fluid synthetic petroleum catalysts has increased so that facilities for their production at both Cincinnati and Baltimore are operating at capacity and a commitment had been made for erection of a new plant near Lake Charles, La. He also reD o w tells stockholders that plans may call for ported "excellent progress" toward com$10O million expansion every year for next f e w years; pletion of the petroleum catalyst plant near Liverpool, England, which will be expects magnesium USG to boom operated by British interests under Davison's technical supervision. "T\ow Chemical Company may build new to labor for the record established by the Intensive research work, Mr. Hockley -*-^ plbmfc faeEEMes aE trie rate of $100 company in the fiscal year ended May 31. EnaliionB. a year for the next several years, Sales reached $340 million, with earnings said, had broadened Davison's participaDow piresMlenfc Leland L Doart told a after taxes $41 million, equivalent to tion in the field of specialty catalysts, record crowd of nearly 1000 stockholders $6.12 per share of common stock. "We among other fields, and a major project of sj^tf^rKJlTinig fibe conapanys 54th- arrnnal meet- just couldn't have made the fine financial the research department has involved comag in Midland, Mich., at which Doan and record we did without the interest and the operation with a large refiner of petroleum aM ©fiber niicraiinbent directors were re- good, effective work of all our people up products in the development of a new reforming catalyst. This is used in a process elected to olEeeand down the line," he concluded. which supplements the fluid catalytic AmticnpatiEsg an attendance far beyond Reporting on the growth in the magnecracking process, to produce a greater ftbe capacity of Etow's anditoriarnv addisium industry, J. D. Hanawalt, manager of tional seating space had been provided in Dow's magnesium department, said the yield of higher antiknock quality gasoline tine nearby company cafeteria to which metal's growth curve indicates an ingot per barrel of crude oil. Successful installation of a new and improceedings in tite auditorium were tele- volume of 150,000 tons by 1960, and "This vised. Dow offictals attributed the record does not take into account any war situa- proved process developed by research for {Ungfljgwifc largely to the mcxeasing number tion." This would be at least four times the manufacture of granulated fertilizers in Davison's Columbus, Ohio, plant is being of einniployee stockholders resulting from present ingot volume. jreceat: employee stock purchase plans. Noting that the military program had followed, Mr. Hockley said, by similar Doom said 429e of Dow's employees sub- naturally given great impetus to the in- installations in the Baltimore, Md.; Perry, scribed for stock last January. dustry, Dr. Hanawalt said it was more Iowa; and Nashville, Tenn.; plants, with Daaa told the stockholders the com- significant that "The brief period of a additional installations in other plants to pany's projected expansion was necessita- few years between military activity has follow as soon as practicable. . . . Looking toward the future, we ted by a combination of civilian and de- seen a rapid growth of magnesium in commercial uses." The use of magnesium in anticipate a continuing high demand for fease ireqimiEeiments^ pointing out that the transportation, particularly in truck bodies, Davison's products and a relatively satiscompany bad been unable to keep up with csvslflan demand in many product lines has been a rapidly growing field and po- factory volume of business . . ." tentially represents a high volume market. despite fibe fact that it had added an average of $59 million a year in facilities Hanawalt also predicted volume markets Sterling Drug Sales Up; H i g h e r Taxes Reduce N e t for the past five yearsin the automotive industry, a field in Oamr cormntry today is in a very strange which magnesium is now beginning to find Sales of Sterling Drug, Inc., and subsitaattiona. b e said. "While we are forced acceptance. The industry's most signifito ponnr vast quantities of materials into cant technical development, he said, is sidiary companies for the six months ended miBntary eqiiipiinent and supplies,, we are large scale rolling of magnesium sheet June 30 were $79,374,550, an increase of at the same time trying with all our might which will be accomplished in a mill $11,179,269 over those for the correspondto preserve ouur civilian economy on an being installed by Dow at Madison, 111. ing period a year ago, James Hill, Jr., almost jsonnal basis. That,** he added, "is While the move was necessitated by the chairman and president, reported. Earnings before taxes were 24% ESQ easy stoat at a time when we are pour- military program, Hanawalt said the rebillions in dollars and materials into duced costs of sheet production which higher, but net profits decreased 0.9% beforeign- aid of one sort or another, and would be realized should ultimately be cause the provision for federal and forus© other country in the world could even highly influential in developing volume eign income taxes was $3,250,000 higher than for the first half of 1950. aSbennpt what we're trying to do." markets for the metal. Net profit for the first six months of this Miach of Daw's expansion, which would year was $7,409,440 after provision of fee spread among a ! existing divisions as Davison Sales and N e t $8.8 million for federal and foreign income well as mew ones at Alryn's Point, Conn., Highest in Its History taxes. These earnings are equivalent to and Madison, DDL, will depend, he said, For its fiscal year ended June 30, 1951, $1.88 per share. For the corresponding Bipom the company's ability to obtain cerfiSScates of necessity permitting accelerated Davison Chemical Corp. reports sales and period of 1950, as revised to reflect rewote-ofiF of plant investments. Scouting the net income, after taxes, higher than for statement of income tax liability because of change in the tax laws, net profit was any previous year in the firm's history. 5dea tihat necessity certificates constitute a $7,479,004, or $1.89 per common share. tax loophoBe, he declared the only purpose Net income for 1951 was $2,684,975, Net earnings for the second quarter of of necessity certificates is to protect indusequal to $4.18 per share on 642,667 shares 1951 were $3,241,658, or 82 cents per try against loss of investment and ta en- of capital stock outstanding, compared with 1950 net income of $2,159,536 or common share, compared with $3,486,964, COmn2L£
