Document zd5rGpkVLKeX8GEkQ0GLyZv3n

THE GLIDDEN COMPANY CLEVELAND* OHIO TO THE SHAREHOLDERS: December 30, 1933 Herewith is submitted the annual report of The Glidden Company for the year ending October 31, 1933, as certified by Ernst & Ernst. There has been no change in the Company's established procedure in bookkeeping and accounting and the figures contained herein are accordingly comparable with the last annual report. The net profits for the year, after interest, depreciation charges and all State and Federal taxes, amounted to 31,432,863.20 and, after allowing for payment of preferred dividends, were equivalent to 1.51 per share on the 650,000 shares of common stock outstanding. All the properties of the Company have been maintained in excellent physical condition and the regu lar policy of charging depreciation has been followed. Total depreciation for the past fiscal year amounted to 479,028.88. During the year the Company has acquired a modern and fully equipped vegetable oil refinery at Louisville, Kentucky which is being operated under the name of Van Camp Oil Products Company. This additional plant was purchased for cash at a very advantageous figure and rounds out the facilities of the Food Products Division. The Company has taken advantage of the opportunities afforded by very low prices to accumulate larger inventories than usual at costs well below current markets. The Company has continued to purchase its Five Year $%% Gold Notes in the open market and has reduced the outstanding funded debt from 4,715,(XX) to 3,680,000. While the past year has been a difficult one the Company has been able to meet the changing condi tions and to earn a profit. The prospects for the ensuing year are very encouraging. The Board of Directors and Officers desire to take this opportunity to thank the employees and execu tives in charge of operations whose efforts have contributed so substantially to the results as shown in the annual report. By order of the Board of Directors, ADRIAN D. JOYCE, President. GLDO02971  AT ED BALANCE VELAND, AND SUBSIDIARIES NESS OCTOBER 31, 1933 SHEET Current LIABILITIES Notes Payable for Money Borrowed from Banks Accounts Payable for Purchases, Pay Rolls, Etc. Accrued Taxes, Interest, Insurance, Royalties, Etc. > 3 450,000.00 709,549.58 527,909.85 3 1,687,459.43 Funded Debt Five Year 5}/% Gold Notes (Due June 1, 1935): Issued Less: Retired First Mortgage 6% Bonds of Subsidiary Companies (335,000.00 Due April IS, 1934) 3 6,000,000.00 2,500,000.00 3 3,500,000.00 180,000.00 3,680,000.00 Reserve For General Contingencies, Etc., including Deposits in Closed Banks 268,406.16 Nominal Capital Stock Prior Preference 7% Cumulative Authorized 75,000 Shares Less: Unissued and Redeemed 10,000 Shares $ 7,500,000.00 1,000,000.00 3 6,500,000.00 Common--Without Par Value Authorized 800,000 Shares Outstanding 650,000 Shares Stated Capital 35.00 per Share 3,250,000.00 Surplus Capital Profit and Loss 3 8,194,404.39 3,903,360.33 12,097,764.72 $ 27,483,630.31 (Note A) The Companies were reported as having letters of credit outstanding in the amount of 3522,347.45 at October 31, 1933. (Note B) This balance sheet is subject to the comments in our "Certificate," included in this report. or market value* at October 31, 1933, Tert checks were made by as of the method of pricing and mathe matical accuracy of inventory computations, but we made tio verification of inventory quantities. During the year the investment in California mining companies was -ncrcated in the amount of $13,553.73, representing cash advances made by the parent Company. Provision has been made in the accompanying balance sheet for all ascertained liabilities of the Com panies at October 31, 1933. Outstanding gold notes and first mortgage bonds payable were verified by direct correspondence with the trustees. We have made a general review of the operating accounts for the ye:<r ended October 31,1933 and include herewith consolidated operating statement and summary of surplus accounts for the year. Subjeer to the foregoing, WE HEREBY CERTIFY, that ir our o>inion, based upon the records exam ined and information obtained by ui, the accompanying balance sheet acts forth the financial position of THE GL1DDEN COMPANY--CLEVELAND, and SUBSIDlAiU ES. excepting the California mining companies, as of the close of business October 31, 1933, and the relative operating statement reflects the results from oper ations for the year then ended. Very truly yours, Ernst Ir Ernst, Certified Public Accountants GL 0002973 CONDENSED CONSOLIDATED OPERATING STATEMENT THE GLIDDEN COMPANY--CLEVELAND, AND SUBSIDIARIES For the Fiscal Year Ended October 31, 1933 4*' Net Sales (Excluding inter-company and subsidiary sales and transfers) $ 24,845,551.45 Profit Before Interest, Depreciation and Other Deductions Other Deductions--Net Less: Discount on 5J^% Gold Notes Purchased and Retired Interest on Funded Debt $ 2,397,206.08 $ 182,717.88 110,886.13 71,831.75 $ 2,325,374.33 233,482.25 Profit Before Providing for Depreciation and Federal Income Tax Provision for Depreciation $ 2,091,892.08 479,028.88 Projit Before Federal Income Tax Provision for Federal Income Tax Net Profit Capital Surplus Balance October 31, 1932 SURPLUS ACCOUNTS $ 1,612,863.20 180,000.00 $ 1,432,863.20 S 8,167,458.17 Addition Excess of Selling Price Over Cost of 3,000 Shares of Common Stock Sold Balance October 31,1933 Profit and Loss--' Surplus Balance October 31, 1932 Net Profit from Operations for the Fiscal Year ended October 31, 1933 Dividends Paid--Prior Preference--7% Balance October 31,1933 26,946.22 8,194,404.39 l 2,920,165.28 1,432,863.20 $ 4,353,028.48 449,668.15 $ 3,903,360.33 GLD00P974