Raybestos^Manhattah Inc.
 

Bridgeport, Connecticut
Office of the President                                                                        March 20,  1931
 

To The Stockholders of Raybestos-Manhattan, Inc.,

During the fiscal year ended December 31, 1930, your Company earned $1,156,770.12
applicable to dividends at the rate of $1.71 per share on the 675,927 shares of the Com¬
pany's stock outstanding. The sales and earnings for the year compared with those of
the two years preceding as follows, after including in the latter the operations of the
predecessor Companies:

For the Year ended December 31

1930                        1929                        1928

Net Sales.......................   $16,683,243.80      $23,047,511.46      $22,194,866.30

Net Income available for Dividends       1,156,770.12           3,206,293.80          2,465,585.96

Earnings per share..............                     1.71                        4.74                        3.64

The net income for 1930 was arrived at after making all provisions for inventory
adjustments and similar items amounting to $327,364.00, for depreciation of properties
amounting to $550,334.00, Federal income taxes of $109,736.00 and crediting, as no
longer required, $300,000.00 of the reserve set up in prior years for inventory adjustments.
In addition, expenditures of about $500,000.00 were made for maintenance and repairs,
and charged to operations.

At the close of the year, the Company had total assets of $17,979,325.11, of which
$9,721,750.00 represented Capital and $7,570,633.89 Surplus. There were no bank loans
or funded debt. The Current Assets of $8,312,362. 74, including cash, municipal and
other bonds and marketable securities amounting to $3,306,134.73, were 15.6 times the
Current Liabilities of $533,208.77, and compared with a ratio of 8.7 to 1 at the beginning
of 1930.

A consolidated balance sheet as of December 31, 1930 and relative statements of
Surplus and of Income and Profit and Loss for the year, all certified to by the Company's
auditors, Messrs. J. Lee Nicholson & Company, are submitted herewith.