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| Title | Marriott Corporation, 1969 Annual Report |
| Creator (LCNAF) |
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| Publisher | Marriott International, Inc. |
| Date | 1969 |
| Description | Marriott Corporation Annual Report for the 52 weeks ending on July 27, 1969. |
| Subject.Topical (LCSH) |
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| Subject.Name (LCNAF) |
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| Genre (AAT) |
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| Language | English |
| Type (DCMI) |
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| Original Item Location | Marriott Hotels Collection |
| Digital Collection | Annual Reports from the Hospitality Industry Archives |
| Digital Collection URL | http://digital.lib.uh.edu/collection/hiltonar |
| Repository | Hospitality Industry Archives, Conrad N. Hilton College of Hotel and Restaurant Management, University of Houston |
| Repository URL | http://www.uh.edu/hilton-college/About/hospitality-industry-archives |
| Use and Reproduction | No Copyright - United States |
| File Name | index.cpd |
| Title | Image 4 |
| Format (IMT) |
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| File Name | hiltonar_201609_040_004.jpg |
| Transcript | 97n *IN MILLIONS 1Rft ftn 1 «. I I „ I I '60 '61 '62 '63 '64 '65 '66 '67 '68 '69 jzt - INCOME - *IN MILLIONS '62 '63 '64 '65 '66 '67 '68 1969 excludes special gains struction of Marriott Inns nationwide, and the first one has just opened near San Francisco. In airline catering, we continued to add new airline accounts, and the number of flight kitchens in the United States, South America, Europe and the Caribbean increased by 12. The In-Flite Services Group now serves some 85 scheduled and supplementary carriers around the world, from 44 flight kitchens. The Group also took the lead in making extensive preparations during fiscal 1969 for service to the new generation of "jumbo jets." Records Achieved Despite Difficulties We are particularly pleased to report that we achieved large gains in sales and earnings despite several major obstacles. The number of employees is approaching 25,000 and inflation in wage scales continues to affect our costs. Our extensive building program is occurring at a time when construction costs are soaring, and our needs for financing to help support this new construction have been accompanied by record interest costs. Food costs, as every homemaker knows, are rising. Difficulties have been particularly severe in our airline catering operations. Low airline profits have caused pricing problems, and airline strikes and air traffic delays were pronounced in our fiscal 1969. These conditions reduced profits considerably. However, with fare increases recently granted to the airlines we hope to achieve a reasonable improvement in our pricing commensurate with our rising costs. We remain optimistic about continued profitable growth in airline catering sales as more travelers enter the age of jumbo jets. Finally, it should be noted that start-up costs have been heavy, as we open new units at a record pace. We also have continuing start-up problems at the Fairfield Farm Kitchens facility. This huge commissary was built for the long term, however, and a short-range drain on profits was anticipated. That we were able to overcome these and many other problems and complete the kind of year we are now reporting to you is a tribute to the devoted management group and loyal, capable employees who we believe make the best company team in the food service-lodging industry. Many seasoned professionals joined our expanding management group the past year, including George A. Stewart, who had been vice president for operations at R. J. Reynolds Foods. Mr. Stewart is vice president for manufacturing, procurement and distribution, and assumes direction of our new commissary. Company Financial Condition Strong We ended the fiscal year in excellent financiar condition. Despite considerably higher interest costs, net working capital totaled $6.2 million. We have a rigidly-monitored cash management program, and current assets include $12.4 million in short-term tax-exempt securities. Convertible subordinated notes and debentures amounting to $28 million were sold during the year. In this connection we have reserved 710,736 common shares for future conversion. Shareholders' net equity now stands at $77.8 million, or $6.42 per average share. This is 37 per cent greater than last year, and represents a solid base for continued expansion. Capital expenditures in fiscal 1969 amounted to |