Document zQoKDkm4VOXnnpw8BKzwEJOdg

-000018820 N 2709 United California Bank, 405 Montgomery Street, San Francisco, California 94104 4H% Subordinated Debentures Trustee and Interest Paying Agent: The Chase Manhattan Bank, N.A., One Chase Manhattan Ploza, New York, N.Y. 10015 0000-NLI-000018821 IV t- - .< V X I ) *4l i N The seventy-seventh annual meeting of the shareholders of National Lead Company will be held on Thursday afternoon, April 17, 1969 in the Hotel Robert Treat in Newark, New Jersey at 2:00 P.M. AII shareholders are cordially invited to attend. 2 Financial Highlights 2 Letter to Shareholders 4 Management Changes 5 Employee Relations 5 Public Affairs 5 Shareholders 7 Consolidated Operations 16 Partially Owned Affiliated Companies 18 Financial Report 20 Financial Statements 25 Report of Certified Public Accountants 26 Ten Year Review of Operations 28 Divisions, Subsidiaries and Affiliates 0000-NLI-000018822 For the year Sales .................................... Income before extraordinary item ......... Per share...................... Net income.......................... Per share...................... Cash dividends paid........... Per share..................... Property expenditures........ At year end Working capital................... Long term debt................... Shareholders' equity........... 1968 $858,195,000 49,985.000 4,15 49,985,000 4.15 39,062,000 3.25 45,010,000 1967 $818,905,000 51.260,000 4.28 54,309,000 4.53 38,786,000 3.25 32,860,000 215,904.000 54,761,000 404,764,000 229,664,000 50,044,000 399,640,000 \ .! Diverse factors tended to make the ye^ 1968 a most complex one for NatiojA. Lead Company. While sales approach an all-time high, earnings were adverse^ affected by work stoppages, and the Fa eral income tax surcharge. At the said time, aggressive, positive actions we| taken with regard to the structure andc ganization of the Company, the formui^tion of plans and the implementations r projects concerned with future profitab i. growth and development, and the brcai ; ening of the Company's operating bai ; through acquisitions Sales for National Lead in 1968 $858,195,000, compared with sales! $818,905,000 in 196". Net income 1968 was $49,985,000, or $4.15 share. In 1967, income before anextrai dinary gain was $51,260,000, or $4 per share, and net income after such s was $54,309,000. or S4.53 per share. The seven-week strike against the fii operating plants of the Doehler-JarvisT vision had a pronounced effect upon t] earnings of the Company . The stoppa| extended over a period of time coinci with production of the first 1969 m automobiles in late summer and eai autumn. The four-week strike at the ? Louis plant of the Titanium Pigment vision also had a depressing effect u] Company earnings. In addition, the 10 cent Federal income tax surcharge duced per share earnings by 33 cents, j: These circumstances overshadowed t generally good performance by the is jority of the Company's operating d# sions during 1968. Even those divisio of the Company hindered by work sto pages during the year could report po tive developments. Through the first six months of 196 operations at Doehler-Jarvis were ah of the 1967 level. With the conclusion 0000-NLI-000018823 : ye* strike, the task of returning operations tionlprofitability was accomplished with acflvYch greater dispatch than had been anerse^pated. This was most gratifying, and : Fe< a tribute to the diligence and loyalty of sff,[ . the employees of the division. The ; wet anium Pigment Division, which had ndqren experiencing a declining rate of -miii^mings due to increased competition ionA'tn domestic and foreign sources and fitab : higher costs of labor and raw maorexu ;tals. was able to halt the downward g bat tad. The structure and organization of the 3 wWfinpany were altered and expanded to lies fable National Lead to maximize the ime I'ential of current operations and to be 5 pi' more advantageous position to capittraoize on future growth possibilities. New $4.lots were created for vice presidents of :b gattnee. employee relations, and corpoare. jte development. he fiJ The vice president of finance is charged visr*ih the responsibility of strengthening 'On tij coordinating the financial and control 3ppa|nctions on both the corporate and divilcidfktial levels. In the short time this office modi been in existence, noticeable progress 1 eai4s been made in attaining these goals, the i' The office of vice president of em- ent Di.iyee relations has the responsibility to t up* that the total management potential : 10 p4.thin the Company is utilized to the fullrge A for the greater good of the entire nts. tjumpany. Equally important is the task ved tuis office has of planning and developing he rai Company's management needs for g d**) future. Here again important develivisioi 'inents have taken place, k sto The newly organized corporate develrt pot oment department is responsible for Irporate planning and development and f 196 r evaluating potential profitable growth ; ah 'hortunities by means of diversification ision td acquisition. A sound program has :en instituted to carry out this function. *1 The creation of a mining and explora- k department is helping to broaden and ftpand the Company's self-sufficiency with regard to the minerals and metals needs of its operating divisions. The research and development objec tives of the Company have been rede fined and refocused. Greater emphasis is being given to corporate initiated proj ects. A "task force" approach has been adopted so as to utilize more fully the available scientific and technical talent throughout National Lead. During 1968, National Lead moved ahead in the field of acquisitions. Most significant was the acquisition for cash of 99 per cent of the outstanding stock of the Lake View Trust and Savings Bank, Chicago, 111. The transaction involved a cash expenditure of approximately $38 million. Lake View Trust and Savings Bank, which is the eighth largest in Chi cago, and 173rd largest in the country, had assets of $325 million at the end of 1968. The bank will operate as a separate entity with its present officers and staff. The acquisition is an indication that Na tional Lead is prepared to consider entry into fields other than its traditional manu facturing and marketing areas. There were also a number of acquisi tions during 1968 that helped to diver sify operations of the Company. The major one was The Bunting Brass and Bronze Company, manufacturer of bronze bushings and bars, special sintered bronze and iron parts, and products for the automotive and marine industries. With regard to the projected plan to extract magnesium ore from the brines of the Great Salt Lake, final cost studies have been received and are being evalu ated in detail. This evaluation should be completed in the near future, at which time the Company will make a definitive decision on its plan to build a plant hav ing a capacity to produce 45,000 tons of magnesium a year. In January 1969, the Board of Direc tors declared an increased dividend from 75 cents per share to 85 cents per share, payable March 27, 1969 to shareholders of record as of March 7, 1969. The board also indicated that it intends to declare dividends for 1969 on a regular quarterly basis. At the same time, the board approved a proposal to split the common stock of the Company on a two-for-one basis, to increase the number of authorized shares of common stock from 30 million to 60 million and to reduce the par value of each share of common stock from $5.00 per share to $2.50 per share. The pro posal will be submitted at the forthcom ing annual meeting. As we near the end of the first quarter of 1969, the outlook for a continued rise in the economy seems favorable. How ever, consideration must be given to the problem of inflation and the hoped for termination of hostilities in Vietnam. Although the conflict in Vietnam has been a contributing factor to inflation, we do not believe that a de-escalation or even a cessation of the war in 1969 will have too much of an economic impact. Never theless. the long range benefits to a company such as National Lead, whose interests are so closely allied to a civilian economy, could be significant. Therefore, if inflation can be held in check and the present favorable business conditions continue, 1969 should be a highly productive year for National Lead Company. Respectfully submitted, March 17, 1969 0000-NLI-000018824 3 E. R. Rowley was elected chairman of the board and chief executive officer of the Company effective April 1st, succeeding Joseph A. Martino, who was named hon orary chairman. J. B. Henrich, formerly executive vice president, was elected pres ident to succeed Mr. Rowley. Mr. Rowley has been associated with National Lead since 1933. He has served as vice president and general manager of the National Lead Company of Ohio, president of Titanium Metals Corpora tion of America, and since June 1967 as president of the Company. He has served as a director of the Company since 1963 and has been a member of the executive committee since 1964. Mr. Henrich, who has been with National Lead since 1935, served in the fields of accounting, sales, law, and pat ents prior to being named assistant sec retary in 1943 and secretary in 1948. Since 1960 he has been a member both of the board and the executive committee. Mr. Martino, who continues as a mem ber of the board and of the executive committee, has served National Lead for more than 50 years and was chief execu tive officer since 1947. In other important changes, Eric G. Orling was elected a vice president, mem ber of the executive committee, and di rector of the Company and appointed manager of the Titanium Pigment Divi sion. During 1968 the following were elected to newly created posts: Harry W. Siefert, vice president, finance; Edward F. Beale, vice president, corporate devel opment; and Richard A. Donovan, vice president, employee relations. Kenneth C. Specht, manager of the Paint Division, was elected a vice president. Mr. Orling was formerly president of The Baker Castor Oil Company, a Na tional Lead subsidiary. He succeeded James MacGuffie, also a vice president, who was named to the new post of man ager, Emission Control Engineering. Mr. Orling has been associated with National Lead since 1938, serving in executive sales and marketing positions, prior to his election as president of Baker in 1956. Daniel R. Finn, who was vice president of The Baker Castor Oil Company, was elected president to succeed Mr. Orling. Mr. Siefert w as formerly vice president and controller of American Standard Inc., and was also associated with Lybrand, Ross Bros. & Montgomery, certified public accountants. Mr. Beale has been a member of the executive offices of the company since 1958, and was formerly assistant to the president. He also served as financial vice president of Pennsalt Chemicals Corporation. Mr. Donovan, who has served in various executive man agement capacities in the field of em ployee relations, was vice president, em ployee relations, for Shoe Corporation of America prior to joining National Lead. Mr. Specht joined National Lead in 1935 and was appointed sales manager of "Dutch Boy" paints in 1950. He has directed operations of the Company's Paint Division since 1963. In the financial area, Russell C. Shaw was elected to the new post of assistant vice president, finance: Edward J. Gah was elected controller; and Rom Dodyk was elected assistant control Mr. Shaw was formerly the head of Ru sell C. Shaw & Co., financial consultam and was also associated with the invj ment banking firm of Dillon, Reed & C as treasurer. Mr. Galvin succeeds Geor| A. Dewey, who retired after 44 years i service with the Company. He formej , served American Standard Inc. as assii ant controller, and was also associ&K with Arthur Young k Co., certified pubi accountants. Mr. Dodyk joins Natior Lead after having sened as group c* , troller of domestic operations for t < Crane Company. With the expansion of the employe&r iations function. Luther R. Strole w elected assistant vice president, employ relations. Mr. Strole has been with S tional Lead for 37 years in various roti agement capacities in the fields of el ployee and industrial relations. .! Dr. Roger L. Pilloton, who joins National Lead in 196". was appoint^ director of research and developm succeeding Roy Dahlstrom, who retire^ He was formerly director of research the Quebec Iron and Titanium Corpoi tion, and director of a development pt gram on thorium nuclear fuel recycD for Union Carbide Corporation. Brower Dellinger, formerly manager the Company's MacIntyre Developing at Tahawus, New York, one of the lares ilmenite mines in the world, was a| J 4 0000-NL1-000018825 retire! irch fj Drpor; :nt pr icvclt lasw er X ' opinef : lars /as al pointed manager of the mining and ex ploration department. W. Harcourt Woods was appointed to the newly created position, director of corporate purchasing. Mr. Woods has been with National Lead since 1930 and previously served as vice president of sales and marketing for the Titanium Pig ment Corporation. 1 mpliA ii RiLiLn'- During 1968 the corporate employee re lations department formulated major pro grams in management training and recruiting, and in college recruiting. This commitment to a long term investment by National Lead is intended to accelerate the evolution from within the Company of talented management personnel and to establish a sound management nucleus for future growth. The Company, in all departments, di visions, and wholly and majority owned domestic and foreign subsidiaries em ployed approximately 26,000 persons at the end of 1968. Thirty-five labor con tracts covering approximately 7,500 em ployees were negotiated during the year. With the exception of a four-week un authorized strike against the Titanium Pigment Division's St. Louis plant, and a seven-week strike against Doehler-Jarvis, labor relations remained satisfactory dur ing 1968. Public Affair*. The year 1968 marked the fifth one of the Company's Plans for Progress policy and showed substantial results in minority employment and advancement of quali fied minority group members to positions of greater responsibility. The Company's commitment to Plans for Progress and affirmative action programs is exempli fied in its ever increasing utilization of productive talent without regard to race or religion. Through these programs the Company has demonstrated its leadership among Equal Opportunity employers.. The corporate Environmental Health Department helped to achieve greater co ordination of emission control activities throughout the Company during 1968, Several Company plants, in conjunction with the department, cooperated with various scientific groups engaged in stud ies of working environment and related health considerations. Sltan. huldi.: As of December 31, 1968, there were 1 1,915.365 common shares outstanding compared with 1 1,981,052 common shares outstanding at the end of 1967. The number of shareholders at year end was 49,159. Geographic Distribution of Shareholders Region Per Cent New England................................. 10 Mid-Atlantic ................................. 35 South Atlantic.............................. 14 North Central.............................. 22 South Central................................. 5 Pacific & Mountain..................... 14 0000-NLI-000018826 5 r Titanium Pigments: Titanium pigment sales accounted for approximately 23 per cent of consolidated sales in 1968. The Company's TITANOX and KRONOS titanium dioxide pigments reg istered gains in sales in 1968, reversing the decline experienced in 1967. During 1968, a major effort of the Ti tanium Pigment Division was to bring the chloride process facility at Sayreville, N. J. for the production of conventional titanium pigments into a mature manu facturing system. Chloride process TI TANOX pigments received widespread acceptance from users, with the paint and paper industries being the major custom ers. Sales of the Company's traditional ti tanium pigments advanced in 1968. Con siderable progress has been made in developing new, unconventional pig ments, by utilizing the best of both manu facturing processes. This is expected to have a bearing on sales in 1969. Completion of the chloride process KRONOS plant in West Germany during 1968 increased the Company's ability to meet the rising demand for this type of pigment on a world-wide basis. A similar plant in Canada is expected to be on stream the second quarter of 1969. At Nordenham, in West Germany, the new sulfate process plant, on which construc tion was started in 1968, is expected to be in production by the summer of 1969. These new facilities will increase substan tially National Lead's ability to service customers with the broadest line of pig ments of any manufacturer in the world. At Sayreville, New Jersey, rulile ore for the production of chloride process titanium pigments is unloaded from the Kristin Brovig, one of the ships National Lead leases to transport rutile and zircon ores from the mines in Australia to the manufacturing plants in the United States and Canada. TITANOX CL-NC, a chloride pig ment introduced late in 1967, has enabled National Lead to expand the Company's total market in the automotive industry. The durability of the pigment makes it ideally suited for the toughness and luster needed for automotive finishes. This same quality is a major factor in the gains the pigment is making in the paint industry. Die Castings: Die castings and die cast metals accounted for approximately 18 per cent of consolidated sales in 1968. Sales for the Doehler-Jarvis Division were below the levels of 1967. The sevenweek strike against the division's five U.S. operating plants was the main factor re sponsible for the decline. In Canada, Barber Die Casting Co. Limited and Lakeshore Die Casting Limited contin ued to maintain their share of market, while in England, Metal Castings Doehler, Ltd. experienced a good year, helped by increased production from its expanded facilities. The trend to full assembly, wherein parts supplied from other manufacturers are assembled to a die cast part to form a complete unit, continued to grow. Doehler-Jarvis' capabilities in this tech nique were strengthened and expanded considerably during 1968. The division's research and develop ment group reported marked progress in a number of programs, all of which could be significant in 1969. Major advances were made toward the production of die cast sensing devices to help control pollu tion from automotive exhaust systems. In another key area, a substantial proj ect is underway to develop die cast units for communications equipment. These Doehler-Jarvis units would permit overall cost saving in the manufacture and main tenance of the equipment. The division is also vigorously engaged in a number of 0000-NLI-000018828 7 developmental programs in the photo graphic field. In 1968. Floating Floors Inc., achieved an all-time record high for sales, and continued as the leader in quality, re search, and application for highly sensi tive computer areas. Sales by foreign subsidiaries and licensees also attained record levels. Products of Floating Floors are now in service in a wide range of industries, in cluding banking, airlines, electric and power, telephone, and aerospace. Metal Products: Metal products, which include ingots, alloys and fabricated forms, accounted for approximately 27 per cent of consolidated sales in 1968. Increasing demand for the Company's traditional metal product line.- raised the output of these products abo\e the 1967 production level. Keeping pace with this ad'.ance was the capitalization program to provide the Metal Division with the most .modern and efficient secondary smelting facilities. Of particular significance was a new furnace put into operation at the Master Metals plant in Cleveland. It is similar to one installed at the Beech Grove. Indiana plant last year, and conforms to the highest environmental health standards. t, ( < J | ) ''v i h For Morris P. Kirk & Son, Inc., 1968 Screw Division experienced another year was a year of growth, indicating the gen of sustained growth. eral level of industry in the nation's west ern states. In anticipation of the increas Bearings: The sale of bearings accounted ing needs for fabricated lead products and for about 5 per cent of consolidated sales lead oxides for the industrial West, a new in 1968. furnace, of the most advanced design, was Reduced purchasing by the railroad in put into operation at the Kirk refinery in dustry during the first nine months of r Los Angeles. Pioneer Aluminum Inc., a 1968 caused sales of the Magnus Metal subsidiary of Kirk, maintained its share Division and the American Bearing Divi of market as a nationwide supplier of sion to slip below those of 1967. How aluminum extrusions and sheet to the air ever. increased purchasing activity by the craft industry. railroads during the last quarter of 1968 In line with the general trend in the enabled both divisions to end the year on metalworking industries, and the automo a definite upswing. The Bunting Brass tive industry in particular, the Southern and Bronze Company, acquired during 1968. reported a slight increase in sales. Production was started at the new Magnus roller bearing plant in Cincinnati, and the first delivery was made to a major eastern railroad. To meet anticipated cus tomer needs in 1969, new machinery and equipment are being installed to increase production. The introduction of new products by National Lead's bearing group in 1968 is expected to lead to penetration of new growth markets in 1969, such as large gas turbines and fluid hydraulic components. Chemicals and Plastics: Sales of the Com pany's chemical and plastic products ac counted for approximately 9 per cent of consolidated sales in 1968. Chemicals produced by the Pigments and Chemicals Division experienced a strong year in 1968. Lead oxide ship ments to battery manufacturers were par ticularly good, owing to the near record year in the automobile industry. Chem ical sales to the paint, rubber, and plastic industries were also ahead of 1967 levels. A new BENTONE gellant for latex paint introduced late in 1968 received immedi ate customer acceptance. The new gellant helps to minimize brush and roller marks in painting. The ONCOR group of Basic Lead Silico Chromate pigments, produced by 9 0000-NLI-000018830 the Pigments and Chemicals Division, continued its upward sales trend. New technological developments resulting in refinements of these anti-corrosion pig ments expanded their use to the automo tive industry as primers. The unique features of ONCOR M50 and ONCOR S25, for the protection of metal finishes, lend themselves to "electrodeposition," a method being used with increasing fre quency by the automotive industry to ap ply coatings to vehicle bodies. Sales for the plastics group of the Amos-Thompson Corporation remained at the level of 1967. Facilities were ex panded with the installation of a modem plating production line for finishing plas tic products used in the automotive, ap pliance, and other industries. The Wood Division of Amos-Thomp son, which supplies face veneers for wall paneling and furniture, maintained its share of market, although sales for the industry as a whole were lower. Oil Well Materials and Services: Sales by the Baroid Division of oil industry and other industrial materials and services ac counted for approximately 8 per cent of consolidated sales in 1968. Despite more competition, the division reported higher sales in 1968. Drilling ac tivity increased during the latter part of the year, with indications of a continuing improvement. Non-drilling mud products and services contributed substantially to total sales. Overseas sales continued to rise, especially in Alaska, Australia, and the North Sea. The long term outlook is good, due to deep drilling and offshore drilling. All continents, except Antarctica, are now active in continental shelf drilling. Rental of oil field equipment registered a good year. Entrance was gained into cathodic corrosion control, with results indicating that this field could eventually make a substantial contribution to sales 10 Tapered roller bearings for railroads are now being produced at the new Magnus plant in Cincinnati. Initial delivery was made to a major eastern railroad in December. Bulk mud additives are pumped aboard a rig tender from the hold of the Baroid ROCKET. The ROCKET and its sister ships, the RASGER and the HUSTLER, can carry up to 325 tons of cargo to offshore rig locations. 0000-NLI-000018831 and earnings. Chemicals marketed by the Baroid Division also recorded gains, particularly in process water and in corrosion control. As part of an overall diversification plan, Baroid research continued its pro gram related to oil well drilling mud and services and expanded into new areas. A line of specialty products based on bentonitic raw materials is being devel oped for seismic, water well and con struction drilling, general water treating, and for the brewing industry. New treat ing chemicals are being developed for all phases of the petroleum industry. Oil field rental equipment and sophisticated elec tronic and mechanical aids to engineered drilling are also being improved and de veloped. As part of the division's capital invest ment program in 1968, the manufactur ing facilities at Houston are being expanded to permit production of inter mediate and certain basic chemicals on a more favorable cost basis. Completion is scheduled for March 1969. An equally important program is the addition of 45,000square feet to the Houston office and laboratory facility to provide ade quate space for the division's growing sci entific and technical group. The expanded facility will include a new computerized information services section. Completion is scheduled for June of this year. Paints: The Company's DUTCH BOY line of quality paints accounted for ap proximately 5 per cent of consolidated sales in 1968. Sales for the Paint Division advanced in 1968 to a new all-time high. Major stress, with regard to products, was placed on the development of three new latex exterior coatings to be launched at outset of the 1969 painting season. These products are: Latex House and Trim Enamel, a gloss exterior trim enamel; Latex Exterior Primer; and Latex Metal 12 One of the world's most famous landmarks, the Eiffel Tower, is getting a bright new coat of paint, containing National Lead's anticorrosion pigment, ONCOR M50. TIMET is a major supplier of titanium metal for the revolutionary Pratt and Whitney JT-9 jet engine which will power the firs: of the new generation of commercial jumbo jets, the Boeing 747, Production of special refractories is underway at the newly expanded facilities of Chas. Taylor's Sons South Shore, Kentucky plant. In the background is a section of the 480-foot connnuous tunnel kiln and auxiliary dryer. 0000-NLI-000018833 Would you ask National Lead to help you get to the moon? Not if you went by our name alone. Actually, we're in the space age up to our ears. Our jointly owned subsidiary, Titanium Metals Corporation of Ameri ca produces titanium. This supermetal is strong enough and light enough to withstand the searing white-hot heat of supersonic travel. The skin of space capsules is made of titanium. It is used in today's jet airliners and will be in tomorrow's supersonic jets. Some of our other products are less visible, but equally important to the conquest of space. For example, the roaring flame of a rocket at liftoff ac tually represents precisely controlled combustion that squeezes every bit of power from every ounce of fuel. One of the chemical additives that helps control this combus tion is produced by our Pigments & Chemicals Division. Our Nuclear Division are the only people working with depleted uranium. This atomic age metal is 65% heavier than lead (and that's heavy). It's used for ballast and counterweights in missiles, rockets, and jets. Because it gives the greatest possible weight in the smallest space. Throughout the world, National Lead has over 50 divi sions and subsidiaries with over 200 different product categories. Our customers are in everything from space capsules to cosmetics. From jet planes to wood planes. Whatever you're in, chances are we can help you. If you would like to know more about us, write National Lead Company, Room4505,111 Broadway, New York, N.Y. 10006. National Lead U. S. Divisions. Subsidiaries and Affiliate*: American Bearing Division Baroid Division DeLore Division Ooenier-Ja^.s D<v s on Eva^s lp<?o D.v.sion Goldsmith Division Landover Manufacturing Division Magnus Metal OiviSion Metal DivS'Cn Nuclear Div.S'On Paint Q;v>s on Pigmen,s & L'-ecmcais Division Southern Screw Division Steel Package Division Texas Mining and Smelting Division Titamum Alloy Manu'actu/ing Division T tanium D v^sion Tool and Engineering Division * Aluminum Match Plate Corporation Amoc-Thompson Corporation Floating Floors, me Master Metals me. The Chas Taylor s Sons Company Moms P Kirk and Son. Inc Pioneer Aluminum, Inc. The Baker Castor Oil Company Titanium Metals Corporation ot America 0000-NLI-000018835 *'-? diversity V National Lead w as the ,frne of the / %8 corporate advertising H'l- eh appeared in leading and nancial publications. A* f Scenes from new television commercials for 1969. At up, a homeowner expresses his appreciation of DUTCH BOY NALPLEX Ac>ylic Latex Flat Wall Paint which shrinks those room paint jc hs down to man-size ones. Bottom, the homeowner who really lo\ es his house is advised how to protect it from all those elements that don't love it... With DUTCH BOY Latex House Paint. Primer, a rust inhibiting primer. With the addition of these new products, a com plete DUTCH BOY latex paint system can now be used for the exterior of a house. The success of the initial television ad vertising campaign in 1968 has warranted continuation of this program for 1969. DUTCH BOY paint commercials will once again appear on network television programs as well as on local stations in prime market areas. Miscellaneous: Sales for the Company's miscellaneous product category ac counted for approximately 5 per cent of consolidated sales in 1968. The TAM Division registered a sales increase. A major advance was made in dielectric product sales, indicating the sharp rebound for color television sets in 1968. Opacifier sales to the ceramic in dustry were also well ahead of the 1967 level, as were those of titanium and zir conium compounds to the chemical in dustry. Shipments of specialized refractories manufactured by The Chas. Taylor's Sons Company for the steel and glass indus tries remained at a satisfactory level, with the high order backlog at year-end indi cating good business in 1969. Completion in 1968 of the $6-million expansion of manufacturing facilities at the South Shore, Kentucky, plant is expected to add to Chas. Taylor's ability to meet the in creased demands of users for specialized refractories. In May 1968, construction was begun on a 42,000-square foot general office and research and development facility near Cincinnati. The laboratory will con tain the most modern scientific and tech nical equipment for refractory research. It has also been designed to permit simu lation of actual production in the steel and glass industries. The building is ex pected to be completed in late spring. The Company's Nuclear Division re corded a modest increase in 1968. Among the significant developments was the receipt of a contract late in 1968 to design and construct a large shielded and cooled cask for the shipping of irradiated power reactor fuel elements. The Albany, New York, facility will supply some 70,000 pounds of vacuum cast, precision machined depleted uranium, providing the necessary radiation shielding. Assem bly and completion of construction will be done at the division's Wilmington, Delaware, plant. In February of 1969, The Anaconda Company and National Lead announced a joint program involving nuclear fuels for electric power generation. Primary effort of the program will be considera tion of fuel fabrication and chemical re processing of spent fuels. The initial phase of the program is expected to be completed in approximately one year. 0000-NLI-000018836 15 Operations for the Tool and Engineer ing Division were strong in 1968, with the automobile industry continuing to utilize the special services and skills of the division to furnish dies for the prototype parts for future car models. Operations of The Baker Castor Oil Company were ahead of the fine 1967 year. The Company expanded its market position in urethane products for the electrical and electronic industries, and in castor oil adducts for the paint and protective coating fields. In both areas, new products introduced in 1968 were chiefly responsible for the telling sales gains made during the year. Construction of a new research and development lab oratory was begun in 1968, and com pleted in January 1969, doubling the amount of space provided for this most important function of The Baker Castor Oil Company. Partially Owned Affiliated Companies For the titanium metal industry and for Titanium Metals Corporation of Amer ica, 1968 was a year of adjustment. The inventory reduction by titanium users, which began in the latter part of 1967, carried over into 1968 as development and construction of the newer types of aircraft, such as the SST, continued to lag. This occurred during a year in which TIMET and others in the titanium indus try were bringing new facilities on line. These conditions, compounded by a strike against TIMET during the fourth quarter, caused the affiliate to report a net loss of $2,545,000 for the year and to omit the payment of a dividend to its two corporate parents, Allegheny Ludlum Steel Corporation and National Lead Company. The strike was settled early in 1969, and normal production was resumed against an encouraging backlog of orders. With the pace of incoming orders in creasing, the use of the metal is expected to resume the rate of growth of previous years. Each successive model of aircraft uses more titanium than the last. The Lockheed C-5 A, the Boeing 747, and the McDonnell-Douglas DC-10 are large users of titanium, as are current produc tion models of military aircraft. Consider ably greater usage of titanium on supersize aircraft still appears to be ahead. Ad vanced military aircraft, such as the Grumman F14A, will require significant quantities of titanium in both the engine and airframe. The capital expansion program begun in 1966 was largely competed in 1968 and places TIMET in a good position to supply the increased quantities of quality titanium needed for the new generation of high performance aircraft, their ad vanced jet engines, and other industrial applications. Sales by affiliates producing oil well drilling materials in North Africa, the Caribbean area, and South America were ahead of the 1967 levels. In Australia, Mineral Deposits Limited began a new expansion program to meet the increased demand for rutile ore caused by the growing volume of chloride process titanium dioxide produced by National Lead. A view of the Canadian Titanium Pigments Lid. plant at Varennes, Quebec. In the rich: foreground is t new chloride process plant, schedul for completion in late At Sordenhan . JiVsf Germany, new sul'die process titanium pigment plan: is expected to be a production this summer. 'I ! 16 0000-NLI-000018837 Financial Report Sales: Sales in 1968 amounted to $858,195,000, compared to $818,905,000 in 1967 which represents an increase of 5 %. 1968 1967 United States.................................................... roreign ............................................................ $743,259,000 114,936,000 $858,195,000 $725,660,000 93.24S.00Q $818,905,000 Sales for 1967 are restated to include sales of the Company's majority owned domestic sub sidiaries. (See Note 1 to the Financial Statements). Sales percentages by major categories in 1968 and 1967 were as follows: 1968 1967 Titanium pigments................. Die castings.............................. Metal products......................... Bearings................. ................... Chemicals and plastics........... Oil well materials and services Paints......................................... Miscellaneous .......................... 23% 18 27 5 9 8 5 5 100% 23% 18 29 4 8 8 5 5 100% Earnings: Net income for 1968 totaled $49,985,000 or $4.15 per share. Comparative earn ings of the United States and foreign operations were as follows: 1968 1967 United States.................................................. Foreign .......................................................... Income before extraordinary item............. Extraordinary item, net of tax................... Net income ................................................... $ 39,410,000 10,575,000 49,985,000 -- $ 49,985,000 $ 40,852,000 10,408,000 51,260,000 3,049,000 $ 54,309,000 Per share of common stock: Income before extraordinary item......... Extraordinary item, net of tax............... Net income................................................ $4.15 -- $4.15 $4.28 .25 $4.53 Major factors affecting the earnings in 1968 were the Federal income tax surcharge, which amounted to 33 cents per share, and the seven-week strike at the five operating plants of the Doehler-Jarvis Division. Dividends: Dividend payments by the Company during 1968 continued at the 1967 level of $3.25 per share. Total cash dividends paid in 1968 and 1967 amounted to $39,062,000 and $38,786,000, respectively. These payments include minor amounts in both years paid by companies prior to acquisition. National Lead Company has paid cash dividends on its com mon stock every year since 1906. The Board of Directors declared on January 28, 1969 an increase in the quarterly dividend from 75 cents per share to 85 cents per share. The Board stated that it intends to declare dividends for 1969 on a regular quarterly basis. In 1968 quarterly dividends of 75 cents per share were paid in the first three quarters along with a year end fourth quarter payment of $1.00, for a total of $3.25 per share. The Board of Directors has approved a proposal to split the common stock of the Company on a two-forone basis. The proposal will be submitted to the vote of the shareholders of the Company at their forthcoming annual meeting on April 17,1969. Financial Position: The Company continued to maintain its strong financial position during 1968. As of December 31, 1968, National Lead's capitalization consisted of $404,764,000 of shareholders' equity and $54,761,000 of long term debt. Total assets increased to $605,862,000 at December 31, 1968 as compared to $588,803,000 at December 31, 1967. At December 31,1968, net assets of consolidated foreign subsidiaries aggregated $94,988,000. The ratio of current assets to current liabilities was maintained at 3 to 1 at December 31, 1968. 18 0000-NLI-000018839 Working Capital: Working capital at year end amounted to $215,904,000 as compared to $229,664,000 at December 31, 1967. 1968 1967 United States................................................... Foreign ............................................................ $174,706,000 41,198,000 $215,904,000 $191,587,000 38,077,000 $229,664,000 The utilization of working capital is shown on the Consolidated Source and Application of Funds statement on page 23. Inventories: Inventories at the end of 1968 amounted to $166,693,000, an increase of $2,242,000 over the comparable 1967 amount. A comparative summary follows: Raw materials................................................. Finished and in process.................................. Supplies ............................................................ 1968 $ 46,542,000 105,204,000 14,947,000 $166,693,000 1967 $ 42,094,000 106,946,000 15,411,000 $164,451,000 Taxes on Income: The Company's United States income tax returns for all years through 1964 have been examined and settled with the Internal Revenue Service. The liability for taxes on income covers both United States and foreign subsidiaries and the Company believes that adequate provision has been made for all years not yet examined. Property, Plant and Equipment: During the year 1968, the Company invested $45,010,000 in new plant and equipment. Major expenditures were made for the Company's titanium pig ment operations at Nordenham, West Germany, and Varennes, Canada. The Chas. Taylor's Sons Company also completed a major expansion of its facilities in South Shore, Kentucky. Manufacturing properties Land ............................................................ Buildings ..................................................... Machinery and equipment........................ Mining properties ........................................... Intangibles not being amortized................... Less reserves................................................... 1968 $ 12,162,000 130,656,000 327,558,000 38,660,000 22,492,000 531,528,000 278,645,000 $252,883,000 1967 $ 11,107,000 120,480,000 291.522,000 38,419.000 22.492,000 484,020,000 257,960,000 $226,060,000 Manufacturing properties are depreciated principally on the straight line method; mining properties are depleted on either the unit of production or the straight line method. Long Term Debt: At year end 1968 long term debt amounted to $54,761,000, compared to $50,044,000 at December 31, 1967. The composition of long term debt at December 31 follows: 1968 1967 4% % subordinated debentures due in annual installments of $850,000 through 1973 and $1,297,000 thereafter to April 1988 . 6 Vi % deutsche mark bearer bonds. due 1972 through 1979 ............................ 5Vi % to 7Vi % bank loans............................ Other................................................................ $ 24,876,000 15,000,000 11,133,000 3,752,000 $ 26,150,000 15,000,000 5.536,000 3,358,000 $ 54,761,000 $ 50.044,000 The debentures outstanding at December 31, 1968 and 1967 are after deducting $3,287,000 and $2,863,000, respectively, representing the principal amount of debentures held by the Company. Early in 1969 the Company borrowed $38,000,000 from banks, which was used to purchase 99% of the outstanding stock of the Lake View Trust and Savings Bank, Chicago, Illinois. 0000-NLI-000018840 19 I National Lead Company Consolidated Balance Sheet Assets Current assets: 1968 December 31 1967 i Cash, including time deposits........................................................... $ 36,787,000 S 45.244,000 Marketable securities, at cost which approximates market .... 2,610,000 13.136,000 T Accounts and notes receivable, less allowances of $2,410,000 in 1968 and $2,301,000 in 1967 .......................... Inventories (Note 2) ......................................................................... Prepaid expenses.................................................................................. Total current assets.................................................................... .16,168.000 106.773,000 166,693.000 2,090,000 324,348,000 164.451,000 2.247,000 331,851,000 "1 Investments: Unconsolidated subsidiaries and associated companies (Note 3) Other investments, at cost less reserve............................................. 20,254,000 2,946,000 20,574,000 . 4,814,000 Property, plant and equipment, at cost, less accumulated depreciation and depletion of $278,645,000 in 1968 and $257,960,000 in 1967 (See page 19) ................................... Other assets.............................................................................................. 252,883,000 226,060,000 5,431,000 $605,862,000 5,504,000 $588.803,000 Reference is r\ 20 0000-NLI-000018841 I I A Liabilities Current liabilities: Loans payable............................................. Accounts payable and accrued liabilities Taxes on income........................................ Total current liabilities................... 1 Long term debt (See page 19) ............................... Deferred taxes on income (related principally to accelerated depreciation).................................... A Other long term liabilities and reserves (Note 2) t Minority interest......................................................... Shareholders' Equity (Notes 1 and 4) Common stock, par value $5; shares authorized 30,000,000, issued 12,087,359 shares in 1968 and 12,086,309 shares in 1967 ........................................................................................ I Capital surplus.............................................................................. Retained earnings Less treasury stock, at cost: 1968,171,994 shares; 1967, 105,257 shares........................................... ) ) e is ponying notes. 1968 December 31 1967 $ 23,510,000 64.021.000 20.913.000 108,444,000 $ 11,674,000 58.849.000 31.664.000 102,187,000 54.761.000 50.044.000 16.213.000 14.607.000 7,073,000 15.953.000 13.745.000 7.234.000 60.437.000 32.590.000 323.286.000 416.313.000 11.549.000 404.764.000 $605,862,000 60.432.000 36.115.000 309.873.000 406.420.000 6,780,000 399.640.000 $588,803,000 0000-NLI-000018842 21 National Lead Company Consolidated Statement of Income and Retained Earnings Revenues: ____ Costs and expenses: Cost of goods sold.................................................................. ____ Depreciation, depletion, and amortization....................... Selling, general, and administrative................................... Minority interest in net income of subsidiaries................ Income before taxes on income................................................... Taxes on income............................................................................. ____ Income before extraordinary item............................................... Extraordinary gain on sale of certain fixed assets, less applicable taxes of $1,083,000 ........................................ Net income....................................................................................... Retained earnings at beginning of year : National Lead Company............................................................. Companies acquired in poolings of interests (Note 1).......... Less: Dividends paid by: National Lead Company--$3.25 per share............................ Companies acquired prior to pooling..................................... Poolings of interests adjustments (Note 1)................................. Retained earnings at end of year........................................................ Income per common share: Before extraordinary item........................................................... Extraordinary item...................................................................... Net income.................................................................................... Years ended December 31 1968 1967 $858,195,000 8,760,000 866,955,000 $818,905,000 8,176,000 827,081,000 623,304,000 18,187,000 122,871,000 3,753,000 664,000 768,779,000 98,176,000 48,191,000 49,985,000 49,985,000 592.455.000 20,120,000 115.329.000 2,761,000 839,000 731,504,000 95.577.000 44.317.000 51,260,000 3,049,000 54,309,000 309,873,000 5,607,000 365,465,000 294,350,000 -- 348,659,000 38,880,000 182,000 3,117,000 $323,286,000 38,410,000 376,000 -- $309,873,000 $4.15 -- $4.15 $4.28 .25 $4.53 Reference is made to accompanying notes. 0000-NLI-000018843 National Lead Company Consolidated Statement of Source and Application of Funds Year Ended December 31,1968 Source: Net income........................................................... Depreciation......................................................... Treasury stock issued for companies acquired Long term borrowings..................................... Decrease in investments................................... Other .................................................................... $ 49,985,000 18,187,000 8.482.000 5.991.000 2.188.000 4,000 $ 84,837,000 Application: Capital expenditures.............................. Dividends paid........................................ Purchase of treasury stock................... Purchase of National Lead debentures Decrease in working capital.................................................................. Working capital at beginning of year.................................................... Working capital at end of year............................................................. 45.010.000 39.062.000 13.251.000 1,274,000 98,597,000 13,760,000 229,664,000 $215,904,000 Represented by: Current assets........................................................ 1............................ Current liabilities................................................................................ $324,348,000 108,444,000 $215,904,000 Reference is made to accompanying notes. 0000-NLI-000018844 23 National Lead Company Notes to Financial Statements 1. The consolidated financial statements include the accounts of the Company, all domestic subsidiaries and major wholly owned foreign subsidiaries translated at appropriate rates of exchange. Pertinent financial data regarding foreign subsid iaries is shown on pages 18 and 19. During the year, the Company extended its consolidation policy to include the ac counts of majority owned domestic subsidiaries on a fully consolidated basis. The financial statements for 1967 have been restated on a comparable basis. This change in report ing practice did not affect 1967 reported earnings since the Company previously reflected its investments in these subsid iaries at its equity in the underlying net assets and included in income its equity in the net income of such subsidiaries. During 1968, the Company exchanged a total of 133,063 shares of its treasury stock for all of the outstanding stock of Edgar Plastic Kaolin Co., Inc., Cochrane Foundry, Inc. and The Bunting Brass and Bronze Co. These acquisitions have been accounted for as poolings of interests and, accord ingly, the results of operations for 1968 include the net in come of these companies for the entire year. No adjustment has been made for prior years since the effect would not be material. As a result of these transactions, capital surplus and retained earnings were charged $3,590,000 and $3,117,000, respectively, representing principally the appropriate portion of the excess of the cost of treasury shares issued over the aggregate paid in capital of the acquired companies. 2. Inventories are valued at the lower of cost (using average, first-in first-out, or last-in first-out methods) or market. The Company also maintains an inventory reserve, amounting to $12,271,000 at December 31, 1968, on the basis of specific quantities and fixed prices for certain normal stocks which is included in other long term liabilities and reserves. 3. Investments in unconsolidated subsidiaries, comprising majority owned foreign companies, are carried at cost less reserves which, in the aggregate, approximate the Com pany's equity in related underlying net assets. The Com pany's equity in the underlying net assets of its associated 50 per cent owned companies exceeded the cost of its invest ments by approximately $19,113,000 at December 31, 1968 and $20,900,000 at December 31, 1967. 4. On April 18, 1968, the shareholders approved an in crease in the authorized shares of common stock from 20,000,000 to 30,000,000 and the authorization of 5,000,000 shares of preferred stock without par value. The rights of this preferred stock as to dividends, redemption, liquidation and conversion will be determined upon issuance. At the same meeting, the shareholders approved the 1968 Stock Option Incentive Plan under which 350,000 shares of 24 the Company's common stock will be reserved for issuance to officers and to other key employees. Under the plan, op tions may be granted to purchase common stock at 100rr of the market price at the date of grant and are exercisable over a period of five years from date of grant. Under the Stock Option Incentive Plan adopted in 1958 options have been granted to certain officers and key em ployees to purchase common stock at 959c of the market price at dates of granting such options. The period during which options could be granted expired in 1963 and all out standing options expire in or before March 1970. Details of shares under option at December 31. 1968 and transactions during the year follow: 1968 Plan 1958 Plan Balance at Jan. 1, 1968 ............... Granted ........................................ Expired ........................................ Exercised ...................................... Balance at Dec. 31. 1968 ............. -- 71,000 -- (200) 70,800 65,990 -- (13.425) (850) 51.715 Price per share: Shares granted......................... $62 to $63 Shares exercised ..................... $62 Outstanding at Dec. 31, 1968 . $62 to $63 Shares exercisable....................... 70,800 Available for future options at Dec. 31, 1968 ..................... 279,000 00 kC (jT, -- S68 to $90 51,715 -- In connection with the acquisition of The Bunting Brass and Bronze Company, the Company granted to holders of stock options previously granted by Bunting, substitute stock options to purchase 1,567 shares of common stock of the Company at $41 per share. These options are exercisable. The excess of the net proceeds for options exercised over the par value of stock issued amounting to $65,000 has been credited to capital surplus. 5. The Company and its subsidiaries have various pension plans covering the majority of their employees. Total pen sion costs approximated $8,500,000 in 1968 and S7,900,000 in 1967. Current service costs under the plans are charged to in come as they accrue and are funded as to the major plans. The major portion of prior service costs is being charged to income and funded over a period of thirty years. Un funded vested benefits at December 31, 1968 amounted to approximately $18,000,000. 0000-NLI-000018845 Report of Certified Public Accountants Lybrand, Ross Bros. & Montgomery Certified Public Accountants 2 Broadway, New York, N.Y. To the Shareholders of National Lead Company New York, N.Y. We have examined the consolidated balance sheet of NATIONAL LEAD COMPANY and its Consolidated Subsidiaries as of December 31, 1968 and the related consolidated statements of income and retained earnings and of source and application of funds for the year then ended. Our examination was made in accordance with generally accepted audit ing standards, and accordingly included such tests of the accounting rec ords and such other auditing procedures as we considered necessary in the circumstances. We were furnished reports of other public accountants upon their examinations of the financial statements of certain consoli dated and unconsolidated subsidiaries and fifty per cent owned com panies. Our opinion expressed herein, insofar as it relates to the amounts included for such subsidiaries and companies, is based solely upon such reports. We made a similar examination of the financial statements of the Company and its Consolidated Subsidiaries for the year 1967, which have been restated, with our approval, as indicated in Note 1 to the finan cial statements. In our opinion, the aforementioned financial statements present fairly the consolidated financial position of National Lead Company and its Consolidated Subsidiaries at December 31, 1968 and 1967, the consoli dated results of their operations for the years then ended and the source and application of funds for the year 1968, all in conformity with gen erally accepted accounting principles applied on a consistent basis. LYBRAND, ROSS BROS. & MONTGOMERY New York, February 18, 1969 0000-NLI-000018846 25 National Lead Company Ten Year Review of Operations <- Net sales........................................................... Income before taxes...................................... Net income .................................................... Per common share................................... Dividends paid on common shares............ Per common share.................................... Current assets.................................................. Current liabilities........................................... Working capital............................................. Property, plant and equipment, net............ Property expenditures................................. Depreciation.................................................... Total assets.................................................... Shareholders' equity...................................... 1968 1967 1966 1965 $858,195,000 $818,905,000 98,176,000 95,577,000 49,985,000 54,309,000* 4.15 4.53 * 39,062,000 38,786,000 3.25 3.25 324,348,000 331,851,000 108,444,000 102,187,000 215,904,000 229,664,000 252,883,000 226,060,000 45,010,000 32,860,000 18,187,000 20,120,000 605,862,000 588,803,000 404,764,000 399,640,000 $865,687,000 $819,772,OOf 113,379,000 lll,723,0Cf 61,634,000 59,673,0Qf 5.11 5.10 ' 38,296,000 3.25 38,072,00( .i 3.25 ! 310,311,000 296,548,00 97,721,000 97,599,00 212,590,000 198,949,00( 214,725,000 196,134,0ft 32,440,000 41,096,00 18,447,000 16,973,00 570,754,000 520,861,00 388,586,000 356,956,00 1967 and prior years' have been restated as explained in Note 1 to the financial statements. *lncludes extraordinary income of $3,049,000 (after income taxes of $1,083,000) or $.25 per share. 0000-NLI-000018847 ' 1964 1963 1962 000 <735,189,000 ,00f 108.086,000 ,000 56,763,000 10 4.85 ,ooo 38.036,000 25 3.25 ;,00fc 300.974,000 >,ooC 99,600,000 ,ooc 201,374,000 1,006 174,961,000 5,00; '-20,447,000 j,oa 16,286,000 1,00( 497,296,000 ' 6,00< 339,744,000 $664,606,000 96,888,000 50,116,000 4.25 38,049,000 3.25 276,069,000 91,461,000 184,608,000 170,263,000 14,558,000 15,523,000 467,264,000 320,873,000 $615,269,000 95,853,000 49,546,000 4.05 38,034,000 3.25 270,275,000 80,280,000 189,995,000 171,696,000 15,712,000 15,159,000 460,973,000 360,737,000 1961 1960 1959 $599,357,000 100,135,000 52,157,000 4.27 38,017,000 3.25 263,656,000 80,918,000 182,738,000 171,595,000 18,241,000 14,349,000 452,710,000 354,576,000 $604,551,000 101,873,000 52,676,000 4.32 38,012,000 3.25 248,402,000 75,353,000 173,049,000 168,222,000 25,525,000 14,373,000 436,640,000 341,767,000 $576,856,000 103,229,000 53,006,000 4.35 37,947,000 3.25 226,539,000 72,324,000 154,215,000 152,410,000 9,001,000 11,756,000 402,913,000 311,092,000 0000-NLI-000018848 i Divisions. Subsidiaries, and Affiliates Divisions American bearing division. Indianapolis, Ind. Precision bearings (Sold through Ameri can Bearing Corporation) baroid division. Houston, Tex. Oil well drill ing materials, well logging services and test ing equipment; chemicals for the petroleum industry and gellants for grease delore division. St. Louis, Mo. Barium and calcium pigments doehler-jarvis division. Toledo, O. Alumi num, brass, magnesium, and zinc die castings evans lead division. Charleston, W. Va. Lead oxides goldsmith division. Chicago. 111. Precious metals LANDOVER MANUFACTURING DIVISION. Landover. Md. Cast acrylic sheeting Magnus metal division. New York, N.Y. Brass and bronze bearings and castings, alu minum castings (Sold through Magnus Metal Corporation) master metals division. Detroit, Mich, and Cleveland, Ohio, Lead and lead alloys (Sold through Master Metals Inc.) metal division. New York, N.Y. Antimony cadmium, lead, and zinc metals; fabricated lead products and alloys nuclear division. Albany, N.Y. Uranium ore concentrates and nuclear feed materials; fuel t elements; fabricated uranium products; nu clear research, developmem and transporta tion services paint division. New York. N.Y. Dutch Boy Paints e PIGMENTS AND CHEMICALS division. New )> York, N.Y. Antimony oxtdt lead pigments 4* and chemicals; battery oxiJt and separators; ' gellants; stabilizers southern screw DIVISION. Statesville, N.C. Screws and metal fastener.> <Sold through Southern Screw Company) 1 STEEL PACKAGE division. St. Louis, Mo. Small steel containers * i TEXAS MINING AND SMELTING DIVISION. La-V redo, Tex. Antimony and antimony oxide ! TITANIUM ALLOY MANUFACTURING DIVISION. t 1New York, N.Y. Zirconium oxide, silicates and chemicals; electronic titanates, zircon- ates, and stannates; ferrous and nonferrous alloys titanium pigment division. New York, N.Y. Titanium pigments and chemicals; ilmeniie and magnetite iron ore TOOL AND ENGINEERING DIVISION. Chicago, 111.' Tools for sheet metal forming; complete models: prototypes assembly operations and engineering services Wholly Owned Domestic Subsidiaries ALUMINUM MATCH PLATE CORPORATION. Kenmore, N.Y. Aluminum castings amos-thompson corporation. Edinburg, In diana. Molded plastics; wood veneer and lumber cochrane foundry, inc. York. Pennsylvania. Aluminum, bronze, and brass sand castings edgar plastic kaolin company. Edgar, Flor ida. Kaolin clay and glass sand floating floors inc, Toledo, O. Elevated floors and site environmental systems national lead Company of Ohio. New York, N.Y.. Contract-operator, Atomic Energyy Commission national lead overseas capital corp. New ; York, N.Y. European subsidiary financing 1 THE BUNTING BRASS AND BRONZE COMPANY. Toledo, Ohio. Bronze bushings, bars: special sintered bronze and iron parts the chas. taylor's sons company. Cincin nati, O. High temperature refractories Partially Owned Domestic Affiliated Companies LAKE VIEW TRUST AND SAVINGS BANK, Chicago, 111. Commercial Bank (99%) morris p. kirk & son, inc. Los Angeles, Calif. Aluminum, lead, and zinc alloys; fabricated lead products; lead oxides (76%) pioneer aluminum, inc. Los Angeles, Calif. Aluminum aircraft extrusions; aluminum tooling plate (76%) R-N corporation. New York. N.Y. Direct re duction and beneficiation of iron ores (60%) the baker castor oil company. Bayonne. N.J. Castor oil, chemicals derived from cas tor oil; other oils and fats; chemical special ties (70%) TITANIUM METALS CORPORATION OF AMERICA West Caldwell, N.J. Titanium metal sponge ingot and mill products (50%) 28 0000-NLI-000018849 < Wholly Owned Foreign Subsidiaries 111ta- BARBER DIE CASTING CO. LIMITED. Hamilton, 'Canada. Aluminum, brass, magnesium, and zinc die caslings. toy i haroid of Canada, ltd. Calgary, Canada. Oil mi// drilling materials, well logging services ew V und testing equipment nls "t >ts; baroid international, S.p.A. Rome, Italy. Oil well drilling materials .C. baroid of Nigeria limited. Lagos, Nigeria. igh Oil well drilling materials baroid (u.k. ) limited. London, England. Oil nail a ell drilling materials CAN ADIAN TITANIUM PIGMENTS,LIMITED. Mon La-1!. treal. Canada. Titanium pigments; gellants; lend pigments; stabilizers; zirconium and tita ION, nium compounds ales- cius. taylor sons s.A. Brussels, Belgium. Jon- t. High temperature refractories ous i.YJ nite HOYT METAL COMPANY OF GREAT BRITAIN, .ltd, London, England. Antifriction metals indi strias deriplom s.A. Buenos Aires, Ar gentina. Lead oxides .111.^ >lete anti wrongs titaan N.v. Rotterdam, The Netherland'. Titanium pigments; gellants; lead pigments KRONOS TITANIUM PIGMENTS LIMITED. Lon don, England. Titanium pigments LAKESHORE DIE CASTING, LIMITED. Guelph, Canada. Aluminum and zinc die castings metal castings doehler ltd. Worcester, England. Die castings perubar, s.A. Lima, Peru. Oil well drilling materials PIGMENTOS MINERAIS INDUSTRIAL e COMERcial pigmina s.a. Salvador, Brazil. Oil well drilling materials societe belge du titane s.a. Brussels, Bel gium. Titanium pigments; gellants; lead pigments the titanium alloy manufacturing co. pty. limited. Tweed Heads, Australia, Ru tile and zircon ores titan co. A/s. Fredrikstad, Norway. Titanium pigments; gellants; lead pigments; stabilizers titangesellschaft m.b.H. Leverkusen, West Germany. Titanium pigments; gellants; lead pigments titania a/s. Hauge i Dalane, Norway. IImenite Partially Owned Foreign Affiliated Companies ork. trgy ,* '1 abbey chemicals limited. London, England. Gellants: stabilizers for vinyl plastics (51%) New baroid of Libya, ltd. Benghazi, Libya. Oil well drilling materials (49%) ANY. ecial 'baroid de Venezuela, s.a. Caracas, Venez uela. Oil well drilling materials (89%) Ijbakstls & minerals limited. Trinidad, Brit- ^ ish West Indies. Oil well drilling materials acin- isiri ) national lead company s.a. Buenos Aires, Argentina. Lead and lead products (100%) NATIONAL LEAD COMPANY OF THAILAND LTD. Bangkok, Thailand. Paints and related prod ucts (51%) QUEENSLAND TITANIUM MINES PTY. LTD. Tin Can Bay, Queensland, Australia. Rutile and zircon ores (75%) derives du titane, s.a. Langerbrugge, Bel| gium. Titanium pigments (82%) INDLSTRIAS doehler do BRAZIL, s.a. Sao Paulo. Brazil. Die castings (80%) VRONOSW%) titanpigment a. b. Stockholm, Swe- fden Titanium pigments; gellants; lead pig- jnne, f mints/76%) : cas- I ecial-f'i VIINERAL deposits limited. Sydney, AusI iralia. Rutile and zircon ores(85%) SCHRAUBENFABRIK NEUSTADT GOETZ & CIE G.m.b.H. Neustadt, West Germany. Screws and metal fasteners (99%) SOCIETE INDUSTRIELLE du TITANE. Paris, France. Titanium and lead pigments (80%) THE CANADA METAL COMPANY LIMITED. Tor onto, Canada. Lead oxides, fabricated lead products; lead and zinc alloys; brass and bronze products (50%) RICA. I VATIONAL LEAD COMPANY (PHILIPPINES), INC. ongCyf^ Manila. Philippines. Paints and related prod ucts (51%) THE CARTER WHITE LEAD COMPANY OF CA NADA, limited. Montreal, Canada. Lead pig ments, oxides; stabilizers (50%) igures in parentheses represent percentage of voting securities owned. 'rimed in U.S.A 0000-NLI-000018850