Show r SO S. S THE PAINT INDUSTRY By Babson's Baboons Reports Incorporated Wellesley Hills Mass Paint sales are generally broken down into two categories categories' rate cote gories' gories trade and Industrial Trade sales consist of paint sold to consumers contractors and professional painters for new construction and for repainting refinishing refinishing re re- finishing and maintenance Industrial sales consist of coatings sold to manu manu- manufacturers lecturers for application during the manufacturing man man- man stage of a product Until product Until recently re reo trade sales had been more important important im im- in the paint industry's growth However future sales of industrial coatings should surpass sales of consumer er paints paints' by a considerable degree The superior growth projected for Industrial industrial In in- coatings is based on 1 the overall growth of US U.S. industry and 2 the technology of coatings which is moving moving ing ahead so rapidly that paints are being used on surfaces surfaces' unheard of or 1 h a afew few years ago such as the finishes on on space vehicles automotive appliance and furniture industries industries in in- consume the greatest volume of industrial paints each year uses range from coating the inside of food and beverage cans to the thin film of varnish on motor armatures Rebounding From 1967 Growth in the paint industry in recent years has been steady and reliable though the rate has been unspectacular Despite being an integral segment of the building industry the paint field tends to resist downturn phases in new construction because a large part of spending on paint is for maintenance and renovation Weather conditions however can adversely adversely ad ad ad- affect paint consumption in a given year Thus In 1967 when poor weather conditions combined with a relatively relatively rel rel- unenthusiastic automobile year paint sales saies rose but a sub-par sub three per cent well below the usual four per five cent-five per cent year year-to-year increase With costs up sharply earnings for many paint manufacturers declined On the whole 1968 was a much better year for the paint industry although substantial substantial substantial sub sub- spending on expansion and modernization modernization mod mod- Instead of new along with the surtax depressed earnings for some of the industry leaders The Outlook ok Color It Rosy Indications are that 1969 will be a good goodyear goodyear goodyear year for the paint makers makers Industry Industry leaders leaders leaders lead lead- ers are estimating that trade sales will rise from 1 billion in 1968 to 11 billion this year with water-based water paints increasing increasing increasing in in- creasing their share of the market from 60 per cent to 66 per cent 70 per cent New products such as fire retardant finishes and coatings for finish factory ing of modular-house modular units should also aiso contribute to improved results Looking further ahead expected growth of the economy increased consumer spending and prospects of a building boom in the indicate that good gains are likely for the paint industry for representation in the paint industry industry indus indus- try over the next few years the Babson's Reports staff feels the following com com- panics have interesting investment p possibilities pos s xa 4 WILLIAMS SHERWIN Is the the then n nations nation's ons on's largest producer of paints and varnishes Recent results have been adversely affected affected af af- af by up start-up costs and higher interest interest in in- terest costs Fiscal 1969 year ends August August Au Au- gust 31 earnings are not expected to show significant improvement over the earned in fiscal Ciscal 1968 but the outlook outlook out out- look for fiscal 1970 and beyond is prom prom- i ising ing NATIONAL LEAD manufacturer of the well known line of Dutch Boy paints and pigments is the country's largest manufacturer of products in which lead is is isa a a basic material it is also prominent in nonferrous die cast cast- Ing Absence of last years year's strike better margins on titanium dioxide operations and a leveling off of up start-up costs at new plants should result in improved 1969 profits COOK PAINT VARNISH makes paints varnishes enamels lacquers synthetic resins and waxes as well as plywood and wallboard and printed hardboard Poor weather and rising costs are hurting this years year's sales and earnings but good range long prospects prospects pro pro- make the stock watching as a rebound candidate |