United States Gypsum Company

Transcription

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2 United States Gypsum Company (AN ILLINOIS CORPORATION) Forty-fifth Annual Report Fiscal Year Ended December 31, 1946

3 February 14, To the Stockholders of the United States Gypsum Company: Net income of United States Gypsum Company and subsidiaries for the year 1946 was $12,413,955, compared with net income of $4,352,183 for the preceding year. The 1946 earnings were equivalent to $9.90 per share of common stock outstanding at the end of the year, after deducting dividends paid on the 7% preferred stock, compared with 1945 earnings of $3.18 per share. Cash dividend distributions during the year totalled $4,141,211, of which $547,554 was paid to preferred stockholders and $3,593,657, or $3.00 per share, to the holders of common stock. Expenditures for additions and improvements to plant properties amounted to $9,934,000. Included in this total were disbursements of $7,128,000 toward the cost of projects which are part of the Company s present construction program. It is contemplated that the two new ships of approximately 11,000 net tons capacity each will be delivered in the spring, the new paper and felt plants on both the West coast and East coast will be in operation by summer, the new gypsum plant at Plaster City, California, will be completed by late summer, the new gypsum plant at Norfolk, Virginia, will be in production by early fall, and the new gypsum plant at Sigurd, Utah,

4 will be completed before the end of the year. The Company has already substantially increased its board production at existing properties, and with further production facilities that will be in operation during the year, will approximately double its pre-war gypsum board capacity. The balance of the construction program will be undertaken as rapidly as plans can be engineered and actual construction started. The Company s sales and net income for the year reached all-time high levels, reflecting the great demand for building materials. Although price increases were made effective in some lines, the soundness of the Company s price position is indicated by the fact that its composite price index is now only one percent higher than it was twenty years ago and five percent higher than it was ten years ago. The construction industry has been freed of some of the governmental controls in recent months, but there are many hampering restrictions still in effect. The complete termination of the remaining controls is essential if the industry is to operate at its maximum efficiency. There is a great need for a continuing high level of residential construction over a period of years. The prospect will improve or deteriorate as the various elements of building costs decline or increase. A full realization of the potentialities is contingent upon lower than present costs. Respect fully submit ted, SEWELL L. AVERY, Chairman of the Board.

5 United Stat and SUBSIDIA Consolidated Bala Current Assets: ASSETS $12,028,153 6,905,617 Cash... U.S. Government (85,784,00O) and other government securities, at cost (market quotations $6,922,000)... Accounts receivable- Customers $5 8,693,713 Other ,53 1 $ 9,440,244 Less-Reserve for doubtful receivables.... Inventories, priced at the lower of cost or market- 921,261 8,518;983 Raw materials and supplies...., ,512,880 Finished goods and work in process ,286,339 9,799,219 Total current assets $37,25 1,972 Construction Program Fund consisting of U.S. Government securities, at cost (market quotations $17,197,000) Plant and Equipment (at cost, including acquisitions for capital stock, less reductions in 1932 and 1939): Land, mineral deposits and timber $ 9,474,812 Less-Reserve for depletion ,009,162 Buildings and equipment $63,83 1,684 Less-Reserve for depreciation ,771,ooo $ 7,465,650 17,000,000 32,060,684 39,526,334 Prepaid Expenses and Other Assets... 1,915,301 $95,693,607 The Company offered to the holders of its outstanding shares of common stoc the right to subscribe at $60 per share for 399,477 common shares at the rat of one additional share for each three shares held of record at the close o

6 Gypsum Company COMPANIES Sheet-December 31, 1946 Current Liabilities : LIABILITIES Accounts payable ,945,894 Accrued expenses and miscellaneous taxes... 2,144,840 Federal and Canadian taxes on income.... 7,925,910 Total current liabilities ,016,644 Capital Stock and Surplus: Preferred stock-$100 par value, 7% cumulative, noncallable- Authorized-100,000 shares Outstanding-78,222 shares (after deducting 9,055 shares held in treasury) ,822,200 Common stock-$20 par value- Authorized-3,000,000 shares Outstanding-1,198,431 shares (after deducting 53,390 shares held in treasury, including 2,244 shares subject to option agreements with certain officers and employees) ,968,620 Paid-in surplus (no change during year) ,831,447 Earnedsurplus... 45,054,696 82,676,963 business January 4, In accordance therewith, 399,140 shares of common ftock were sold. The proceeds from the sale of this stock will be used in financmg the Company s construction program and for other corporate purposes. nvl $95,693,607

7 United States Gypsum Company t2?zd SUBSIDIARY COMPANIES Consolidated Income Statement for the Years Ended December 31, 1946 and 1945 Income : Net sales... $85,360,686 $65,786,336 Income from securities , ,045 Royalties and miscellaneous income (net) , ,09 1 Total... $86,281,714 $66,530,472 Deductions : Cost of products sold.... $54,187,667 $47,050,863 Selling, general and administrative expenses.... 9,275,211 8,166,379 Provision for depreciation and depletion.... 2,374,881 2,286,047 Total.... $65,837,759 $57,503,289 Balance before taxes on income... $20,443,955 $ 9,027,183 Provision for Federal and Canadian taxes on income. 8,030,OOO 4,675,OOO Net income for year $X2,413,955 $ 4,352,183 %61

8 United States Gypsum Company and SUBSIDIARY COMPANIES Consolidated Earned Surplus Statement for the Years Ended December 31, 1946 and Balance at beginning of year , $36,040,829 $33,754,458 Net income for year ,413,955 4,352,183 Canadian exchange ad ustment arising from restoration of the official rate ofj exchange to par with theunited States dollar ,123 - Transfer of reserve for contingencies , ,766 Total... $49,195,907 $38,983,407 Deduct-Cash dividends on- Preferred stock ($7.00 per share) $ 547,554 $ 547,554 Common stock ($3.00 per share in 1946 and $2.00 in 1945)... 3,593,657 2,395,024 Total , ,141,211 $ 2,942,578 Balance at end of year ,054,696 $36,040,829 To the BOARD OF DIRECTORS, United States Gypsum Company: We have examined the consolidated balance sheet of United States Gypsum Company (an Illinois corporation) and its subsidiary companies as of December 31, 1946 and the related statements of income and surplus for the year then ended, have reviewed the system of internal control and the accounting procedures of the companies and, without making a detailed audit of the transactions, have examined or tested accounting records of the companies and other supporting evidence, by methods and to the extent we deemed appropriate. Our examination was made in accordance with generally accepted auditing standards applicable in the circumstances and included all procedures which we considered necessary. In our opinion, the accompanying consolidated balance sheet and related statements of income and surplus present fairly the position of United States Gypsum Company and subsidiary companies at December 31,1946, and the results of their operations for the year ended that date, and are in conformity with generally accepted accounting principles applied on a basis consistent with that of the preceding year. Chicago, Illinois, February 5, U7B ARTHUR ANDERSEN & CO.

9 ASSETS Current Assets: 1946 Cash $12,028,153 U.S. and other government securities ,905,617 Accounts receivable (net) ,s 18,983 Refundable excess profits taxes Inventories......, ,799,219 Total $37,251,972 Construction Program Fund $17,O00,000 Plant and Equipment: Gross $73,306,496 Less-Reserves for depreciation and depletion ,780,162 Net $ United Sta and SUBSIDI Comparative Consolida 1945 $ 8,867,032 25,611,551 5,964,005-6,8 10, ,252, $64,254,392 32,201,740 $ , I Prepaid Expenses and Other Assets... $ 1,915,301 $ 1,773,061 Total Assets $95,693,607 $81,078,327 LIABILITIES Current Liabilities: Accounts payable S 2,945,894 Accrued ex enses : ,144,840 Federal anb Canadian taxes on income... 7,925,910 Total , ,016,644 Capital Stock and Surplus: Preferred stock ,822,200 Common stock., ,968,620 Paid-in surplus ,831,447 Reserve for contineencies Earned surplus...q... 45,054,696 Total ,676,963 Total Liabilities... $95,693,607 Working Capital.... $24,235,328 $ 1,614,551 1,283,692 4,527,908 $ 7,426,151 $ 7,822,200 23,957,700 5,83 1,447 36&0,829 $73,652,176 $8 1,078,327 $39,826,463

10 ypsum Company OMPANIES alance Sheets as of December $ 6,183,873 $3 4,667,505 24,294,997 2$05$391 6,333, ,498; ,210, ,000 6,964,3 18 $45,7 14, $ 4,211,248 23,403,756 8,932, ,000 6,112, $ 3,242,956 16,429,554 10,622,126 7,359, B $62,930,035 $62,129,389 $63,098,332 $64,262, ,368,497 28,296,392 $32,561,538 $ ,591,938 26,676,981 $ $ $ 1,562,911 $ 1,548,470 $ 1,349,081 $ 1,469,007 $79,352,900 $8 1,096,327 $80,023,465 $76,708,967 $ 2,338,120 1,443,004 3,336, lj I I $3 2,394,765 1,530,630 7,436,290 $11,361,685 S 7,822,200 23,950,220 5,831, ,766 33,754,458 $72,235, , I $ 7,822,200 23,942,800 5,831, ,766 32,469,105 $70,942,3 18 $8 1,096,327 p:,g 5;831: ,766 30,371,753 $68;837; $ 7,822,200 23,927,460 5,831, ,766 26,889,409 $65,347, $38,110, $31,982,131 $26,292,943

11 United States Gypsum Company Directors SEWELL L. AVERY, Chicago, Ill. WALDO A. AVERY, Detroit, Mich. Cruhm CARRY, Chicago, Ill. A. E. ENGLISH, Beverly Hills, Calg. C. A. ENGLISH, Arcadia, Calif. JOHN W. FOWLER, Chicago, Ill. (deceased) W. L. KEADY, Chicago, Ill. A. F. KING, New York, N. Y. *OLIVER M. KNODE, Chicago, Ill. JOHN E. MACLEISH, Chicago, III. W. B. MCMILLAN, St. Louis, MO. WALTER P. PAEPCKE, Chicago, IZZ. H, F. SADLER, Chicago, Ill. C. H. SHAVER, Chicago, Ill. ~SOLOMON A. SMITH, Chicago, III. *Chairman of the Executive Committee tchairman of the Finance Committee t 1 0ficer.s Chairman of the Board SEWELL L. AVERY President W. L. KEADY Vice-President H. F. SADLER Vice-President EDWARD REMBERT Vice-President A. F. KING Vice-President J. H. NOLD Vice-President T. R. PARRISH Vice-President J. P. SANGER Vice-President O TIS WACK Secretary and Treasurer C. H. SHAVER - Subsidiary Companies UNITED STATES GYPSUM COMPANY (Delaware) CANADIAN GYPSUM COMPANY, LIMITED TORONTO ASPHALT ROOFING MFG. Co., LTD. GYPSUM PACKET COMPANY, LIMITED GYPSUM TRANSPORTATION COMPANY PANAMA GYPSUM COMPANY, INC. I 10 1

12 United States Gypsum Company General Ofice 300 West Adams Street CHICAGO 6, ILLINOIS Sales Ofices ALBANY ATLANTA BALTIMORE BIRMINGHAM BOSTON BUFFALO CHARLOTTE CHICAGO CINCINNATI CLEVELAND DALLAS DENVER DETROIT GRAND RAPIDS HARRISBURG HOUSTON INDIANAPOLIS JACKSONVILLE KANSAS CITY WASHINGTON Los ANGELES MILWAUKEE MINNEAPOLIS MONTREAL NEWARK NEW HAVEN NEW YORK OKLAHOMA CITY OMAHA PHILADELPHIA PITTSBURGH PORTLAND PROVIDENCE RICHMOND ST. LOUIS SALT LAKE CITY SAN FRANCISCO SEATTLE TORONTO General Counsel SCOTT, MACLEISH & FALK Transfer Agents UNITED STATES GYPSUM COMPANY, Chicago, Ill. THE CHASE NATIONAL BANK, New York, N. Y, Registrars of Transfers THE NORTHERN TRUST COMPANY, Chicago, Ill. MANUFACTURERS TRUST COMPANY, New York, N.Y. B 111

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