Output Explorer

To Our Shareholders
Howard C. Harder
James W. Mckee, Jr.
March 13, 1970
The year 1969 was the first under our new name
expenditures during the year. About one-third of this total will
CPC International Inc.
be spent for facilities and equipment to introduce new products
Record net sales and improved earnings were achieved.
and develop others; another third will finance plant expansion
Earnings per share were $2.42, compared with $2.35 the
to keep pace with customer demand for existing products;
previous year. In July, the company paid its 200th consecutive
while the remainder will be used to modernize existing facilities
quarterly dividend.
and to replace worn equipment.
This Annual Report reviews 1969 progress of Corn Industrial,
Our company today markets products in 37 countries and the
Best Foods, CPC Development, CPC/Europe, CPC/Latin
United States. In the 1970's we will extend distribution of
America, and CPC/Far East. The three overseas operations
selective existing products into presently established markets,
represent businesses carried on by local affiliates in each area.
as well as expand into new and untapped geographical areas;
The Report also summarizes general corporate activities.
we will increase our emphasis on introducing specialty products
promising more favorable return on investment; we will broaden
Highlighting accomplishments last year in the United States:
our base through related new businesses; and we will improve
Hellmann's and Best Foods mayonnaise and Skippy peanut
our return on present product lines by reducing operating costs,
butter set record sales and profits. Several businesses of CPC
where possible, or by eliminating or reducing our investment
Development also achieved sales and earnings highs, with
in those areas which fail to meet expectations.
significant gains by S. B. Penick, a manufacturer of medicinal
and industrial chemicals. Sales of Corn Industrial's line of
We are moving forward to implement this plan for growth, while
specialty products increased. But this component, which serves
adapting to changing business conditions and to a changing
more than 60 basic industries, experienced generally higher
environment, which demands increasing corporate social
operating costs, which affected earnings. Although corn syrup
involvement.
and dextrose prices stabilized, profit margins on many
Of course, the ultimate success of our diverse multinational
starch-based industrial products deteriorated. Consequently,
operations depends upon the skills, leadership, and dedication
our return on investment for Corn Industrial during 1969 was less
of our 43,600 employees. We appreciate their efforts and rely on
than goal and below the 1968 level. We have restructured our
their cooperation and support.
marketing and sales forces to meet more specifically the needs
of today's changing markets.
Management has a responsibility to help our employees better
themselves, giving them the opportunity to grow and innovate
Abroad, we achieved record sales and profits, despite unfavor-
in their present jobs and move on to more responsible positions.
able economic conditions in several countries. Long-established
financial practices enabled us to minimize the adverse effects of
We wish to thank our shareholders for their loyalty to our
devaluation in France, revaluation in Germany, and sever
products and for their suggestions offered in the interest of
inflation in several Latin American countries. CPC/Europe
CPC International. We look forward to your continued
further broadened Knorr's product line and distribution in 1969,
constructive interest.
as demand for Knorr soups and cubes continued to rise.
European operations are expected to benefit from new product
programs launch
s launched over the past six years. Our experience
Hheard alderder
demonstrates that as the economies of countries strengthen, as
Howard C. Harder
their affluente grows, and as eating patterns develop higher
Chairman and
sophistication, we are able to enter additional markets with such
Chief Executive Officer
proven product lines as Hellmann's and Knorr. This
strengthened our consumer businesses in Japan, the Philip-
pines, and several Latin American countries during the year.
Capital expenditures for 1969 were $42.8 million, which were
below the 1968 figure. Capital expenditures for 1970 will be
somewhat higher than 1969, shared about evenly between the
James W. Mckee, Jr.
President and
U.S. and abroad. We will be periodically reviewing these
Chief Administrative Officer
Source: https://www.industrydocuments.ucsf edu/docs/g

Answer the question using only the OCR text from a single document page. Return only the answer, with no explanation. Preserve the answer wording from the OCR text when possible.