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I N D U S T R I A L A N D E N G I N E E R I N G CHEMISTRY
VOL. 16, NO. 5
OWENS-ILLINOIS GLASS Co. and sub-
sidiaries for the year ended December 31, 1937, report net income of $9,351,627, including $1,055,972 received from the sale of patent rights and licenses, and after depreciation, federal income taxes, and provision of $100,057 for surtax on undistributed profits. This is equivalent t o GOODYEAR TIRE & R U B B E R Co. and RECENT slight improvement in sales $3.51 a share (par $12.50) and compares subsidiaries for the year ended December with $10,099,131 or $3.79 a share in 1936. of chemicals has been in evidence, 31, 1937, show net profit of $7,257,287 Current assets a s of December 31, 1937, but according to the Wall Street Journal this so far can be considered only a seasonal after interest, depreciation, subsidiary amounted t o $32,071,622 and current lift from the low point at the end of the dividends, federal income taxes, and de- liabilities to $7,656,841, compared with year. However, sentiment in the industry duction of $10,342,743 to adjust raw ma- $33,728,838 and $7,924,238, respectively, is more hopeful than in December, and it terial inventories, raw material content of on December 31, 1936- Inventories were is expected that the second quarter of 1938 goods in process, and commitments! to $19,075,262 against $13,946,840 at the lower of cost or market. This is equal end of 1936. will be slightly better than the first. The textile industry may be able t o in- after dividend requirements on $5.00 conP A R K E , D A V I S & C o . and subsidiaries vertible preferred stock t o $1.94 a share crease its rate of operations over the next 60 days. The rayon industry is operating on no-par common, and compares with report net profit of $9,068,304 for the S10,831,032 or $3.68 a share in 1936. year ended December 31, 1937, after deat only about 50 to 60 per cent of capacity, Sales in 1937 totaled 3216,174,513, a g a i n preciation, federal normal and foreign but there has been a pick-up in demand of 16 per cent over 1936, and the largest income taxes, and provision for surtax and for caustic soda for March delivery. since 1929. Inventories on December 31, undistributed profits. This is equal t o Plastics are down to 40 to 50 per cent of 1937, amounted to $73,987,017 against $1.85 a share on no-par stock, and comroduction a year ago. Production of enzcne dropped to 6,340,000 gallons in $75,693,446 at the end of 1936. Current pares with $9,213,124 or $1.88 a share in assets as of December 31, 1937, amounted 1936. Current assets as of December 31, December from 10,376,000 a year ago. Production of sulfuric acid has been hold- t o $108,635,091, and current liabilities to 1937, amounted t o $15,429,918 and current ing up well, but it is probable that pro- $9,137,196, compared with $114,233,676 liabilities to $5,740,859, compared with and $8,569,495, respectively, at the ead of $14,983,422 and $6,165,894, respectively, duction will be curtailed during the at the end of 1936. Inventories were 1936. second quarter. Pharmaceuticals made During 1937 the company improved its $8,656,375 compared with $7,752.060 at by American Cyanamid, Dow, and Monsanto are relatively stable. The ferti- capital structure. The nalance of the old the end of 1936. $7 first preferred stock was retired by call, lizer industry is expected to be off about PENICK & F O R D , L T D . , I N C . , reports net 20 to 25 per cent in volume this spring and the balance of the 7 per cent preferred income of $271,806 for 1937 after deprefrom a year ago, although an increasing stock of the Goodyear Tire & Rubber Co. of ciation, federal income taxes, etc., equivaamount of synthetic urea made by du California was redeemed. At the year end lent to 74 cents a share on no-par stock. Pont is being used by American fertilizer 90,596 shares of the new $5 convertible pre- This compares with $1,301,927 or $3.52 a ferred had been converted into common share in 1936. Current assets as of Decemmanufacturers. stock. These transactions discharged, all ber 31, 1937, amounted to $6,041,263 and COMMERCIAL SOLVENTS CORP. reports accrued preferred dividends and effected an current liabilities to $474,252, compared earnings of $1,580,917 for the year ended annual reduction of charges prior to com- with $6,513,818 and $724,701, respectively, December 31, 1937, or 60 cents a share, mon stock of $2,038,078 or approximately at the end of 1936. Inventories were compared with $2,232,135 or S4 cents a $1.00 per share of common stock out- $2,065,767, compared with $2,501,189 in share in the previous year. The report standing. The funded debt of the parent 1936. states : company was reduced $184,000 t o $52,The president of t h e company reports For nine months sales volume was suffi- 365,500." Tax payments on domestic that unparalleled conditions regarding operations in 1937 amounted to $12,799,ciently well maintained to support the forecorn prevailed in 1936, necessitating paycast that the year's net income would some- 801 or the equivalent of $6.22 a common ment of heavy premiums and the imwhat exceed that of 1936. In the fourth share. portation of 1,500,000 bushels from t h e quarter, however, the sudden change in Argentine, but anticipates improved conM E A D , JOHNSON & Co. and subsidiaries business conditions upset expectations. for the year ended December 31, 1937, ditions in 1938. Grain prices dropped sharply, necessitating show net profit of $1,573,684 after deST. JOSEPH L E A D C O . and subsidiaries corresponding reductions in selling prices of preciation, interest, federal income ta.xes, finished goods. This, together with lessened surtax on undistributed profits, and deduc- report profit of $8,980,310 for the year demand for the chemical products and the tion of $66,408 reserve for shrinkage in ended December 31, 1937, after interest write-down of year-end inventories, caused value of investment in unconsolidated and depreciation but before abandoned a decrease of about $500,000 in profit, which subsidiary, equal after 7 per cent pre- leases, depletion, obsolescence, and federal This compares with was further reduced by smaller sales of bulk ferred dividends to $8.81 a share on no-par income taxes. $3,409,632 in 1936. After deductions, whiskey than were anticipated. common. This compares with $1,575,732 1937 profit amounted t o $7,127,945 equal Earnings of the company's subsidiary or $8.83 a common share in 1936. to $3.64 a share on par $10 stock comand affiliates showed improvement during pared with $2,511,002 or $1.28 in 1936. MOLYBDENUM CORP. OF AMERICA shows the year. Current assets as of December 31, 1937, net profit of $575,472 after interest, deCurrent assets as of December 31, 1937, amounted to $12,892,829 and current preciation, depletion, federal and state liabilities to $2,796,967, compared with amounted to $17,306,645 and current income taxes, surtax on undistributed liabilities t o $3,515,320, compared with $12,127,806 and $1,867,220, respectively, $14,057,715 and $1,935,538, respectively, profits, and losses from abandonment of at the end of 1936. Inventories were December 31, 1936. Inventories were mineral lands under option or lease. This $7,190,677 at the end of 1937, compared $12,951,094, compared with $7,338,212 is equivalent to 99 cents a share (par SI -00) with $6,993,143 a t the end of 1936. December 31, 1936. The principal items on stock, and compares with $44,740 in 1936. Sales for 1937 were $8,333,9*9 as SHARP & DOHME, I N C . , for the year constituting the inventory increase were the combined molasses stocks of the against $4,846,068 in 1936. Current assets ended December 31, 1937, shows net company and its subsidiary, aging stocks as of December 31, 1937, amounted to profit of $999,168 after depreciation, $1,962,390 and current liabilities to federal income taxes, etc., equal after diviof whisky, and miscellaneous stocks of $1,007,327, compared with $1,492,778 dends of $801,796 on preferred stock t o chemical products. and $835,564, respectively, a t the end of 25 cents a share on no-par common. N o B. F . GOODRICH C O . and subsidiaries 1936. provision was made for federal surtax on for the year ended December 31, 1937, undistributed profits. This compares with show net loss of $878,580 after depreciaMONSANTO CHEMICAL C o . Net profits $1,123,959 or 41 cents a share in 1936. tion, interest, federal income and un- of the company and subsidiaries for 1937 Current assets as of December 31, 1937, distributed profits taxes, and a $5,652,935 were $5,162,511. After deductions for amounted t o $7,930,725 and current write-down to December 31, 1937, market minority interests and provision for pre- liabilities t o $547,856, compared with prices of raw materials on hand, etc. This ferred dividends, earnings applicable to $7,923,141 and $812,980, respectively, compares with net profit in 1936 of $7,- common stock were $4,898,309, equiva- in 1936. Inventories totaled $3,808,892, 319,507. Consolidated net sales for 1937 lent to $4.40 a share. This compares with against $3,485,360 on December 31, 1936. were $149,971,715, compared with $141,- $4,468,703 or $4.01 a share in 1936. 097,136 for 1936. Current assets as of The stockholders of the Fiberloid Corp. T B X A 8 G U L P PRODUCING Co. showed an December 31, 1937, were $75,428,910 and have approved the transfer of its proper- increase of approximately 7 per cent in current liabilities were $14,107,700, com- ties and assets to the Monsanto Chemical operating income in 1937, but its net i n pared with $82,276,928 and $14,949,958, Co. in exchange for 148,523 shares of come was lower because of nonrecurring respectively, at the close of 1936. Monsanto common stock. deductions, including approximately
The Wall Street of Chemistry
A
E
M A R C H 10, 1938
N E W S EDITION
$100,000 on losses of leaseholds abandoned and $238,000 set aside as a provision for contingencies. N e t profit for 1937 was $604,585 after deductions, equivalent to 68 cents a share on no-par stock, compared with $823,410 or 9 2 cents a share in 1936. Current assets as of December 31, 1937, were $345,014 and current liabilities were $163,120, compared with $365,858 and $216,214, respectively, in 1936. Inventories were $83,960 against $82,293. During t h e year t h e company's mortgage indebtedness was reduced b y payments of $518,620 and $36,988. T U B I Z E CHATILLON C O R P . reports net
earnings for 1937 of $1,439,939, equivalent after dividend requirements on 7 per cent cumulative preferred stock and class A stock to $1.04 a share on common compared with $1,047,006 for 1936. During the year the company spent about $3,000,000 on construction a t its Rome, Ga., plant, increasing its capacity t o about 20,000,000 pounds of rayon annually, and for this expansion borrowed S2,799,999 from banks. Of this $649,999 had been repaid b y the end of 1937. The company has sold its interest in Companhia Nitro Chimica Brasileira to private interests in Brazil and received in payment bonds and notes with a face value of $447,300. Wages and salaries paid in 1937 were 24 per cent in excess of 1936, 90 per cent of the increase going to wage earners. U N I T E D CARBON C O . and subsidiaries
for the year ended December 31, 1937, show net profit of $2,350,486 after interest, depreciation, depletion, minority interest, federal and state income taxes, and $22,000 provision for surtax on undistributed profits, equivalent to $5.90 a share on nopar stock. This compares with $2,202,850 or $5.54 a share in 1936. Current assets as of December 31, 1937, amounted to $3,040,652 and current liabilities to $792,832, compared with $2,752,369 and $912,199, respectively, at the end of 1936. Inventories were $868,133 against $486,711. Gras sales set a new record in 1937, representing an increase of almost 24 per cent over 1936. About 4 2 per cent of total earnings were derived from carbon black. Tonnage sales were less than 10 er cent below the high figure of 1936, ut were adversely affected by increased taxes, higher labor cost and, in the final quarter, b y substantial declines in price of carbon black.
E
U . S. GYPSUM C O . and subsidiaries for
the year ended December 31, 1937, show consolidated net income of $5,421,010 after depreciation, depletion, federal income and undistributed profits taxes, etc., equivalent after 7 per cent preferred dividends to $4.08 a share (par $20) on common. This compares with $5,328,113 or $4.01 a share in 1936. Current assets as of December 31, 1937, amounted to $20,583,516 and current liabilities to $2,742,073, compared with $21,764,041 and $3.261,942, respectively, at the end of the preceding year. Inventories were $7,364,707 against $5,682,567. W E S T E R N ELECTRIC C o .
For the year
ended December 31, 1937, the company reports an increase of 39 per cent in sales over 1936, and net profits before dividend payments of $19,514,197, a 4 per cent increase over 1936. Federal, state, and local taxes exceeding $6,000,000 were 24 per cent of n e t profits in 1937, while payrolls increased 61 per cent. WESTINGHOUSE
ELECTRIC
&
MANU-
FACTURING Co. and subsidiaries report for the year ended December 31, 1937, net profit of $20,126,408 after depreciation, federal income and excess profits taxes and surtax on undistributed profits, equal
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under the participating provisions of the shares t o $7-53 a share (par $50) on combined shares of 7 per cent cumulative Çarticipating preferred and common, 'his compares with n e t profit of $15,099,291 or $5.66 a share in 1936. Orders booked for 1937 were an increase of 25.7 per cent over 1936, and sales represented an increase o>f 33.5 per cent over 1936.
Petroleum Tax Bill
Α
ΤΤΕΝΤΙ0ΝΓ has previously been called, through an editorial, t o the handicap under which science and technology wort in t h e petroleum industry in its effort to maintain t h e volume of petroleum products required a t a reasonable price. T h e principal handicap appears to be that of taxation. T h e petroleum industry m a y be rega-rded as a chemical industry, for certainly it has maintained its position largely through the application of the re sults of chemical research and of chemical engineering. It is interesting, therefore, to note that, according ta preliminary estimates made by the American Petroleum Industries Committee, the tax bill paid b y t h e in dustry and i t s consumers in 1937 reached a new record high of $1,312,936,361, which is an increase of more than 10 per cent over taxces collected in 1936 by federal, state, and local governments. T h e bill is made up o f t h e following items: State pasoline taxes Federal gasoline tax Real and personal property taxes Income taxes, federal, state, and local Lubricating oil taxes, federal and state Severance taxes, state and mu nicipal Federal pipe-line tax Federal import taxes on petro leum and its products Capital stock tax Municipal «asoline tax Registration fees and licenses for tank trucks and other motor vehicles State inspection fees and drilling permits Corporation franchises and mer cantile licenses Federal and state excises on the industry's trucks and other vehicles Federal taxes on tirea used by the industry State taxes o n other petroleum products Federal tax o n crude oil proc essed State sales taxes o n the indus try's trucks, automobiles, and accessories Federal taxes o n parts and acces sories for "trucks and auto mobiles used by the industry.
$
755,000,000 203,025.380 137,850,000 90,000,000 34,346,590 38,500.000 12,304,203 7,300,000 7,000.000 5,000,000 5,500,000 5,300,000 4,000,000 2,650,000 2.200.O0O 1,666,313 967,375 202,500 123,000
$1.312.935.361
Chemical Exports Highest in Seven Years
U related materials continued to advance last year with the recorded aggregate value NITED S T A T E S exports of chemicals and
reaching tfcte highest point attained in seven years, according to C. C. Concannon, Chief o f the Commerce Department's Chemical Division. Preliminary estimates indicate that t h e value of such exports exceeded $181,000,000 in 1937, which was 17.5 per cent above the $154,000,000 re corded during the preceding year, and compares w i t h $136,677,000 in 1935, $124,275,000 in 1934, and $107,352,000 in 1933. Practically every major item in the list shared un t h e gain, particularly indus trial chemicals and chemical specialties, medicinals, paints, soaps, and toilet preparations.
Exports of industrial chemicals, not including sulfur, reached the high figure of $27,505,000 in 1937, against $22,046,000 in the preceding year. In this classifica tion shipments of sodium compounds in creased from 512,000,000 t o 703,000,000 pounds, but exports of gases, compressed, liquefied, and solidified, decreased from 38,000,000 to 24,000,000 pounds, owing to smaller foreign demand for petroleum fuel gases. Forty-five pounds of helium gas, valued a t $668, were included in the 1937 total. Foreign demand for chemical special ties was especially active, shipments in the classification reaching $27,500,000, against $20,500,000 in 1936. In this group, ship ments of insecticides and disinfectants increased from 34,000,000 to 45,000,000 pounds; plastic materials from 14,000,000 to 20,000,000 pounds; and polishes from 6,600,000 to more than 7,000,000 pounds. Exports of medicinal products, not in cluding crude drugs, also advanced sharply to a total value of $18,000,000—a gain of $5,400,000 over the record for the pre ceding year. Paint, pigment, and var nish exports reached the value of $21,500,000 during the year, against $17,800,000 in 1936. In this group, shipments of chemical pigments advanced from 180,000,000 t o 214,000,000 pounds, and ready mixed paints, varnishes, and lacquers from 4,000,000 t o 5,000,000 gallons.
Chemical a n d Related Products I m p o r t s U p 28 Per Cent
D
OMESTIC activity in chemical and related products during 1937 is strikingly renected in increased imports of raw and semimanufactured materials required by these industries, according to the Commerce Department's Chemical Division. Receipts of such materials, including drying oils and drying oil seeds, advanced 28 per cent in value to a total of $210,000,000 during the year. Materials used mainly in the manufac ture of paints, varnishes, and lacquers headed t h e list in 1937, with receipts valued a t $66,000,000 against $50,000,000 during t h e preceding year—a gain of 32 per cent, preliminary figures indicate. Receipts of fertilizer materials also ad vanced sharply to 2,046,000 long tons valued at $46,704,000 in 1937 from 1,519,000 valued at $33,400,000 during the pre ceding year, all categories of materials sharing in the gain. Imports of industrial chemicals ag gregated $26,500,000 during the year, compared with $21,000,000 in 1936. Crude drugs and other medicinal ma terials reached $14,301,000, against $11,795,000 in 1936. Imports of coal-tar products increased in value from $15,202,000 to $18,353,000 but receipts of colors, dyes, and stains declined in value from $5,698,000 to $5,200,000 and in quantity from 3,769,000 to 3,381,500 pounds. Rayon Production
W
ORLD rayon production during 1937 totaled 1,725,000,000 pounds, com pared with 1,305,000,000 pounds in the previous year. Of this total, filament yarn accounted for 1,125,000,000 pounds, and staple fiber for 600,000,000 pounds, compared with 1,006,000,000 pounds, and 299,000,000 pounds during 1936. Japan was again the leading producer, supplying 325,000,000 pounds of filament yarn and 175,000,000 pounds of staple fiber. T h e United States was second with 312,000,000 pounds and 20,000,000 pounds.
