Johns Manville

Johns Manville
Company typePrivate until 1926

Public until 2001

Subsidiary (2001-)
NYSE: JM
IndustryManufacturing
Founded1858, in New York City

Reincorporated 1901

Reincorporated 1926
Founders
  • Henry Ward Johns
  • Charles B. Manville
Headquarters
Denver, Colorado
,
U.S.
Key people
Bob Wamboldt (president and CEO)
Products
ParentBerkshire Hathaway
Websitewww.jm.com

Johns Manville is an American company based in Denver, Colorado, that manufactures insulation, roofing materials and engineered products. For much of the 20th century, the then-titled Johns-Manville Corporation was the global leader in the manufacture of asbestos-containing products, including asbestos pipe insulation, asbestos shingles, asbestos roofing materials and asbestos cement pipe.[1]

The stock of Johns-Manville Corporation was listed on the New York Stock Exchange in February 1928[2] and had been included in the Dow Jones Industrial Average from January 29, 1930 (replaced the North American Company) to August 27, 1982 (replaced by American Express). It was a Fortune 500 company in each of the years 1955-1996.[3] In 1981, Johns-Manville Corporation was renamed simply Manville.

In 1982, facing unprecedented liability for asbestos injury claims, the company voluntarily filed for bankruptcy under Chapter 11 of the U.S. Bankruptcy Code.[1]

Berkshire Hathaway bought the company in 2001.

Today, Johns Manville is a manufacturer and marketer of products for building insulation, mechanical insulation, commercial roofing and roof insulation, as well as fibers and non-woven materials for commercial, industrial and residential applications. The company serves markets that include aerospace, automotive and transportation, air handling, appliance, HVAC, pipe and equipment, filtration, waterproofing, building, flooring, interiors and wind energy. Johns Manville has annual sales over $4.5 billion. The company employs 8,000 people and operates 46 manufacturing facilities in North America and Europe.

History

An advertisement for Johns-Manville asbestos roofing used in the construction of the Detroit Public Library's main building, 1921

Early years

The present-day Johns Manville company traces its origins to two early manufacturers of construction materials. At the age of 21, Henry Ward Johns (1837 West Stockbridge - Feb 15, 1898 Yonkers[4]) founded the H.W. Johns Manufacturing Company in New York City.[5][6] He obtained a number of patents during his business career.[a] In 1885, the Manville Covering Company was established in Wisconsin by Charles B. Manville, whose grandson was the much-married socialite Tommy Manville.

In 1901, the H.W. Johns Manufacturing Company and the Manville Covering Company of Milwaukee merged to form the H.W. Johns-Manville Company.[b] In 1920 the company renamed itself to Johns-Manville Incorporated.[10] In 1926, the firm was reincorporated as Johns-Manville Corporation.[c] On the occasion, JP Morgan & Co invested close to $7,500,000 into what had theretofore essentially been a family-owned "gold mine" (New York Times).[11] A few months later JP Morgan & Co. increased their stake substantially.[12]

From 1902 to 1920 the company had paid a total of $3,067,969.07 of dividends on its 7% preferred and its common stock and paid out $9,067,815.25 in dividends from 1921-1926. The stock buyback of $2,500,000 face amount of preferred stock for cash concluded in 1923 was also a form of (self-selecting) cash dividend.[10]

The Brooklyn plant was at foot of 39th street (40°39′26″N 74°00′53″W / 40.65719°N 74.0146°W / 40.65719; -74.0146).[13] There was a plant in Waukegan, Illinois under construction in 1921.[14][15] (42°23′17″N 87°49′10″W / 42.38799°N 87.81947°W / 42.38799; -87.81947).[16]

In February 1929 the company's market capitalization exceeded $180 million.

Johns-Manville Common Stock Price Range[d]
Year Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
1928 202 High 125 122+7⁄8 133+1⁄2 134 124+7⁄8 117+1⁄2 140 159+1⁄4 177+1⁄2 194+3⁄4 202
96+1⁄4 Low 114 111+1⁄2 116+1⁄2 120+1⁄2 96+1⁄4 101+3⁄8 116+7⁄8 130+1⁄8 148 161+3⁄4 159
1929 242+3⁄4 High 237 242+3⁄4 217 187 194 189 200+3⁄4 205 219+1⁄4 211+3⁄8 137 140+3⁄4
90 Low 180+1⁄2 192+1⁄2 155+1⁄4 162 152+1⁄2 161+1⁄2 179+1⁄2 175+1⁄8 190+5⁄8 107 90 105

While the United States ranked first in the world in consumption of asbestos, by far the largest producer was Canada, which made the United States the biggest importer (in the early 1930s).[19]

During the 1930s, industrialist Lewis H. Brown was president of the company. In 1949, the Canadian branch of the company was involved in the Asbestos Strike at its mines in Asbestos, Quebec.

In the early 1950s the company framed itself as vital for national defense, as was common for companies that could be considered part of the military-industrial complex. The company would pursue projects for "the development of substitutes for critical materials, jet aircraft blanked insulations, filters for radioactive dusts, improved fireproof clothing and other projects which will play a vital role in military and civilian defense".[20]

In 1958, Johns-Manville bought Glass Fibers, Inc., based in Toledo, Ohio, from Randolph Barnard. This purchase propelled the company's insulation division. At that time, Dominick Labino was working for Glass Fibers; Barnard and Labino both joined Johns-Manville. Glass Fibers had several plants in Waterville and Defiance, which are still in operation under Johns Manville,

Beginning just after World War II, sculptor Beverly Bender spent thirty-two years working in the art department of Johns-Manville, creating animal sculpture in her free time.[21]

Asbestos litigation and bankruptcy

Starting as early as 1929, Johns-Manville employees began claiming disability from lung diseases.[22] The claims settled out of court, with a secrecy order.[23] In 1943, Saranac Laboratory in New York confirmed the link between asbestos and cancer, but Johns-Manville suppressed the report.[23] From approximately 1930 to 1950, attorney Vandiver Brown handled involvement in such lawsuits. Files and testimony alleged that "[Johns-Manville] maintained a policy into the 1970s of not telling its employes that their physical examinations showed signs of asbestosis".[24]

In 1943, Johns-Manville suppressed a report confirming the link between asbestos and cancer. During the 1960s, 1970s and 1980s, the company faced thousands of individual and class action lawsuits based on asbestos-related injuries such as asbestosis, lung cancer and malignant mesothelioma. Many new settlements included offering $600 for asbestosis, while the FAIR Act called for $12,000 for this condition level.

As a result, the company voluntarily filed for chapter 11 bankruptcy protection in 1982. At that time, it was the largest company in United States history to have done so. The filing shocked financial analysts, but a few, such as Gary J. Aguirre, had predicted the filing and had forced the company to post a bond to guarantee payment to their clients.[25][26]

The bankruptcy was resolved by the formation of the Manville Trust to pay asbestos tort claimants in an orderly fashion by giving the trust the majority of the equity in the company. The bankruptcy took over five years to process and resulted in protracted litigation. The Manville Trust is still in operation today.[27][28]

Post-bankruptcy

The company emerged from Chapter 11 in 1988[29] as the Manville Corporation. In 1997, the company changed its name back to Johns Manville (but without the hyphen), and this is the name under which it does business today. In 2001, Johns Manville became a wholly owned subsidiary of Berkshire Hathaway (NYSE: BRK.A, NYSE: BRK.B).

Then chairman and CEO Jerry Henry retired in 2004. At that point, Steve Hochhauser became chairman, president and CEO. Todd Raba succeeded him in the summer of 2007; he came from MidAmerican Energy Holdings, another Berkshire Hathaway company. In November 2012, Mary Rhinehart was named president and CEO,[30] and she added the title of chairman in 2014. In September 2020, Bob Wamboldt became CEO and president, while Rhinehart remained as chairman.

In 2012, Johns Manville appointed a new CEO, Mary Rhinehart.[31] She was the CFO for Johns Manville and had been with the company for over 33 years. In 2020, Bob Wamboldt became the president and CEO, while Rhinehart remained as chairman.

Manville, New Jersey

The town of Manville, New Jersey, is named for the company. It had a large manufacturing plant in the borough. Guests could stay in the Hotel Asbestos on Millstone Road.[32]

Statistics

Consolidated Earnings
Year Revenue Profit
[33]
1911 $11,155,190 $730,178
1912 13,747,749 915,193
1913 16,635,119 946,470
1914 15,238,136 275,134
1915 15,671,151 662,498
[10]
1923 38,261,025 3,662,009
1924 37,627,084 2,407,504
1925 39,201,263 3,017,207
1926 45,042,327 4,856,033
[34]
1930 49,492,048 3,268,123
1931 33,481,300 583,792
1932 20,409,206 —2,680,873
1933 21,232,272 105,331
[35]
1947 133,885,412 9,486,633
1948 173,458,033 15,440,475
1949 162,580,782 14,368,926
1950 203,272,945 22,814,491

References

  1. ^ a b In Re Johns-manville Corp., et al., Debtors.the Hospital and University Property Damage Claimants, Appellants, v. Johns-manville Corporation, et al., 7 F.3d 32 (2nd Cir., Oct. 4, 1993)
  2. ^ "Johns Manville Corp - Listing". Commercial and Financial Chronicle. Vol. 126, no. 3268. 11 February 1928. p. 881.
  3. ^ "Fortube 500: Companies by year - M".
  4. ^ "Obituary". The Engineering and Mining Journal. Vol. 65, no. 8. 19 February 1898. p. 228.
  5. ^ Castleman, Barry (2005). Asbestos: Medical and Legal Aspects. Aspen, CO: Aspen Publishing. pp. 609–613. ISBN 0-7355-5260-6.
  6. ^ Standard paints for structural purposes : H.W. Johns' asbestos liquid paint. Columbia University Libraries. New York: H.W. Johns' Manufacturing Company. April 1888. THESE PAINTS [...] have been found to withstand the severest tests of climatic changes, sea-air. and other trying exposures where the best white lead has failed[...]{{cite book}}: CS1 maint: others (link)
  7. ^ "US 76,773" (PDF).
  8. ^ "Johns-Manville Co. - Consolidation". Commercial and Financial Chronicle. Vol. 74, no. 1907. 11 January 1902. p. 98.
  9. ^ "Johns Manville Co. - Pref. Stock". Commercial and Financial Chronicle. Vol. 96, no. 2497. 3 May 1913. p. 1301.
  10. ^ a b c d e "A-7836 - Johns-Manville Corporation". Listing Statements of the New York Stock Exchange. Vol. 51. 31 December 1927.
  11. ^ "Johns Manville Inc - Morgan Buys Stock in Johns-Manville". Commercial and Financial Chronicle. Vol. 123, no. 3209. 25 December 1926. p. 3329.
  12. ^ "Johns Manville Corp. - Substantial Interest in Common Stock to be Acquired by J. P. Morgan & Co". Commercial and Financial Chronicle. Vol. 124, no. 3231. 28 May 1927. p. 3220.
  13. ^ Plate 163L (1888)
    Plate 9 (1906)
  14. ^ "Johns-Manville Co. - New Plant". Commercial and Financial Chronicle. Vol. 112, no. 2922. 25 June 1921. p. 2754.
  15. ^ "Johns Manville Co. - Acquisition". Commercial and Financial Chronicle. Vol. 108, no. 2795. 18 January 1919. p. 273.
  16. ^ Index, Plate 16 (1924)
  17. ^ "Course of Prices of Railroad and Miscellaneous Stocks for the Year 1928". Commercial and Financial Chronicle. Vol. 128, no. 3315. 5 January 1929. p. 67.
  18. ^ "Course of Prices of Railroad and Miscellaneous Stocks for the Year 1929". Commercial and Financial Chronicle. Vol. 130, no. 3367. 4 January 1930. p. 86.
  19. ^ Department of the Interior, Bureau of Mines (January 1935). Information Circular 6817: Asbestos - General Information (Report). p. 12-15.
  20. ^ "Johns-Manville Corp. - Expansion Plans Discussed". Commercial and Financial Chronicle. Vol. 173, no. 5013. 21 May 1951. p. 6.
  21. ^ Jules Heller; Nancy G. Heller (19 December 2013). North American Women Artists of the Twentieth Century: A Biographical Dictionary. Routledge. ISBN 978-1-135-63882-5.
  22. ^ Castleman, at page 609.
  23. ^ a b Government, Asbestos Safety and Eradication Agency, Australian (2017-01-23). "History of asbestos - chronology | Asbestos Safety and Eradication Agency, Australian Government". www.asbestossafety.gov.au. Retrieved 2017-10-12.{{cite web}}: CS1 maint: multiple names: authors list (link)
  24. ^ Richards, Bill (November 12, 1978). "New Data on Asbestos Indicate Cover-Up of Effects on Workers". The Washington Post. Retrieved December 13, 2019.
  25. ^ Was Aguirre Prophetic on Manville Filing?" San Diego Daily Transcript (October 28, 1982)
  26. ^ "83 San Diegans to Watch in '83". San Diego Magazine (January 1983) p. 105
  27. ^ Manville Personal Injury Trust Official Website, accessed, May 6, 2012
  28. ^ Thompson, David; G. Marcus Cole (2007). "The Intersection of Bankruptcy and Mass Torts". In Robert Rammusen (ed.). Bankruptcy Stories. Foundation Press. ISBN 978-1-59941-018-0.
  29. ^ "Manville Ready to Emerge From Bankruptcy". Los Angeles Times. 1988-11-26. Retrieved 2020-05-27.
  30. ^ "Mary Rhinehart, Daniels Alumna and Executive Advisory Board Member, Named President and CEO of Johns Manville | Daniels College of Business". daniels.du.edu. 2014. Retrieved 20 January 2014.
  31. ^ "CEO change at Johns Manville". American City Business Journals. Archived from the original on 29 November 2012. Retrieved 27 May 2020. Todd Raba — chairman, president and CEO at Denver-based Johns Manville —"will relinquish his position with the company," [...] Mary Rhinehart [...], will replace Raba as president and CEO, effective immediately,
  32. ^ Index, Plate 5 (1921)
  33. ^ "Johns (H.W.)-Manville Company". Moody's Manual of Investments, Part 2 - Public Utilities and Industrials. Vol. 7. 1916. p. 1289.
  34. ^ "Johns-Manville Corp - Earnings". Commercial and Financial Chronicle. Vol. 138, no. 3584. 3 March 1934. p. 1573.
  35. ^ "Johns-Manville Corp - Credit Agreement Extended". Commercial and Financial Chronicle. Vol. 173, no. 4983. 5 February 1951. p. 566.
  1. ^
    • US 76,773 (Apr 14, 1868): Improved Compound for Roofing and Other Purposes[7]
    • ...
  2. ^ The H.W. Johns-Manville Company was incorporated in the state of New York on December 13 or 16, 1901 with a capital of $500,000 7% preferred and $2,500,000 common stock. The merger became effective on January 1, 1902.[8] The preferred stock was issued for cash while the common stock was exchanged for the properties valued at $2,604,133.47. In April 1913, authorized capital was increased to $5,000,000 preferred and $5,000,000 common and $2,000,000 preferred were issued,[9] but no new common was issued. The preferred was then reduced over time with the last shares called on January 1, 1923. At the same time, the 25,000 shares of common stock outstanding were exchanged 8-for-1 for 200,000 shares of the new no-par stock and 50,000 new shares made available for subscription by employees, all 50,000 were sold.[10]
  3. ^ Incorporated in the state of New York on December 28, 1926. The 250,000 shares of the old company were exchanged for 750,000 shares of the new company (3-for-1) and additionally for 75,000 shares of par $100 7% preferred stock (3-for-10). Actually transferred were the properties. The new company was not a holding company (and the old company was presumably dissolved).[10]
  4. ^ 1928[17] 1929[18]
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