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,” he said. “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 high.” 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 both directors. 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. m mWi ^ I '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.
