摩托罗拉公司1957年年报

MOTOROLA annual report

HOME AND PORTABLE RADIOS

CAR RADIOS

TWO-WAY RADIO AND MICROWAVE

MILITARY ELECTRONICS

TRANSISTORS

MOTOROLA 4 5 4 5 AUGUSTA BOULEVARD CHICAGO 51, ILLINOIS

MOTOROLA WORLD'S LARGEST EXCLUSIVE ELECTRONICS MANUFACTURER

DIRECTORS and OFFICERS of MOTOROLA

Paul V. Galvin Walter B. Scott Chairman of the Board of Directors Director Vice President, Consumer Robert W. Galvin and Automotive Production Director, President Edwin P. Vanderwicken Daniel E. Noble Director Director Vice President, Finance, Executive Vice President Treasurer and Secretary Industrial, Semi-Conductor and Military Electronics Divisions Joseph A. Chambers Vice President, Western Area Edward R. Taylor Military Electronics Director Executive Vice President John 1. Davis Consumer Products Division Vice President Consumer Product Engineering Elmer H. Wavering Director Sylvester R. Herkes Executive Vice President Vice President Automotive Products Division Consumer Product Marketing

Matthew J . Hickey, Jr. Arthur L. Reese Director Vice President, Communicatio The annual meeting will be held on Monday, May 5, 1958. and Industrial Electronics A notice of the meeting, together with a form of proxy and a proxy Frank J . O'Brien statement, will be mailed to shareholders on or about April 7, 1958. Director Alex Arnold at which time proxies will be solicited by the management. Vice President, Purchasing Controller

TRANSFER AGENTS Chemical Corn Exchange Bank 30 Broad Street, New York 15, New York

Harris Trust and Savings Bank 115 West Monroe Street, Chicago 90, Illinois

REGISTRARS Irving Trust Company One Wall Street, New York 15, New York

Continental Illinois National Bank and Trust Company of Chicago 231 South La Salle Street, Chicago 90, Illino

r financial summary

EARNINGS NET INVESTMENT NET BEFORE TAXES NET EARNINGS WORKING IN PLANT AND SHAREHOLDER SALES ON INCOME EARNINGS PER SHARE1 CAPITAL EQUIPMENT2 EQUITY

$61,981,442 $ 5,755,347 $ 3,550,347 $1.83 $11,088,342 $ 3,148,206 $13,085,196

81,803,358 8,585,696 5,280,196 2.73 14,558,505 4,071,987 17,165,391

177,104,669 27,368,061 13,130,246 6.78 20,731,871 5,794,309 26,895,638

217,964,074 15,512,489 7,076,335 3.66 38,222,001 14,301,004 45,929,419

205,226,077 16,523,889 7,572,024 3.91 38,308,612 16,579,531 50,598,747

226,653,953 18,740,426 8,490,539 4.39 42,892,165 19,179,992 56,186,590

227,562,168 16,887,834 7,966,817 4.12 50,882,200 25,388,866 61,305,080

226,361,190 15,597,031 7,824,431 4.04 52,215,832 27,167,597 66,172,446

'Earnings per share of common stock based upon the 1,935,131 shares outstanding at December 3 1 , 1957. 2 Net investment after deduction of depreciation reserves. 'Thirteen month period ended December 3 1 , 1948. ^Consolidated information including financial data of wholly-owned subsidiaries in 1949 and subsequent years. ^Motorola Finance Corporation, a subsidiary formed in 1956 r is not included in consolidation in 1 956 and 1 957.

To the shareholders of OTOROLA

SALES and EARNINGS Consolidated sales in 1957 were $226,361,000, which compares with $227,562,000 in 1956. Sales of two-way radio and microwave communication systems increased Millions of Dollars per substantially, and so did sales of car radios to the automobile manufacturers. Dollars SALES Share EARNINGS PER SHARE Sales of consumer products declined primarily as a result of generally lower television sales. Auto and home radio sales were about even with 1956, but high fidelity and other phonograph sales increased substantially. Military business was about the same as for 1956. Transistor production for our own use more 14 than doubled, and for the first time transistors were sold to other manufacturers. 250 The consolidated sales figures are not quite comparable with last year's because several of the company's distributor subsidiaries were liquidated by converting

200 12

10 I BEFORE INCOME TAXES

AFTER INCOME T A X E p to independent distributors, and this had the effect of reducing consolidated sales. Consolidated earnings in 1957, before provision for income taxes, were $15,597,031 compared with $16,887,834 in 1956. After taxes, we earned $7,824,431 or $4.04 per share of common stock compared with $7,966,817 or $4.12 per share in 1956. The decline in earnings occurred primarily in military products. All other product lines experienced improved earnings or small declines.

Completely Transistorized, Battery Operated, Portable TV

In January of this year we displayed a new first in television, a completely transistorized, fully portable, battery energized TV set. While the cost of thi unit is excessive under today's state of the transistor art, it marks a new dev ment which in a few years will become available at a practical cost. We continued to produce limited quantities of high quality, fine performing color TV receivers. While public interest and consumer demand showed some increase over the preceding year, it is clear that a strong demand for color is still somewhere in the future.

RADIOS and PHONOGRAPHS Sales of portable, clock and home radio and high-fidelity and other phonographs increased substantially over 1956. The star performer was, again, high fidelity and other phonographs. Motorola had a particularly strong line of high-fidelity phonographs. Their performance and styling were outstanding. Our line of portable phonographs initiated a new idea in the form of fiber-glass cabinets which are attractive a durable. Portable radios—long one of Motorola's strong categories—were further strengthened by the introduction of new transistorized models, including the "Weatherama" which appeals to airplane pilots, sportsmen and outdoorsmen.

This unit is equipped to receive U.S. Government weather reports as well as standard broadcasts. All portable, clock and home radios provided better performance as a result of improved antennas. A fully transistorized car radio and special car radios tofitinto foreign c trucks and boats were introduced during the year. We also introduced several new AM-FM receivers in response to consumer interest in fine tone reproduction. These include an attractive table model as well as separate units for combination in highfidelityphonographs.

AUTOMOTIVE DIVISION Contract car radio sales benefitted from the improved volume of our principal customers, Ford, Chrysler and American Motors. All radios were transistor powered. In the 1959 radios, already under contract, Motorola will introduce the next major development, an "audio driver" transistor, and all sets produce will include this new development. The transistors required for this purpose will be produced in our transistor plant whose production for auto radios will thus be doubled. We continue to produce the push-button transmission controls for Chrysler and American Motors cars.

Remote Control Tuner

High Fidelity

COMMUNICATIONS and INDUSTRIAL ELECTRONICS New all-time highs in sales and earnings were recorded by the communications and industrial electronics division. Substantial increases in sales of transistorized, portable two-way radio and microwave systems were made, and two-way mobile systems continued their growth in volume aided by the new "Private Line" advanced design. The purchase by the State of Ohio of 1300 two-way mobile units and associated station equipment for the Highway Department represented the largest single order for commercial mobile units during peace-time. Sales of microwave systems for both military and civilian use increased. It is hoped that current hearings by the Federal Communications Commission will result in liberalizing the eligibility rules for private microwave systems so that this potential medium of communications may be used by others than the present small category of approved users. We have spent many years in preparation for this event. The new "T-Power" two-way units, which feature a completely transistorized power supply, were introduced late in 1957. For the first time the vibrator as a prime power source was eliminated. Other new products included a new transistorized motorcycle radio, a transistor powered megaphone and transistorized "Dispatcher" industrial radio equipment. These new products have already

Transistorized Car Radios

Industrial

established their merits and are expected to be a factor in the increased sales anticipated in 1958 by this division. Several experiments suggest the growing uses for radio. We are now prepared to offer a pushbutton-dialing radio telephone system, developed for the Rural Electrification Administration, which enables telephone companies with automatic telephone exchanges to provide radiotelephone service to both home and mobile users in sparsely populated areas. Previously it was necessary to have an operator on duty in order to provide radiotelephone service. In an entirely different field, Motorola has recently supplied Wayne County, Michigan, with the country's first radio control for a traffic light system operating in the 960 m band. With this system the traffic pattern can be changed instantly from central traffic headquarters, adjusting to rush hours, bad weather or other conditions affecting the traffic flow. An example of a new application of existing equipment was the installation of two-way radio on airport runway sweepers. Jet planes must have clean runways so that debris isn't sucked into a jet engine's intake. The "Dispatcher" 2-way radio is used to maintain communications between the sweeper operator and the control tower or supervisory personnel. It is expected this division will continue in 1958 an unbroken record of growth.

atcher Radiophone

MILITARY ELECTRONICS Sales of military electronic equipment and services were about the same in 1957 as in 1956. The trend toward a larger proportion of research and development services and lower margins on production contracts had the effect of reducing the earnings of this division. As is well known, the letting of military contracts was substantially reduced in the last half of 1957 and this will have a delayed effect on our 1958 military production. Despite this our billings in 1958 should exceed last year's. Our principal work has been in the fields of data link systems, airborne navigation equipment, missile guidance systems, radar beacons, electronic data handling systems, airborne radar, countermeasures and ground communications.

TRANSISTORS Production of Motorola power transistors about doubled in 1957. Production of germanium switching transistors and silicon power rectifiers was started, and pilot production of a diffused base radio frequency transistor was in progress. A high voltage version of the power transistor was also introduced. We have continued our heavy development expenditures in semi-conductors for which the pay-off is still in the future. But the fabulous future for semiconductors is suggested by industry output of some 12 million in 1956, 30 million in 1957 and probably over 50 million units in 1958. A transistorized television set would use about 31 transistors as of today, and if the economics of production can be solved in the next ten years, so as to make transistorization of television sets practical, the volume, assuming 5,000,000 sets were then transistorized, would be 155,000,000 transistors for this one application alone. Perhaps the greatest use of transistors will be in achieving things electronically which are now done less effectively otherwise. U. S. Navy Terrier Missiles

Investigating diffusion characteristics of Pushbutton Dial Radiotelephone transistors by radio-active tracer measurement.

Transistorized Motorcycle 2-way Radio

FINANCES At the end of 1957 consolidated working capital was $52,215,382 compared with $50,882,200 at 1956 year-end, and net worth was $66,172,000 compared with $61,305,000 in 1956. Largely as a result of pressure to control inventories, incoming materials were at a low rate in December, and year-end accounts payable were therefore $5,793,000 compared with $9,328,000 a year previous, a decrease of $3,535,000. Special payment terms for consumer products shipped in December 1957 were partly responsible for the increase in trade receivables of $3,925,000. Inventorie rose $3,192,000 over the previous year-end. Partly as a result of slower payment terms under government contracts, the costs recoverable under such contracts increased $1,305,000 over the previous year-end and government receivables increased $710,000. The result of these and other changes was year-end bank loans of $9,000,000 for the parent company. Plant expansion plans for 1957 were in part deferred into 1958 although at year-end an addition of about 100,000 square feet to our Franklin Park television plant was in progress, and occupancy will be had about mid-year 1958. A number of major shifts within our Chicago facilities and an added administrative and engineering building for the consumer product and automotive divisions is in prospect for 1958. While the accounts of Motorola Finance Corporation are reported separately herein and are not consolidated, the net earnings of this subsidiary have been taken into the consolidated earnings of the parent company because of the large amount of capital devoted to the finance company and its prospective earning power. This accounted for 11^ of the reported 1957 consolidated earnings of $4.04 per share. A conservative dividend policy was maintained in 1957 in light of the continued capital needs of the company. Dividends totalling $1.50 per common share were paid in 1957.

Transistor Production Line 2-Way Mobile Radio with Transistorized Power Su

At the close of the year there were 4,819 Motorola stockholders. Directors, officers and their relatives owned, directly or beneficially, 707,011 shares o Motorola stock.

FUTURE The year 1958 will be strongly influenced by general economic conditions and new products. Our consumer products and automotive products divisions anticipate a lower volume in 1958 compared to last year. The degree of this downturn will, however, be favorably influenced by the introduction of new types of products in the latter half of the year. In our communications and industrial electronics, military electronics and semi-conductor divisions, we expect increases in volume of our business. All of these increases are substantially influenced by products recently introduce or new products expected this year. The net effect will be somewhat reduced sales and earnings for the corporation in the year 1958. Our long-term confidence in the stability and growth of each of our divisions is illustrated by the completion in early 1958 of a new television production plant and a new laboratory and administration building for our consumer products and automotive divisions.

We are very grateful for the fine cooperation on the part of Motorola employees, distributors and suppliers in making 1957 a good year.

For the Board of Directors,

arch 12, 1958 Chairman

"POWER VOICE" istorized Megaphone

ASSETS

Cash

Accounts and notes receivable:

United States Government Other trade receivables (less reserve for bad debts— 1957, $753,000; 1956, $825,000)

Other current receivables Costs recoverable under United States Government contract

less progress billings Inventories—at the lower of prime cost or market

Prepaid expenses

TOTAL CURRENT ASSETS

Investment in Motorola Finance Corporation, subsidiary no

consolidated—at cost plus undistributed earnings (see accompanying balance sheet)

Other assets

Plant, equipment and leasehold improvements—less reserves for depreciation (Note C)

Patents and trademarks—less amortization

C. AND CONSOLIDATED S 1, 1957 and 1956

LIABILITIES

Notes payable, banks—short term Current maturities of long-term debt

Accounts payable—trade Accrued taxes Reserves for product and service warranties Other current liabilities TOTAL CURRENT LIABILITIES Long-term debt, less current maturities above: Notes payable: Due November 1, 1966, 3 % % , with annual prepayment requirements of $500,000 Due July 1, 1972, 3 % % , with annual prepayment r quirements of $500,000 Due November 1, 1976, 4 % % , with annual prepayment requirements of $500,000 commencing November 1, 1963 Real estate mortgages of subsidiaries, principally m ing after 1 965

Total liabilities DEFERRED INCOME

SHAREHOLDERS' EQUITY Capital stock, $3.00 par value—authorized, 3,000,000 shares; issued and outstanding, 1,935,131 shares Capital surplus Retained earnings Undistributed earnings of Motorola Finance Corporation

(in 1 957, included in retained earnings) Total shareholders' equity

BSIDIARIES

December 31,

1957 1956 Notes to financia $ 9,000,000 1,005,647 $ 505,399 5,793,250 9,328,831 7,683,304 9,476,859 A —The company's business under United States Government contracts is subject to price renegotiation, in 927,166 1,037,638 accordance with federal statute. The company's renegotiation status has been reviewed by the Government 10,996,010 11,284,458 for years to and including 1953, and no refund was required. It is believed that no excessive profits were realized $ 35,405,377 $ 31,633,185 in subsequent years which would be required to be refunded under general price renegotiation.

B —In connection with the financing of sales of products to consumers the companies are obligated under repurchase and other agreements. It is believed that these obligations will have no material effect on the 4,500,000 5,000,000 business of the companies.

7,000,000 7,500,000 C—The companies' investment in plant, equipment and leasehold improvements on December 31, 1957 and 1956 was as follows: December 31, 1957 1956 7,000,000 7,000,000 Land—at cost $ 2,472,582 $ 2,464,020 554,756 560,404 Buildings, machinery and equipment—at cost (less reserves for depreciation— $ 54,460,133 $ 51,693,589 1957, $8,842,253; 1956, $6,783,669) 22,596,005 20,582,289 $ 1,246,718 $ 722,479 Dies, tools, and leasehold improvements—at cost, less amortization 2,099,010 2,342,557 Total $27,167,597 $25,388,866

$ 5,805,393 $ 5,805,393 D—The company has heretofore treated as expense in each year the manufacturing overhead incurred in that 9,018,506 9,018,506 year. It is contemplated that in 1958 such overhead will be included as part of the cost of products as they are 51,348,547 46,426,812 manufactured. If this had been done in 1957, the estimated manufacturing overhead would have been approximately $1,225,000 in the opening inventory and $1,625,000 in the closing inventory which in turn would have 54,369 increased 1957 earnings before contribution to the profit sharing fund and before Federal income taxes by $ 66,172,446 $ 61,305,080 $400,000. The net effect would have been to increase the reported earnings by approximately $153,000 or $121,879,297 $113,721,148 from $4.04 to $4.12 per share.

LA, INC. AND CONSOLIDATED SUBSIDIARIES Statement of consolidated income and retained earnings

Year Ended December 31, 1957 1956

Sales $226,361,190 $227,562,168 Net income of Motorola Finance Corporation—subsidiary not consolidated 209,528 Other income 1,326,201 1,420,685

Total income $227,896,919 $228,982,853

Manufacturing and other costs of sales $178,403,747 $180,683,026 Selling, service and administrative expenses 26,177,101 23,925,552 Depreciation and amortization of leasehold improvements.... 2,809,715 2,245,173 Contribution to employees' profit-sharing fund , 2,333,463 2,872,056 Interest and other expenses 2,575,862 2,369,212

Total costs and other expenses $212,299,888 $212,095,019

Net income before provision for taxes on income , $ 15,597,031 $ 16,887,834

Provision for federal income taxes , 7,772,600 8,921,017

Earnings, .(per common share—1957, $4.04; 1956, $4.12).. $ 7,824,431 $ 7,966,817

Retained earnings, beginning of year 46,426,812 41,362,691

Total, $ 54,251,243 $ 49,329,508

Deduct dividends—$1.50 per share 2,902,696 2,902,696

Retained earnings, end of year , $ 51,348,547 $ 46,426,812

See the accompanying nofes to financial statements.

MOTOROLA FINANCE CORPORATI

lance sheets as of December 31, 1957 and 1956

ASSETS

Cash

Receivables: Lease and conditional sales contracts (including, at December

31, 1957, instalments of $8,932,489 maturing in 1959 and thereafter) Notes receivable, distributors—maturing within one year Total

Less unearned income on lease and conditional sales contracts.. . Net

Other assets

LIABILITIES

Notes payable, banks—short term Accounts payable to Motorola, Inc. and consolidated subsidiaries

Accrued taxes Other current liabilities

Total current liabilities

SUBORDINATED DEBT AND NET WORTH

Subordinated note payable to Motorola, Inc.—due 1 959

Capital stock, $1.00 par value—authorized and issued, 20,000 shares Paid in surplus Retained earnings (net income since inception, March 7, 1956)... Total subordinated debt and net worth

Note: All receivables of Motorola Finance Corporation are covered b and other obligations discussed in Note "B" of Notes to Financia

auditors' report BAUMANN, FINNEY & Co. Certified Public Accountants 208 SOUTH LASALLE STREET

CHICAGO 4, ILLINOIS

February 21, 1958

31, To the Board of Directors and 1956 Stockholders of Motorola, Inc.:

$ 1,542,198 We have examined the balance sheet of Motorola, Inc. and consolidated subsidiaries as of December 31, 1957 and the related statement of income and retained earnings for the year then ended, and the balance sheet of Motorola Finance Corporation as of December 31, 1957. Our examination was made in accordance with generally accepted auditing standards, and accordingly included such tests of the accounting records and such other auditing procedures as we considered necessary in the circumstances. It was not practicable to attempt to obtain confirmations of certain receivables from the United States Government, but we satisfied ourselves as to their substantial accuracy by means of other auditing procedures. $ 8,000,000 In our opinion, the accompanying finan 271,735 cial statements present fairly (a) the fi48,500 nancial condition of Motorola, Inc. and consolidated subsidiaries as of December 17,503 31, 1957 and the results of their operations for the year then ended, and (b) the financial condition of Motorola Finance Corporation as of December 31, 1957, in co formity with generally accepted accounting principles applied on a basis consistent with that of the preceding year.

$ 4,054,369 $12,392,107

H U M A N R E L A T I O N SBuilding people and a partnership

It is important that the people who create, make whom some 3500 are engaged in engineering, de- dealt directly with its people and has never expeand sell our products work and live in an atmo- sign, research and development activities. Although rienced a work stoppage. sphere that offers each individual an opportunity these Motorola people work in 15 facilities in Motorola's human relations program is well intefor growth, expression and participation. And then, Illinois, New York, Michigan, Arizona and Cali- grated and covers all important phases of personnel through good leadership and a spirit of partnership, fornia, they all enjoy identical benefits of the com- activities. Among them, the following four selected we unify our efforts for the several fields of compe- pany's human relations program. areas well illustrate the nature and depth of the tition in which we engage. Our program of human relations is practical and program: recognition of the individual, communiMotorola employs just about 12,000 people, of substantial. The company, since its inception, has cations, profit sharing and executive development.

EXECUTIVE DEV

Members of 15-man advisory council, shown here with three associate members representing remote plant locations, develop broader company perspective,

learn techniques of problem-

solving at top policy level, fo

pool of potentially promotable

executives.

T PROGRAM

"Pointing out those areas in which he can improve is one of the greatest services an executive can render a man who reports to him"

This reflects the Motorola philosophy of executive development. A key to the success of any company is the technical and middle management group that

must be developed in order to perpetuate a strong organization. Each individual in this important gro is evaluated by his superior who in turn is himself evaluated by the man to whom he reports. The result is better performance and leadership by executives and the building of people of executive stature. Eight years ago, as one arm of our executive development program, the Advisory Council to the Board of Directors was formed. Consisting of 15 men from middle management, its purpose is to investigate and recommend action in every sphere of Motorola operations. Since its inception this "junior board of directors" has worked on more than 300 different projects, and four of its member

have become Motorola vice presidents.

Executive development work books are provided to instruct Motorola executives in the techniques required for proper evaluation of personnel, and describe in detail all aspects of executive development program.

All Motorola employees are encouraged to seek

further education. Currently, 250 Motorolans are en-

rolled in universities and colleges such as shown above

The training department also provides an extensive

program of vocational guidance courses in electronics.

H U M A N R E L AT I O N SBuilding people and a spirit of partnership

RECOGNITION OF THE INDIVIDUAL The heart of a sound human relations program is recognition of the individual. This starts with proper attention to and acknowledgment of his job performance by supervision. There must follow practical rewards for this performance, recognition of his family responsibility, and opportunities to play his role as a community citizen. It is equally important that he be provided outlets for self- Public speaking ability is developed through membership in Toastmaster's Clubs. Clubs meet once a week. expression. With regard to the latter point, there are 75 different activities, each There are three of them with total membership of 75. of which appeals to the many and varied preferences encountered in a family of 12,000 persons. Every one of these activities is conceived and executed by its own members. Motorola men and women may participate in as many of these activities as they wish. Recreational activities include sportsmen's clubs and old-timers' clubs, toastmasters' clubs and stock investment clubs, foremen's clubs and engineering clubs. Last year alone these organizations, whose programs reach out to include employees' families, enjoyed more than 200,000 hours of participation. Such company-identified activities, each with a constructive purpose, each with its own leadership, make it possible for anyone to find extra personal satisfaction in his association with Motorola.

Largest of all Motorola clubs, the Service Club sponsors Gals get together, too. Here women members of the an annual banquet honoring its 10,15, 20 and 25 year mem- Engineering Club are shown at their annual dinner me bers. Below, Robert Galvin, Motorola President, addresses ing at which officers for the forthcoming year are e last year's banquet at which a record 424 service awards were distributed.

PARTICIPATION IN MOTOROLA-SPONSORED CLUBS AND ACTIVITIES

This is but a partial list of Motorola clubs and other activities with the number of current participants.

BASKETBALL LEAGUE—120 participants INVESTMENT CLUB—4 Chapters—60 members BOWLING LEAGUE—1,579 participants PRESS CLUB—5 Chapters—100 members ENGINEERING CLUB—3 Chapters—250 members SERVICE CLUB—1,400 members ' EYES OF MOTOROLA (Inspection Department personnel)—75 members SOFTBALL LEAGUE—265 participants FINANCE CLUB—150 members SPORTSMEN'S CLUB—52 members FIREMAN'S CLUB—3 Chapters—250 members TOASTMASTER'S CLUB—3 Chapters—75 members FOREMEN'S CLUB—3 Chapters—275 members TRAIL DUSTERS—50 members

Welcome to Motorola booklet fully answers all new employee's questions.

COMPLETE AND CONTINUING COMMUNICATIONS

Each new employee's famil The objectives of a company communication pro- receives at home, 10 week gram must be to provide thorough two-way com- "Going Our Way" letters explaining the human rela munications thruout the company. Strong emphasis program. is placed on making available acceptable channels of communications for all employees. In addition, the company provides a number of formal methods of communications to all the people. In all, each year approximately 50 communications are sent to the home of every Motorola man and woman. From the day a person joins Motorola, he is kept Voice of Motorola. 22 issues in touch. Upon employment, he is given a booklet a year. News from everywhere "Welcome to Motorola;" then, for the first 10 weeks, E ^ ^ and everybody in Motorolaland.

he receives at home a series of "Going Our Way" letters which explain fully the principal employee benefits to the employee's family. • 1• f Motorola technicians and engineers find the bi-monthly All Motorola employees receive regular copies of publications "Newsgram" the "Voice of Motorola" and the President's Letter. helpful in keeping everybody The "Newsgram," a technical publication, goes to informed. all technical and engineering personnel. Regular issues of the Motorola Management Newsletter are received by all administrative, supervisory and technical people. Beyond this, frequent talks by top officers are made to employee groups. © The Management Newsletter is mailed once every month to the homes of all administrative, supervisory and technical personnel.

H U M A N R E L AT I O N SBuilding people and a spirit of partnership PROFIT SHARING Sharing in the profit-success of the company is part of the basic partnership philosophy of the founder of the company. This is expressed in Motorola's program through our profit sharing plan which is a contributory, deferred distribution trust fund with a current value of $30,000,000. Under the plan every Motorola employee contributes between 2% and 5% of earnings, but not more than a total of $200 per year. Currently over 99% of participating employees contribute the maximum. Each year the company contributes 20% of profits before taxes, after allowing for a return on stockholders' investment. This contribution and the earnings of the fund are allocated to the participants' accounts on the basis of their savings and their credit balance. Since no one in the company shares in the plan with respect to his earnings in excess of $4,000, a supplementary, contributory retirement plan is available to provide retirement benefits in a fair proportion to earnings. The funds are administered by the Profit Sharing Advisory Com- Profit-sharing plan of Motorola permits home loans at low interest rates. Applicants may borrow mittee consisting of two elected employee representatives, two manageup to 75% of vested interest for home loans. ment appointees and the trustee, Paul V. Galvin, Chairman of the Board. This governing board makes decisions pertaining to fund investments and acts on all employee loan applications. Profit-sharing is a Motorola plus. So is the 8-Way Motorola Insurance Plan which provides for eight forms of coverage, including a company-paid basic hospital plan. Also, Motorola employees and their families may be covered by the Major Medical Policy which provides coverage up to $10,000 for any one cause with a $25.00 deductible.

The Motorola Way to profit- 8-Way Group Coverage includes: Motorola's Major Medical Plan sharing is simply and easily life insurance; accidental death; doc- guards every participating em explained. tor's fees; maternity benefits; acci- ployee and family up to $10,0 dent or illness; hospitalization; spe- for a low monthly employee co cial hospital charges; surgical fees. of just $7.95.

The up-dating of profit sharing books is dramatized annually with the appearance of Prof Sharin together with helpers "Johnny and Mary" Motorola. Here Director of Human Relations, Kenneth M. Piper, receives notice of increased profit sharing and savings balance.

ABLE RADIO

PORTABLE TELEVISION

Quality s engineere into every MOTOROLA product

CLOCK RADIOS

CAR RADI

HI FIDELITY

1

PORTABLE RADIOS

BLACK AND WHITE TELEVISION

COLOR TELEVISI

MOTOROLA, INC. CHICAGO 51, ILLINOIS • 29 years of leadership in electronics exclusively