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expenditures of around $25,000,000 in 1961, it was disclosed.

"We must be prepared for some revolutionary shifts in the fields we serfe,"-Mr. Burnett said, in discussing the immediate years ahead. "These shifts could come about tl-rrough technological advances, style changes and obsolescence. We have developed what we believe are some very solid programs to anticipate needs of our customers in home and industrial markets."

Results in 1960 did not live up to early optimistic forecasts, Mr. Burnett noted, although Johns-Manville had a good year and continued to sell products all year at the rate of a million-dollars-a-day. Earnings and sal-es were the second highest in company history although they did not measure up to the all-time records established in 1959. The total 1960 sales of $365,000,000 were off 3 percent, from the 1959 record, while earnings after taxes of $26,500,000 were off $5,000,000.

"Industrial production has been in a declining trend for some months," Mr. Burnett said, "and new orders have continued to sag. Our sales in the first two months of 1961 were less than last year. It now seems clear that our first quarter sales and earnings will be off. We are hopeful that general _business _will shorv expected improvement by the end of th_e_ second quarter and that housing starts wili also pick up. If current forecasts by many birsiness leaders and economists are true, that business will improve during the se_cond__quarter_and for the balance of [he year, Johns- Manville should have a better year in 1961 than in 1960.

"I am sure that such problems as the higher costs of doing business, increased domestic and foreign competition, and the squeeze on profits will be with us the rest of this year and for many years to come," Mr. Burnett ._said::'lzBut several basic factors favor us. We have more av'ailable producing capacity. J-M research and developrhent activity has been intensified. Our population is growing rapidly and people have more money to spend."