Evening star., 1963-04-25

nual stockholders meeting at
the Gramercy Inn. It's exact
location will be announced
shortly.
1t is expected to be in opera
tion within two years and at
first will employ around 500
persons. All company tech
nical facilities and small
manufacturing facility will be
brought together there, includ-
ing a leased facility now OPP
Grating at Bladensburg, Md,
and another planned in Rock
vile.
1868 Profit Forecast
Mr.. Uhl told stockholders
that despite an unfavorable
first 1868 quarter, sales for the
full year should come within
10 per cent of the 1862 vol
ume of around $40 million. He
also predicted a profit, but de-
clined to guess how large it
would be.
The company had a loss of
$l,286,000 in three months
ended March 81 on sales Of
$l3,115,000, compared with net
profit of $760,000 on sales of
$l7,371, 900 in the same 1862
period.
However, the company's or
der backlog rose to $38 million
on March 81. compared with
$50 million just three months
earlier.
Mr.. Uhl told stockholders
the company was going through
a transitional period. but that
new missile and space contracts
indicated good year ahead.
The company has a $6.5 million
contract for meteoroid detec-
tion satellites, the first Of which
will be launched next year.
They will be the largest United
States satellite so far. An
other new contract calls for
production of airframe compo-
nents for the Navy Talos mis-
sile.
Gilbert Proposals Rejected
Stockholders turned down
two proposals, one amending
the company's stock option
plan, and the other calling for
cumulative voting for directors.
Both were proposed by Lewis
Gilbert, veteran questioner at
annual meetings, but we're sup
ported by holders Of only 1877
per cent of the stock. Mr.. Gill
bert said the proposals would be
presented again next year.
Under the options proposal,
receivers of them would be re-
quired to hold them three years.
options would be issued in an
nual installments over periods
of no longer than 10 years. The |
amount of the options would be
limited.
Stockholders on prospects Of
resumption of cash dividends
after more than six years with
out them. Many were highly
critical, although some defend
ed management.
In reply, Chairman Sherman
M. Fairchild said the company
was in sound shape, but is 60
ing through some tough years
and should not pay out divi-
dends until earnings justify
them.
Battle Over Rent
The company Is engaged in a
tussle with the Air Force over
rentals it is paying for around
/ million square feet of leased
space belonging to the Govern
ment at Hagerstown, stockhold-
ers were told.
The difference between Air
Force rent demands and what
the company thinks 1t should
pay approximate 100000 a
year. Hearings will be held and
a decision is expected in seven
or eight months.
Mr.. Uhl said the battle over
high rent is only one of the un-
favorable aspects of Hagers-
town operations. An imprac-
tical seniority rule also makes
any staff adjustments there
costly and inefficient.
The excellent bonding facili-
ties there will be maintained.
but some other operations may
have to be moved to other
locations unless these problems
are solved satisfactorily. The
company owns around 400 900
square feet of space at Hagers-
town in addition to its leased
space. Some stockholders in
quired whether a reduction in
force at Hagerstown had
worked unfair hardship on vet
eran and loyal employees.
Mr.. Fairchild said the COM
pany had no choice but to keep
the most efficient employees.
and a number Of jobs had to
be eliminated as they were no
longer needed.
In hardship cases, the COM
pany has made every effort to
place discharged employees else
where, but for those In high
salaried positions this has
been difficult. he declares.
Mr.. Uhl said prospects for
new company-owned manufac-
turing facilities at WINSTON
Salem, N. c., were highly en-
couraging. A good supply OF
skilled labor, reasonable wage
levels and community co-opera-
ton have helped, he declared.
Company employees num-
bered 4.08S on March 81, COM
pared with 4,388 a year ago.
stockholders were told. All di-
rectors were reelected.