Petron Corporation 2011 Review
Petron had a challenging yet very profitable 2011.
Let me start with a few of the challenges:
Unfortunately, our reportable lost time injury record of 4,096 days (11 years, 81 days) came to an end in March when one of our employees pulled a muscle in his back while moving pails. As far as injuries or accidents go pulling a back muscle is certainly on the mild side in the big scope of things but I was disappointed nevertheless to have our phenomenal streak come to an end. We are still very grateful that nobody was severely hurt in 2011.
Raw material price increases were frequent and significant throughout 2011. We received 6 different price increases from our major base oil provider not to mention the multitude of increases we received from additive and container suppliers. The base oil increases alone accounted for more than a 25% increase in our costs. The bottom line is that our margins suffered as a result of the size and frequency of price increases.
On the positive side of the ledger:
Our customer satisfaction metrics were outstanding. We reached an on time shipment percentage of 99.5%. Our customer complaints were <0.5%. Our first time through batch percentage was 98.5 %.
We passed our ISO 9001:2008 recertification audit with no major findings whatsoever.
We continued to make major inroads in the shovel business throughout the world in a large part owing to our Petro Tac EP Premium product line which continues to produce terrific results with extended component life on electric rope shovels.
Our core mining sectors of iron, copper, gold, coal and power were very strong in 2011 with huge demands put on them for production output which redounded in a need for our specialty lubricants.
Our 3rd party toll blending business saw some substantial growth due to a pick up in the general manufacturing economy as well as some additional new products we started to make in 2011.
I am proud to report that we set an all time record for sales and operating income in 2011.
My heartiest thanks and appreciation go out to all of the Petron personnel, customers, distributors, OEM’s and vendors who helped Petron achieve records in sales and operating income in 2011.
John P. McHale
Executive VP/General Manager
Bob Colombo Retirement
Bob Colombo retired from Petron Corporation effective December 31, 2011.
Bob has worked for Petron for 18 years. His first assignment was that of North American Sales Manager. Some years later he took on the responsibility of International Sales Manager. In the last several years Bob headed up our Technical Support Division.
During all of these assignments Bob travelled to numerous mining locations throughout the world selling and supporting Petron’s specialty lubricants. For those of you who truly understand the mining business you know full well that many mining locations are located in tough to get to parts of the world and when you do get there many of the lodging and eating amenities are less than ideal. In spite of the travel hardships Bob was always willing to go wherever the job required. He has wonderful tales to tell you about many of the locations he has gone to, but the point is he travelled without complaint and he went often.
Bob’s strength lies in his technical expertise of lube systems, specialty lubricants, stationary and rotating machinery and overall mechanical aptitude. He is always the happiest when he is either trouble shooting a problem or presenting OGL’s to customers or OEM’s.
Bob’s desire was to do less traveling but not quit the mining business completely. To that end, Bob has started up a consulting company and Petron is anticipating contracting with Bob to help us with OGL issues throughout the world. Only now Bob can be more choosey on where and when he goes.
Bob and his wife, Rosalia, have recently completed building a new home in a beautiful location outside of Ouro Preto Brazil.
We wish Bob well in his semi-retirement.
We want to thank Bob for his 18 years of service to Petron.
PENSOLV L945 HIGH PERFORMANCE CLEANER
Petron Launches Pensolv L945 High Performance Cleaner
Petron has recently launched a high performance cleaner designed specifically to clean open gear lubricants, greases, and oils. Pensolv L945 is very effective cleaning Petron Gear Shield from gear sets. The pleasant odor and low vapor pressure of Pensolv L945 make it an ideal plant-wide cleaning solvent. Pensolve is user friendly and free of chlorinates.
Pensolve L945 is available in aerosol, 6 gallon pails, and 55 gallon drums.
2011 Petron International Distributor Meeting
Jackson Hole, Wyoming
Sunday evening May 15th 2011 saw the inaugural banquet to the 2011 Petron International Distributor Meeting.
39 attendee’s and spouses set the stage for an enlightening, educational and enjoyable three days in the beautiful snow capped Teton Mountains of Jackson Hole, Wyoming.
While meeting attendees sat through a myriad of information from twenty seven presentations, their spouses enjoyed a guided tour of the fabulous Yellowstone National Park taking in the natural beauty and wildlife of this incredibly picturesque location.
Presentations were made by domestic and international Petron personnel along with distributors and counterparts from around the world. Guest speakers from Bucyrus, FLS/Maag and AC Equipment added to the interesting array of topics.
Brazil, Canada, Chile, China, India, Peru and South Africa were represented along with distributors operating in the United States
Petron wishes to thank all attendees for a most enjoyable and informative meeting and look forward to seeing you at the 2013 Distributor Meeting.