The Akron Beacon Journal from Akron, Ohio • Page 132

Page 1114, Sunday, June 22, 1997 The Beacon Journal The Northeast Ohio Medusa good fortune is set in stone Mies- JMrn y-x 'S uf-- TIm mJt idftl, inWftttn Demand for cement is up, thanks to steady increases in con-structioa After years of overcapacity, the industry lagged in capital spending, and as a result, production has not kept pace. Because new production capacity isn't added easily, supply can't be increased quickly, which has helped price increases hold. Behind the rising demand: an economy in its seventh year of expansion, supported by low interest rates, low inflation and high consumer confidence. With strong demand for cement outstripping domestic supply, some companies are importing to make up the difference. Medusa, for example, imports about 16 percent of its cement About half of Medusa's revenues are from government and other publicly funded projects.

Those projects, which are growing in number, include publicly funded roads, sewers, bridges, highways and prisons. Medusa cement has been used in the construction of the Great Lakes Science Museum, additions to the Cleveland Clinic and reconstruction and repairs on Akron's Central Interchange. Medusa cement also was used in portions of Akron's Canal Park baseball stadium and will be used for the foundation of Cleveland's new football stadium. A 1993 acquisition of a cement plant in Atlanta paid off last year as construction boomed in the region, thanks to the continuing effects of the Summer Olympic Games. Congress has helped, too, passing a $38 billion federal transportation bill that included a record $20.03 billion for highway spending in fiscal 1997.

Of the company's remaining sales, about 25 percent came from commercial and industrial building construction. Much of the rest came from new housing starts, and about 5 percent came from inside: the James H. Drew its construction service and highway safety business subsidiary. "The strength in the cement stocks has been dramatically upstaged by progress on the bottom line, which has exploded from losses at the start of the decade into the industry's most profitable run since the 1950s," according to a recent report by ING Barings, a Dutch-owned international invest- Cleveland Heights-based cement-maker is catching attention of Wall Street By David Adams Beacon Journal business uriJer Cleveland Heights: The Medusa of Greek mythology was a snake-haired Gorgon. Her revolting looks would turn to stone anyone who so much as laid eyes upon her.

Ohio's Medusa ain't so ugly. Instead of turning faces to stone, the Cleveland Heights cement-maker is turning stone into profit. The company landed 10th in this year's Beacon Journal Northeast Ohio 50, largely because of recent business success of mythological proportions. Medusa operating efficiencies, low-cost transportation and shrewd management coupled with an increasing demand for cement helped solidify the 105-year-old company's best year ever. Put simply, Medusa saw net income rise 26 percent, or 2V2 times as fast as sales, which grew 10 percent.

Return on equity, at 35 percent, outpaced even earnings growth. Medusa cut its debt almost in half from the previous year, saving on interest expenses. Adding to its capacity base, Medusa bought up competitors' underperforming facilities in crucial and growing sectors such as lawn and garden products, which includes decorative stone. Medusa even raised cement prices twice in the last 14 months, and still has new orders piling up. President George E.

Uding Jr. and Vice President Breck Denny are confident about what's ahead. "We weren't surprised," Denny said of last year's performance. "If you look at our 1995 annual report, we were expecting a good year in 1996. We're looking for another record year in 1997." But while Medusa's executives may be patting themselves on the back, they admit their good fortune is not solely the product of management expertise.

The cement industry is setting up for a run not seen since the 1950s, analysts say. ED SUBA JR7 Beacon Journal A cement mix manufactured by Medusa Corp. of Cleveland Heights will be used under the foundation of Cleveland's new football stadium. "flTh Medusa Corp. Cleveland Ohio 44118 Makes and sells cement.

1995 Revenue: Income: EPS: $2.68 1996 $3.24 Employees: 1,100 Stock Symbol: MSA Primary Exchange: NYSE formed the Sandusky Portland Cement Co. Close to quarries and waterways, the company grew quickly, enjoying decades of steady growth and key acquisitions. More acquisitions followed in the 1960s and 1970s. By 1972, fully one-third of the company's business was in noncement products. After other name changes, the company finally settled on Medusa taking the many-headed serpents of Medusa's mane as a symbol of its many interests.

In 1979, the company was taken over by the Connecticut-based Crane and was quickly put under the knife in an effort to reduce waste and to generate cash. Five plants were closed or sold within four years. In 1988, Crane spun off Medusa, making it independent again. ment bank. But while the industry may be on a big wave, Medusa is riding the crest Wall Street has taken notice.

Medusa's "performance in particular was also reflective of some very tight cost controls, aid strong operating performance. It is a company that is very well managed," said industry analyst Peter Dannenbaum, of New York-based Morgan Stanley. Medusa's stock has responded impressively, rising 43 percent from January 1996 through the end of May, which compares to a 29.3 percent return on stocks that make up the Standard Poor's index of 600 small cap industrial companies. The company traces its roots to Sandusky, where in 1892 a group of scientists and entrepreneurs 45 I Weekly Closing Price George tiding Jr. President, COO Age: 64 1996 salary: $330,000 1996 bonus: $254,368 Shares owned: 106,634 40TfiIfirfEl ysr 35 JLast5gggg JU 20 53097 122995 51 Aeroquip-Vickers Inc.

Maumee 22 Developers Diversified Rlty. Moreland 63 tubrizol Corp. Wickliffe 79 Revco D.3. Inc. Twinsburg 100 AK Steel Holding Corp.

Middletown Hills 89 Ml Schottenstein Homes Inc. Columbus 12 Reynolds Reynolds Dayton 40 American Annuity Group Cincinnati 13 Diebold Inc. Green 29 McDonald Co. Investments Cleveland 59 Riser Foods Inc. Bedford Hts.

67 American Electric Power Columbus 84 DPt Inc. Dayton 20 Medusa Corp. Cleveland Hts. 4 RMI Titanium Co. Niles 15 American Financial Group Inc.

Cincinnati 18 Durco International Inc. Dayton 34 Meridian Diagnostics Inc. Cincinnati 94 Roadway Express Inc. Akron 88 Applied Industrial Tech. Inc.

Cleveland 93 Eaton Corp. Cleveland 73 Mid-Am Inc. Bowling 24 Robbins Myers Inc. Dayton 77 Arbor Health Care Co. Lima 37 Essef Corp.

Chardon Green 80 Rocky Shoes Boots Inc. Nelsonville 54 Associated Estates Rlty. Corp. Cleveland 78 Fabri-Centers Of America Hudson 87 Myers Industries Inc. Akron 74 Royal Appliance Mfg Co.

Cleveland 9 Banc One Corp. Columbus 99 Ferro Corp. Cleveland 28 National Auto Credit Inc. Solon 58 RPM Inc. Medina 91 R.G.

Barry Pickerington 11 Fifth Third Bancorp Cincinnati 10 National City Corp. Cleveland 49 Rubbermaid Inc. Wooster 33 Belden Blake Corp. North Canton 6 Figgie International Willoughby 95 National Gas Oil Co. Newark 19 Sherwin-Williams Co.

Cleveland 42 Belmont Bancorp Bridgeport 76 First Financial Bancorp Inc. Hamilton 72 Nordson Corp. Westlake 38 Sifco Industries Cleveland 7 Chart Industries Inc. Eastlake 23 FirstMerit Corp. Akron 90 Ohio Edison Co.

Akron 44 Sinter Metals Inc. Cleveland 3 Charter One Finl Inc. Cleveland 83 Glimcher Realty Trust Columbus 74 OHM Corp. Findlay Skyline Chili Inc. Fairfield 32 Chase Industries Inc.

Montpelier 48 Health Care Retirement Toledo 71 OM Group Inc. Cleveland 69 Standard Register Co. Dayton 96 ChemedCorp. Cincinnati 36 Health Care Reit Inc. Toledo 39 Omnicare Inc.

Cincinnati 17 Star Banc Corp. Cincinnati 1 Cincinnati Bell Inc. Cincinnati 85 Holophane Corp. Columbus 55 Owens-Illinois Inc. Toledo 14 SterisCorp.

Mentor 86 Cincinnati Financial Corp. Fairfield 46 Huntington Bancshares Columbus 50 Park National Corp. Newark 5 Structural Dynamics Research Milford 68 Cinergy Corp. Cincinnati 26 Insilco Corp. Dublin 27 Parker-Hannifin Corp.

Cleveland 97 Symix Systems Inc. Columbus 16 Cintas Corp. Cincinnati 31 Invacare Corp. Elyria 70 Peoples Bancorp Inc. Marietta 57 Telxon Corp.

Fairlawn 45 CitFed Bancorp Inc. Dayton 43 KeyCorp Cleveland 56 Pioneer Standard Electronics Cleveland 47 Timken Co. Canton 64 Citizens Bancshares Salineville 41 Lancaster Colony Corp. Columbus 21 Procter Gamble Co. Cincinnati 92 Value City Dept Stores Inc.

Columbus 65 Cleveland-Cliffs Inc. Cleveland 62 Limited Inc. Columbus 8 Progressive Corp. Mayfield Hts. 28 Wendy's International Inc.

Dublin 2 Comair Holdings Inc. Cincinnati 35 Lincoln Electric Co. Cleveland 25 Provident Bancorp Cincinnati 52 Worthington Foods Inc. Worthington 82 Cooper Tire Rubber Findlay 98 Liqui-Box Corp. Worthington 60 PubcoCorp.

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