Harvey S. Firestone, Jr. Says That Company
Looks Forward to Year of Substantial Progress
All Directors Re-elected
Raymond C. Firestone, J. E. Trainer Named Executive Vice-Presidents
The firestone company looks forward to a year of substantial
progress, declared Harvey S. Firestone, Jr., in his address to stock
holders of the Company at their annual meeting on January 16. At the
meeting Mr. Firestone reported the highest net sales in the history of the
Company, $1,029,402,035, for the 1952-53 fiscal year.
“Our production facilities are adequate and equipped to turn out more
and better products with greater economy and efficiency than ever before,”
“We entered 1954 with 2,500,000 more motor vehicles two and one-half
years old and older than there were at this time last year. This means that
there are approximately 30,500,000 cars and 6,700,000 trucks of that age
on American highways. In total, there are nearly 52,000,000 cars and trucks
of all ages, and the demand for replacement tires should, therefore, remain
All directors were re-elected at the annual meeting of stockholders.
Re-elected were: Harvey S. Firestone, Jr., Lee R. Jackson, John J. Shea,
James E. Trainer, Harvey H. Hollinger, Leonard K. Firestone, Raymond
C. Firestone, Roger S. Firestone, and Joseph Thomas.
At the meeting of the Board of Directors following the annual Stock
holders Meeting, Raymond C. Firestone and J. E. Trainer were elected to
the newly created positions of Executive Vice-President. All other officers
were re-elected. They are: Harvey S. Firestone, Jr., Chairman; Lee R.
Jackson, President; J. J. Shea, Vice-President, Finance; Harold D. Tomp
kins, Vice-President, Trade Sales; Harold M, Taylor, Vice-President, Manu
facturers Sales; Harvey H. Hollinger, Treasurer; Joseph Thomas, Secretary
and General Counsel; Claude A. Pauley, Comptroller; Elton H. Schulenberg,
Assistant Treasurer; William D. Zahrt, Assistant Treasurer; Henry S.
Brainard, Assistant Secretary; Timothy F. Doyle, Assistant Comptroller;
Laurence A. Frese, Assistant Comptroller.
* * *
THE COMPLETE TEXT of Mr. Firestone’s address to the stockholders
at the meeting follows:
The Firestone Tire & Rubber Company on October 31, 1953, completed
a very successful year. Net sales of $1,029,402,035 were the highest in our
history. This amount compares with $965,364,427 for the previous year.
In setting this record our Company became one of the few companies
currently reporting more than a billion dollars in annual sales. In fact, it is
understanding that last year there were only thirty other such com
panies in the United States.
Net income amounted to $46,748,971, equal to $11.77 per share of
common stock, compared with $43,081,717, equal to $10.89 per common
share the year before.
Profits of foreign subsidiaries were $13,253,181. These were lower than
Pt’ofits in 1952, principally because of the reduced value of Brazilian cur
rency which followed the establishment of a free-rate exchange market.
The resumption of dividend remittances from Brazil made unnecessary any
Provision for unremitted income due to exchange shortages. Devaluation
assets located in Brazil resulted in a charge of $16,550,180 to a reserve
Pi'ovided from income in prior years.
♦ ♦ »
FEDERAL, STATE and foreign taxes totalled $109,681,148 of which
^^come and excess profits taxes were $47,400,000, excise taxes $50,241,723,
Social security taxes $5,160,861, and other taxes $6,878,564.
At the meeting of the Board of Directors Raymond C. Firestone (left)
AND J. E. Trainer (right) were elected to the newly created positions
of Executive Vice-Presidents. Mr. Firestone has been Vice-President in
Charge of Research and Development since 1949 and Mr. Trainer has
served as Vice-President in Charge of Production since 1940. They are
During the fiscal year we redeemed $2,750,000 of long-term debt and
$1,200,000 of preferred stock. Net working capital at the close of the year
was $293,337,497 as compared with $288,231,430 on October 31, 1952.
Additions to and improvement of plants and equipment, both domestic
and foreign, amounted to $43,679,581. This was the largest program of
modernization and expansion ever undertaken by the Company. Compared
with this expenditure, $24,672,257 was provided from current income and
charged to depreciation. Capacity has been materially increased and manu
facturing processes improved in all production divisions of the Company
which included passenger car, truck, tractor and earth-mover tires; Foamex.
the foam rubber used for mattresses and upholstery; mechanical rubber
goods; defense products; reclaimed rubber; Velon plastic fibers, and basic
resins for plastics.
Supplies of both natural and synthetic rubbers were ample to meet
industry requirements and there was less fluctuation in prices than during
the preceding year. The tonnage consumed was the highest in the history
of our country.
Congress enacted a law on August 7, 1953, providing for the sale of
the Government-owned synthetic rubber-producing facihties to private
industry. Actual transfer cannot take place before early in 1955. Our com
pany has urged such action for many years, believing that both the industry
and national security will benefit by greater competition as a result of
private ownership. We continue to operate for the Government, synthetic
rubber plants in Akron, Ohio, and Lake Charles, Louisiana.
'S#' si||N J
Firestone delivered his annual address to stockholders at their annual meeting on January 16 in Akron. Facing the stockholders are the
Directors, left to right, Roger S. Firestone, Harvey H. Hollinger, John J. Shea, Joseph Thomas, Harvey S. Firestone, Jr., Lee R. Jackson, James E.
Trainer, Leonard K. Firestone and Raymond C. Firestone.