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X THE GLIDDEN COMPANY sh areholder infortna tion and dividend notice N 2177 GLD002563 THE PRESIDENT'S REPORT April 1, 1958 To the Shareholders: Sales for the six months ended February 28,1958, were $100,519,759 compared with sales of $111,996,858 for the similar period last year. Net income for these same six months was $2,105,573 equivalent to 92 cents per share. Last year net income for the first half was $3,481,183 or $1.52 per share. Operating results for this portion of our current fiscal year reflect the full impact of the sharp drop in business activity which has occurred throughout much of the national economy. The decline in earnings ex perienced during our first quarter continued through December, which was an extremely poor month. This downward trend appears to have been reversed as operations for the last two months of the second quarter showed considerable improvement, with February re sults being only slightly below those for the same month last year. It is still too early, however, to determine whether we are now on the way to a full recovery. Because of lower earnings, we have cut back our spending for new plant and equipment. The construc tion of facilities relating to cost reduction programs has been accelerated while other less essential acti vities have been slowed down. We expect that capital expenditures this year will be about $10,000,000 com pared with $12,465,000 last year. GLD0025b<> At the regular monthly meeting held February 25, 1958, your Hoard of Directors declared a regular cash dividend of 50 cents a share on common stock, payable April 1, 1958, to shareholders of record at the close of business March 7, 1958. While net income for the first half of our 1958 fiscal year was insufficient to cover regular dividend requirements, your Board of Directors deemed it ad visable to maintain the regular rate for the second quarterly payment. Historically, our net income for the first half is lc-wer than that for the second half due to seasonal factors. With this in mind and with the improvement experienced in February, the directors felt that a dividend reduction at this time would be premature and not in the long term interests of our shareholders. Of course, cash and working capital re quirements limit the extent to which we can continue to pay unearned dividends. Should third quarter earn ings fail to reach higher levels, the directors may then find it necessary to take appropriate action. Effective March 31, we permanently discontinued production of titanium pigments at the St. Helena Works. St. Helena, where we started pigment produc tion in 1922, had outlived its usefulness and was on the verge of obsolescence. With satisfactory and very efficient production of titanium dioxide being obtained at the new Adrian Joyce Works, this shift was made to obtain the benefits of lower unit costs and more uniform quality. In addition, the shutdown ultimately will permit a 52,100,000 reduction in working capital requirements and the elimination of dual expenses incurred while operating the old plant during the start-up period for the new plant. *1 GLD0025 65 Also in March, we disposed of our Euston Lead operations at Scranton, Pennsylvania. These opera tions, acquired by Glidden in 1926, were relatively minoi' in nature and no longer fit the company's long term plans. We have previously reported our activities to ac quire domestic, titanium-bearing ore reserves. Because of legal and economic factors, we have exercised our option to withdraw from a lease of ilmenite ore deposits on Cumberland Island, Georgia. We do, however, have options on other property where preliminary explora tory results are most encouraging. Chairman and President CONSOLIDATED INCOME STATEMENT THE GLIDDEN COMPANY AND CANADIAN SUBSIDIARY Six months ended Feb. 28,1968 Six months ended Feb. 28,1957 Net sales ......................................... $100,519,759 Other income................................... 530,973 $101,050,732 Cost of products sold..................... $ 77,326,404 Selling, administrative and general expenses ...................................... Provision for depreciation. depletion and amortization.... .... Interest expense ............................. 16,013,645 2,539,719 847,491 $ 96,727,159 Income before income taxes ......... $ 4,323,573 Provision for income taxes......... 2,218,000 Net income....... ............................... $ 2,105,573 $111,996,858 159,683 $112,156,541 $ 86,081,053 15,601,421 2,434,243 566,641 $104,683,858 $ 7,473,183 3,992,000 $ 3,481,183 Earnings per share of common stock $ .92 Shares outstanding......................... 2,298,170 $1.52 2,296,170 This is an unaudited interim statement. IITHO. IN O.S.A. GLD002566 NEW! Decorator-soft beauty NEW I Durability for walls, ceilings, woodwork So easy to apply Dries in 20 minutes No unpleasant odor Touch-ups don't show Highly washable...can be scoured No brushmarks or laps Most colors cover in one coat No solvents or thinners to buy Painting tools clean up in water NEW! Easy way to select colors with this `AROUND THE CLOCK WITH COLOR' fiOOK Choose color eeheme* tho way you tell tlri Easy to find harmonizing paint colors Recemmtnditlont -for trim and accent color*, fabrics Complete interior decorating advice GLD002567 Since its introduction almost ten years ago, SPEED SATIN has developed a reputation as the finest latex paint in the United States and throughout the world. Glidden paint technology has now imjrroved upon this high standard of interior paints to bring you a new SPEED SATIN. Start fraah thl* aprlngl Give your rooms today's naw dacorator look-of-luxury tha low-coat way--with Naw Sp r e o Sa t in I k iw i Lovoiy lowihtan finish with eandielight-soft boauty decorators rieommtnd for intorleru. NIWl Improved protaetlon for woodwork. New Sp e e d Sa t in la specially mado to adhoro batter than ovor--ovon over provlously palntod wood. NIWl Convonloneo--you eon uao Ne w Sp p c o Sa t in In kltehona and bathrooms, wash It, scrub It within a faw days If noeostary I ijt.L ! L'bi i.lJLU U THE NEW IMPROVED 100% LATEX WONDER WALL PAINT !? Big pairs of ac tual Ne w Spate Sa t in colors make your paint color selections easy. Diccut area shows a variety of harmonizing fabric colors for you 10 use. You can Bad your carpel color in ooe of the 10 floorcovering color g/oupa. Glidden PACEMAKER IN PAINTS The Glidden Company Cleveland 14, Ohio hi C"oda: The Glidden Co* Ltd., Toronto, Ontario. Sp ie d Sa t in also sold by dealers for the following psinis: He a t h k Mil l ig a n Cl ima t ic * Ro y al T. L. Bl o o d Mo u n d Cit y tflfSI CLD002568 Leading national magazines are carrying this two-page announcement of new SPRED SATIN. Note the bright, sparkling foil label which is in keeping with the quality of the product inside and will make it a"standout" on dealers' shelves. Be sure to try new SPRED SATIN.