................................................... Employer's Liability .......................................................................................................................... Pension ................................................................................. .............. ............................................. Contingencies ..................................................... ....................................................... *......................... General Inventory.......... ............ .......... ........................................................................................... Amount Equal to Post-war refund of excess profits taxes........................................................... Miscellaneous .............................................. ............................................................................ . $ 4,797,284.02 426,664.30 2,137,268.65 4,015,000.00 700,339.71 996,000.00 81,634.87 13,154,191.05 CAPITAL Capital Stock: Authorized Issued Preferred Class A, 7 pet, cumulative, non-callable, $100 Par Value............. $ 25,000,000.00 $24,367,600.00 Preferred Class B, 6 pet. cumulative, non-callable, $100 Par Value.............. 25,000,000.00 10,327,700.00 Common, $10 Par Value................ .......... ............................................................... 60,000,000.00 30,983,100.00 $100,000,000.00 $65,678,400.00 Capital Surplus .................................. Earned Surplus ...................................................................................................................... 836,672.92 32,888,817.62 - $98,408,890.64 Less, Reacquired Capital Stock........................................................................................................ 6,612,625.63 92,791,264.91 0OOO-NLI-O0OO18288 $180,298,706.64 Sales ............................................................................................................. ,.................. Cost of Goods Sold, Taxes (except Federal Income and Excess Profits Taxes) and Other Expenses................................................................................................... Six Months Ended June 80th 1944 1948 $80,450,640.65 $70,371,271,28 69.236,740.43 61.045,498.64 Depreciation and Depletion Other Income ............................................... Other .Charges ............................................. $11,213,900.12 2.379.528.16 $ 8,834,371.96 1,005.699.49 $ 9,840,071.45 58.100.71 $ 9,325,772.64 2,550,835.65 $ 6,774,886.99 499.260.11 $ 7,274,147.10 Federal Income and Excess Profits Taxes $ 9,781,970.74 $ 7,274,147.10 4,754.916.57 Additions to Reserves: Foreign Investments ........................................................................ Pension ................................................................................................ Contingencies ...................................................................................... $ 8,581,065.00 $227,108.88 122,928.00 800,000.00 650.036.38 $270,276.62 $ 2,519,230.53 270,276.62 Total Net Income.................................................................................... $ 2,881,028.62 Dividends on Preferred Stock Outstanding: Class A ................................................................................................ $788,275.50 Class B ................................................................................................ 282.386.00 1.015.661.60 Amount Earned on Common Stock....................................... $ 1,866,367.12 $ 2,248,953.91 $783,275.50 232,886.00 1.015.661.50 $ 1,233,292.41 Amount Earned per share of Common Stock Outstanding. $.604 $.399 ANALYSIS OF CONSOLIDATED SURPLUS Six Months Ended June 80th 1944 1948 Earned Surplus--At beginning of year Add: Net Income for Six Months........ $81,594,349.43 2.881.028.62 $30,742,793.50 2.248.953.91 $84,475,378.05 $32,991,747.41 Deduct: Adjustment * ........................... 298,232.93 $34.177.145.12 $32.991.747.41 Deduct: Dividends Paid During Period-- Preferred Stock Outstanding: Class A ........ ...................................... $788,275.50 $788,276.50 Class B ............................................... 232,886.00 $ 1,015,661.50 232,386.00 $ 1,015,661.60 Common Stock Outstanding...................................................................................... 772,666.00 772,666.00 Total Dividends Paid.............................................................................. $ 1,783,327.50 $ 1,788,327.50 Earned Surplus--June 30th......................................................................................... $32,888,817.62 Capital Surplus--June 30th......................................................................................... 336,672.92 $31,203,419.91 836,672.92 Total Surplus--June 30, 1944............................................................... $32.725,490.64 $31.540.092.83 S^.Thls adjustment reflects payment made in excess of the book value of, r ..-don with the purchase of the outstanding minority interest In the net assets actrolred In Bearing Corporation. 0000-NLI-000018289