Oliver Mirror January 1951

Description:	An employee newsletter R,,, VOLUME 3, No. 1l<e/)Olf Otto!Jer11tifJ11s IOI ·ti195()~2A BRIEF REVIEW OF OPERATING RESULTSFOR YEAR ENDED OCTOBER 31, 1950SALES AND OTHER INCOME ........................... .COSTS AND EXPENSES:Materials, supplies, freight, fuel, and other costs ............. .Employees wages, salaries, and pensions for manufacturing andselling our products .................................. .Officers salaries and pensions ............................ .Charge to operations as cost of wear and tear on buildings,machinery and equipment (depreciation) ................ .Social security, state, local, and other general taxes ........... .Income and excess profits taxes ........................... .Costs and expenses applying ro sales ................ .NET EARNINGS FOR THE YEAR ....................... .DIVIDENDS TO STOCKHOLDERS FOR THE YEAR:On preferred stock ( $4.50 per share) . . . . . . . . . . . . $ 368,510On common stock ($2.00 per share)............ 1,607,842CURRENT EARNINGS REINVESTED IN THE BUSINESS ....* Based on average number of employees of 9,080 for the year.OTHER DATAAT OCTOBER 31 , 1950Amount$99,279,168$52,967,06029,593,947385,0522,717,3991,527,4705,847,000$93,037,928$ 6,241,2401,976,352$ 4,264,888CURRENT ASSETS (Cash, amounts due from customers, and inventories of rawmaterials and finished goods) ..... . ............ . ........ . ......... .. ... .CURRENT LIABILITIES (Amounts owed by Oliver for goods, services, salaries andwages, etc. in process of payment, for accrued taxes, for current portion of termloan, and for dividend declared on common stock) ......................... .NET CURRENT ASSETS (working capital) ............ .... .............. .LAND, BUILDINGS, MACHINERY AND EQUIPMENT (net) ..... . ....... .SOURCE OF FUNDS USED IN THE BUSINESS:Borrowed from insurance company ($14,100,000 less $800,000 included in currentliabilities) ....................................................... .Stockholders investment (including earnings reinvested) ................... .Total funds in use .. ... ....................................... .NUMBER OF EMPLOYEES .... .. .................................... .. .NUMBER OF STOCKHOLDERS .......................... . ........ . .... .Percent toTotal PerIncome Employee*100.0% $10,93353.4% $ 5,83329.8 3,259.4 432.7 2991.5 1685.9 64493.7% $10,2466.3% $ 6872.0 2174.3% $ 47064,411,90216,154,241$48,2 5 7 ,66120,886,742$13,300,00053,904,031$67,204,0319,02010,245THE OLIVER CORPORATION400 WEST MAD I SON STREET• CHICAGO 6, I LL.TO: THE MEN AND WOMEN OF OLIVERResults of your Companys operations for the business year which ended October 31, 1950, were satisfactory.The brief review of these results on the opposite page, which is reprinted from the Annual Report mailedto stockholders, shows that sales of Oliver products during the year amounted to $99,279,168. After provisionof $7,374,470 for income taxes and other taxes payable directly by the Company, net earnings were 6,241,240,equivalent to 7.31 per share on the 803,921 shares of outstanding common stock. Our of this amount, dividendsof $2.00 per share were declared in 1950 for payment to holders of common stock. Dividends of $4.50per share were paid on the otltstanding preferred stock during the year. The $4,264,888 remainder of earnings,equivalent to $5.31 per share of common stock, was reinvested in the business to develop new and betterproducts, improve the Companys efficiency, and provide additional working capital needed for operations.This conservative policy best serves the interests of Oliver employes, srockholders and cusromers.The year was one of change and uncertainty for the Company, for Oliver employes, and for all Americans.During late summer and fall, extraordinary international political developments became evident. These developments,centered so far in Korea, had and will have a serious influence on our security and well-being-ifnot our very survival as free citizens of a free nation.Oliver employes and the Company experienced various effects because of this situation. Living costsincreased. Adjustments were made in wages and salaries and employe benefits were extended. Employesrepresented by unions at five of the Companys seven plants were covered by pension pians, and a retirement planfor salaried employes not included in any bargaining unit was put into effect. Individual and Company incometaxes were increased, and still greater taxation of all income will take place by this means. There was a greaterdemand by our cusromers for Oliver products, the effects of which were partially offset by increased costsand increasingly critical shortages of raw materials. Military requirements for steel and other materials necessaryfor the Companys operations are growing, and procurement will become even more difficult and more costly.Oliver employes established new records of accomplishment in the important programs of safety and goodhousekeeping and the Oliver suggestion plan. Working 2,857,664 man hours without a lost time accident,Battle Creek Plant broke all existing records for the industry. South Bend Plant 2 received special recognitionfrom the National Safety Council. Charles City Plant made the finest over-all record of improvement withinthe Companys safety program. Suggestion plan participation throughout the year was excellent, and awardsamounting to $23,300 were paid to eligible employes at plants and branches.Your management anticipates many difficulties and challenges to the continued successful operation of theCompany during 1951. We believe that as these challenges arise they can and will be successfully met, and thatby continued thoughtful, cooperative effort the men and women of Oliver will advance the cause of our mutualenterprise.Yours very truly,Chairman of the BoardJanuary 9, 19513HOW TllE flt/JI£!( SAtES D()Oliver sales in 1950 totalled $99,279,168.This entire sum is represented in thelength, front to rear, of the tractor. Bycutting it into the same proportions asshown by the official figures on page 2,we see clearly the use made of thismoney during the year.53.4%MATERIALS,SERVICES, ANDOTHER COSTS29.8%EMPLOYES All TA>WAGES,SALARIES,AND PENSIONS(LAH WAS{)////()£!)% 4.3% 2.7% 2.0% .4%rES EARNINGS COST OF WORN DIVIDENDS OFFICERSREINVESTED IN OUT & OBSOLETE TO SALARIESTHE BUSINESS EQUIPMENT SHAREHOLDERS ANDPENSIONS56MANAGEMENTC. Frederick Cunningham, who has devoted a substantial part of his life to thefarm equipment business and served as chairman of the board of directors since 1945,resigned as chairman in May, 1950, but remains a member of the board.Alva W. Phelps, who had served as president since 1944, was elected chairmanof the board and continues as chief executive officer.A. King McCord was elected president to succeed Mr. Phelps. Mr. McCord joinedOliver in 1930, and as vice president and director since 193 7 has been responsible formany phases of operations under varying business conditions.Carl L. Hecker, vice president in charge of manufacturing, was elected to theboard of directors in November, 1950, to succeed Stanley A. Russell, resigned.In January, 1951, L. Pierce Richie, director of purchases, was elected a vicepresident. W. E. Miles, manager of the industrial division, was elected vice presidentin charge of crawler tractor and industrial sales at the same time.The sale of Oliver products in other countries is a major part of the Companysbusiness. Donald A. Himes, manager of the export division for 35 years, has retiredafter 4 7 years of loyal and efficient service. H. F. Donagher, assistant manager since1945 and a member of the export division since 1925, succeeds Mr. Himes in this importantresponsibility, and was elected a vice president in January, 1951.EXECUTIVE OFFICERSALVA W. PHELPSChairman of the Board of Directors and Chief Executive OfficerA. KING McCORD ... . ...... . ... . President W. E. MILES . . . ..... . . ..... .. Vice PresidentM. S. TUCKER . ........ .. .. . Vice President L. P. RICHIE .. . .... .... .. . .. Vice PresidentB. HAUGEN . . .. Vice President and Treasurer JOHN R. COVINGTON . ......... S ecretary0. E. EGGEN .... ...... . .. . .. Vice President T. W. KAVANAGH .. ...... ... . . . ControllerCARL L. HECKER . ........ . . Vice President G. R. LANPHERE . . .... .. Assistant TreasurerH. F. DONAGHER .. . ... .. . . . Vice President C. R. EAGER .. .. . .. . . . . Assistant ControllerS. A. BAKER ..... . . . . . . . Assistant ControllerOur America stands today a bulwark againstthe conspiring tyranny of Godless and inhumandictatorship. Our material strength is the strengthbuilt brick upon brick by our fathers and ourselveson a foundation of free and productiveenterprise from which we mutually benefit.The nation and the people have again beencalled to defend the living freedoms which areour priceless heritage and that of our children.The call has been answered, each according tothe requirements made upon him and some atgreat sacrifice.The men and women of Oliver will contributegladly and well to that defense, this year andwhenever the need exists. Whether our machines,our skills and our resources are employed in themanufacture of farm machinery necessary to thenational economy, or in making instruments ofwar without which adequate defense is impossible,our sincere and valuable efforts will addan honest share to the flow of material wealthmoving toward the support of the Governmentof the United States..._..Sf NO f()/? YOUNof the full Oliver 1950 Annual Report to Share-holders.This is the official record of Olivers oper-atingresults for the year 1950, and financialcondition at the end of the fiscal year which closedOctober 31, 1950. Ask your immediate supervisorfor an Annual Report postcard. Sign your nameand home address and mail. The report will besent to you within a few days.O LIYER~0 MIRRORVOLUME 3 No. 1Publ ished at Chicago, Ill., by and for themembers of the OLIVER Organization.The OLIVER Corporation400 W. Madison Street, Chicago 6, Il l.JANUARY, 1951EditorHoward D. ThomasRETURN POSTAGE GUARANTEEDTHE OLIVER CORPORATION SECTION 34.66 P. l. & R.U. S. POSTAGEPAIDSouth Bend, IndianaPERMIT NO. 156
Origin:	1951-01
Publisher:	The Oliver Corporation
Source:	http://michianamemory.sjcpl.org/cdm/ref/collection/p16827coll9/id/5700
Collection:	Business & Industry
Rights:	http://rightsstatements.org/vocab/NKC/1.0/
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Subjects:	Business enterprises--Indiana--Saint Joseph County Labor--Indiana Oliver Farm Equipment Company

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