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Show OKU BM 0 FIRST QUARTER RESULTS Net income per share in the first quarter of this year was $1.08, as compared with $2.57 in the first quarter of 1957. The reduction was the result of lower domestic copper sales, accompanied by lower world prices. Industry wide, the domestic consumption of copper is at the lowest level since 1954. In the first quarter of 1958 deliveries to domestic fabricators averaged 94,000 tons a month, as compared with 112,000 tons a month in the corresponding quarter of 1957. Foreign consumption, on the other hand, continues to be good and the rate is increasing. In the first quarter of this year deliveries to foreign fabricators averaged 143,000 tons a month, as compared with 135,000 tons a month in the same quarter of the previous year. Kennecott s total sales of copper in the first quarter averaged 39,300 tons a month, as compared with 48,300 tons a month in the first quarter of 1957. The bright spot is European demand for our Chilean copper, and we have sold our entire scheduled production for 1958. As a result of this, and the reduced demand in the United States, the volume of our foreign sales in the first quarter of 1958 increased to 46 per cent of total sales, whereas in the first quarter of 1957 it was 39 per cent. The U.S. producers price for copper in the first quarter of this year averaged 25.3 cents a pound, as compared with 33.7 cents in the first quarter of 1957. The price on the London Metal Exchange, at which we sell our Chilean copper, averaged 21.2 cents in the first quarter of this year, and 31.3 cents in the first quarter of 1957. Recently the London price has advanced from a low of 20.2 cents to 22.6 cents. INTEGRATION PROGRAM In the 1957 annual report we referred to our integration program. The predecessor companies of Kennecott were pioneers in the development of low grade porphyry properties. This required a large amount of capital for mine development and railroad and mill construction. Custom smelters were already in operation serving the numerous small mines then in existence. Most of the fabricating was done in the East and there was ample refining capacity available along the Eastern seaboard for the refining requirements of the time. Thus, it was unnecessary and economically undesirable for Kennecotts predecessors to provide their own smelting and refining capacity. However, this situation was altered by the following: (1) Kennecotts copper production increased beyond the capacity of the smelters, (2) a Western movement of fabricating plants and a need for more eletrolytic copper developed, (3) the economic benefit of eliminating smelting and refining fees increased, and (4) greater operational control over the entire sequence of copper production became increasingly important. We have just signed a contract for the purchase of the Garfield Smelter of American Smelting and Refining Company, which 6melts the product of Kennecotts Utah Copper Division and is located adjacent to the divisions mills and refinery. This acquisition, and me completion of the new Ray smelter and Eastern refinery, will mean that Kennecott will be doing all of its own smelting and most of its own refining. When the present amended refining contract with ASARCO expires in 1965, we plan to construct the necessary additional refining capacity to malce the company 100 per cent integrated. The entire integration program is estimated to cost Of this amount $19,000,000 has been spent thus far and $57,000,000 is presently committed for expenditure during 1958 and 1959. The remaining estimated $35,000,000 is for modification of the Garfield smelter in order to adapt it toi our requirements and for later refinery expension. Expenditures for these last two period. parts of the program will be spread over the 1959-196- 5 OTHER COMMITMENTS Commitments for projects other than the integration program amount to $95,500,000 as of March 31, 1958. Principal items include the Ray expension program, additions to the Utah and Chino power plants, and investment in Allied Kennecott Titanium Corporation. CONCLUSION In conclusion, the volume of our foreign business continues level. The to be good but domestic sales remain at a has sliown far no improvement. Our domestic second quarter so business is divided almost equally between wire mills and brass mills. While there are signs that the business of wire mills is picking up, as a result of increased orders from utility companies, the same situation is not true in regard to the brass mills, although it is reasonable to expect increased business from building construction, which is an important part of the market. n .) Salt Lake City, Utah May 16, The Utah State Bar Association will meet today for the second day of its 27th annual convention being held at the Hotel Utah. Arthur A. Allen, convention committee chairman listed several of the outstanding speakers for todays meeting, including D. G. Homer George D. Gibson,-DrHowe' Moffat, Calvin Behle, Durham, Sanford H. Kadish and the "Honorable Harold R. Medina. Judge Medina, known as the patient judge, will close the Friday afternoon session. Voted Man of the Year in 1949 by the Associated Press, the Judge will p4 speak on A Look at America. The address is open to the public. Another feature of todays Bar Association Convention will be the Bar Wives Brunch to be held it the Salt Lake Country Club, drs. Clair Senior is chairman of his event. In addition the annual Dinner Dance will be held beginning at 7:30 pjn. at the Hotel Utah Starlite Gardens under the chairmanship of Earl Staten. over the Friday Presiding morning session will be Dean Daniel Dykstra. Friday afternoon, ra A. Huggins will preside. Thursday, following the presi- 1958 . dent's report by James P. Mc-Cun- e, Mr. Bryce E. Rowe spoke on the Adoption of a Utah Tort Claims Act. W. Page Keeton .Mr. Rowe speaking on the Federal Tort Claims Act. Problems of Revision of the Utah Code was. the address given by Allen Smith. Following the address presented by Justice Hugo L. Black,- Mr. John P. Frank spoke on Lincoln as a Lawyer, closing the Thursday session. Friday, talks will deal with Status of the Proposed Corporation Code for Utah, by D. Howe Moffat; An Appraisal of the Draft by Calvin Behle; Virginias Experience With the Model Business Corporation Act by George D. Glvson; The Administration of Criminal Justice by Stanford H. Kadish and A Look at America by the Hon. Marpld R. Medina.; . fol-owe- Financial Summary Week Ended May 10, 1958 N. Y. STOCK EXCHANGE Stocks rose in active trading; volume, 14,103.810 shares. Bonds closed irregularly higher in active trading; transactions, $24,163,500. AMER. STOCK EXCHANGE Stocks rose in heavy trading; 5,080,000 shares sold. Bonds were firm; sales, $490,-00- 0. FOREIGN EXCHANGE Sterling was lower. Canadian dollar moved higher. COMMODITY FUTURES Grains irregular. Cotton higher, - $111,-000,00- 0. sub-norm- p 16, 1958 Annual Convention Today ," (D-Fla- . Friday, May Utah Barfbjinpletes Militant support of the Smathers Committee seeking solution of the railroad problems of the nation is asked of the 77,000 stockholders of Union Pacific Railroad Co. Harold B. Lee, member of the Council of Twelve Apsotles of the Church of Jesus Christ of Latter-day Saints, and George S. Eccles, president of First Security Corp., directors of the railroad, joined UP officers at the annual stockholders meeting here in praising the report as a very real and painstaking effort to analyze and solve the present problems of the railroads. The Smathers committee should be commended on the fine work' it has done, even though its specific recommendations did not go far enough in some respects, particularly in said Elgin Hicks, Omaha executive vice president; Frank E. Barnett, New York City, vice president-eastergeneral counsel, and W. T. Burns, Omaha, Neb vice president-traffic- . Sen. George A. Smathers and his associates have done a fine piece of work in making their recommendations to Congress for correction of unfair and outmoded handicaps under which the railroads have been operating, they said. rate-making- at of UTa !.- RAILROADS SEEK STOCKHOLDERS SUPPORT NOW al Delivery of the 22.92 ore to the Atomic Energy Commissions station at Grand Junction, Colorado. Left to right: P. B. Martin, assistant gen eral counsel, Grand Junction Operations Office, A EC; E. A, Youngberg, assistant manager. Grand Junction Operations Office, AEC; A. P. Kibbe, o Hi Salt Lake City, Utah Kennecott Report H & COV-- Whats What and Western Mineral Survey Vol. 1; No. 56 cO'M- - president, Lisbon Uranium Corporation; Allah E. Jones, manager, Grand Junction Operations Office, AEC; M. N. Gaines, manager, Lucius Pitkin Inc. (Ore buyer for AEC); John T. Sherman, assistant director, Division of Raw Materials, AEC, Washington, D.C. d |