Page 4
February 16, 1960
^JHTIO^JS AND IMPROVEMENTS to plants and equip
ment r'amounted to ^$48,4/76,032 during the year. At the Des Moines
plant/for »««ample, Hhis new line of 75-inch automatic bladder-type
presses was .installed for ithe curing of agricultural tires.
T®EILTMTNA^RY IEINGINMBkLNG has been completed for a
plant to fbe erected jat itihe TIireStone Petrochemical Center in Orange,
Texas, ^ar Ihe .manufacture ;of Coral and Diene synthetic rubbers,
both ‘of \whfidh '.were (developed in the >Firestone research laboratories.
It is expected ithat theijilant (shown here in an artist’s conception)
will begin ^operafion iin 1961 ^and ’have a yearly capacity of 30,000
long irons.
AMONG NEW AND IMPROVED products introduced during
the year were Accu-Hide precision-made wheels for trucks and
buses. A unique new thru-welding process is used to mass produce
the precision lieavy-duty wlieels at the Wyandotte, Mich., plant.
Previously the rim and disc—the two components of a wheel had
usually been unit«d by riveting or spot welding.
cismi
RUBBER CONSUMPTION throughout the world was the
highest in history. Above, Art Buck of the Hamilton, Ontario, plant
stacks tires in a warehouse. From here they are transported to
motor vehicle manufacturers or to trade distribution points.
of two per cent on the Common Stock, was paid on October 30. Cash
dividends on Common and Preferred Stocks amounted to $22,456,162. As
a result of the stock dividend, $1,077,700 was transferred from Income
Invested in the Business to Capital Stock and $20,346,976 to Additional
Capital. Your Board of Directors, at a meeting held on November 17,
1959, increased the quarterly dividend on the present Common Stock
from 65c to 75c per share, effective with the dividend payable January
20, 1960.
Your Board of Directors has approved, and recommended to holders
of Common Stock, that a stock split of three shares for one be approved,
and to accomplish the split the Articles of Incorporation be amended,
increasing the number of shares of Common Stock from 12,000,000 with
par value of $6.25 to 36,000,000 without par value. The proposed
Amendment is being submitted today to holders of shares of Common
Stock. It is expected that this action will result in a market price for
the stock more attractive to investors and will increase public interest
in the Company’s business.
On November 1, 1958, under the 1951 Incentive Stock Option Plan,
62,056 shares of Common Stock were subject to outstanding options.
During the year ended October 31, 1959, options for 28,715 shares were
exercised and options for 1,001 shares were cancelled. No options
expired and the period during which further options could be granted
terminated on July 1, 1958. On October 31, 1959, after giving effect to
the 2% Stock Dividend, there were 32,949 shares subject to outstanding
options. The purpose of the Plan was to secure for the Company and
its shareholders the benefits of the incentive inherent in Common Stock
ownership by key employees who, in the judgment of the Board of
Directors, would be largely responsible for its future growth and con
tinued success. Your Board of Directors has determined that the
company has benefited substantially from the 1951 Plan, and is sub
mitting a new Plan for approval at this shareholders’ meeting today.
* * *
ADDITIONS and improvements to plants and equipment amounted
to $48,476,032, compared with $37,766,473 last year. Provision for de
preciation amounted to $40,661,088, compared with $41,415,782 for the
previous year. Extensive programs of modernization were begun in all
of our North American tire plants. In addition, manufacturing capacities
are being increased in our plants in Akron, Memphis, Pottstown, Des
Moines, Quincy, Lake Charles, Los Angeles, Buenos Aires, Sao Paulo,
Valencia, and Bombay.
We purchased facilities for the manufacture of polyurethane foam,
and a plant at Hopewell, Virginia, to be operated by a new division, the
Firestone Synthetic Fibers Company, for the production of nylon and
polypropylene resins.
A plant for the manufacture of Fibrocast is in operation at Magnolia,
Arkansas. Fibrocast, a new development, is a fibrous material which can
be molded in many forms and has a wide variety of applications.
The new tire plant at Alcochete, Portugal, is now in operation. A
new tire factory is under construction at Calgary, Alberta, Canada.
Preliminary engineering has been completed for a plant to be erected
at the Firestone Petrochemical Center in Orange, Texas, for the manu
facture of Coral and Diene synthetic rubbers, both of which were
developed in our research laboratories. Coral rubber is the man-made
equivalent of natural rubber, while Diene rubber can be used for many
purposes which formerly required natural rubber.
* * *
WE ORGANIZED a company in France to engage in the manufac
ture and sale of Firestone tires, related products, and synthetic rubber*
We have joined with local businessmen in India to form a company