Feb
•■uary, 1963
KIIWS
Page 3
Chairman Reports Record Sales, Growing Markets
★ ★ ★
Stockholders Meet. Re-Elect Nine Directors
The combination of an improving economy, diversified activities and
skilled manpower should lead to another sales record and increased profits
the company this year, Chairman Harvey S. Firestone, Jr., said in his
Report to stockholders at their annual meeting at the home offices in
Akron on January 26.
At their meeting the stockholders re-elected the nine incumbent
'directors: Harvey S. Firestone, Jr., Lee R. Jackson, Raymond C.
firestone, James E. Trainer, Leonard K. Firestone, Roger S. Firestone,
Joseph Thomas, Earl B. Hathaway and Elton H. Schulenberg.
At a meeting of the board of directors which followed the stock
holders’ meeting, two new vice presidents, a new assistant treasurer and
^ new assistant comptroller were elected.
R. D. Thomas was elected vice president of trade sales and A. N.
Stuart vice president of manufacturers sales. Reid J. Montgomery was
^smed assistant treasurer and J. G. Stoneburner assistant comptroller.
Officers re-elected at the directors’ meeting were: Harvey S.
firestone, Jr., chairman; Raymond C. Firestone, president; James E.
'Trainer, Earl B. Hathaway and Elton H. Schulenberg, executive vice
P^'esidents; Joseph A. Meek, Louis J. Campbell, Herbert H. Weidenmann,
John N. Street and Byron H. Larabee, vice presidents; John F. Floberg,
Secretary and general counsel; Robert P. Beasley, treasurer; Lee R.
Shannon, comptroller; Elden H. Eaton, assistant treasurer; Henry S.
^rainard and Stanley M. Clark, assistant secretaries, and John K.
Sftiucker, assistant comptroller.
Report of Harvey S. Firestone, Jr.
The complete text of the address of Chairman Harvey S. Firestone,
at the stockholders’ meeting follows;
On behalf of the Board of Directors, it is my pleasure to report to
on the progress of The Firestone Tire & Rubber Company.
The fiscal year ended October 31, 1962, became the eighth straight
^^ar that our sales have exceeded one billion dollars reaching an all-time
high of $1,277,691,871. I am pleased to report that every quarter of the
^ear set a new record in sales and the fourth quarter was the highest
ever recorded in the history of the company.
Net income was $60,034,371 compared with $63,629,538 the previous
^ear. Net income was adversely affected by foreign currency devalua
tions, start-up costs for two new foreign plants, generally lower tire
Prices, factory relocation expense to improve efficiency and economy and
the cost of developing new products.
You have before you the annual report for the year and you have
heard the Treasurer’s report. Therefore, I should like to talk to you about
plans for the new year and the years ahead and to discuss the out
look for business as we see it for 1963.
We anticipate that the new year will again be a record-setting year
sales. We also see many signs that our profits will be improved over
1962.
Indications are that gross national product, industrial production,
disposable personal income, highway expenditures and other pertinent
^actors will all be on the rise in 1963.
In 1963, the rubber industry expects to set a new record by shipping
1^2 million passenger, truck and tractor tires. It is estimated that 91.7
Million of these will be replacement tires and, of this total, 80 million will
he passenger car tires.
We are planning now for the great sales opportunities ahead. The
f^otential tire market for 79 million vehicles is only one factor. Increases
in car mileage and the number of cars per family unit, as well as the
growing system of state and federal highways and the continuing growth
of suburbia, are also important considerations. Today, American motor
ists are able to enjoy their automobiles more for recreation and vacation
trips, and this means an ever-expanding market for tires and auto
supplies.
We have available a broad field of synthetic compounds from which
we can make an ever-increasing array of products. These materials will
permit us to improve our existing products and to move into new product
fields through expanded research and development.
New and better synthetic rubbers will account for 75 per cent of
total rubber consumption in the United States in 1963 and 50 per cent of
total world consumption.
Production Expanded
As you review our annual report you will note that we have taken
some definite steps toward preparing for future growth. While the major
portion of our business is the manufacture and sale of tires for every
type of vehicle, we have been diversifying steadily for more than a
quarter of a century. Today, we are important producers of metal prod
ucts, synthetics, chemicals, textiles, adhesives, plastics and defense equip
ment.
We have increased our production facilities in foreign countries to
meet the tire requirements of rapidly-growing car populations and high
way systems all over the world.
Our Company completed negotiations for the construction of the
first tire manufacturing plant in Thailand. Firestone will be the principal
stockholder and will operate the Firestone-Thai Company. A portion of
the financing has been arranged through the Export-Import Bank and
Company investment will be insured under the Investment Program of
the Agency for International Development. This will be our twenty-first
foreign tire manufacturing plant and is further evidence that your Com
pany is staying abreast of the ever-expanding overseas tire market.
We are now nearing production at the new butadiene, styrene and
synthetic rubber plants at Bareilly, India, in which our Company has a
substantial financial interest.
Worldwide Growth
We have taken important steps in other fields: namely, an agreement
to provide technical assistance to the Asahi Chemical Company of Osaka,
Japan, for the production of Nylon 6 cord in Japan; also a technical as
sistance agreement with Toyo Rayon Company of Tokyo for the produc
tion of caprolactam, the raw material used in manufacturing Nylon 6;
and the formation of a company for the production of spandex polyure
thane yarns with Courtaulds, Limited, at Coventry, England.
Our process for the production of polybutadiene synthetic rubber
will be employed in a new five-million-dollar plant under construction at
Grangemouth, Scotland. The plant is being built by the International
Synthetic Rubber Company in which we have an investment.
The purchase from the United States Government of the Signal
Corps Depot at Decatur, Illinois, which is rapidly being converted into a
modern tire manufacturing plant and warehouse, is another step toward
preparing for future growth. We expect to start production at Decatur
early in March. This will be our eighth tire manufacturing facility in the
United States.
^ _ I
SERVICE to customer is of utmost im
portance, bringing latest computers into
action. Sales needs are calculated electroni
cally to speed shipping and warehousing
operations and to coordinate production at
company plants throughout the nation.
MILESTONE was reached in 1962 with
30th anniversary of the tractor tire.
Firestone introduced specially designed tires
for agricultural use at the 38th annual plow
ing contest at Big Rock, 111. in 1932—the first
step in “putting the farm on rubber.*^
EXPANSION of production facilities in
cluded new tire plant to open in March in
Decatur, 111. Governor Otto Kerner (right)
tells Harvey S. Firestone, Jr. (left), chair
man, and Raymond C. Firestone, president,
the company will be welcome in his state.