Date: Fri, 21 Nov 1997 04:09:13 GMT Server: Apache/1.1.1 Content-type: text/html Content-length: 5170 Last-modified: Thu, 11 Sep 1997 21:36:54 GMT Words from the top

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1996 Annual Report-Letter to Shareholders

 

In 1996 ACX Technologies, Inc. completed its forth year as an independent, publicly owned company. It was a year of beneficial transition and progress. ACX is pleased to report that revenues grew by eight percent to $712 million. Operating income increased by three percent to $63 million from continuing operations, before asset impairments and restructuring charges. During 1996 ACX decided to exit the rolled aluminum business and refocus it efforts in advanced technical ceramics and specialty packaging.

On record sales of $276 million, Coors Ceramics Company earned $44 million in operating income, with one of the industry’s highest returns on average net assets. This was achieved during a year in which demand for electronic ceramics products declined. Coors Ceramics Company’s ability to continually develop new markets and products attests to the diversity of its capabilities and strength of its management team. With compound annual index sales growth of almost 11 percent for the last four years, Coors Ceramics is well-positioned for continued growth.

Graphic Packaging Corporation achieved its eighth consecutive year of record sales and operating income in 1996. Sales reached $347 million, while operating income grew by 19 percent to $41 million. Plant floor efficiency improvements increased operating margins. Revenue and operating income were enhanced through the acquisition of Gravure Packaging, Inc., a specialty folding carton company. Facilities and management are in place for continued growth, while Graphic Packaging looks for strategic, synergetic acquisition opportunities in the consolidating industry.

ACX scaled back solar module manufacturing while refocusing on solar electric power systems. The purchase of a controlling interest in Photocomm, Inc,. one of the world’s leading integrators and distributors of solar electric power systems, places the solar business in leadership position in this rapidly growing industry.

While 1996 was year of transition and flat precharge earnings per share, our core businesses were strong, setting the stage for opportunity and growth in 1997. After the 1996 decision to exit the aluminum business,
the sale of Golden Aluminum Company was completed in March of 1997. To meet growing product demand, ACX plans to invest approximately $50 million in its ceramics and packaging businesses. In addition, ACX is seeking synergistic acquisition opportunities to more aggressively grow these two businesses.

Pioneering customer solutions has been the Company’s strength and the hallmark of ACX since its inception. Whether through offering innovative products form technical ceramics Composipac, ComposiGard and ComposiCup packaging or providing a remote village with electricity via solar power, ACX finds solutions to its customers’ problems with products that are unique and effective. ACX has financial resources exemplified by a strong balance sheet, an excellent customer base and management commitment to grow core businesses. The Company’s goal is to enhance shareholder value continually and earn your trust as a valued shareholder in ACX Technologies, Inc.

Office of the President  

 


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