Temco had by this time become a major aerospace company, making sections of almost every military aircraft being produced in America, such as the Lockheed F-104 and P2V, the McDonnell F-101 and P2V, and Boeing B-47, and many others. It acquired the Luscombe Airplane Corporation, across Dallas at Garland; played a key role in modernizing and overhauling planes for the Berlin Airlift and the KoreanWar, and became a respected competitor for all aerospace business.
Election of E. Fred Buehring to become a Vice President of Temco Aircraft Corporation, with the title of Division Manager of Temco Overhaul and Aerosystems, was announced April 29, 1960 by the Company’s Board of Directors. Buehring, 44, has built the aerosystems work into a major part of Temco business. His division at Greenville, Texas now employs approximately 1700 persons. Buehring, a native of McGregor, joined Temco in 1946 as the Company was just beginning operations He later became Assistant Director of Contract Administration, handling all of Temco’s negotiations pertaining to Air Force contracts. Named manager of the big Greenville base five years ago, he assumed responsibility for all sales, negotiation and production, directing the growth of this facility into a complete aerosystems complex. In addition to work on the KC-97, C-121 and other large military aircraft for the Air Force, the division is busily engaged in developing, testing and installing complex electronics weapons systems for special mission aircraft. A big man who puffs a pipe and “lays it on the line” when asked for comment, Buehring bases his quick answers on years of aircraft experience. He attended school at McGregor and Souther Methodist University in Dallas and has been associated with aircraft and related work since his school days. Buehring’s electio at the board meeting followed the annual meeting of Temco shareholders April 28.
President McCulloch outlined for the stockholders the rapid progress made by Temco in various aerospace fields. He pointed out that just three years ago Temco’s business consisted almost entirely of airframe fabrication and assembly. Of the 1960 backlog, approximately 45 percent is in missiles and electronics. “We have managed the change, in my way of thinking, very creditably,” McCulloch said.
With 84.4 percent of outstanding stock represented, all members of the board of directors were unanimously re-elected. In addition to McCulloch and Clyde Skeen, directors are: H. L. Howard, Financial Consultant Dallas; D. H. Byrd, D. H. Byrd Enterprises, Dallas; James M. Cumby, Senior Vice President, Republic National Bank of Dallas; O. R. Moore, President of the American Security Insurance Co, Atlanta, Ga.; H. N. Mallon, Chairman of the Board, Dresser Industries, Inc., Dallas, and Harold F. Volk, Brothers Department Stores, Dallas.
A proposal to increase from $100,000 to $140,000 the maximum number of shares of common stock which may be issued under the corporation’s restricted stock option plan was approved 92.6 percent for and only 7.4 percent against.
Other officers of the Company reelected are: Robert McCulloch, President; Clyde Skeen, Executive Vice President and General Manager; R. E. Galer, Vice President and Manager of the Missiles and Aircraft Division; Clyde Williams, Vice President and Treasurer, and W. L. Leeds, Secretary.
It was disclosed in a joint announcement April 26, 1960 by the principal officers of Ling-Altec, Inc. and Temco Aircraft Corporation that a proposal for merging the businesses of Ling-Altec and Temco will be presented in the immediate future to the Boards of Directors and Stockholders of both companies. Under the proposal, the combination would be known as Ling-Temco Electronics, Inc. It is tentatively planned that each stockholder of Temco would receive 6/10 of a share of Ling-Temco Electronics, Inc. stock for each share of Temco and that the Ling-Altec stockholders would receive one share of Ling-Temco Electronics, Inc. stock for each share of Ling-Altec. Combined sales for the two companies in 1959 were $148,764,295 and combined backlogs at December 31, 1959 were approximately $133 million. Total assets of the two companies were $69,033,283, with combined stockholders equity of $24,255,042.
Managments of both companies described the proposed merger as a major step in the fulfillment of their of their common objectives – to develop into one of the leading and most diversified companies in the electronics and missiles industries. Two continuing phases of expansion and growth will be carried out; the programming of a strong research and development team to fill the need of rounded out of commercial and defense product lines, and the continuation of a planned schedule of selective acquisitions supplementing the companies that form this group. The combination would make Ling-Temco Electronics, Inc. one of the most diversified of the leading companies in the electronics and missiles industries with outstanding management, scientific, facility and laboratory capabilities.
Ling-Temco would have proven design and manufacturing capabilities in defense programs now in progress including complete missile and ground support systems, super-power transmitters, Inconrama display systems, sonar devices, antenna systems, micro wave transmitters and receivers, servo amplifiers, airborne and ground support TV systems and a wide variety of proprietary electronic products. This broad scope of activities in the defense area would include participation in portions of the Polaris, BEMEWS, Corvus, Nike-Zeus, Hawk and Sergeant programs. In addition Ling-Temco strong product lines in the commercial field, such as radio transmitters, loud speaker systems, standard and specialized transducers, stereo and hi-fi systems, electro-mechanical coin-operated systems, performance monitor radar systems, as well as many other commercial products.
The production and engineering facilities of the companies are located in Los Angeles, California; Newark, New Jersey; Winchester, Massachusetts; White Plains, New York and Dallas, Texas. The total square footage of all facilities would be approximately 2.6 million square feet, a substantial portion of which would be owned by the company. In addition the combined companies own more than 500 acres of land, which is available for further expansion. It is contemplated that the facilities of Temco would be placed into immediate usage to augment the facilities of Ling-Altec on current Ling-Altec contracts. The company would initially employ 9,000 people, about 1,500 of whom would be engaged in engineering research and development activities. Ownership of the surviving corporation would be comprised of 20,000 shareholders. The existing management and key operational employees of both companies would continue. It is proposed that principal officers and management personnel of Ling-Temco Electronics, Inc. would be as follows: Robert McCulloch, Chairman of the Board and Chief Executive Officer. James J. Ling, Vice Chairman and Chairman of the Executive Committee. Clyde Skeen, President. Lee D. Webster, Executive Vice President. It is anticipated that the above named personnel, with some additions, will comprise the Executive Committee.
First quarter sales and earnings reported at stockholder meeting. President Robert McCulloch reported April 28, 1960 at the annual meeting of Temco stockholders that the company for the first quarter of 1960 had a net income of $375,692, after provisions of $299,209 for Federal income tax. This amounts to 22 cents per share on $1,704,608 shares of common stock outstanding.
The Navy Bureau of Weapons has awarded Temco a $1,870,000 contract to manufacture booster and sustainer motors for the Terrier surface-to-air missile. The Terrier is a supersonic missile 15 feet long, but 27 feet long with the booster added. It was developed by the Applied Physics Laboratory of Johns Hopkins University and the prime contractor for the system is Convair. The steel booster and sustainer cases which will be filled with solid fuel, will be manufactured by Temco’s Missiles and Aircraft Division at the Dallas-Grand Prairie facility. President Robert McCulloch said there will be no appreciable change in employment, but that the Terrier contract will absorb some employees now working on projects due to be phased out soon. This contract is significant in that it puts Temco in the field of fabricating solid-fuel rocket engine cases. The Terrier is used on guided missile cruisers and destroyers and is also suitable for beachhead operations with the Marine Corps. The navy lists its range as about 10 miles and its operational ceiling as “higher than conventional anti-aircraft guns.”
The Temco Electronics Division has received approximately $120,000 in Air Force contracts it was announced April 26, 1960. The Division received a $35,000 contract from the Rome Air Materiel Area Headquarters, at Griffiss Air Force Base, Rome New York, for video correlators and their installation on search radars. The correlators, a proprietary development of Temco Electronics, were purchased through a negotiated contract. In addition, Temco Electronics is manufacturing radio marker beacon receivers for the Wright Air Development Division, Dayton, Ohio, under a contract exceeding $85,000.
The Navy has awarded an additional $1,600,000 to Temco for flight test work and services on the Corvus air-to-surface attack missile, President Robert McCulloch announced. The new funds followed by a few weeks a $25,000,000 allocation to Temco for continued development and testing of the Corvus system. A test version of the Navy’s newest missile was first successfully air-launched at the Navy Missile Center, Pacific Missile Range Headquarters, Point Mugu, California, last July. The missile passed another major milestone March 15 when a successful guidance flight was completed after air-launch from an A3D Skywarrior.
Much of the data on the Corvus Missile is classified, the following information on the Navy missile was cleared by the Department of Defense and is released for the guidance of employees: The U. S. Navy announced that Temco Aircraft Corporation has complete responsibility for the air-to-surface missile known as the Corvus. Temco’s responsibility making any necessary modifications to the aircraft carrying the missile and the development ground-handling , test and checkout equipment and packaging. The Department of Defense revealed that the Corvus is a supersonic missile designed to be launched from carrier-based aircraft against heavily-defended targets, including surface ships. With the first aerial launching of a Corvus test missile on July 18, 1959, the Navy made public the first picture, an artist’s conception, of the Corvus, showing a streamlined body with delta wings and cruciform tail surfaces indexed at 45% to the wings. The first test launching at Point Mugu, California was a complete success. At that time the Navy identified W. L. Maxson Corporation of New York and Texas Instruments of Dallas as subcontractors on the Corvus guidance system and Thiokol Reaction Motors Division as manufacturers of the Corvus pre-packaged liquid-propellant rocket engine, Patriot. Pre-operational testing of the Corvus continues. On March 15, 1960, the first guided flight of a test version of the Corvus was completely successful. All other information on the Corvus is classified in accordance with regulations to maintain Defense security.
National distribution of Temco Industrial Division’s Temco-Matic central control unit for coin-operated laundries is underway on an accelerated scale. The revolutionary Temco-Matic new convenience for customers and solves many of the problems previously confronting owners of the increasingly popular coin-operated laundries. A single Temco-Matic central control unit can operate up to 52 washers and 26 dryers from one central point with all money being deposited automatically in an underwriters approved fully insured safe that is securely fastened to the floor. Pilfering of individual coin receptacles in the past, not only cost laundry-owners loss of receipts, has resulted in extensive damage to the machines as well. Production units available in three models and six colors will begin rolling off the production lines in May. Frigidaire became the first washer manufacturer to market a machine adapted to the Temco-Matic.
Temco is learning a new way to shape metals. It is called shear forming. The comparatively new chipless machining technique replaces the time-consumihg, waste-producing process of forming cylindrical or conical shapes, such as missile fuselages or nose cones, by forging milling, filing and polishing. Shear forming is much faster and produces much less waste.
Grand Prairie production crews are using the new filament winding process to fabricate components of classified electronics devices. Although production is limited at this time, Temco is continouslly improving its ability to use the new process. Filament winding is a method of manufacturing reinforced plastic parts from long lengths of man-made thread (or filament), impregnated with resin, by winding the filament around a mandrel , much in the way a fishing reel works.
Stockholders of Temco Aircraft Corporation and Ling-Altec Electronics will decide by July 11 whether to combine the two businesses as Ling-Temco Electronics, Inc. The combination, if approved, will not materially affect the status of Temco employees. A new company, Temco Electronics and Missiles Company (the new name with initials again spelling out T_E_M_C_O) will be formed and will become the largest subsidiary of Ling-Temco. All current employees of Temco will become employees of the newly constituted Temco Electronics and Missiles Company. If the combination is approved by the stockholders, Temco would have the same officers and same four operating divisions and the same subsidiary, Fenske, Fedick and Miller, Inc., as now.Temco’s current Group Insurance Plan, Pension Plan, and Retirement Income Plan (formerly called Profit Sharing Plan) would be continued as now for the Temco Electronics & Missiles Company. Temco’s present stockholders will become stockholders of Ling-Temco on a stock-exchange basis. The detailed provisions for the combining the two businesses were listed in the agreement contained in the proxy statements recently mailed to the stockholders of both Temco and Ling-Altec.” President Robert McCulloch in a recent public statement explained why these provisions were included in the agreement: “I was in Temco from the initial forming of the Company, and you can be sure I am interested in Temco continuing. I am interested in the people that made Temco, the people we have had working for us all of these years. I am interested in their future.” “This new grouping will result, and continue to work for those people, their advancement and a level of living which will be satisfying to them.” McCulloch also explained why the combination was proposed: “I think, just summing up, it gives Ling-Altec an opportunity for growth; it gives Temco an opportunity for growth. It gives us both an opportunity to grow in a type of business we want to grow in.” We eliminate lost time and we are able to move much more rapidly by grouping our resources together. “That is the principal reason: To cut out the time lag and to select areas we want to participate in that will be within in our capabilities, of real significance and importance in the general picture that confronts industry today.”
Ling-Altec Electronics and Temco Aircraft Corporation stockholders voted overwhelmingly July 11 to combine the two firms into Ling-Temco Electronics, Inc. Ling-Temco is a strong integrated company, at least three years ahead of the growth capacity of either company alone, with greater more diversified capabilities than any other firm with primary production in the pure electronic and aerospace fields, said Chairman of the Board, Robert McCulloch and President James J. Ling. Ling-temco at its birth strong technically, strong financially and has already penetrated the markets in which it will compete. With the combined skills, facilities, management and financial capability now at its disposal, Ling-Temco can fully exploit the potential of today’s highly sophisticated aerospace markets, McCulloch, Chief Executive Officer of the new Company said. Temco has grown in just 15 years from a manufacturer of airframe components and commercial products into a large Space Age electronics and missiles company. And Ling-Altec in less that 10 years has become a diversified producer of commercial and military super-power electronics. "And we “intend to keep growing”, said Ling, who is also Chairman of the Executive Committee of the new company, “both by internal development and acquisition when further broadening of our efforts appears profitable.” Combine sales of Ling-Altec and Temco in 1959 were $148,723,916 and combined assets were $67,033,945. This will rank Ling Temco among the top 300 companies in America.
In addition to McCulloch and Ling, the other two top management executives of Ling-Temco will be Clyde Skeen, executive vice-president and general manager, and Lee D. Webster, vice-president, secretary treasurer.
Temco again was among the nation’s top 500 firms, based on total sales, according Fortune Magazine’s survey covering 1959 financial figures. The company was ranked 386th and was one of only 10 Texas firms to make the list. Combination of the businesses of Ling Altec Electronics and the company to form Ling-Temco Electronics, Inc. should result in a higher ranking next year.
Temco will manufacture aluminum and outer shells for the guidance and warhead sections of the Army’s Hawk surface-to- air missile under contract from the Raytheon Company’s Missile Systems Division. The initial order is valued at $250.000 and the work will be accomplished at Temco’s Garland facility.
Air Force’s Biggest Turboprop Among Latest Greenville Jobs. Contracts totalling more than $8000,000 have been added to Temco Overhaul and Aerosystems Division’s backlog bring to more than $12,000,000 the amount of work announced by that
division since July 12th. Overhaul and Aerosystems has received: A $1000.000 contract for PARC (Progressive Aircraft Reconditioning Cycle) on the huge C-133 Cargomasters; a $$2000,000 PARC order for work on the C-121G Super Constellations, and a $5000,000 award for maintenance and modification of KC-97 aerial tankers. These contracts followed a $4000,000 contract for on-base maintenance of C-118 Transports at McGuire Air Force Base, New Jersey. E. Fred Buehring Temco Vice President and Division Manager said the contracts at Greenville would assure a continued high level of employment and that “total work requirements will be about the same as last year.”
The C-133 contract was awarded by the San Bernardino Air Materiel Area of the Air Materiel Command (AMC) and calls for the first aircarft to arrive in Greenville in August. Deliveries will continue through July 1961. The
C-133 is the Air Force’s largest four-engined turboprop cargo transport in service.