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
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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 |